‘Can we take two personal loans at a time?’ is a common question you may have when you need substantial financing. The good news is that you do so. These additional funds allow you to handle various unexpected or planned expenses like:
Read on to know more about getting two personal loans simultaneously, important things to consider and alternative options.
Once you qualify for them based on the terms set, you can get 2 personal loans at the same time from different lenders. Usually, your second application for unsecured credit may be approved by the same financial company. Further, certain conditions may apply, such as paying a specific number of EMIs on your first loan before you get your second loan.
Lenders consider the following to assess your repayment ability no matter how many loans you apply for:
Here are some points you must consider before getting another loan:
When you send in your application for multiple loans one after another, your CIBIL or credit score reduces. This is because lenders run a hard inquiry to check your score whenever you send your loan application.
This helps them assess your repayment ability and reject applications that carry higher chances of default. Multiple applications within a short span of time can impact your creditworthiness and thus decrease your score.
As you may know, the debt-to-income ratio refers to the amount of debt you have in comparison to your income or earnings. Banks or NBFCs check this ratio before approving your second loan application.
Since you have existing debts, securing another loan will increase your debt obligation and thus increase this ratio. This may lead a rejection of your application. Try to keep your total DTI ratio at less than 40% of your income to increase the chances of loan approval.
The more credit you have to repay, the more you strain your income. Thus, a second loan can impact your affordability and result in delayed EMIs. This may attract late charges and penal interest, which increases your obligations even more and can lead you into a debt trap.
Planning your EMIs beforehand can help protect you from this scenario. You must assess the following before deciding to apply for a second loan:
Loans come with various types of costs, such as:
Before finalising your loan option, it is important to consider these charges. This can help you reduce your borrowing costs and make your loan repayment easier. A higher interest rate means larger EMIs, which can affect your finances. Remember to research and compare various lenders and choose an option with lower charges.
If you have applied for a loan with multiple lenders or already service a large number of loans, you may need to wait to get additional loans. This is because a high number of loans show a high reliance on credit and multiple rejections can lower your score.
This can lead to rejection of your loan application since the lender might question your creditworthiness. Therefore, limit your loan applications, or if you have recently taken up a loan, wait for some time before applying for a second loan.
Check out some alternatives to getting an additional loan:
Choosing the right lender can help you get the funds affordably and hassle-free. With Fibe’s Instant Cash Loan, you can get up to ₹5 lakhs at nominal interest rates. You enjoy other perks like an easy online application, minimal paperwork and zero pre-closure charges. Download the Personal Loan App or log in to our website to get the funds and cover your financial needs effectively!
With a low debt-to-income ratio and meeting the eligibility criteria, you can get two loans.
Multiple loans can lower your credit score since your repayment capacity decreases. Multiple hard inquiries within a smaller gap can also lead to a lower score.
If you can repay it without strain, you can benefit from an additional loan to meet your needs. However, it can have some disadvantages, like:
You may be able to get additional loans from different lenders following the online or offline application procedures. You can also do so on relevant apps and check the eligibility criteria and other requirements before applying.