How many Personal Loans can you have at Once?

At once how many personal loan can we avail?

Existence is unforeseeable. Unforeseen events outside your control will increase the need for financing. Sometimes, certain opportunities scream and need to be grabbed and taken advantage of before someone takes you away. Therefore, even though you took a personal loan earlier, you might need to take another personal loan. Nonetheless, before applying for several personal loans concurrently, other items must be considered.

Ensure sure the calculation of personal eligibility for loans recognizes the maximum amount of credit for which you are eligible solely based on your age, location, income and current obligations.

Before you apply for another personal loan, here are a few things you should consider:

Impact on human resources

Loans and the unpaid interest will be reimbursed sooner or later. An extra loan will increase the monthly EMI requirement and increase your savings.

Higher rate of interest

However, taking several loans raises the risk of a loan default. The subsequent loan is therefore offered as additional compensation or premium at a higher interest rate for a higher risk of default.

Further documentation

Bear in mind that you take a further risk when you opt for a second loan and the lender is aware of that. The lender can therefore seek extra documents until the lender is sure that you have the money to repay the loan.

Cycle of debt

You may be trapped in a perpetual cycle of debt. Although it may be a good solution to take a second personal loan to address your financial requirement, you will always find yourself in an unending state of debt. It may also be better to consider alternate choices if you just need money for an imminent cost.

Rating Equity

Financial institutions also need a minimum loan score to be eligible for an applicant’s personal loan. So, if you failed earlier in repayment or delayed EMI payment, taking a loan may not be a viable option because it would have been a big hit for your credit score. The weakening effect on credit score is another downside of opting for multiple loans. If you choose a 2nd personal loan, it will certainly remove some points from your credit score. It will probably make it harder to apply for a loan next time, or the bank will provide future loans at an interest rate higher than average.

Resources and obligations

See your assets and liabilities, eventually. As clear as it might sound, your assets must not be far from exceeding your liabilities. Assets will give you this additional coffin if you can not pay the EMI for your net monthly income. Financial obligations can also determine the ability to take and repay loans.

Debt / Fairness

The ratio of your debt to revenue plays an important role. Usually, when you earn more than 40% of your discretionary income, you are made unqualified.

Multiple Loans Alternatives

Instead of opting for multiple loans, there are few alternatives:


This is the old law, but the most effective: cut needless costs, re-examine your living costs and reduce your savings as much as possible. This is not really prudent to take on additional debt without a good understanding of how, in addition to the increased EMIs, you can handle your normal expenses.

Flow of Personal Loan Balance

The facility provided to a borrower is a personal loan balance transfer to transfer the outstanding amount from one bank to another. It can be a better choice if you need a replacement and you are not happy with the choices your current lender provides. You can choose to transfer a personal loan balance to another lender and negotiate additional personal loans. This offers additional loans at affordable rates and eliminates the burden of handling two loans from separate lenders.

Consolidation of Debt Lending

The personal loan for debt restructuring is a loan made with the assimilation and restructuring of all current debts / liabilities into a single loan, which results in a single amount payable on a monthly basis. Multiple debts are combined to form one larger debt with new and favorable pay-as-you-go terms. You are able to repay all the debts by receiving a personal loan instead of taking a car loan, a wedding loan, a loan for various expenses, and you can make a single monthly payment as an EMI for the payment of your personal loan.

The key advantage of a debt restructuring loan is that several loans with differing interest rates, different payment tenures and various characteristics should not be tracked in separate EMIs. In the turmoil of multiple EMIs, if you skip a single EMI payment, your credit score will hit a huge amount, your reputation will fall and you will find it impossible to take a loan at an reasonable rate in future. In addition, some EMIs provide luggage with endless paperwork and the effort to hold various documents with heaps of paper.

In comparison to other financing options, you do not need to offer any personal loans. At the convenience of your mobile or computer, you can opt for an instant personal loan anytime or everywhere.

Personal Flexi Loan

Instead of choosing two personal loans, you can choose a Flexi Personal Loan which enables you to cancel the amount you have approved whenever appropriate and to pay the amount in advance at your convenience. With the Flexi personal loan, you can borrow money up to the allowed limit and only pay interest on the amount you are using when necessary. The loan sum is not limited to one particular purpose, and instead of taking a personal loan, you can actually withdraw the loan amount for home renovation and pay interest on the amount that is negotiated and you can make any advance payments you can and then withdraw the wedding amount and pay back as you see fit.

It is therefore best to evaluate the alternatives before selecting a second loan. A second loan comes with higher premium, brings a gaping hole in your savings and affects your credit score adversely. It is important that the second loan be used for an attractive investment opportunity or a brilliant business concept instead of excessive comfort and opulence.

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