Personal Loan

How to Get Two Personal Loans at the Same Time?


You may have taken out a Personal Loan to purchase a new device, but before you could pay it off, your friends’ group decided to take a trip to Thailand, for which you now require funds. So, what are your intentions? Can you get another personal loan if you already have one? Yes, it is an unequivocal YES!

You can apply for multiple Personal Loans at once. However, as a borrower, you should be able to service all of your loans so they do not harm your credit score. If the lender you choose does not charge prepayment penalties, you should aim for personal loan preclosure.

Lenders typically discourage taking out multiple personal loans at once. Your lender, on the other hand, is not required to prohibit you from applying for more than one loan. If you have a strong financial and credit profile, you may be eligible for more than one loan from the same lender.

Is It Possible for You To Get A Second Personal Loan?

The straightforward answer is yes. A person may get more than one personal loan. However, much like the previous loan, you must fulfil the lender’s eligibility conditions to be approved for the loan.

Before granting personal debt lenders analyse numerous variables such as your current income, outstanding loans, and so on. If you are currently repaying a personal loan, the lender will carefully consider your repayment ability before authorising further personal loans. If the lender believes you will be unable to repay two loans, your loan application may be refused.

Things to consider before taking out Multiple Personal Loans

If you are considering taking out several personal loans, you should be aware of the following factors that may be impacted if the loans are not properly managed:

Credit Score

Because the personal loan is an unsecured loan, the credit score of the applicant is much more important. Lenders look at your CIBIL score before approving a loan. If you decide to take out a second personal loan rather than your first, your CIBIL score becomes even more important. A CIBIL score of 700 or higher is considered excellent by most lenders.

Before deciding whether or not to approve your second loan, lenders will look into your credit repayment history. Choosing multiple personal loans at the same time can be difficult, and one must ensure that one will be able to repay the loans on time.

Repayment Capacity

You must carefully consider your repayment capacity before taking out so many personal loans. This requires you to earn enough money each month to pay off your loans on time.

Lenders will be wary of you if you spend more than half of your income on EMI payments, as this raises the risk of default. Ideally, no more than 40% of your income should be used to pay off debt. In fact, before applying for personal loans, you should make a payment plan. This will help you estimate how much money you’ll require once your EMI payments begin.


You should aim for personal loan preclosure if your lender does not impose a prepayment penalty. Try to pay off at least one or two of your loans early, depending on how many you have. If paying off multiple debts proves difficult, close the loan with the highest interest rate first. The money saved by paying off this debt early can then be used to pay off the other loans.

Keep a close eye on the DTI (debt-to-income).

The ratio (DTI) is an important factor to consider when borrowing money. It essentially reflects the portion of the borrower’s income used to make debt payments. A high DTI indicates that the majority of income is going to pay off active debts. A low DTI, on the other hand, indicates lower debt payments relative to income.

Banks and NBFCs pay close attention to DTI when it comes to loan approval. As a result, you must keep your DTI low, especially if you plan on taking out multiple personal loans. Furthermore, multiple loans can increase your DTI, which can lead to higher interest rates on subsequent loans. In general, if your DTI is greater than 36%, you may struggle to qualify for a low-interest personal loan.


Some lenders may require additional documentation if you apply for multiple personal loans with the same lender. This is simply to ensure that your situation has not changed since you applied for a loan with them and that you still have the financial means to repay the loan.

Adjust your EMIs to reflect salary increases.

A good rule of thumb to follow when managing multiple personal loans and their payments is to increase your EMI outgo with each salary increase. This will necessitate fiscal prudence and discipline. It will also ensure that any extra money you make is put to good use. If you follow this plan, you should be able to pay off the majority of your debts ahead of schedule.

Never, ever skip a payment.

This may appear to be the most obvious factor, but it is worth mentioning again. If you have several personal loans, it can be difficult to keep track of all your payments. You will almost certainly miss an EMI payment deadline, which is a bad situation. It will not only result in late fees, but it will also harm your credit score. One way to avoid being in this situation is to set up automatic payments through your bank. This way, you will never miss an EMI payment. As long as your bank account has the required balance, you will never miss a payment.


In today’s world, it is easier to fulfil our innate desires and wishes. Accepting financial assistance to meet personal obligations and achieve your goals is not a bad thing. You must, however, keep track of all of your loans and be diligent in repaying them. Starting with the loans with the highest interest rates and working your way down the list is the most prudent way to manage multiple loans. To know more about such types of topics visit Piramal Finance.