One of the easiest methods to pay for anticipated and unforeseen expenses is through a Personal Loan. Personal Loans can come in handy in various situations, including medical emergencies, higher education, travel, and weddings.
However, it’s possible for one of these unforeseen financial problems to happen after you’ve already applied for a Personal Loan. Is it possible to obtain a new Personal Loan under such circumstances? If so, will the second Personal Loan eligibility standards be similar to the first? Let’s find out.
Can you apply for another Personal Loan if you already have one?
The answer is ‘Yes’. A person can borrow multiple Personal Loans at the same time. However, to be approved for the loan, you must fulfil a financial institution’s Personal Loan eligibility criteria.
Before accepting Personal Loans requests, institutions consider several variables, including your present income and outstanding liabilities. As a result, the lending institution will closely assess your ability to repay the existing Personal Loan before granting any more Personal Loans to you.
Your loan request could be turned down in case the lending institution has any cause to assume that you won’t be capable of paying back two loans. Your salary should be higher than the required payments on your loan. It is one of the main strategies used by lending institutions to prevent borrowers from taking on excessive debt.
Simple Steps for Getting a Second Personal Loan
Simply take these three easy steps if you are considering applying for a second Personal Loan and you have made on-time instalments for 50% of your current loan term.
– Apply Online
Register online for the required loan balance. Send in the necessary paperwork and make your loan application as strong as possible. Check Personal Loan interest rates as they vary from one institution to another.
– Await Acceptance
The lending institution will contact you about your request if it fits the eligibility requirements. A promissory note may be included with your loan offering by some lending institutions. If you agree to the loan proposal, sign and deliver the document.
The loan amount subsequently transferred into your account (some lending institutions might be as fast as 2-3 working days).
Consider a Top-Up Loan
Lending institutions know that many borrowers need more than one Personal Loan to manage financial hardships. As a result, a few of India’s leading financial institutions now provide top-up loans. As the name implies, a top-up loan enables you to raise the credit amount on your current Personal Loan. You can obtain a top-up loan instead of going to a different lender for a second loan.
Many lending institutions additionally permit you to regard the top-up loan and your prior loan as separate or to merge them. Could you get a Personal Loan with a top-up loan? Your eligibility will determine everything. The interest rate on your top-up loan often equals your current or previous Personal Loan interest rate. Before accepting the loan, any formal creditor will consider variables, including your income, present debts, and credit score.
Is It Smart to Have Two Personal Loans?
It depends on your ability to pay back the loan and if you need the item, you wish to buy or fund with the acquired funds.
Always borrow only the amount you can manage to pay back according to the loan terms when taking on any debt. Don’t get a loan if you think you cannot manage the monthly EMIs. Also, cross-check that you meet the institution’s Personal Loan eligibility criteria.
Additionally, you ought to use loans solely for essential purchases. For instance, it might not be the smartest idea to take out a second Personal Loan to cover a trip. However, getting a second loan will be a good move if you want to fix your automobile to get to work.
If you pass a financial institution’s eligibility criteria, you may be able to get multiple Personal Loans. Personal Loans are excellent financial instruments and can assist you in financing a variety of endeavours and acquisitions. However, you must only get one if you are sure you can manage it, for it also brings with it Personal Loan interest, which must be considered.