Simply put, yes. However, it's a more complicated question, as each lender has different rules. There are also other serious implications that can come with having multiple loans, especially if your personal circumstances change and you struggle to meet repayments.
Multiple loans with the same lender
Just because you can have more than one personal loan with a lender doesn't mean you'll be approved. However, the lender may be more likely to offer a second personal loan if your existing debt is in good standing – that means you've been making on-time, monthly payments in full.
Yes, you can get another loan if you already have one as long as you meet the eligibility criteria of the lender. Do remember that the criteria vary based on the type of loan that you want and the lender you are approaching for the loan.
How long should I wait before applying for another loan? Again, this can depend on your bank or lender's policies. Some lenders require you to wait 3 – 12 months (or make 3 – 12 monthly payments) before you can apply for another loan.
The simple answer is yes. An individual can take more than one Personal Loan. But just like the first loan, you will have to meet the eligibility requirements of the lender to get approval for the loan. Lenders consider several factors like your current income, existing loans, etc.
Taking out an additional personal loan may make sense in certain circumstances, but this can negatively affect your credit score and debt-to-income (DTI) ratio.
You can have as many loans as lenders will approve for you, but there are practical limitations. The more personal loans you have, the harder it will be to qualify for another loan. Every time you take out a loan, you'll increase your debt-to-income (DTI) ratio.
Mortgages, auto loans and personal loans are all types of installment loans. There is no set rule on how many installment loans you can have at once. As long as you have the income, credit score and debt-to-income (DTI) ratio that a lender requires, an installment loan from another lender won't be held against you.
Not only will the bank find out when they run a credit check on you, but they will likely see it reflected in your monthly bank statements. They'll likely run a name search on you to see if you own other properties. You can't hide another home loan when applying for a second.
Making late payments
The late payment remains even if you pay the past-due balance. Your payment history may be a primary factor in determining your credit scores, depending on the credit scoring model (the way scores are calculated) used. Late payments can negatively impact credit scores.
There are no rules against getting a second personal loan from a different lender. However, you might be met with more scrutiny as a borrower with increased debt.
OneMain makes personal and auto loans from $1,500 - $20,000. Not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance.
To consolidate multiple loans, you add up what you owe on all your debts and apply for a new loan to settle them all. This leaves you with 1 loan to manage at what should be a lower interest rate.
If the interest rate of a new loan is higher than your current loan then it could be more expensive to top up your loan (which would involve paying more on the amount you originally borrowed too) than it would be to take out an additional loan and make two separate monthly repayments.
The Bottom Line
In rare cases, it's possible to get personal loans for $100,000 or even more. The maximum amount you can borrow on a personal loan will depend on your credit score, income, debt-to-income (DTI) ratio, and the lender's criteria. Experian. "Average Personal Loan Balance Grows 6.3% in 2023."
A good interest rate on a personal loan is anything lower than the market's average rate. But a good rate for you depends on your credit score. For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive.
Maximum Amount that a Personal Loan Can Cover
While the amount varies by lender, you can typically obtain a loan of up to Rs. 20 to 30 lakhs if you are self-employed. Even so, some other variables may impact the loan amount.
Wait for a 30 day cycle before applying for a loan.
Each time you apply for new credit, that credit application shows up as an inquiry on your credit report, which can lower your credit score. Don't apply for a loan and get rejected.
Borrowers can have more than one personal loan, but how many loans and how much you can borrow depends on a lender's requirements and whether they'll approve a second or third loan. Managing multiple personal loans can also strain your budget, so it's worth considering alternatives before turning to another loan.
Generally, it's best to avoid taking out multiple personal loans at the same time, as it may negatively impact your credit score. It could also be challenging to manage multiple loans at the same time. However, if you can comfortably handle multiple loan payments, then it may be possible to have more than one.
You may also be able to get several loans from the same lender or from a few different lenders. Regardless of whether you stay with the same lender, or try a few different ones, there are qualifying requirements in getting approved for a loan that must be met.
You can take out another personal loan if you already have one, as long as you can meet a lender's requirements for approval. Specifically, you may need a fair or good credit score, steady income and a debt-to-income ratio below 36%.
To qualify for a personal loan, you generally need a minimum credit score of at least 580 — though certain lenders have even lower requirements than that. However, your chances of getting a low interest personal loan rate are much higher if you have good to excellent credit, typically a score of 740 and above.
Hard Inquiries: These inquiries, triggered with your permission during loan or credit applications, have a temporary negative impact on your credit score. The impact is usually minimal, typically less than five points. However, multiple hard inquiries within a short period can cumulatively lower your score.