Unforeseen financial events could occur anytime, including even after you have already taken a Personal Loan. What if you are already repaying a Personal Loan, but an unexpected event now requires more funding? Is it possible to get another Personal Loan in such circumstances? Find out more in the post.
A Personal Loan is among the best ways to fund expected and unexpected expenses. From child’s education, medical emergencies, travelling, to a wedding, there are many different instances in life where Personal Loans could be a lifesaver. But it is also possible that one such unexpected financial event could occur after you have already taken a Personal Loan.
In such circumstances, is it possible to get a second Personal Loan? If yes, will the eligibility requirements for the second loan would be the same as the first one? Let us take a look.
Can you get a second Personal Loan?
The answer is yes. An individual can take more than one Personal Loan. But same as the first loan, you will have to meet the eligibility requirements of the existing or new lender to get approval for the loan.
Lenders consider several factors like your existing loans, current income, etc. before approving Personal Loans. So, if you are already repaying a Personal Loan, the lender will carefully analyze your repayment capacity before approving multiple Personal Loans. If the lender has any reason to believe that you will be unable to repay two loans, your loan application could be rejected.
How about taking the second Personal Loan from another lender?
Approaching a different lender for the second loan might seem like a smart solution. But if you do not meet the Personal Loan eligibility requirements as you are already repaying an existing loan, it doesn’t matter if you approach the same or a different lender. Your existing lender, as well as the new lender, will consider your income and repayment capacity to decide whether you are eligible for a second loan.
The solution? Take a Top-Up Loan
Lenders do understand that people might require more than one Personal Loan to deal with a financial emergency. As a result, some of the top lenders in India now offer top-up loans. As the name suggests, a top-up loan helps you increase the credit limit of your existing Personal Loan. A top-up loan eliminates the need for you to approach another lender for the second loan.
Some lenders also allow you to combine your previous loan with the top-up loan or treat them as individual loans. How much Personal Loan can I get with a top-up loan? This entirely depends on your eligibility. The lender will consider factors like your income, current liabilities and credit score before approving the loan.
Taking more than one Personal Loan
Taking more than one Personal Loan is a possibility if you meet the eligibility requirements of the lender. The requirements get more stringent if you are already repaying a loan. A better alternative is to look for a lender that offers a top-up loan facility, so that you can easily fulfill your increased need for money.
By taking a top-up on a Personal Loan from the same lender, even the documentation process would be easier, and loan processing and disbursal would be quick and easy as you are already an existing customer of the lender