A personal loan is a life saver when you need immediate respite from a financial crisis. Generally, people have multiple investments like mutual funds, fixed deposits, shares and more. But in case if there is an urgent need of money then it really difficult to convert these investments in to cash quickly to use it. With people having multiple investments in mutual funds, shares, fixed deposits and more, it is not common to see hard cash in pockets or the availability of it all the time. Therefore, people turn towards Personal Loans. They are unsecured and are quick to process. However, to avail a loan one must have good credit history and should be willing to spend on high interest rates.
There is no limit to take multiple personal loans but the burden of clearing multiple EMIs could lead to little or no savings. If you are still in favor of taking several loans, ask yourself if you can pull off multiple EMIs and chalk out the pros and cons before going for it.
Pros of Multiple Personal Loans
If there is a direct need of finances for multiple purposes, then you should go for Multiple Personal Loans. At times, situations are such that they demand a huge amount of cash. Only a personal loan can help you come out from a situation like this.
Credit Score Improvement
If you have the capability to pay back and handle several loans at a time, then go for it as this could give you a massive boost on your credit score. Your timely and regular payments improve your credit history.
Multiple loans also mean multiple sources of revenue, you can utilize this cash to pay off other personal debts in rotation but you also need to take care of the one final loan which will be left to pay.
Cons of Multiple Personal Loans
Apart from the positives that make it sound appealing and doable, you should also reflect on the negatives and then come to the final decision. Some pointers that you must also remember along with the positives are:
- Is the need for financing at this magnitude really required?
- Will your current income allow you to repay and clear every debt?
- Will you be able to make timely payments and efficiently handle them?
- Are you familiar with the tactic of handling multiple loans?
The number of loans that you qualify for depends on your debt-to-Income ratio and your CIBIL score. To get an instant personal loan you need to have low Debt to Income Ratio (DTI) a high CIBIL score. Debt to Income Ratio demonstrates the balance between your debt and income. It tells you how much percentage of your income goes in debt payments. Hence, a lower DTI signifies that very less percentage of your income is used for debt payments and your debt is not that high. You can also calculate the EMI in advance to foresee your loan expenditure and accordingly take a call.
With Finserv MARKETS, applying for a Bajaj Finserv Personal Loan is easy, quick and completely hassle-free. What’s more? It comes with a plethora of features and benefits that you can avail right from the comfort of your home. So why wait? Head over to Finserv MARKETS and get to know about how to get a personal loan with us, today!
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!