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Two Personal Loans at Same Time: Good or Bad?

Anika was excited about renovating her house. She has decided on the new bathroom tiles she wanted, the new color of her walls, her new kitchen cabinet, and the new cupboard, counters, and appliances. She opted for a personal loan to cover all these expenses. But halfway through, she realized that there would be numerous unforeseen expenditures that she has to incur. She considered opting for a second personal loan. Let’s talk if she has made a wise decision?


The rate at which people have started taking personal loans has greatly increased over the past few years. But one must note that taking multiple personal loans may not be a good idea. You must ask yourself, “Do I need such a huge amount?”, “Can I repay the interest on two personal loans?”, “What is the amount of my monthly income that will be used to repay the multiple personal loan?”. These are fundamental questions that you must ask yourself before opting for two personal loans at the same time.  There is no restriction on getting multiple personal loans, but usually, a lender will not sanction another loan if you already have to repay a personal loan. Plus, it is riskier and more expensive to get two personal loans. While you may have a stable flow of income, there may be unpredictable circumstances in which you may not be able to pay the excess loan amount. This can have a huge impact on your credit score and hamper your chances of getting a loan in the future. You might want to take another loan for that and it is possible to get caught into a cycle of debt. Thus, it is not advisable to opt for another loan when you’re already paying one. The lender always looks at your credit history and if you can repay the sanctioned amount. Also read step by step personal loan procedure at Bajaj Markets.

Taking two personal loans at the same time can lead to:

1. Overborrowing 

Overborrowing and multiple loans are synonymous. You may not need the entire amount of loan that is sanctioned. This can lead to an increase in unnecessary monthly payments. If you delay payments or are unable to repay the loan, it can have a severe impact on your credit score. 

2. High debt to income ratio

Before sanctioning a loan, your debt to income ratio is analyzed. To get an instant personal loan you must have a low debt to income ratio and a high credit score. If your debt repayments take up more than 50% of your earnings, you are unlikely to get the loan. Ideally, to ensure adequate capacity for repaying your debt repayment must be 40% or less of your income. 

3. Impact on your credit score 

A high credit utilization ratio puts you in the high-risk borrower category. This will eventually lead to a lower credit score. Non-repayment of loans has the highest impact on your credit score and will reduce the probability of you getting a loan in the future. 

4. It might not be financially viable

Regularly opting for personal loans means that you are not being financially conservative. If you opt for a personal loan to pay your daily expenses this might be a problem. In such cases, it is always advisable to consider other financial help. 


If you are unable to estimate the amount required before you apply for a loan, you can opt for the Bajaj Finserv Flexi Personal Loan available on Bajaj Markets. This is a first of its kind way of borrowing funds in India where a pre-approved loan limit will be sanctioned based on your credit score and you can borrow funds as per your requirements. You can pay interest only on the borrowed limit and prepay when you have additional funds! 

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