Can I Take 3 Personal Loans at the Same Time?


  • Can you get 3 Personal Loans at the same time?
  • Yes, you can! But it’s not feasible for you! - Read this post that explains why you should not go for multiple loans simultaneously

While some lenders can approve three personal loans at the same time, others may not. Lenders that consider three personal loans simultaneously will check how high your income is before approving all. As personal loans are unsecured loans, the interest rate remains around 10-20% per annum. In case you have got an interest rate of 12% on one loan, the subsequent loans at that time will have greater rates, raising the overall EMI burden significantly higher. Hence, your income will be scrutinized minutely by the lender.

Generally, lenders sanction a fresh personal loan amount with its EMI and any other debt obligations constituting within 50% of your net monthly income (NMI). If all your debt obligations including the Equated Monthly Installment (EMI) of all three loans are within 50% of your NMI, the lender can approve this multiple personal loan deal. But that 50% is not universal! The lender could make a change to it depending on the income level of customers.

But the question remains – whether it is feasible to apply for three personal loans at the same time? Maybe not! We have reasons for the same that you can check in this post. So, read and make the right call.

Reasons Why You Should Say ‘NO’ to Three Personal Loans at the Same Time

Multiple personal loans at the same time can bring complications very hard to deal with. If allowed to sustain, they can go on to break your back by mounting debt much more than you can handle. Let’s focus on such complications without any further delay.

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Debt Burden Rises Significantly

Debt burden rising significantly with three personal loans is a foregone conclusion in light of the explanations made so far. But that is not the only issue you will confront. Yes, you will have limited to ZERO flexibility as far as spending on things other than three EMIs is concerned. If all three personal loans are for immediate needs, you can’t afford travel and vacation plans. You will be restricted to just paying the multiple EMIs and doing necessary spending for the time these loans will be there.

Multiple Personal Loans Don’t Reflect Good in Your Credit Report

Applying for multiple personal loans means multiple hard credit enquiries at the same time. Such hard enquiries can decrease your credit score. But the adverse effect of multiple personal loan applications does not stop here! Having multiple unsecured loans won’t be an ideal credit mix for you if you want a good credit record. Too many unsecured loans cause worries about the payment on time. In case you go on to default in any of these three, your credit score will come down rapidly, putting your credit aspirations in jeopardy.

Uncertain Income Situation Can Lead to Personal Loan Defaults

The possibility of you being jobless for an extended period can’t be ruled out given the uncertainties you may face in the future. The obvious result of this problem is a loan default that brings far more complications for you to deal with. Lenders will send legal notices to you. If you don’t respond to such notices, bank executives can come to your residence frequently, putting your social esteem at stake.

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But How Can You Avoid Three Personal Loans and Complications That Come with Them?

Yes, it’s possible to avoid three personal loans at the same time. You just need to be a bit smart in your thinking. The below points will only help you develop that thinking and prevent you from being in a debt trap.

Evaluate Your Needs Correctly

Often people evaluate their needs wrongly and go for a much higher loan amount. As a result, the loan obligation remains high and makes it rather impossible for them to deal with a sudden rise in expenses. So, you should evaluate your needs correctly based on your savings. Using the savings will greatly reduce the loan amount needed and EMI obligations.

Go for a Single Loan Covering All Your Needs Instead of Applying Multiple Times

We have pointed out before that the interest on second and third personal loans will be higher than the first one. But having a single loan covering all your needs will ensure a single rate. Most likely, the loan will be reasonably priced and help ensure a smooth repayment. In case you already have multiple personal loans running in your name, you can get all merged into one. If all your running personal loans are with the same lender, you can request the concerned bank or financial institution to do so. If it does not oblige, think of doing a personal loan balance transfer to another lender at a lower rate of interest.

Benefits of a Single Personal Loan Application Over Multiple Applications

Inevitably, a single personal loan brings more relief to you compared to increased burdens with multiple loans at the same time.

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Positive Effect on Your Credit Score

A single personal loan application can do wonders for your credit score compared to multiple applications being done simultaneously. The hard enquiry made by the lender then will lead to a marginal drop in your credit score, which will increase much faster with timely EMI payments as its possibility is immense with just one loan in place.

Gives You More Space to Spend

Unlike multiple personal loans where you can get cramped, a single loan can come with reduced liability if you use some of your savings. It will allow you to make some travel plans which you could not even think of when paying multiple personal loans.

Scope for Successful EMI Payment is High

The scope for a successful EMI payment is high considering there will be a single EMI. In contrast, multiple loans can have separate dates of EMI payment, which could cause a delay in payment of some.

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  • Personal Loan Interest Rates October 2023
    Fullerton India12.00% - 24.00%
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%
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