Personal loans are a common financial tool that bridges the gap between aspirations and budget. But have you ever thought about how many personal loans are realistically possible to take? The temptation of easy access to loans and the loan sellers’ conviction will always lead you to add loans for your urgent needs. This is a great help to manage expenses at times, but acquiring too many loans might also sometimes trap you in the mess of never-ending EMIs, increasing the chances of personal loan default. So, a common question borrowers ask is: how many personal loans can I take?
While there is no limit to taking loans, the number of loans you take should depend on a lot of factors like your income, credit score, future financial health, etc. This blog answers the frequently asked question of whether you can have more than one personal loan. Read on to understand the complexities of juggling multiple personal loans and uncovering the potential benefits and risks involved.
What Is a Personal Loan and How Does It Work?
A personal loan is an unsecured loan that doesn’t require collateral and can be used for multiple purposes such as:
- Medical emergencies
- Home repairs or upgrades
- Travel expenses
- Debt consolidation
- Wedding or education expenses
Here’s how it works:
• Loan Amount: You borrow a fixed sum of money.
• Tenure: You repay it in equal monthly instalments (EMIs) over a predetermined period.
• Interest Rate: Fixed or variable interest applies based on your credit profile.
• Eligibility: Lenders evaluate credit score, income, and employment stability.
If you’re wondering, “In how many days can I get a personal loan,” most lenders today offer instant approval with disbursal timelines ranging from a few hours to 2–3 working days, depending on your eligibility and documentation.
Can You Take More Than One Personal Loan? Key Factors Explained
Taking multiple debts simultaneously is generally not advisable, especially if you’re already juggling EMIs or financial obligations. Still wondering how many loans can you have at once? If you’re considering taking more than one personal loan, several critical factors determine your eligibility and repayment capacity.
- Credit Score
Your credit score is the first checkpoint. Lenders look for a healthy score, typically 750 or above. - Credit Enquiry
Each time you apply for a new personal loan, your credit report faces a hard inquiry. Too many inquiries in a short span signal credit hunger and can negatively impact your credit score. Always apply with intent and only when you’re confident of approval. - Income Stability
A stable monthly income is crucial. Whether you are salaried or self-employed, lenders assess how consistent your earnings are. High, regular income increases your chances of managing multiple EMIs successfully. - Existing EMIs
Adding another personal loan means adding another EMI. If you already have ongoing home loans, car loans, or credit card dues, your repayment burden increases. - FOIR (Fixed Obligation to Income Ratio)
Your Fixed Obligation to Income Ratio (FOIR) shows what portion of your monthly income goes toward fixed obligations like rent, EMIs, and bills. Ideally, FOIR should stay below 40%-50%. A high FOIR means you might not have enough disposable income to handle another loan. - Debt-to-Income (DTI) Ratio
The DTI ratio compares your total monthly debt payments to your gross income. It’s calculated by summing all EMIs and credit card dues and then dividing by your monthly income. A low DTI indicates good debt management, while a high DTI alerts lenders to potential repayment issues. - Lender Policies
Each financial institution has its own set of rules regarding how many personal loans they’re willing to offer simultaneously. Lender terms are influenced by the following:
1. Internal risk assessment
2. Your repayment history with them
3. Existing debt exposure
4. Minimum income requirements
Some may allow two personal loans at once, while others may require the first to be partially paid before considering a new one.
Pros and Cons of Taking Multiple Personal Loans
Wondering if it’s smart to take two personal loans at once? Here’s a quick comparison to help you decide:
| Features | Pros | Cons |
| Flexibility | Access to quick funds during emergencies. | May lead to debt overload if unmanaged. |
| Debt Consolidation | Useful for combining smaller debts into one. | May not reduce the total cost significantly. |
| Credit Score Impact | Timely repayment of multiple loans can boost score. | One missed EMI can hurt your credit health. |
| Interest Cost | Consolidation can reduce interest outgo. | Multiple loans mean higher total interest paid. |
| Default Risk | None if managed well. | High risk if your income isn’t increasing. |
Smart Ways to Manage Two Personal Loans at Once
Taking two loans at once or having loans from the same bank is common. The trick is in managing them wisely:
1. Maintain a Repayment Calendar
Track all EMIs with calendar reminders or budgeting apps to avoid defaults.
2. Prioritize High-Interest Debt
Pay off the costliest loan first to reduce interest expenses.
3. Consider Debt Consolidation
Combine all loans into a single lower-interest personal loan using calculators to evaluate savings.
4. Stick to a Monthly Budget
Eliminate non-essential expenses to create room for timely repayments.
5. Keep an Eye on Loan Balances
Monitor your statements monthly and ensure no errors in EMI deduction or balance dues.
6. Use Bonuses or Refunds for Prepayments
Utilize windfalls to prepay a part of your loan, especially if there’s zero or minimal prepayment charge.
7. Take Expert Advice
Consider consulting a financial advisor if juggling more than two loans.
Eligibility Rules for Getting Another Personal Loan
If you’re asking, “Can I take out two loans at once?” or “Can I get two personal loans from the same bank?”- It is possible to get two loans from the same bank or even take two personal loans from different banks. There are no regulatory restrictions on this. However, you must meet the eligibility criteria set by the lender for the second loan.
Multiple personal loans can only be sanctioned after a thorough evaluation of several key parameters:
- Credit Report Analysis: Lenders perform a detailed analysis of your credit history and repayment behaviour. They look for missed EMIs, past defaults, and how you’ve managed other credit lines. A clean report increases approval chances.
- Income Validation: Your income slips, bank statements, or ITRs are reviewed to ensure you have enough monthly income to support another EMI. If your income-to-debt ratio is skewed, approval becomes less likely.
- Debt-to-Income (DTI) Checks: Lenders calculate your DTI ratio to understand how much of your income is already committed toward debts. A high DTI ratio signals financial stress and may lead to rejection.
- Lender-Specific Rules: Every lending platform or NBFC has its own internal lending policies. These could include caps on the number of concurrent loans, minimum gap between loan applications, or higher documentation requirements for the second loan.
Other factors like job stability, age, and location also influence the outcome. If the lender believes you may not be able to manage multiple loans responsibly, your application may be declined, even if you have a decent credit score.
How to Apply for a Personal Loan in 2025?
Applying for a personal loan in 2025 has become quicker and more digital. Here’s how:
- Check Your Credit Score – Use free tools or apps like Stashfin to generate a credit report.
- Determine Eligibility – Use a personal loan calculator to match your income and debt profile.
- Select Loan Amount & Tenure – Choose what suits your EMI paying capacity.
- Submit Required Documents – PAN, Aadhaar, income proof, and bank statements.
- Get Approval & Disbursal – Most digital lenders offer approvals in minutes with fund disbursal within 24–72 hours.
Conclusion
So, how many personal loans can you have at once? Technically, there’s no cap. Realistically, your creditworthiness and income decide it. Managing two personal loans at once is possible if you plan and prioritize wisely. Whether you choose to borrow from the same bank or different lenders, always borrow within your means.
Personal loans are a lifeline when used responsibly. If you need quick funds, opt for a trusted platform like Stashfin, offering fast disbursals, credit check tools, and financial guidance.
Frequently Asked Questions
How many personal loans can I take?
There’s no fixed number, but lenders usually check your income, credit score, and existing debts before approving more loans.
Can I take out two loans at once?
Yes, if you meet the eligibility criteria and can handle the EMIs, you can take two personal loans either from the same or different banks.
Can I get two personal loans from the same bank?
Yes, but banks prefer customers with a strong repayment history. They’ll check if your current loan is well-managed.
What happens if I default on one of the loans?
A default can lower your credit score, trigger penalties, and possibly legal action. It also lowers your future loan approval chances.
Do all personal loans have the same terms and interest rates?
No, not all personal loans have the same terms and interest rates. These factors can vary significantly depending on a lot of other factors.
Can multiple loans hurt your credit score?
Applying for multiple loans increases your total debt, hence impacting your credit score. Also, each time you apply for a new loan, your credit score falls slightly because of the hard inquiry. This is the reason why you should avoid applying for multiple loans from multiple lenders within a short duration.