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At times, a single loan may not be enough to meet personal needs and you may require a second one. Here are answers to some questions you should know out before applying for a second loan.
Yes, an individual can avail of more than one personal loan. Similar to the first loan, an individual will have to meet the eligibility requirements of the second loan set by the lender. Loan providers consider several factors, such as your existing loans and current income before approving loan applications. If you’re already repaying a personal loan, a lender will carefully analyse your repayment capacity before approving new applications. If the lender finds a reason to believe you will be unable to repay two loans, the loan application could be rejected.
Approaching a different lender for the second loan can seem like a smart move. However, it won’t help your approval chances if:
Both - your existing lender as well as your new lender, will look at your repayment capacity and income to determine your eligibility for a second loan.
Approaching your existing lender with a new financial requirement is usually recommended. You get to negotiate better terms based on your repayment history and credit score. You may also get to borrow funds as per your needs at competitive personal loan interest rates.
A top-up is a provision that lets you add a certain amount to your existing home loan amount. With top-up loans you don’t need to approach another lender for the second loan. Some lenders will also let you combine your previous loan with the top-up loan or treat them both as separate loans. The value of your top-up loan entirely depends on your eligibility. The lender will take into account factors such as your credit score, current liabilities, and income, before approving the loan.
While debating whether to go for a second loan, analyse the factors contributing to your eligibility well to make the right decision. You can easily apply for a personal loan online at your comfort.
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