Personal Loans can be quite helpful because of the way that they have been framed. You can easily get one approved and sometimes even without any security. However, sometimes it so happens that you already have a Personal Loan with you and another need arises. In that case, you might be worried if you will be able to get multiple Personal Loans at a time.
Well, you can have multiple Personal Loans at a time. If you are looking to apply for a Personal Loan, here’s all you need to know about getting multiple Personal Loans at a time.
Can I Get Two Personal Loans at a Time?
Most lenders allow you to have up to two Personal Loans at a time. However, there are some details you would need to remember. You would have to be repaying your previous loan consistently and have a good history of repayments.
What Are the Pros of Getting Multiple Personal Loans?
Having two Personal Loans at a time can be quite helpful, especially when you are in dire need of funds. You could give multiple applications to different banks and see how they respond. In case two or more banks approve the loan application, it becomes easier to raise the required amount of funds for your needs in a shorter period.
What Might Be the Disadvantages of Getting Multiple Personal Loans?
Most often banks and NBFCs advice against getting multiple Personal Loans at a time. And there are some very good reasons behind it.
- There is a limit to how much funds you can get
The bank will always need to learn about all of your expenses and needs when you apply for a Personal Loan. This includes your rent, fuel, and edible expenses, the EMIs you have of any other loans, and other necessary expenses.
If the bank deems fit, they will only agree to lend you a lower amount than what you require. This is to ensure that you will not refrain from repaying the loan properly. But this can drop you into a pickle as well.
- Your CIBIL score can get affected
Most lenders these days refer to the most credible source of information before approving your loan application that is your CIBIL score. Your CIBIL score is cumulative of how many loans you have, how well you repay your loans, how well you repay your credit card bills, etc.
Sometimes, CIBIL score can also be affected by the number of loan applications you make. In desperate times, the very act of raising multiple loan applications in various banks could bring down your CIBIL score, giving the banks a reason not to lend you the loan.
- The bank may reject your loan application
In the case where a bank is worried that you will be unable to repay the loan, they might reject your loan application. This can further affect your credit or CIBIL score and make it more difficult for you to get a loan.
The Smart Way of Getting Multiple Personal Loans
In case you want to get a second Personal Loan, it is suggested that you remain a little patient in getting it. Research about the offers made by different banks and find out all the details possible related to their interest rates and other criteria.
Shortlist some of the loan offers that are beneficial and suit your personal needs. It is suggested that you apply for a Personal Loanone by one at multiple banks. This is to ensure that your CIBIL score isn’t deeply affected.
If the loan is approved, you will be able to get the funds dispersed. However, if in any case, the bank rejects the application, you can head over to the next bank on your list and apply for the loan once again.
Personal Loan Offers at Different Banks
While there is a plethora of banks, NBFCs and loan offer that could help you out; we have listed some of the few best that cater to your needs.
- ICICI Bank
ICICI Bank has one of the best Personal Loan offers in the industry. The ICICI Personal Loan Interest Rates can range from 11.25% to 22%. The maximum loan amount is Rs. 20 Lakhs with a tenure range of 1 to 5 years. The processing fee is up to 2.25% of loan amount plus GST.
- Standard Chartered Bank
Standard Chartered Bank Personal Loan comes with an upper limit of the loan amount of Rs. 30 Lakhs. The processing fee is 1%,and the fixed interest rate ranges from 10.50% to 19%. The tenure at this bank is also 1 to 5 years.
- Kotak Mahindra Bank
Kotak offers you a Personal Loan with a maximum loan amount of up to Rs. 25 Lakhs. The fixed interest rates range from 10.99% to 24%. The tenure is also from 1 to 5 years. However, the processing fee can go up to 2.5% plus GST at Kotak Mahindra Bank.
- HDFC Bank
HDFC Bank can offer up to Rs. 40 Lakhs for your Personal Loan and there is a onetime fee of up to 2.5% of processing fees. The fixed interest rates can range anywhere from 11.25% to 20%. The tenure for this loan is from 1 to 5 years as well.
- The best part about all of these banks is that you can easily apply for the loan online. You can also get doorstep service and get the loans approved without a guarantor. In the case of Standard Chartered Bank Personal Loan, you can also get a top-up loan and easy online approval.
To apply for any of these loans, head over to these bank branches, and you can browse through the different loan options available for you. You can also get an executive assigned to you who will help you through the entire process while you apply for a Personal Loan. They will help you while filling the application, take your documents to the bank, and help you with anything you need right until you get the loan amount dispersed to you.