How Frequently Can I Apply for an Instant Personal Loan

• Ensure you have a stable credit score
• Hold a no defaulter tag in your financial history
• Strike a balance between debt-to-income ratio before future loan applications
• Ensure you submit the right set of KYC documents and income proofs during loan applications.
   

Advantages Availing Personal Loan Frequently

A personal loan is a safe option in times of an emergency or immediate financial need. Here are some keys advantages of taking a personal loan frequently:

• Instant loan approval within 24 hours supports timely in emergency financial situations
• Personal loans can be used for various purposes – travel, education, buying a vehicle, home renovation, medical emergency etc.
• The credit score increases when personal loan EMIs are paid on time
• Personal loan is collateral-free that makes the loan processing quick
• Personal loans available through instant loan apps are much easier to acquire as compared to traditional methods of a loan application.

Disadvantages of Availing Personal Loan Frequently

Personal loans are acquired easily but there are some disadvantages that borrowers should be aware of:

• Missed or delay in making loan repayment can bring down the credit score
• Personal loans are unsecured in nature, so the interest rate charged on the loan amount is higher
• Prepayment penalty is incurred in case of early loan clearance

Personal Loan Required Documents

Depending upon different lenders, financial companies and NBFCs, the personal loan documentation procedure differs. But what remains constant is the KYC document of a borrower. Know Your Customer (KYC) is a mandatory process for identity verification of the borrower. An individual’s KYC documents include:

• Aadhar Card
• PAN Card
• Voter’s Card
• Smart Card Driving License

Eligibility Criteria for Personal Loan

The minimum age limit of a personal loan borrower should be between 21 - 58 years for both salaried and self-employed individuals. The borrower should earn a minimum income of Rs.15,000 per month and have a good CIBIl score to make loan approval faster.
 

• Submission of Incorrect, fake, or unauthorised documents
• Basic mistakes in the loan application form
• Low range of credit score reflects weak repayment ability
• High debt-to-income ratio, increasing the level of debts compared to income
• Inconsistency and irregularity of monthly income
• Track record of missed and delayed payments
• Not falling into the right age slab

Q.1 How often can you apply for a personal loan?

A. There is no such gap period to avail a personal loan a number of times. It all depends upon your financial management and repayment capacity to deal with more than one personal loan.

Q.2 Can you apply for more than one personal loan at a time?

A. Yes, you can apply for more than one personal loan at a time if your financial need is not satisfied with a single personal loan. However, managing EMIs of multiple personal loans can be a challenge. If missed, it can affect your credit score.

Q.3 Can you get a personal loan if you already have one?

A. Yes, based on your confidence and financial stability to repay EMIs on time, you can get an additional personal loan. Multiple personal loans can support in dealing with financial challenges timely. Only, be cautious about making timely repayments to retain a good credit score.

Q.4 Is it bad to apply for multiple loans?

A. It is not bad to apply for multiple loans if you can manage all the EMIs on time. Missed, delayed or defaulted loan accounts can hurt your credit score badly and cause barriers in future loan approvals.

Q.5 Can I take multiple personal loans?

A. Yes, multiple personal loans can be applied using two different instant loan apps. You can borrow personal loans from two different lenders as you get the benefits of both their personal loan facility. However, it should be taken only if the borrower is financially stable to repay both the EMIs on time. Failing to pay on due date or missing EMI will create an impact on credit score.