Most of the times whatever amount of loan you take seems less and you think you need more. So, is it a good idea to take another personal loan from a different lender. Before you decide whether you should take another loan or not first consider a few factors.
Every lender wants to be assured that the taken money will be paid on time. And before going to any lender you need to look at your needs and financial stability. A person should have a good credit score and stable employment. The income also plays a major role in getting your loan approved. Your overall debt should be less than 50% of your income. If your overall debt is more than your 50% salary then your application may get rejected.
A major factor on which your loan sanctioned depends is credit score if you don’t have a good credit score it will be difficult for you to get a loan. And this score depends on your previous payments and credit mistakes. In this, the game all depends on your past credit behavior.
If an applicant is eligible for a loan but the high-interest rates shatter his/her financial plan. The interest rates can be higher than normal.
When you can apply for a second personal loan
There should be minimum 6 months gap after receiving your first loan amount. Rejection of your application may affect your credit score so apply after prior knowledge. Make assure that you lie in between good eligibility criteria.
Most of the banks and NBFS’s offer top-up loan if you have a good repayment record in past. This could be the better option to avoid rejection of a loan. This also avails after a fixed time of interval. Some lenders provide a small amount of loan at a lower interest rate. You may contact them for a small amount.
Other loans such as a gold loan, home mortgage, etc can be an alternative to a personal loan.