While there isn’t a specific cap on the number of personal loans one can acquire, the determining factor lies in the approval from each lender.
Let’s say you currently have a loan with Bank A and are seeking additional funding from Bank B. Legally, there are no restrictions preventing you from pursuing this. However, Bank B will conduct a thorough assessment, including an evaluation of your repayment history with Bank A, alongside the typical loan eligibility criteria, before granting approval for your application. Should your track record with Bank A display any red flags, such as late or missed payments, Bank B is likely to decline your request.
Conversely, if your history with Bank A reflects responsible repayment behavior, your chances of securing a loan with Bank B significantly improve. Yet, another crucial aspect Bank B will scrutinize is your debt-to-income ratio. If they determine that your stated income barely covers your existing loan obligations with Bank A, they may reasonably conclude that taking on an additional loan could strain your financial capacity. Consequently, your application may be turned down in such circumstances.
