How Frequently Can I Apply for an Instant Personal LoanPersonal loans are considered as one of the best-selling credit facilities due to its instant feature, promising a timely financial help. Unlike other loans, personal loans are unsecured in nature and not bounded by major rules. So, several borrowers belonging to different age groups rely on instant cash loans frequently for its ease of application online. But, can you apply for a personal loan twice? Or how frequently can you apply for an instant personal loan? Be clear about this basic information about the frequency of applying for a personal loan so that you don’t have to face any rejections in financially tight situations.
Though the loan application process is very easy via a personal loan app, it doesn’t mean multiple loan applications will be entertained. The frequency of personal loan application also decides the loan status whether approved or rejected. Each time you apply for a loan, the credit rating gets recorded by the credit bureaus in India. Know that borrowers drop their own credit score with multiple loan requests. It is against the code of conduct of the financial companies and reflects an unprofessional attitude.
Undoubtedly, the urgency of money may be high for a borrower and so he/she is applying for an instant loan repeatedly. However, if you have already applied for a loan once or twice and still not getting the desired response, you can get connected to the customer care or toll-free lines to enquire about your loan status. The instant loan apps also give a clear loan status.
Let us see what is the ideal frequency of personal loan application in a year:
Ideally, borrowers should take a gap of 6 months before applying for an extra loan along with an ongoing one. Lack of space between two or more loans can cause repayment burdens when multiple EMIs are waiting to be paid. In case borrowers miss paying EMIs for any of the loans, this will be considered as a negative behaviour while tracking repayment habits and can also affect the credit score negatively.
Besides, if you are confident about managing repayments of multiple EMIs at the same time, you may apply for a couple of loans at once. Facts that will prepare you to stay eligible for multiple loan applications:
- 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.