With personal loans being among the most accessible financial tools for emergencies or big life goals—be it a sudden hospital bill, college fees, or home repairs—it’s no surprise that many borrowers find themselves wondering: “Can I take another personal loan while I’m still paying off the first?”
The short answer? Yes, it’s possible. But whether you’ll actually get that second loan approved is a different matter altogether—and it all boils down to your financial profile, credit score, repayment behaviour, and how your lender looks at risk.
If you already have a personal loan and are eyeing another one, you’re not alone. But before clicking on ‘Apply Now,’ here’s what lenders are really looking at:
Most lenders expect a credit score of at least 750 if you’re trying for another personal loan. That number signals that you’ve been a responsible borrower so far—paying EMIs on time, not maxing out credit cards, and not defaulting on previous loans.
This ratio tells lenders how much of your income is already going into debt repayments. If you’re spending more than 40% of your income on loans, it may raise eyebrows. Anything below that says you’ve got room for one more EMI—at least on paper.
If your existing EMIs are already eating into your monthly income or you’re juggling multiple debts, lenders might consider you high-risk. Unless you’ve got a strong income stream and a spotless repayment history, they may think twice before saying yes.
Not all lenders use the same playbook. Some may be more flexible if you’ve been their loyal customer. It never hurts to talk to your relationship manager or loan officer. Sometimes, just explaining why you need a second loan—especially if it’s for something justifiable—can make a difference.
If you’re seriously considering applying for a second loan, you’ll want to do your homework first. Here’s how to keep things on track:
Grab a notepad (or Excel sheet, if that’s your style) and note down all your income sources, monthly expenses, and how much you already owe. This gives you a clear idea of what you can afford.
Check it regularly. If it’s not where it needs to be, work on improving it—maybe by paying off smaller debts or clearing credit card balances. Also keep an eye on your credit utilisation ratio (i.e. how much credit you’ve used vs. how much you’ve got).
There are plenty of tools online that show you how much EMI you’ll pay based on loan amount, interest rate, and tenure. It helps you plan smarter and borrow only what you can repay comfortably.
Don’t wait for EMIs to pile up and turn into a stress fest. Create a repayment plan that gives you enough breathing room each month.
If you’re unsure about how to manage multiple loans, speak to a financial advisor. Sometimes, a second opinion can save you from future financial headaches.
According to the Reserve Bank of India, personal loan growth in India has slowed down to 14.2% in January 2025. The drop, driven by lower demand for vehicle loans and credit card borrowing, suggests that lenders may have become slightly more cautious.
While this doesn’t mean getting a second personal loan is off the table, it does mean lenders are likely scrutinising applications a bit more. If you’re thinking of borrowing again, now’s the time to ensure your paperwork, repayment track record and financial planning are on point.
Getting approved for a second personal loan while still repaying the first isn’t a pipe dream—but it’s also not guaranteed. Your eligibility hinges on how strong your financial health looks to the lender. Clean credit history, manageable debt levels, and transparent communication with your bank can all work in your favour.
Remember, this isn’t just about qualifying for another loan—it’s about making sure you can actually afford it without putting your finances in a tight spot.
Because the last thing anyone wants? A stack of unpaid EMIs and sleepless nights. Plan well, borrow wisely.
(By arrangement with livemint.com)
