Yes, it is possible to have multiple personal loans from banks as long as you meet their eligibility criteria. Also, the number of loans you have are dependent on your debt to income ratio and your credit score.

Eligibility criteria for a personal loan:

  • Should be a salaried employee or self-employed individual/professional
  • Should be between 21 years and 60 years of age
  • Should be able to provide proof of stable income and show records of employment history
  • Should have a good credit score and credit history
  • A good relationship with the bank is beneficial


But, it is not very advisable to have multiple personal loans for the certain reasons such as:

1. High interest rates

A personal loan usually has a higher interest rate as it is an unsecured loan, meaning it does not need you to provide any collateral such as property, shares or money. This makes the risk to the lender high. Personal loan interest rates begin at 11.25% and can go up to 32% depending on your credit profile. So, a majority of the money you repay will go towards paying your interest rather than the principal amount in the initial stages of repayment and this can cause you to pay a lot of additional money towards closing your loan. Thus, if you have multiple personal loans, you will be paying a lot of money towards your interest and this will be very hard on your pocket to meet your other financial needs.

2. Pre-closure

Pre-closure for a personal loan is not allowed until 6 months from the borrowing date or 12 months with some banks. Hence, if you would like to close your loan sooner, it will not be possible and moreover, you will be paying a higher amount towards your interest rate on your EMI during the first year. Multiple personal loans will force you to pay a higher amount than the principal as you will have to pay the interest off first.

Additional Reading: The CreditMantri guide to personal loans

3. Credit mix

It is always healthy to have a mixture of secured and unsecured loans. If you only apply for personal loans, which fall under the category of unsecured loans, it may appear as an unhealthy credit habit and can end up affecting your credit score. So, you could try to take a home loan or gold loan which will fall under the secured loan category to help give you a good credit mix rather than having multiple personal loans.

If you already have multiple personal loans you could try debt consolidation. Debt consolidation loans are designed to consolidate all your debts with varying interest rates into a single debt with a fixed rate of interest. This makes it easier for you to track and repay your loans at the earliest. This is one of the best options as missing payments. Although, delayed payments on this loan too can negatively impact your credit score.

To apply for the most suitable personal loan for your needs, click here.