Personal Loan Rules: Many times such situations arise in our lives when we suddenly need money, such as a medical emergency. In such a situation, many people think of taking two personal loans simultaneously. The important thing is that there is no rule from the Reserve Bank of India (RBI) that a person cannot take more than one personal loan. This clearly means that you can take more than one loan, but the final decision is taken only by the bank or NBFC. They pay attention to whether you can repay the loan or not.

Second loan is not easily available

However, if we talk about other personal loans, it is not so easy to get, because before giving the loan, the bank takes the decision after looking at your income, current EMI as well as the total loan. At the same time, if the loan is more than your salary, then there may be difficulty in getting the loan. Therefore, it is important to know some things before taking a loan.

What do the rules say?

• It is important to know that there is no restriction on taking more than one personal loan from RBI.
• But banks and NBFCs decide to give loans based on their own rules.

Know some conditions for giving second loan

• Keep in mind that the bank sees how much total loan is being taken.
• Loan is given as per your total loan eligibility.
• At the same time, there may be a ban on taking loans from different places simultaneously.

Importance of DTI (Debt-to-Income)

Secondly, while giving a personal loan, the bank looks at some important things like…

• DIT tells you how much of your annual income is going towards EMI.
• DTI up to 35 percent is generally considered safe.
• Due to higher DTI, there may be a change in the loan amount or tenure.

understand as an example

Suppose your salary is Rs 50 thousand and you pay EMI of Rs 10 thousand every month. In such a situation, 20 percent of your salary is going towards repaying the loan every month, which is called DTI.

Why is credit score important?

Personal loan is given without any guarantee, so the bank looks at your credit score. Generally a score of 750 or more is considered good.
Credit score shows whether you have repaid the loan you had taken earlier on time or not. At the same time, the EMI was not delayed. If there is timely EMI payment and clean credit history, the chances of getting the loan increase.