Can I Have a Personal Loan and Business Loan Simultaneously?


03 Nov 2019 | 5 min read

Nowadays lifestyle has not only enhanced our quality of life but somewhere also has increased the financial requirements. To match up to the desired lifestyle you may need extra funds but what if you already have a loan? And this question may lead to other questions like what if you want two loans together? Can you avail two loans simultaneously? So, here are the answer to your questions.

Yes, you can get a personal loan and business loan simultaneously. Now you must be wondering how? Well, various lenders provide business loans when you already have an existing personal loan. Reason being such lenders approve the loan based on many factors like:

  • Debt-to-income ratio: A low debt-to-income (DTI) ratio demonstrates the balance between debt and income. It directly impacts a borrower’s ability to secure a loan. A low debt-to-income ratio, usually below 40%, signals a healthy balance between debt and income. Lenders like seeing low debt-to-income ratios because it is an indicator that a borrower is more likely able to successfully manage the additional debt responsibly. The lower the DTI, the more likely a borrower receives a loan.
  • Credit score: The credit history is among the most important factor taken into consideration while processing the personal loan application and it is maintained by the credit bureaus. A credit score of 750 or above falls under the category of good credit score. If an applicant has a low credit score, there are chances that his/her personal loan application may get rejected or get a loan at a high-interest rate.
  • Income: Higher-income attracts a low rate of interest. With the high income, an applicant is considered as a reliable candidate by the lenders as the chances of defaulting on the loan repayments are low. For example, if one’s income is Rs. 25,000 per month, the lender might offer personal loan at 14% interest rate and if one’s income is Rs. 70,000, he/she might get a personal loan at the interest rate of 12% from the same lender.
  • The Employer’s Reputation: The reputation of the company an applicant is working with also plays an important role in determining the loan interest rate. The more renowned and stable organization attracts a lower rate of interest on a loan. This is because banks perceive the employees of reputed organizations to have a stable career and consider them more responsible for paying off the debt.
  • Credit Repayment History: If an applicant has a good repayment history, it will work well in terms of rate of interest and loan approval. As the lenders can see that he/she has been disciplined with the repayments and will not hesitate to offer a loan at a low rate of interest.
  •  Defaults: If the lender finds out any defaults in an applicant's credit profile, he will either charge a very high-interest rate or might reject the loan application. Most lenders prefer applicants with no defaults.
  • The Existing Relationship with the Lender: Most of us prefer to open our savings accounts and fixed deposits in one bank, thereby becoming the bank’s loyal customers. Due to this loyalty, one can manage to share an interpersonal relationship that is likely to fetch an attractive rate of interest when the need for a personal loan arises. As an existing customer, one surely has some leverage as he/she is an existing bank customer and the bank would not want to lose him/her to some other bank.

Ways to manage the Loan EMIs

If you use the personal loan and business loan at the same time, you will be linked to the heavy monthly EMIs. Then it should be your top priority to manage the EMIs, so here are the ways:

  • Know the repayment capability: Only that much loan should always be obtained as much as you can afford to pay off every month. An online personal loan EMI calculator helps to calculate the loan EMIs better. By doing this you would know in advance about the EMI outflow every month and you can make a better and informed decision.

  • Go for a longer repayment tenure: Your loan repayment tenure has a direct impact on the EMI amount of your loan. Opting for a longer repayment tenure will enable you to repay the total amount over a longer time, which will reduce the EMI amount.

  • Manage personal expenses: If you have an existing loan, and applying for another loan, you should first check the amount you would require to pay as EMIs for all the loans. The sum of the total requires amount should not be more than 50 % of your monthly income. And also look for another source of income. As then only you can manage your expenses for daily necessities and other personal expenses smoothly.

  • Never miss on an EMI: The regular payment of the EMI can help you to have a good credit score. As this would lead to getting loans at a comparatively lower rate of interest. Therefore, always try to maintain a good credit score by paying off all debts like credit card bills, existing loans, etc. on time so that you can get a good loan deal. Timely payment of the EMIs is important.

Read More: Top 10 Best Ways to Improve Your Credit Score


While you can get both loans simultaneously, it may be difficult to manage them. The chances of you defaulting or skipping EMIs will increase. You should prefer to get a top-up loan on a personal loan instead of applying for a new loan. 

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