Can I Have A Personal Loan And Business Loan Simultaneously?

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Loan And Business Loan Simultaneously

Financial requirements also play a significant role in deciding the quality of life a person leads. When you want to meet your desired lifestyle, you might need extra funds even when you already have a loan. Sometimes there will be circumstances where you will have to get two loans simultaneously, but is it possible?
Yes! It is very well possible to get a business loan and a personal loan at the same time. You must be speculating how that is even possible. So many banks and NBFCs still offer business loans to people who have an existing personal loan. Some financial providers might think this will put pressure on their financial status, which will make them default a loan.
Here are the factors which the financial providers look for before approving your loan application:
Debt-to-income Ratio:
When you have a lower debt-to-income ratio, it means you are balancing well between your debt and the income you are earning. So when you have a lower ratio, your loan application will be easy to pass as it impacts your ability to repay the loan thoroughly.
The ratio should stand somewhere between 40% for making it a healthy debt-to-income ratio. The ratio indicates your capability of repaying the loan without any default, so the financial providers will always look for the ratio before providing you with the loan.
Credit Score:
Another critical factor which the financial providers will look for before approving your loan application is your credit score. The credit score is a value between 250 to 900, which varies depending upon your credit history.
The value determines your ability to repay your loan without any defaults. A credit score above 750 is the best credit score which assures the financial provider that you can repay the loan without any default. So when you have a good credit score, you can be sure about getting the loan application approval.
Income:
When you are an individual who is earning more, it will create an advantage for you to get the loan. When you earn more, you will be considered as a reliable individual to repay the loan on time, and to default, the loan will have very low chances. So when you can prove them your capability, getting a loan will be quick and easy for you.
Employer’s Reputation:
Even the company for which the individual works creates an impact on the loan you opt. When an individual is choosing for a loan, they will have to submit employee proof which is an essential factor to decide your loan application.
Financial providers will look for your income background and employment details to ensure your worth on repaying the loan, so when you are an individual from a reputed organisation, you can be sure that your loan application will be quickly approved.
Credit Repayment History:
When you are an individual who has an excellent repayment history which doesn’t have any defaults or late payments, then the chances of you getting a loan will be very easy. The financial providers will not feel you be threatening so they will approve your loan.
Defaulting:
When you are found guilty about defaulting your repayments on loan, then it will create a profoundly negative impact on you, which will spoil your chances of getting your loan approved. Most of the situations when this happens, the financial provider will cancel your loan application, or sometimes will provide you with a loan with a higher interest rate.
Your Existing Relationship With The Financial Provider:
When you already have an existing deposit or loan with your financial provider, it will be an added benefit for you when you revisit them. But you should always make sure to create a good impact on your financial provider when you want to have a stable financial relationship with them. An existing customer always gets the first preference when it comes to getting new loans.
Ways To Manage Paying Your Loan EMIs Without Defaulting:
When you want to get a personal loan and business loan at the same time, then you will be ready to pay higher monthly EMIs. So the first thing which you want to have in your mind when you are planning to get two loans at the same time is to consider whether you can comfortably repay the loan or not.
Here are the ways which will help you in managing paying your loan EMIs without defaulting:
Understanding Your Repayment Capability:
It would be best if you always understood your repayment capability before you opt for a loan. Getting a loan which you cannot repay will create many problems for you when it comes to repayment. To calculate the EMIs which you will have to pay each month and analyse it with your monthly income to find out whether you can repay it or not. Managing your cash flow well, and understanding your capability before applying for your loan is very crucial.
Choose A Comfortable Repayment Schedule:
The repayment tenure which you choose for repaying your loan is another important factor which impacts your EMI amount. So always choose a comfortable repayment schedule which helps you in repaying the loan quickly without putting any financial pressure on you. For instance, you can choose a longer tenure so that your EMIs will be lower and more comfortable to pay.
Managing Your Personal Expenses:
When you already have a current loan, and when you are applying for another one, you should find the amount which you will have to have for repaying those. Only when you are sure that you can make your payments can be made comfortably should you opt for a loan.

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