In today’s world of easy credit, it’s not uncommon for people to juggle a home loan, a personal loan, and maybe even a vehicle loan — all at once.
But how many loans can you really take at the same time without risking financial instability?
Let’s explore the legal reality, lender perspective, and personal finance risk — with actionable advice from Vizzve Finance.
Is There a Legal Limit on Loans in India?
✅ No legal limit exists on the number of loans you can take —
but that doesn’t mean banks will keep approving you.
Lenders check:
Your CIBIL score
Debt-to-Income Ratio (DTI)
Existing EMIs
Income & repayment history
💡 DTI Tip: Keep your monthly EMIs under 40–45% of your net monthly income.
Examples of Multiple Loans People Manage
| Loan Type | Typical Tenure | Can Be Combined? |
|---|---|---|
| Home Loan | 10–30 years | ✅ Yes |
| Car/Vehicle Loan | 3–7 years | ✅ Yes |
| Personal Loan | 1–5 years | ✅ Yes |
| Education Loan | 5–10 years | ✅ Yes |
| Credit Card EMI | Ongoing | ⚠️ Risky if stacked |
Risks of Taking Too Many Loans
1. EMI Overload
Multiple EMIs may lead to cash flow problems, missed payments, and penalty charges.
2. Low Credit Score
High number of active loans = lower creditworthiness for future lenders.
3. Loan Rejections
Too many loans = red flag during credit assessment.
4. Stress & Mental Burnout
Debt overload impacts mental health and decision-making.
Vizzve Tips to Manage Multiple Loans Safely
🔹 Use Vizzve’s EMI Calculator to simulate your DTI before taking a new loan
🔹 Go for consolidation loans if managing too many EMIs
🔹 Always prioritize secured loans (home/car) over repeated personal loans
🔹 Avoid BNPLs or credit card EMIs stacking with big loans
🔹 Make prepayments whenever you receive bonuses or tax refunds
Real Story
Ravi, a salaried professional, had:
₹50,000 EMI (home loan)
₹10,000 EMI (personal)
₹8,000 EMI (bike loan)
He was denied a new loan due to 70% DTI.
With Vizzve’s help, he refinanced two loans and brought EMI down by ₹7,000/month.
FAQs
Q1: Can I take a personal loan and car loan together?
Yes, if your income and DTI support both repayments.
Q2: Will lenders know if I already have other loans?
Yes, all active loans reflect in your CIBIL report.
Q3: Can I apply for multiple loans at once?
It’s better to space them out. Multiple inquiries reduce your credit score.
Published on : 22nd July
Published by : SMITA
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