The financial world is growing at a faster pace with technological developments. As there is an increase in the number of borrowers who wants financial support, the lenders are expanding. Both banks and NBFCs offer financial assistance for individuals and businesses in need with innovative loan options at competitive interest rates. People are switching towards loans as a form of prudential financial assistance instead of other ancient options.
Personal Loan:
A personal loan is the most sought loan product in the country. Almost 90 per cent of all the loan options that are being disbursed are personal loans. Personal loans are flexible loans that offer requisite funds with minimal eligibility requirements and documentation process. Personal loans have another advantage as you don’t have to show the lender the purpose of getting the loan.
Many financial providers are now offering instant personal loans for easy access to funds. In these loan types, when you apply for the loan, you will get the loan amount in your bank account within 24 hours. As this loan type is very convenient and easy to access, many people prefer to go it. Also, these loans come with competitive interest rate options and don’t require you to provide any collateral for them.
Business Loan:
The second most sought loan product is the business loan. Business loans are short term loan options that is similar to a personal loan. Some financial providers will offer you business loans without any collateral. This loan type will help you fulfil your financial business requirements and make you stabilize your business.
Many lenders offer this loan with minimal eligibility requirement and decent credit scores. Whereas some lenders will look for specific criteria fulfilment when you want to get a business loan. When you get a business loan, you should adequately show the lenders the purpose of the loan. You can get a business loan for expanding your business, stocking up your inventory or any other business purpose.
Sometimes one loan will not be sufficient for fulfilling your unending financial expenses. In such cases, people usually take an instant personal loan for meeting their business requirements. But with an instant personal loan, there is a limit for the loan amount which you can get, that is not the case with a standard personal loan option.
So depending upon your requirement and loan amount, you can choose the loan type that best suits you. Yes! Most of the lenders offer both personal loans and business loans together without any problems. But some lenders will take certain aspects into consideration before letting you apply for both loans simultaneously.
Aspects Required For Getting Both Loans Simultaneously:
Here are the features that you have to fulfil when you want to get both personal and business loans together:
Credit Score:
When you want to get only a personal loan, the financial provider will not pay much attention to your credit score. They will approve your loan, keeping in mind your financial credentials and other factors like loan amount and tenure. A credit score directly connects to your past repayment history, ongoing loans and defaults in your past loan payments.
When providing you with a loan when you already have an ongoing loan, the financial providers will look keenly into your credit score for consideration. They will study your credit report thoroughly for checking how well you have been doing with your existing loan. When everything goes well, and you have a good track record, they will not have any issues sanctioning you with the loan.
Repayment Capability:
Your repayment capability is another crucial factor that the financial provider will consider before offering you a loan. The financial provider will be more than willing to provide you with a loan when they feel that you can handle two loans simultaneously.
The repayment capacity can be derived based on one’s income and financial stability, so the lenders will seek documents related to your income. Those documents can be bank statements, income proof, profit & loss statements or income tax returns. When everything goes well, and the lender feels that you can handle both loans, they will quickly offer it.
Income:
Lenders are considerate about income as it is another crucial factor for providing you with a loan. The financial provider will decide upon your repayment capacity based on the income you earn. Income plays a significant role in determining your repayment capacity. When your flow of income is steady, and you can pay the EMIs of two loans simultaneously, you can quickly get both the loans together.
Sometimes when you go for an unsecured loan, then the interest rate might be pretty high, so your income will play a crucial role in deciding whether you will get the loan or not. When you are worried about all these, you can ensure the online calculators are available before applying for a loan to avoid burdening yourself later.
Wrapping Up:
When you plan to apply for a personal loan and a business loan simultaneously, you should understand the above factors. With the proper understanding, you can easily find out whether you are eligible for applying for both loans together or not. Also, you should ensure that you have the solid financial stability to manage both loan types together. You shouldn’t be too greedy to get both loans together when you are in no situation to repay both EMIs.
