Can I Take a Personal Loan with Existing Loans?

2 min read | Updated on December 01, 2025, 16:55 IST

You are already paying off a car loan and a home loan when an unexpected expense pops up. Maybe a medical emergency or family needs. You need money quickly, and you are wondering, Can I even get another loan while I am still repaying these existing ones?

The answer is yes, but with important conditions attached.

Yes, You Can Have Multiple Loans

Many people successfully manage home loans, car loans and personal loans simultaneously.

Lenders like banks and Non-Banking Financial Corporations (NBFCs) understand that people have multiple financial needs. Your home loan doesn't prevent you from needing a personal loan for your child’s higher education or a medical emergency.

However, having existing loans significantly impacts whether you will get approved for a new one and on what terms.

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What Lenders Actually Check

When you apply for a personal loan while having existing loans, lenders check and verify several factors, like

Your debt-to-income ratio

It’s a calculation of what percentage of your monthly income goes towards existing equated monthly instalments (EMIs).

Most banks prefer that your total EMI obligations (including the new loan you are applying for) don't exceed 40% to 50% of your monthly income.

This, in turn, is for lenders' assurance that you can comfortably repay the loan.

Your credit score

Having multiple loans isn't necessarily bad for your credit score. In fact, if you are managing them well and paying all EMIs on time, it reflects good credit behaviour.

A credit score of 750 or above significantly improves your chances of getting approved for an additional loan. Below 650, you will struggle even without existing loans.

Type of existing loans

Lenders view different loan types differently,

Secured loans (home loans, car loans, loans against property) -These are considered less risky because they are backed by assets. Having these doesn't severely affect your chances of getting a personal loan.
Unsecured loans (personal loans, credit cards) -Multiple unsecured loans raise concern. If you have two ongoing personal loans, getting a third one becomes very difficult.

Lenders worry that if you are taking multiple unsecured loans, you might be in financial distress.

Loan repayment track record

This matters more than how many loans you have. If you have been paying all your existing EMIs on time for the past 12 months, banks view you favourably. Even one or two missed payments in the past 6 months can lead to rejection, regardless of how good your income looks.

Can you improve your approval chances?

Yes, you can to some extent. If you need a personal loan but have other existing loans, you can,

Close smaller loans first

If you have any small loans nearing completion, consider closing them before applying for the new loan. This immediately improves your debt-to-income ratio.

Increase your income proof

If you have additional income sources (rent, freelancing, part-time work), include these in your application. Higher proven income improves your eligibility.

Add a co-applicant

Adding your spouse or a parent as a co-applicant combines both incomes. This often makes it easier to meet debt-to-income requirements.

Try your existing bank first

If you have a good relationship with your current bank and a healthy account with regular salary credits, approach them first. They're more likely to approve your loan than a new bank.

Top-up loans can give the needed money

Instead of taking a new personal loan, consider a top-up on your existing home loan or loan against property. You can check with your existing lender for specific terms and conditions.

Yes, you can definitely take a personal loan even with existing loans, but approval depends on your income, existing loan commitments, credit score and repayment history.

An important aspect is to maintain a healthy debt-to-income ratio, having a good credit score (750+) and having consistent repayment behaviour.

Before applying, honestly assess whether you can afford another EMI without compromising your financial stability. Sometimes the answer isn't whether you can get the loan, but whether you should take it at all

About Author

Pradnya Surana

Sub-Editor

is an engineering and management graduate with 12 years of experience in India’s leading banks. With a natural flair for writing and a passion for all things finance, she reinvented herself as a financial writer. Her work reflects her ability to view the industry from both sides of the table, the financial service provider and the consumer. Experience in fast paced consumer facing roles adds depth, clarity and relevance to her writing.