Can I have another loan if we curently have one?

Can I have another loan if we curently have one?

An individual may simply take loansYes that are multiple it is possible to simply simply take another loan in the event that you currently have one. Finance institutions don’t have a defined maximum limit with regards to the wide range of loans that an individual may take. With that said, they have a call on if they shall accept another loan for a person who currently one, according to their credit assessment/underwriting.

Need for financial obligation to income (DTI) ratioDuring the credit evaluation process, in the event of numerous signature loans, one component that has lot of weightage could be the debt to income ratio (DTI).

The debt to income ratio helps the financial institution assess how much more loans/debt can you, as a borrower, service/handle in case of multiple loans, when you have an existing loan running and you apply for another loan.

The debt to income ratio is calculated as monthly debt payments divided monthly income in very simple language.

Let’s appreciate this better with the aid of an illustration. Karan’s debt that is monthly (existing EMIs) are Rs. 15,000 and their income that is monthly is. 75,000.In this situation, Karan’s DTI ratio is going to be 15,000/75,000 = 0.20 or 20%.