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Can I Have a Personal Loan and Business Loan Simultaneously?

The lending space in the country is growing at a fast pace. With the increasing number of borrowers willing to avail a loan, the lenders’ segment is expanding with many banks and NBFCs offering innovative and lucrative loan products at competitive offerings. People are switching towards loan as a Prudential Financial aid instead of any other available options.

A personal loan is the most sought after loan product in the country at the moment. 90 per cent of all the loans that were disbursed in 2019 pertained to some form of personal loan only.

Personal loans are flexible in nature and offer the requisite funds with easy eligibility criteria and minimal documentation requirements. These loans are taken for financing one’s wedding, home improvement, vacation, education, medical emergency or buying any fancy gadget.

Instant Personal loans are available in the lending market which can be availed within 24 hours of loan application provided you meet the eligibility criteria as laid by the lender. Online personal loan in India is becoming the new rage as one gets the convenience of applying them from the comfort of their home or office using their computers or smartphone. And with a competitive rate of interest and no requirement of any collateral, there is nothing much a borrower can ask for.

personal loan and business loan

The second most covetable loan product is the business loan. Business loans are short term loans which like personal loans can be availed without any collateral and acts as the ultimate financial help for meeting the endless expenses of the business. Many lenders offer business loan with easy eligibility criteria and decent credit score. Business loans are availed by both the startup ventures and well-established firms for buying new machinery, stocking inventory, hiring staff, training, marketing purpose, expanding business or as working capital.

But sometimes one loan is just not enough to meet the unending expenses. People usually take a instant personal loan to meet the expenses of their businesses. But people usually lack the required knowledge about whether they can avail a business loan and personal loan simultaneously and end up budging their finances. And the answer is a BIG YES. Lenders are willing to offer you more than one loan product provided you stand strong on the following aspects.

Credit Score

When it comes to availing a single personal loan only, the lender may not give much heed to your credit score. He may just approve the loan on account of your financial credentials and other factors like loan amount, loan tenure etc. A credit score is a direct repercussion of your past repayment history, your ongoing loans, defaults in your past loan payments.

The lenders when offering a loan while you still have an ongoing loan takes your credit score into consideration. They study your credit report to check on how well you have been doing with your other loan. If all goes well and you have a persistent track record, then they usually don’t have any issue in offering you the loan. A credit score over 750 is considered good and acceptable.

Repayment Capacity

Of course this important to any and every lender.  The lenders are more than willing to offer you their loan product provided you are capable to repay two loans simultaneously. The repayment capacity is driven by one’s income and financial credentials and that is why lenders seek your income and financial documents like bank statements, income tax returns, income proof, profit and loss statements audited by a charted account etc. If all goes well and the lender is satisfied that you will be able to repay the loan timely, they offer the loan.


Lenders are mainly concerned with the repayment of their loan along with the requisite interest. Income plays a very important role in determining your repayment capacity. If you have a steady flow of income wherein you can pay for EMIs for two loans simultaneously and also take care of all other expenses, then you can avail a personal loan and a business loan together. Since both these loan products are unsecured in nature and thereby incur a higher rate of interest than other loans, it is imperative to do the calculations thoroughly beforehand so as to avoid burdening self.

One can apply for a personal loan and a business loan simultaneously through LoansJagatdotcom and get instant approvals and quick loan disbursal.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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