The lending space in the country is growing at a fast pace. With the increasing number of borrowers willing to avail of 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 loans such as 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 percent 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 and 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 for them from the comfort of their home or office using their computer or smartphone. And with a competitive rate of interest and no requirement of any collateral, there is nothing much a borrower can ask for.
The second most covetable loan product is the business loan. Business loans are short-term loans that 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 loans with easy eligibility criteria and decent credit scores. Business loans are availed by both 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 an instant personal loan to meet the expenses of their businesses. But people usually lack the required knowledge about whether they can avail of a business loan and personal loan simultaneously and end up budging their finances. However, can you apply for a business credit card with your ein? 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, and defaults in your past loan payments.
The lenders when offering a loan while you still have an ongoing loan take 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 of over 750 is considered good and acceptable.
Repayment Capacity
Of course, this is 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.
Income
Lenders are mainly concerned with the repayment of their loans 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 of 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.
