How Many Concurrent Personal Loans Can You Have?

Life happens when you least expect it. No matter how money-savvy you are, there’s simply no way to predict or schedule financial emergencies. Trouble may come knocking on your door anytime, so if you’re unprepared with no quick access to money, it makes sense to take out a personal loan to temporarily fix your financial woes. 

But what if one loan isn’t enough? Is it advisable, or even possible, to take out multiple ones concurrently? How many personal loans can you have at once? 

If you’re still asking these questions, don’t take out a loan just yet. Consider certain factors to determine if you can shoulder taking on more debt. 

Here’s a complete guide to taking out multiple personal loans at once.

How Many Personal Loans Can You Have at Once?

Can you apply for another personal loan if you already have an existing one? The answer is yes, as long as you meet the lender’s requirements.^[1] There are no laws prohibiting anyone from taking out multiple loans from different banks and loan providers, so you’re free to seek financial aid from lending institutions.

Just keep in mind that while you can apply for multiple loans, there’s no guarantee that lenders will approve your application. Many elements factor into their decision, including your credit standing, debt-to-income ratio,^[2] and your loan repayment habits. Also, some lenders have policies on how many loans a borrower can take out.

💸 Can You Have Multiple Loans from the Same Lender?

A common question asked by borrowers is, “If I need more cash to fund my needs, can I increase my existing loan amount?” The quick answer is no, the loan amount you were approved for is the final amount you will receive from your lender. 

However, if you need more funds, you can apply for another loan with the same lender, as long as you meet their requirements regarding multiple loan applications.

As every lender is different, take note that there’s no guarantee that you will be approved again. Most banks require you to pay off at least half of your existing loan before you can apply for a new one. 

Moreover, if you get approved, it might not be for the same loan terms as you previously had. The lender can limit the loan amount or give you a higher add-on interest.

If you’re looking for more funds from the same lender, you can also consider refinancing your loan in order to get a larger amount. Some lenders offer a refinancing option where you can take out a larger amount under one loan account. You will end up with a bigger balance overall, but at least you won’t have to deal with multiple debt collectors. 

So how many personal loans can you take out from your current lender? Unfortunately, there’s no single answer to this as every loan agreement is at the discretion of every bank or loan provider. It’s best to check with your current lender about their policy on multiple loan applications.

💸 Can You Have Multiple Loans from Different Lenders?

If you already have an existing loan and need  more funds, you probably have a higher chance of approval with easy-to-apply for loans from providers other than your current one. As for how many personal loans you can have, there’s no specific limit to this—the real question is, how many lenders will approve your application

For example, if you have an existing loan with Bank A, and you’re planning to get another loan with Bank B, there are no laws stopping you from doing so. However, Bank B will check how you’re paying back your loan with Bank A, in addition to reviewing the usual loan qualifications, before approving your Bank B loan. If you have a bad record with Bank A (e.g., late or completely missed loan payments), Bank B will certainly reject your loan.

However, if you have a good track record with Bank A, then you have a higher chance of getting approved by Bank B. The next thing Bank B will consider is your debt-to-income ratio. If they deem your declared income to be barely enough to repay your loan with Bank A, they will reasonably assume that you won’t be able to pay back two loans at once. In that case, expect your loan application to be rejected.

Related: 

• 10 Best Personal Loans in the Philippines for Different Cash Needs
• How to Compare Personal Loan Rates: Know Which Loan is the Best for You

Is It Bad to Apply for Multiple Personal Loans at Once?

Again, the answer is not as straightforward as you think. Every case is unique, so your personal circumstances will come into play. 

Having more debt is not ideal, but if your existing loan is not enough to cover an immediate need, it’s acceptable to look for other providers of low-interest personal loans. Just make sure you don’t make a habit out of this. 

Resort to multiple loan applications only when it’s absolutely the only option you have left. Don’t take out multiple loans just to buy the latest gadget or get tickets to a travel destination you can’t afford.

One valid reason to take out multiple personal loans is for debt consolidation. This means taking out a loan to pay back all your previous loans and bundle everything up in one monthly loan payment. Having multiple loans is not necessarily bad, as long as you’re using them responsibly and are managing them strategically. 

👉 Pros and Cons of Multiple Loans

There is good and bad in everything, including taking out multiple personal loans:

• Pro: Cover multiple expenses. Applying for multiple personal loans is a good idea if you have multiple expenses to cover. For example, you initially took out a loan for home renovation, but then a sudden medical emergency hits you. Getting a second loan will help you solve an unexpected financial dilemma like this. 
• Pro: Positive impact on credit score IF you are a responsible borrower. It’s an advantage if you manage your debt responsibly by making early or timely monthly loan payments. Demonstrating that you are a responsible borrower will increase your chances of getting approved for concurrent loans.
• Con: Negative impact on credit score IF you are an irresponsible borrower. Having multiple loans at once will hurt your credit standing if you fall behind on your monthly loan payments. You will end up with more loan charges, higher interest rates, and a bigger debt.
• Con: Lower chances of getting approved. If you mismanage your previous and existing loans, expect a harder time getting approved for new ones. Unless you have a track record that impresses a potential lender, you will have to make do with your existing loan.
• Con: Higher interest on succeeding loans. If a lender does end up approving your loan application despite your bad credit, expect a higher monthly interest rate that will make it harder for you to pay back your loan.

What to Consider Before Taking Out Multiple Loans

Still set on taking out multiple personal loans? Make sure you’re making an informed decision. Reflect on your money needs and habits before you decide whether getting another loan is the healthiest option for your finances. 

Here are some factors to consider before applying for your next loan:

📌 Capacity to Pay 

Before taking out any kind of loan, consider how you’re going to repay it. The way to smartly do so is to know your debt-to-income (DTI) ratio. 

To compute your DTI ratio, get the total of all your existing monthly debt, then divide it by your gross monthly income. The lower your DTI ratio is, the better. A lower rate means more favorable outcomes for you in terms of loan applications.

For example, if you’re earning ₱50,000 a month, and you have a monthly loan payment of ₱3,000, your current DTI ratio is 6%. This figure is way below the standard of most lenders, which is 40% or lower. 

The lower your DTI ratio, the more likely it is that you can repay your loans. The idea is to not exceed 50%, which means half of your monthly income shouldn’t go to paying back your existing loans.

Taking out more loans means increasing your DTI ratio over time. For example, if you take out another monthly loan of ₱5,000, and your monthly income is still ₱50,000, your DTI ratio will increase to 16%. While the rate is still not critical, you have to increase your income if you’re looking to take out multiple personal loans at once. 

📌 Credit History

Another important consideration when applying for multiple personal loans is your credit history, specifically your credit score. If you were a first-time borrower when you applied for your existing loan and currently make monthly payments early or on time, you likely have nothing to worry about. Your credit standing will still be high enough to get you another loan approval.

However, if you’ve had loans in the past and missed some payments before, it’s likely your credit history won’t survive another round of loan approval. To find out if you have a good credit standing or not, get a credit report from the Credit Information Corporation (CIC).^[3] You can get your report directly from them, or you can use online apps like Lista to request a copy of your report.

Your CIC credit report contains your entire credit history. It gives you a preview of what banks and loan providers see when you apply for a loan. If your credit report is positive, then feel free to apply for more loans. If it’s the opposite, expect a harder time getting approved for multiple loans.

📌 Level of Responsibility

Is having a low DTI ratio and a good credit standing enough to determine your capacity to take out multiple loans? 

Not necessarily. It will ultimately depend on how responsible you are with money.

For example, if you’re going to take out multiple loans just for non-essential expenses like splurging on unnecessary clothes or getting a new gadget you can’t afford, then you should rethink your choices. Why get into financial trouble by increasing your debt when you have the option to save or invest the money instead? If you take money for granted, you’re probably not mature enough to manage multiple loans. 

However, if you’re financially mature, you can apply for loans that allow you to maintain a relatively low DTI ratio. 

📌 Loan Terms

After reflecting on how responsible you are with money, the next thing to consider is what the loan entails. Since you’ve presumably taken out a loan before, you should already know how to compute personal loan fees and other charges. 

If you’re applying for a new loan with your existing loan provider, you might get approved but get charged a high annual percentage rate. This means your monthly payments for your second loan will be higher. The same goes when you apply for a loan with a new provider—expect a high interest rate as well, so make sure to factor this in before applying.

You can attempt to avoid getting a higher loan rate by applying for a second loan only after settling at least half of your existing loan. But this is not a guarantee, so talk to your bank or loan provider first to confirm if there’s a way to negotiate a lower interest rate for your next loan.

Related: How to Compute Loan Interest and Monthly Amortization in the Philippines

How to Manage Multiple Loans

You already know what it’s like to deal with one loan, so you probably have a rough idea of how hard it will be to juggle two or more loans. Follow these tips to manage concurrent loans responsibly:

✅ Pay Off Your Debt Strategically

To optimize how you manage your debt, come up with a loan repayment strategy.^[4] Below are some options you can employ to repay multiple loans without damaging your credit. Take note that the best strategy is different for everyone, so go with the one that’s most beneficial to you.

• Prioritize the debt with the highest interest. Since the loan with the highest interest rate will incur the most loan charges, it’s best to finish paying it off first. Do this to avoid having to pay more interest charges in the long run. The downside is that it might take a while to settle this debt, especially if your high-interest loan is also the one with the highest total amount. Essentially, this strategy is the financial equivalent of eating the bigger frog first. By tackling your biggest challenge head-on, you can put it behind you and make the rest of your loan repayment journey relatively smoother and easier.
• Prioritize the smallest debt. On the other hand, if you prefer accomplishing the smallest tasks first, then this strategy is for you. This strategy is all about building momentum—you can settle your debt more quickly since you’re starting with the smallest one. Once you tick off certain items in your checklist, you’ll feel more motivated to pay off the rest of your debt. The downside is that high-interest loans with bigger debt will continue to incur interest, and it might take you longer to be completely debt-free.
• Pay off your debt equally. You can also go with the middle strategy, which is balancing your efforts across the board and paying off your loans equally. This method doesn’t have any notable pros and cons other than clearing your debt at your own pace. 

✅ Consolidate Your Loans

Another way to manage multiple loans is to combine them into one huge loan. For example, if you have an existing personal loan, an unpaid credit card balance, and an active auto loan, you can apply for a new loan to consolidate all your balance.^[5] This will give you a chance to settle your debt by making only one monthly payment instead of three. This will help you maintain a good credit standing and manage your loan payments more efficiently.

✅ Make Timely Payments

The best way to maintain a good credit standing while balancing multiple loans is to make timely payments every month. You can have five concurrent loans and still have a decent credit score. As long as you have enough income to settle your loans and the discipline to make payments early or on time, you can prove to lending institutions that you are a responsible and trustworthy borrower.

Having trouble keeping track of your monthly payments? Being more mindful will require more effort than normal. 

Set up alarms and reminders to help you track your deadlines. If that sounds too big of a hassle, you can also just set up your bank’s auto-charge function so you can automate all your monthly recurring payments.

Final Thoughts

Ultimately, you have enough power to dictate how many personal loans you can have at once. No law can stop you from applying for more than one, so try your luck as many times as you want. As long as you can prove you’re financially responsible enough to manage multiple loans, you are free to do as you want and need.

However, don’t take out multiple personal loans just because you can. As much as possible, free yourself of financial burdens you can avoid. Only under extreme circumstances should you make your debt bigger if you want a healthy financial life.

👉 Compare Loan Options from Top Providers in the Country

Make sure to avail of a loan from trusted lenders only. Compare your options below and apply via Moneymax:

Provider	Loan Amount	Monthly Add-on Rate	Loan Term	Minimum Annual Income	Approval Time
UnionBank Personal Loan	Up to ₱2 million	26.9% per annum	12 to 60 months	₱250,000	As fast as 5 minutes
UNO Digital Bank Personal Loan	₱10,000 to ₱500,000	1.79% per month (corresponds to annual contractual rates or annual percentage rates ranging from 35.78% to 37.54%)	Six to 36 months	₱240,000	Five to seven banking days
Metrobank Personal Loan	₱20,000 to ₱2 million	1.25% to 1.75%	36 months	₱350,000	Seven banking days
BPI Personal Loan	₱20,000 to  ₱3 million	Maximum annual contractual rate of 28.67%	12 to 36 months	Inquire with BPI	Five to seven banking days
Tonik Credit Builder	₱5,000 to  ₱20,000	4.84%	Six to 12 months	Inquire with Tonik	Two banking days
Tala	₱1,000 to ₱25,000	0.43% daily	Up to 61 days	None	Five minutes to 24 hours
HSBC Personal Loan	₱30,000 to ₱500,000	0.65%	Six to 36 months	₱168,000	Five to seven banking days
CIMB Personal Loan	₱30,000 to ₱1 million	As low as 0.83%	12 to 60 months	₱180,000	One to two banking days
Maybank Personal Loan	Up to ₱1 million	1.3%	Up to 36 months	₱300,000	Inquire with Maybank
RCBC Bank Personal Loan	₱50,000 to ₱1 million	1.3%	Six to 36 months	₱360,000	5 to 7 banking days
PSBank Personal Loan	₱20,000 to ₱250,000	42.88% Effective Interest Rate per annum for a 24-month term (term loan) 41.29% Effective Interest Rate per annum for a 36-month term (Term Loan) 34.49% Effective Interest Rate per annum for 12 months (Revolving Loan	24 or 36 months	₱180,000	Five to nine banking days

Sources:

• ^[1] How Many Personal Loans Can I Have at Once? (Experian, 2022)
• ^[2] Debt-to-Income (DTI) Ratio: What's Good and How To Calculate It (Investopedia, 2024)
• ^[3] About your CIC Credit Report (Credit Information Corporation)
• ^[4] Pay Off Debt: Tools and Tips (NerdWallet, 2023)
• ^[5] What Is Debt Consolidation and When Is It a Good Idea? (Investopedia, 2024)