People can avail two loans from the same bank based on their credit score and repayment capacity. So, it is possible to get a Personal Loan even if you have an existing Home Loan. The bank will go through your documents before sanctioning the loan to figure out whether you can keep up with the monthly payments. They will compare your monthly earnings to how much you will spend on debt repayment.
You also can approach another bank for a Personal Loan. Just make sure you use an online Personal Loan calculator to check the EMIs (Equated Monthly Instalments) you would have to pay. It will allow you to ascertain your repayment ability and prevent you from falling into a debt trap later on. The amount of loan a salaried person can get depends on specific factors. Whenever any bank or credit institution lends you money, they will often consider the following factors to decide your eligibility.
Your Net Income
Check your income after necessary deductions. Banks will always check your net income and financial obligations. Your debts should not exceed 40% of your total income. Should your income-to-debt ratio exceed 40%, the chances are high that your loan application will be rejected. Hence, if you already have a Home Loan to your name, banks will delve into your finances to ensure you are keeping up with your existing debts and can still live comfortably. If your income is high enough, there should be no issues in getting a Personal Loan.
Your Credit History and Credit Score
It’s not always about the present; your financial past also plays a role in deciding whether you are eligible for a Personal Loan. When you have a sound financial record, it is a plus point and does away with credit score-related issues. A high credit score also increases your total loan amount eligibility. A minimum credit score of 750 is considered a good one to be eligible for a Personal Loan. Lenders always check the credit score to ascertain a borrower’s creditworthiness. So, before applying for a loan, check your credit score so that your loan application does not get rejected. In case your credit score is poor or high enough, work to improve it by paying your bills, Credit Card dues, and loans on time and in full. Otherwise, it will not be possible for you to GetLow Interest Rate Personal Loans.
Check the Eligibility Criteria
Most of the banks and other lending institutions always have their specific eligibility criteria. You need to fulfill those requirements to be eligible for the loan. Most banks provide Personal Loans just to working adults, from the age of 21 to 65 years. Another thing that the banks consider is your monthly earning. Both, your age and income, will impact your ability to get a loan. The younger you are, the better the chance of you getting a loan.
Employment Status
Employment status is very crucial for getting a Personal Loan. After all, you need to be able to repay the bank. Most banks will ask you to submit proof of employment with your Personal Loan application. This could be payslips for last three months. Also, you may have to furnish a letter from your current employer that states you are employed on a full-time basis and the date when you started working. You need to have a minimum employment period of 2 years in your current organisation.
Existing Outstanding Liabilities
Your liabilities include all open and active credit accounts, such as Credit Cards and loans, including the Home Loan. Remember, you should not take a Personal Loan if you are already struggling to repay your Home Loan. If you have the financial capacity to repay two loans simultaneously and that too without feeling the pinch, go right ahead. Otherwise, wait for an increment, promotion, or higher-paying job before you take on another financial liability.
Purpose of a Personal Loan
The lender will never ask you the reason for applying for a Personal Loan. So, you need not worry too much about this aspect. The loan amount can be used for just about anything – wedding, holiday, home renovation, higher education, or medical emergency. Taking on another financial debt when you already have a long-term obligation in the form of a Home Loan may not be a prudent idea. However, if you can handle repayment of both loans without worries, go right ahead. In fact, you can get in touch with the financial experts at MyMoneyMantra. Let them know your requirement, and they will help you get access to low interest rate Personal Loans.
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.
Updated On Jul 19, 2026
Written By
Written By Reshma RawatAssistant Content ManagerCredit Cards, Credit Score, Personal Loan, Home Loan, etc.
Reshma Rawat is a passionate writer with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra and writes blogs & webpages on financial products (loans, credit cards, insurance, government financial policies, mutual funds, etc.).
