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What factors to consider before taking 2nd loan while repaying 1st?
short by Garima Garg / on Tuesday, 5 May, 2026
Before taking a second personal loan while repaying an existing one, one should ensure that combined EMIs on both loans and other fixed obligations don't cross 50% of gross monthly income. A Fixed Obligation to Income Ratio (FOIR) above 50% deters lenders. Additionally, multiple personal loans increase the borrower's unsecured exposure and reduce the margin of error on repayment.
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