Multiple Personal Loans: A Financial Trap? Know the Risks to Your Credit & EMI

• Taking multiple personal loans simultaneously can severely impact financial health, despite seeming like an easy solution for immediate needs.
• Rising inflation and easy availability from banks/NBFCs lead many to take out more than one personal loan.
• Multiple loans inflate your Debt-to-Income (DTI) Ratio, making half your income go towards EMIs, which is risky for lenders.
• Increased EMI burden and potential for missed payments can significantly damage your credit score, making future loans difficult or more expensive.
• Managing multiple EMIs causes financial strain and mental stress; experts advise taking only one loan and assessing finances before new ones.

Why It Matters: Avoid multiple personal loans; they can damage your credit, increase DTI, and cause stress.