Personal Finance & Loans – Your Quick Guide

When it comes to money, most of us just want the basics: how much can I borrow, what will it cost, and will I be able to pay it back? On this page you’ll find straight‑forward answers, practical tips, and a real‑life example that shows how a personal loan works alongside an education loan.

Understanding Loan Eligibility

First thing’s first – lenders look at three things before they say yes: your credit score, your income, and your debt‑to‑income (DTI) ratio. A good credit score tells the bank you’ve handled credit responsibly. Your income proves you have money coming in to cover repayments, and the DTI ratio shows how much of that income is already tied up in other debt.

So, if you already have an education loan, it’s not an automatic rejection for a personal loan. The key is whether the combined monthly repayments fit comfortably within your budget. Most lenders like to see a DTI below 40 % – that means less than 40 % of your gross monthly income goes toward loan payments.

Here’s a quick way to check: add up the monthly payment you make on your education loan, then add any other debts (credit cards, car loans, etc.). Divide that total by your gross monthly salary and multiply by 100. If the result is under 40, you’re in a good spot to apply for a personal loan.

Balancing Multiple Loans

Let’s look at a common question: “Can I get a personal loan if I have an education loan?” The short answer is yes, if you meet the eligibility criteria we just talked about. The longer answer is that you need to weigh the pros and cons.

On the plus side, a personal loan can give you cash for things like home repairs, unexpected medical bills, or even consolidating higher‑interest credit‑card debt. Personal loans often have lower interest rates than credit cards, so you could save money in the long run.

On the downside, adding another monthly payment can tighten your cash flow. It also raises your overall debt level, which could affect your credit score if you miss a payment. Before you apply, run the numbers: calculate the new monthly payment, add it to your existing obligations, and see if you still have room for savings and everyday expenses.

One practical tip is to keep a simple spreadsheet. List each loan, the balance, interest rate, and monthly payment. Update it whenever you make a payment. Seeing everything in one place helps you spot where you might refinance or pay off a higher‑interest loan first.

If you decide to go ahead, shop around. Different banks and fintech platforms offer varying interest rates, processing fees, and repayment terms. A lower rate can shave hundreds of rupees off your total cost.

Remember, borrowing isn’t just about getting the money you need today – it’s about making sure the debt fits into your long‑term financial plan. Keep an eye on your credit score, stay on top of payments, and avoid taking on more debt than you can comfortably manage.

Got more questions about personal finance or loans? Check out the other articles in this category for advice on budgeting, building credit, and choosing the right loan product for your goals.