An instalment loan can refer to several different types of common loans that people will take out from a bank or lender when they need it either in the short-term, or to fund a long-term venture that they might not have the expenses to cover at that current moment.

Since they can come in several different forms and can be applied for from a variety of lenders, this does beg the question of if someone is able to take out two instalment loans at the same time since they are known for being very flexible which can make it seem like a possibility.

Can You Have Two Instalment Loans At The Same Time?

There are a few misconceptions when it comes to taking out more than one instalment loan however, so to clear things up, here is all you need to know about taking out two loans at a time including if it can be done, and any potential drawbacks that can come as a result of doing so.

What Is Classed As An Instalment Loan?

An instalment loan refers to any personal or commercial loan that the borrower must repay over scheduled payments or instalments. This can include but is not limited to personal loans, term loans, mortgage loans, and student loans. The one common feature shared by nearly all instalment loans is that they are fixed-rate loans, meaning that the interest rate charged over time is fixed at the time of borrowing.

Instalment loans can be either secured or unsecured depending on the agreement made between the borrower and lender, however, it should be noted that the interest rate charged on a non-secured loan is usually a lot higher than the rate that would be charged on secure loans due to the higher risk of non-repayment.

Can You Have Two Instalment Loans?

The good news is that if you are struggling financially with only one instalment loan in place, then you are able to have two at the same time, and this can be done with either multiple lenders, or by taking out two loans from the same lender, as long as they agree to do so.

These loans can also be different from one another depending on the lender, so for example you would be able to take out both a personal and a mortgage loan if the lender allowed you to do so. It’s important to know that while a lot of modern lenders will allow you to take out two instalment loans at a time, not all of them will, and some will have certain requirements that need to be met before you can apply for two.

For example, some lenders will commonly require you to make a certain amount of payments on one instalment loan before allowing you to take out another one, to ensure that you are considered financially reliable. Other lenders can require you to apply for a second instalment loan a set amount of days after you have signed the first one, so that you don’t take out too much money at once.

Drawbacks Of Taking Out Two Instalment Loans

Drawbacks Of Taking Out Two Instalment Loans

While taking out two instalment loans at one time is actually fairly common and can be done easily by signing up for separate loans from either different lenders, or the same one, there are some drawbacks that make this more of a last resort for many people rather than something that should be promoted. Here are some of the biggest negatives that can come from taking out two instalment loans simultaneously:

  • Trapped in a debt cycle – Taking out a second loan on top of an existing one can indicate that you are trapped in a debt cycle which can only become worse the more debts you decide to take out. Try to avoid taking out more than one loan to avoid falling into this spiral and try to find other methods of financing your personal expenses such as debt relief.
  • Negative impact on credit score – Credit scores are very important since they indicate to a lender how financially reliable you are by logging your recorded history with applying for loans. Applying for multiple loans at the same time will therefore damage your credit score which can negatively impact your chances of securing a loan successfully in the future.
  • Higher Repayments – The more loans you take out, the more you will have to pay in your instalments, so if you are planning to take out two at the same time, make sure that you will be able to keep up with the repayments and that you won’t get bogged down from the amount of money owed.

Can You Take Out More Than Two Instalment Loans?

While many lenders will allow a person to take out up to two instalment loans at a time, there are a small few who will have no capacity and that will let you take out more if you wanted to, however, this is never advised as it can end up ruining your credit score while also quickly leading into a debt spiral that can become increasingly hard to get out of the more loans you take out.

While you could technically achieve this by taking out several loans from multiple lenders, it is usually much harder to find a single lender who will let you take out more than two at a time due to the much higher risk of the borrower not keeping up with the repayment schedules.

Taking out more than two loans from a single lender can also be incredibly difficult because they will always have a maximum loan amount, meaning even if you could take out more than two, these loans would have to be fairly low amounts anyway to ensure you don’t exceed the maximum amount.

How To Manage Two Instalment Loans?

If you are planning to take out two loans to cover expenses or to see you through a period of financial difficulty, there are a few vital tips to keep in mind that will help you balance the two without falling behind on your payments. First, you will need to create an honest and realistic payment plan.

This is to make sure that you will be able to pay the instalments off in time, while also helping to reduce the amount you spend on interest or fees, while also protecting your credit score. Setting up automated payments is another easy way to stay on top of your debts and not miss out on any of the repayment dates, which can happen very easily when you have multiple payments over a few months or years that you have to keep track of.

If automated payments don’t work for you, you can also try setting calendar alerts a few days before each payment to help you remember and to avoid missing the deadline which can quickly result in some harsh penalties.


While it is possible to take out two instalment loans at the same time depending on the lender and their policies, it can come with a lot of drawbacks including negatively impacting your credit score which can affect your chances of getting a loan in the future, so it is only advised to take out more than one when it is unavoidable or absolutely necessary.

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