With the help of loans, dreams and desires can be fulfilled and important needs can be met. But what if a loan already exists but additional funds are needed? Is it possible to get a loan despite existing loans? Whether a bank or a lender approves a loan application does not always depend on whether other obligations already exist, but such an approval also depends on the respective economic and financial situation of the applicant.
For each loan, banks and credit institutions check whether the borrower will also be able to meet their monthly commitments in the form of loan installments. It is no different if one or more loans are already running. It is only important that the potential borrower is able to meet his obligations through the additional rate. Lenders check this by means of a budget statement or a comparison of income and expenditure.
This quickly shows whether there is still room for paying off another loan after deducting all previous costs and payments. If this is the case, the bank or the institution will usually also agree to this new loan. So it is quite possible to get a loan despite existing loans.
The release of a liability as a prerequisite
Depending on the type of loan, some credit institutions only issue the new loan if a previous loan obligation has been repaid and paid in advance. This is often the case with the external financing of a car, for example. Often there are several thousand USD in the room with a car financing. If a car is to be financed, but there is still old vehicle financing here, it may also be that the new loan is only paid out on condition that the old liability has been paid in advance.
This can also be the case with house or apartment financing, for example. Usually, when it comes to larger sums, many institutes want to play it safe. Here, however, it always depends on the respective lender and the individual situation.
Your own financial situation often decides
If you are financially well off, you will have no problems getting a loan despite existing loans, even if other, sometimes high or similar, loans, such as cars, are in progress. But even a car consumer has a good chance of getting a loan, although there are other obligations as long as the liquidity is available.
Nowadays it is normal for many people to have several loans, for example for a house, apartment, car and other purchases. A loan in spite of existing loans is therefore possible in many cases.