Can I borrow more while paying installments? Detailed answers

Currently, many customers are wondering whether they can borrow more when they have a sudden financial need. In fact, borrowing more is still completely possible, but it will depend on the financial conditions, credit history and policies of each lending institution. This article will analyze in detail to help you have an overview before making a decision.

Quick summary:

Installment loan is a form of loan in which the borrower pays both principal and interest in many small installments monthly or quarterly, helping to reduce financial pressure and easily manage spending.

Can I get another loan if I am on installments? Yes, but approval depends on credit history, ability to repay and the specific regulations of each lending institution. The conditions for additional loans are usually:

• No bad debt or overdue debt.
• Guarantee of payment capacity: DTI ratios typically range from 40%–60%
• Profile suitable for loan type:
  • Unsecured loans: Need salary statement, labor contract.
  • Mortgage loans: Legal collateral required.

Popular forms of additional loans

• Borrow from many credit institutions: Borrow from many banks/financial companies at the same time.
• Additional loans from existing banks: Can borrow unsecured or mortgage on existing assets.
• Borrow through financial companies/online applications: Fast procedure, but higher interest rate.

1. What is an installment loan?

In the field of finance and banking, installment loans are considered one of the most popular and flexible forms of borrowing today. This is a method in which customers pay the principal and interest in many small installments, usually monthly or quarterly, based on the schedule agreed upon in the credit contract.

Unlike one-time loan repayment, installment loan helps borrowers divide payment obligations, thereby reducing short-term financial pressure and being more proactive in balancing personal or business income and expenses.

Besides, installment loans also brings many practical benefits:

• Reduce debt repayment pressure: There is no need to pay the entire loan at once, the borrower can divide the payment amount into installments according to their ability.
• Easy financial management: Regular repayments help borrowers monitor and control cash flow more effectively.
• Suitable for many different purposes: From car loans, home loans, personal consumer loans and business loans, installment payment methods can be flexibly applied depending on the needs and financial capacity of each customer.

It can be said, installment loans is a smart choice for those who want quick access to capital, stable cash flow and optimized long-term affordability.

2. Can I get another loan if I am paying in installments?

Many customers who are in the process of paying off a loan often wonder: can they borrow more while they are paying off the loan? In fact, this is entirely possible. However, whether it is approved or not will depend on legal regulations as well as the actual assessment from the lending institution.

2.1. Legal aspects

According to the current Law on Credit Institutions, borrowers are allowed to borrow more even if they have an installment loan that has not been fully paid off. Customers can borrow from one or more banks or financial companies at the same time, as long as they fully meet the credit conditions prescribed by each unit.

In other words, the law does not prohibit “parallel borrowing”, but requires borrowers to demonstrate their financial capacity to ensure timely repayment obligations for all existing loans. This is the basis for limiting credit risks and protecting both customers and lending institutions.

2.2. In practice

In fact, the ability to borrow more depends on the assessment of the financial capacity and creditworthiness of the borrower. Some of the key factors that banks or finance companies often consider include:

• Current financial situation: Income, monthly expenses, and existing debts.
• Credit history (CIC): If a customer has bad debt, late payments or has been recognized as a credit risk, a new loan application is likely to be rejected.
• Debt repayment capacity: The lender will assess whether the borrower has the capacity to make simultaneous payments.both old and new loansor not

In case the application is assessed as high risk, the bank may reduce the loan limit, require collateral or refuse to grant additional loans.

Therefore, before deciding to borrow more, customers should carefully review their personal financial capacity, ensure a clean credit history, and talk directly with the bank to get advice on appropriate limits, to avoid falling into a situation of debt burden.

3. Conditions for additional loans while paying installments

Taking out an additional loan while still paying off another loan is entirely possible, however not everyone is approved. The bank or finance company will carefully assess the application to ensure that the customer has sufficient financial capacity and creditworthiness to limit risks. Below are three important groups of conditions that borrowers must meet to be considered for an additional loan:

3.1. No bad debt or overdue debt

This is a prerequisite in the process of approving a new loan. Customers need to pay in full and on time the repayment periods of the current loan. If the CIC system (National Credit Information Center) records group 2 debt or higher, meaning it is 10 days or more overdue, the possibility of getting another loan is almost zero.

Credit history reflects a borrower's past creditworthiness, so maintaining a "clean" credit record not only increases the chances of getting more loans, but can also help customers receive more favorable interest rates.

3.2. Ensuring payment capacity

Banks always evaluate the borrower's ability to pay through the total monthly debt payment obligation compared to the stable income. Normally, this ratio should not exceed 40% - 60% of the total monthly income.

• The ideal debt-to-income (DTI) ratio recommended by credit institutions is below 40%.
• Borrowers need to prove their legal and stable source of income with documents such as salary statements, labor contracts, business licenses or revenue invoices (for business households).

Ensuring solvency not only helps applications get approved faster but also demonstrates the customer's financial responsibility in the eyes of the bank.

3.3. Suitable for new loan products

Depending on the type of loan, the bank will require different documents:

• For unsecured loans: Borrowers need valid labor contract, salary statement of the last 3-6 months and stable income at reputable businesses.
• For mortgage loans: Need legal collateral such as house, car, savings book or other real estate for the bank to evaluate and establish appropriate loan limits.

In short, to get additional loans while paying installments, customers need to maintain a good credit history, stable income, and prepare complete documents suitable for the type of loan you want. This is the foundation for a quick approval process and increases the likelihood of getting approved for a new loan.

4. Popular forms of additional loans

While having an installment loan, customers can still consider borrow more capital depending on your needs and financial capacity. Currently, the financial and banking market in Vietnam offers many flexible options, helping borrowers access more sources of money without having to pay off the old loan. Here are three popular forms of additional loans that are widely used:

4.1. Borrow from many credit institutions at the same time

This is a form of loan allocation at many different banks or financial companies. For example, a customer can take out a home loan at bank A and a car loan at bank B at the same time.

This form is completely legal, as long as the customer meets the requirements of ability to repay the loan. Lenders will base their decision on total income, credit history and DTI (Debt-to-Income) ratio.

The advantage of this option is to diversify capital sources and take advantage of each bank's preferential policies. However, borrowers need to closely monitor the repayment schedule to avoid late payments between multiple parties, which can affect credit scores.

4.2. Borrow more from existing bank

In case the customer wants to borrow more from the bank where they are paying installments, there will be two main approaches:

• Unsecured loans: Most banks only accept a single unsecured loan at the same time. However, in some special cases, such as customers with high income, good credit reputation or borrowing under a preferential interest rate program, the bank may consider granting additional sub-loans.
• Mortgage loans: If you have valid collateral (such as a house, car, or savings book), the bank may allow you to borrow more on that same asset. The amount of the additional loan will be based on the remaining value of the collateral and your actual ability to repay.

This form is often available lower interest rates than unsecured consumer loans, while helping customers take advantage of existing credit relationships with banks for faster support.

4.3. Borrow more from a finance company or online platform

With the strong development of consumer finance and digital technology, customers can now easily borrow more through financial companies or online applications.

The advantages of this form are simple procedures, quick approval, no collateral required. However, the interest rate is often higher than traditional banks due to the greater credit risk.

In general, each form of additional loan has its own advantages and disadvantages. Borrowers should carefully compare interest rates, terms and approval conditions, and make a clear financial plan to avoid falling into a spiral of debt and ensure sustainable payment ability in the long term.

5. Advantages and risks of borrowing more

Borrowing more while having an installment loan can bring many practical benefits if used properly, but at the same time, it also poses significant financial risks if the borrower does not control the ability to pay well. Understanding both sides of the issue will help customers proactively make smarter and more sustainable financial decisions.

5.1. Advantages

Additional loans are a flexible solution that helps borrowers expand their access to capital, serving urgent purposes or potential investment opportunities. Some outstanding advantages include:

• Increase access to capital: Customers can supplement their finances for new needs such as home repairs, equipment purchases, or business expansion without having to pay off old loans.
• Flexibility in product selection: Being able to borrow more from different credit institutions helps borrowers take advantage of special incentives, such as low interest rates, flexible terms or loan packages tailored to specific financial goals.
• Timely financial support: When urgent needs arise, such as medical expenses, education, or short-term investments, additional loans help customers resolve the situation promptly without affecting current financial operations.

5.2. Disadvantages and risks

Along with the benefits, borrowing more also entails many challenges and potential risks, especially when the borrower does not have a clear debt management plan:

• Increased financial pressure: Having to pay off multiple loans at once makes it difficult. Increased monthly payment obligations can easily cause financial stress if income is unstable.
• Loss of control of cash flow: When borrowing from multiple sources, borrowers can miss payment deadlines or difficulty keeping track of total debt obligations, resulting in late payment and overdue interest penalties.
• Risk of bad debt: If income decreases or personal events occur, the borrower may lose the ability to repay the debt, causing the CIC file to be marked as bad debt, directly affecting the borrower's ability to repay the debt credit worthiness and future borrowing capacity.
• Increased cost of borrowing: More loans means more other fees such as application fees, insurance fees, late payment fees, significantly increase the total financial cost.

In short, borrowing more is only really effective when the borrower carefully assesses the actual needs, makes a detailed repayment plan and maintains financial discipline. This is the key factor to take advantage of the benefits of borrowing more while still ensuring long-term financial security.

6. Important notes when borrowing more

Although additional loans can help borrowers solve urgent financial needs or take advantage of investment opportunities, if not carefully planned, it can become a long-term burden. To ensure financial security and avoid the risk of bad debt, customers need to note some important points below before deciding to borrow additional loans.

6.1. Assess real needs

Before applying for a loan, borrowers should carefully consider the purpose of using the capital. Additional loans should only be made when serving necessary needs or when there is a potential for profit, such as business investment, home repairs, education costs or health care.

On the contrary, if the loan is only for impulsive shopping or unnecessary consumption, the risk of financial imbalance will increase, leading to the ability to repay the debt being affected in the future.

6.2. Tight credit management

When there are multiple loans, credit monitoring and management becomes especially important. Borrowers should:

• Check CIC periodically to understand credit history, ensure no bad debt or loans are not recorded accurately.
• Pay your debts on time to maintain your credit reputation, avoid late interest penalties or credit score reduction.
• Keep your debt-to-income (DTI) ratio at a safe level, typically below 40% of your gross monthly income. Going over this threshold can significantly reduce your chances of getting approved for a loan in the future.

6.3. Building a reserve fund

One of the golden rules of personal finance management is to always have a contingency fund. Borrowers should maintain savings equivalent to 3–6 months of expenses or income, to cope with unexpected situations such as job loss, illness or business fluctuations.

An emergency fund not only helps maintain timely payments, but also protects your credit score and reduces your reliance on high-interest emergency loans.

6.4. Optimize existing loans

If you have multiple small, high-interest loans, you may want to consider debt consolidation or restructuring to a lower-interest loan.

This form helps:

• Reduce total interest costs.
• Simplify management, just pay off debt once a month.
• Extend debt repayment period, reduce short-term cash flow pressure.

In short, additional borrowing is only truly effective when borrowers correctly assess their needs, manage their credit with discipline and maintain reasonable financial reserves. Proactively optimizing loans not only helps save costs but also ensures stable financial health in the long term.

So, can you borrow more while you are on installments? The answer is yes, but it depends on your credit history, your ability to repay the loan, and the lender's terms and conditions. Before deciding, borrowers should calculate carefully, read the terms of the contract carefully, and make sure that borrowing more is really necessary and within their financial capacity.

If you are considering taking out an additional loan while paying in installments, you can contact SeABank for detailed advice on the loan limit that suits your personal financial situation. A team of dedicated specialists will assist in assessing your ability to repay, choosing a flexible loan package, helping to ensure financial security and meeting your capital needs in a timely manner for personal or investment goals.