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How many credit enquiries are too many for Indians applying for a personal loan

Key Takeaways

Multiple personal loan applications can hurt your approval chances because each hard enquiry may lower your credit score and signal higher credit-seeking behaviour to lenders.
Check your eligibility before applying using online eligibility and EMI calculators that help you assess your borrowing capacity without affecting your credit score.
Maintain a strong credit profile for quicker approvals by keeping your credit score above 750, limiting hard enquiries, and keeping your total EMI obligations within manageable limits.

09 Jul 2026 by Team FinFIRST

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Anytime you apply for a personal loan, you aim to get the loan approved at the lowest, most competitive interest rate. In your quest to do so, you may send applications to multiple lenders, hoping to secure an affordable loan offer. But each application triggers a credit report enquiry, and multiple enquiries can impact your chances of obtaining a low-interest personal loan.

It is thus important to understand what lenders consider excessive credit enquiries and how they impact your credit score.

What are the benefits of using Account Aggregator with FIRSTmoney personal loan?

15 lakh personal loan EMI calculation India

Can you get a ₹15 lakh personal loan in India? Eligibility and EMI explained

Hard enquiries vs soft enquiries

Lenders need to ensure that you are financially capable of repaying the funds you have borrowed, for which they make a hard enquiry about your credit handling behaviour. As a borrower, you may also need to assess how to get the best loan offer, and make your own soft enquiries.

Here’s how these two enquiries differ:

Hard enquiry:

To ensure you are a safe, risk-free borrower, lenders conduct a hard enquiry, wherein they assess your credit history and the subsequent credit score you’ve built, reflecting your creditworthiness.

A hard enquiry provides lenders with an insight into your borrowing habits, including your past loans and whether they were repaid on time.

Such an enquiry also provides lenders with information about your current loans (if any) and whether you have made multiple loan enquiries with different lenders in the last 3 to 6 months.

Soft enquiry:

A soft enquiry can be conducted by both lenders and borrowers to evaluate the latter’s chances of loan approval.

As a borrower, you may want to assess the loan amount and repayment plan by using an eligibility calculator and an EMI calculator. These calculators will help you estimate your EMI and determine how much you need to borrow to repay comfortably.

How multiple instant loan applications affect approval chances

Here’s how these application that could affect your approval chances:

Lower your credit score and eligibility: Submitting several loan applications in a short period can result in multiple hard enquiries on your credit report. Each enquiry may slightly lower your credit score and impact your loan eligibility.

Indicate financial stress: Multiple loan applications within a short timeframe may suggest to lenders that you are experiencing financial difficulties, raising concerns about your creditworthiness and ability to repay.

Sign of rejection: Submitting frequent applications can decrease your chances of approval. If one lender rejects your application, others may be less likely to approve after reviewing your recent enquiry history.

How many personal loan applications are too many?

At any given time, 3 or more personal loan applications, especially over a short period (e.g., 3 to 6 months), are considered excessive. Every hard enquiry reduces your credit score by 2-3 points or even more. More points are deducted with every subsequent application, impacting your chances of loan approval.

Need an urgent loan? How to avoid damaging your credit profile

There are a few simple things you can do to get quick and easy approval for personal loans:

Utilise online tools: Use online personal loan eligibility calculators, easily available on lender websites, to gauge your eligibility before sending your loan application.

Pre-approved offers: Check if you are eligible for pre-approved personal loan offers by checking your offer through personal loan aggregators or your existing banks.

Avoid multiple enquiries: Avoid scattering your personal loan applications across several lenders; stick to one or two reputable lenders.

Need instant funds? Check out FIRSTmoney Personal Loan offered by IDFC FIRST Bank. The loan provides instant access to funds through a 100% digital application process. Eligible applicants can receive quick approval and loan disbursal in as little as 10 minutes.

Tips for improving personal loan quick approval chances

Ensure your credit score is atleast 750 points or higher

Check your eligibility before applying with any lender

Keep your documents handy – especially your PAN and Aadhaar

Ensure your loan EMIs don’t exceed 50% of your net monthly income

With IDFC FIRST Bank, you can obtain FIRSTmoney personal loans at competitive interest rates starting from 9.99% p.a., with a completely paperless journey and quick approvals.

Conclusion

In this modern era of digital and contactless banking, many banks in India offer instant loan applications with quick approvals and swift loan disbursals directly into your preferred bank account. So long as you maintain a decent credit score, restrict your hard loan enquiries and maintain a good debt to income ratio, you can get easy and quick loan approvals.

Frequently Asked Questions

Does applying for multiple personal loans affect my credit score?

Yes, multiple personal loan applications, especially those made within shorter timeframes and the corresponding hard enquiries, can impact your credit score.

How many loan enquiries are considered excessive?

Submitting loan applications to 3 or more lenders, within a short period of just 3 to 6 months, is usually considered excessive.

How long do hard enquiries remain on a credit report?

Hard enquiries typically remain on your credit report for up to 24 months, affecting your credit score for a longer period. Regularly review your credit report for unauthorised hard enquiries, as they may indicate fraud and should be reported immediately.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.