In order to be eligible for a loan, the primary criteria is that you should be an income earning adult Indian citizen. Loan amount depends on various factors like age, qualifications, stability and continuity of income, savings habit, repayment obligations, repayment history, assets and liabilities subject to loan ceiling and margin requirements as per the approved policy of the company.
Yes. It may affect unless you provide evidences of satisfactory income levels. Duration of an existing loan is also taken into consideration for deciding the loan eligibility.
If you repay your existing, the net disposable income in your hand increases, which makes you eligible for a higher loan.