The amount you can borrow for a personal loan depends on the lender. As well as your salary, credit score, and outstanding debt.

Each lender has a different set of rules and regulations. Which also stipulates a maximum amount they are willing to lend their clients.

You will not automatically qualify for the maximum amount. You need to prove you are a responsible borrower, the lender’s decision will be based on this.

This is how the following factors influence the lender’s decision:

  • Your salary: Lenders are comfortable lending large amounts to borrowers who earn larger salaries, they have the resources to settle their debt. Do not be discouraged if you do not earn a large salary. Lenders are also interested in seeing that their borrowers have a steady income over a consistent period.

 

  • Your credit score: This reflects how diligent you are at paying back your debt. The better your credit score, the more likely lenders are to approve a large personal loan.

 

  • Your debt: If you have a steady salary and a good credit score. Lenders may still be wary of approving your personal loan if you have outstanding debt. Although you are managing to meet your current payments, lenders may be concerned you will struggle with an additional large loan.

Get in touch with MoneyShop to find out whether you qualify in terms of the above criteria. You may be surprised by what you are capable of!

 

Until next time.

The MoneyShop Team

 

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.