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The personal loan amount you can qualify for is typically determined by your credit score, income, debt-to-income ratio and other factors. Although loan amounts vary across lenders, the maximum amount for personal loans typically ranges from $500 to $100,000.
In some cases, you may qualify for a loan larger than what you need. Before accepting any loan, consider what you can afford to repay and be sure you don’t borrow more than what you can manage.
How Much Money Can I Get With a Personal Loan?
Many lenders offer personal loans ranging anywhere from $500 to $50,000. Some banks and financial institutions cap borrowing amounts at around $20,000, while others offer loans up to $100,000 to borrowers with exceptional credit.
How much money you can get from a personal loan will depend on your loan application, including your credit score, income, debt-to-income (DTI) ratio, among other factors. Before accepting any loan amount, consider what payments you can afford to avoid overborrowing.
While a personal loan can be a helpful tool in managing and consolidating debt or financing large purchases, borrowing irresponsibly can lead to many consequences. Use a personal loan calculator to determine how much you can afford to borrow before accepting a loan.
What Determines How Much I Can Borrow?
The amount you can borrow with a personal loan is determined by a combination of factors. These are the most common variables lenders consider and how they may impact your borrowing capabilities.
- Credit score. Your credit score represents your creditworthiness, with a high score showing you’ve managed debt well in the past and a low credit score indicating to a lender that you’re a higher risk borrower. In general, lenders prefer a credit score for personal loans of at least 670, but this varies by financial institution.
- Current debts. Lenders consider your current debts, including credit card balances, mortgages and other loans. A high amount of outstanding debt may lower the loan amount you’re offered.
- Income. Your income level signals your ability to repay the loan. A higher income often leads to higher borrowing limits as lenders feel confident you can meet the monthly payments.
- Debt-to-income ratio. Your DTI compares your monthly debt payments to your gross monthly income. Lenders use it to assess your ability to manage monthly payments and repay debts. Aim to have a DTI of 36% or lower since this shows you have enough income to afford additional debt payments.
- Employment history. Stable employment and income are positive indicators for lenders. A strong employment history shows lenders that you have the financial means to repay the loan. Frequent job changes or a history of unemployment may lead to a lower loan amount.
- Loan purpose. The purpose of the loan can also affect the amount you can borrow. For instance, lenders may view loans for debt consolidation or home improvement more favorably than loans for discretionary purchases.
Alternatives to Personal Loans
The best personal loans can be a viable option for many, but several other financing avenues may better suit your financial needs and circ*mstances. These are some of the most popular alternatives to personal loans:
- Credit cards. Credit cards can be an alternative to personal loans, especially for smaller or short-term expenses. They offer the flexibility of making purchases now and paying them off over time. Payments can also be interest-free if you can pay off your balance in full each month or qualify for a 0% introductory annual percentage rate (APR). Keep in mind, overuse without a clear repayment strategy can lead to substantial debt.
- Home equity loans. Consider a home equity loan if you’re a homeowner with some equity in your home. These loans allow you to borrow against the value of your home, often at lower interest rates than personal loans or credit cards. However, it’s essential to remember that your home serves as collateral for the loan. If you default on your payments, you risk losing your home.
- 401(k) loans. A 401(k) loan can be viable if you have retirement savings. They allow you to borrow against your 401(k) balance, typically up to 50% of your savings up to $50,000. The interest rates for 401(k) loans can be lower than other options and you’re essentially paying interest back to yourself. However, if you fail to repay the loan within five years or if you leave your job, the loan could be treated as an early withdrawal.
- Peer-to-peer lending. Peer-to-peer lending platforms connect borrowers directly with investors willing to lend money. These platforms can offer competitive interest rates and flexible loan terms. However, you might require a good credit score to qualify and the application process can be longer than traditional loans or credit cards.
Before committing to any financing option, it’s crucial to fully understand the terms, conditions and potential risks. Conduct thorough research and consider seeking financial advice to make an informed decision.
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FAQs
Personal loan amounts generally range from as low as $1,000 to as high as $100,000. The exact range varies from lender to lender. For example, among the best personal loan lenders, there are lenders that offer loans from $1,000 to $50,000, $2,000 to $30,000, and $5,000 to $100,000.
How much money can I get with a personal loan? ›
Personal loan amounts vary widely among lenders. While some lenders allow you to borrow up to $100,000, others offer loans only up to $20,000. Most base your maximum loan amount on financial factors, like your annual income, your credit score and your repayment history.
What is the maximum amount for a personal loan? ›
Depending on your salary, credit score and employment status, you can get a Personal Loan starting from Rs 50,000 up to Rs 50 lakh, subject to ICICI Bank's internal policy. The amount is decided based on your age, income and other factors. This amount can also be increased depending on certain factors.
What is the maximum amount borrowed on a personal loan? ›
A lender's maximum amount doesn't determine how much you will personally be accepted for, though. The amount you'll be permitted to borrow depends on how long you want to take out a loan out for, your ability to handle additional debt and the way you've managed money in the past.
What's the maximum you can borrow for a personal loan? ›
The amount of money you can borrow under a personal loan can vary between lenders, depending on a myriad of factors. However, the maximum borrowing amount for personal loans may be capped anywhere between $50,000 and $100,000. This is the general range between bank and non-bank lenders.
How big of a loan can I get with a 700 credit score? ›
You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
How big of a loan can I get with a 600 credit score? ›
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
What is the most common personal loan amount? ›
In general, personal loan amounts range from $1,000 up to $50,000, though some lenders may offer loans up to $200,000. The average personal loan amount was about $11,500 as of Q2 2023, according to data from TransUnion. Below, we look at how average personal loan balances vary by generation and state.
What is considered a large personal loan? ›
A large personal loan is one that is typically in the range of more than $50,000. It can allow you to pay off debts or make significant purchases. However, it may require a high credit score, a solid employment history, and other factors to qualify, and it can bring its own set of pros and cons as well.
What bank is the easiest to get a personal loan from? ›
The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.
You can use a personal loan to make many types of purchases, including a car. Auto loans tend to have lower interest rates than personal loans, and longer repayment periods. Auto loans generally have lower interest rates because they use your car as collateral.
How much personal loan can I borrow from bank? ›
If you are eligible for a personal loan, you can get from two-to-six times your monthly income. However, since the loan is unsecured, there's a limit. So, you can get $200,000 or between two and six times your monthly income, whichever is lower. Some banks can offer slightly higher than this.
How big of a loan can I get with no credit? ›
Just keep in mind that if you are approved for the loan with a lower (or no) credit score, you may be subject to a higher interest rate. You can apply for loan amounts as low as $1,000 and as much as $50,000.
What is the maximum amount you can get for a personal loan? ›
Although loan amounts vary across lenders, the maximum amount for personal loans typically ranges from $500 to $100,000. In some cases, you may qualify for a loan larger than what you need. Before accepting any loan, consider what you can afford to repay and be sure you don't borrow more than what you can manage.
Can I use a personal loan for anything? ›
Personal loans can be used for almost any expense, including debt consolidation, home improvement projects, large purchases and emergencies. Personal loans may be advertised specific to their use — home improvement loans, travel loans or medical loans — but they function the same way.
What is the maximum you can borrow on a loan? ›
Lenders traditionally offer an amount between four and five times your income, though in some cases they may offer more or less than this.
How much would a $5000 loan cost per month? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsFor a $30,000 loan, you'll typically need a credit score above 600 just to qualify or above 700 to get a competitive rate. A high enough income: Part of the lender's evaluation of your loan application includes determining whether you can afford the payments.
What is the monthly payment on a $100,000 personal loan? ›
Example Monthly Payments on a $100,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 36 months | 15% | $3,467 |
| 48 months | 15% | $2,783 |
| 60 months | 15% | $2,379 |
| 72 months | 15% | $2,115 |
3 more rowsSep 10, 2021
The main factor in determining if you qualify for a $10,000 personal loan is your credit history. You'll need a credit score of at least 670 before you apply. Lenders look at your debt-to-income ratio when deciding approval. A DTI ratio of 36% or lower is ideal.
