How big a loan can I take?
Are you standing and missing money, surely a question arises as to how much you can actually borrow? However, the answer is not quite straightforward, but depends on a number of factors that you can see here.
First and foremost, the size of the loan amount depends on what the provider offers, and here there are very big differences. Some loan providers only offer small payday loans of up to USD 5,000, while others offer larger online consumer loans of up to USD 500,000.
Loan Provider Terms
borrow money despite RKI. In some places you do not have to document your finances, while in other places you have to send both annual statements and paychecks.
Your personal finances
What typically determines how big a loan you can take is your personal finances. If you ask for a loan in the bank, they will look at your availability amount. The available amount is the amount remaining when all fixed expenses such as rent, consumption and insurance are paid.
The available amount should cover things like food, transport, clothing and pleasures. Banks typically have clear guidelines on how much money you need to have before you can even be considered for a loan. The online loan providers are not nearly as square and the requirements are not nearly as high. However, it goes without saying that the more money you have available, the bigger the loan you can get approved for.
Total household income
Some loan providers look at the household’s total income rather than your personal finances. It can be an advantage for you, for example, if your partner has a higher income than you. However, be aware that if both incomes are taken into account when applying for a loan, the loan will typically be approved as a joint loan for which you are both liable.
Again, it depends on the individual loan provider, but for larger loans you will typically be asked about your existing debt. This is because debt naturally affects your availability amount. The more debt you have, the less new debt you will be able to receive. For example, debt can be other quick loans, bank loans, credits and car loans.
At the bank, a credit rating will be made based on every detail of your finances. Typically, this is not the case with online mortgage loans. Here a so-called risk assessment is carried out, which is a scarcely so detailed statistical assessment based on a number of stated factors.
Factors to be considered in a risk assessment may be:
- annual income
- Marital Status
- Other debt