What Amount Can I Borrow With a Personal Loan?

Written By
G. Dautovic
July 10,2023

A personal loan may be a good option when you need extra cash. You may use a personal loan for debt consolidation, home repairs, and even vacations. If you’re asking yourself, “How much loan can I qualify for?” or want to know what factors influence the loan size, you’re at the right place.

This article will answer those questions and provide additional information so read on to learn everything you need about personal loans.

How Does a Personal Loan Work?

A personal loan is a type of unsecured loan, which means it’s not backed by collateral like a house or car. You can use personal loans for various purposes, from consolidating debt to making a large purchase. The maximum personal loan amount you can get will depend on the lender and your creditworthiness.

When you take out a personal loan, you’ll agree to repay the loan plus interest over a set period, usually 2 to 5 years. The interest rate on a personal loan is usually fixed, meaning it won’t fluctuate with the prime rate. Personal loans are available from banks, credit unions, and online lenders. 

How Much Can I Borrow With a Personal Loan?

When you’re considering taking out a personal loan, one of the first questions you’re likely to have is, “How much of a loan can I get?” The answer to this question depends on several factors, including your credit score and history, income, and debts.

Credit Score

Your credit score is one of the most important factors in determining how much you can borrow. The higher your credit score, the better your chances of qualifying for a higher personal loan amount.

If your credit score is 720 or above, you may be able to qualify for a personal loan of up to $100,000. And if your score is lower than that, don’t worry, as even consumers with a bad credit score can qualify for a loan, albeit at a lower amount and with less favorable terms.

Credit History

Credit history is another crucial factor in determining how much you can borrow with a personal loan. Lenders will want to see that you have a history of making on-time payments before approving you for a loan.

In case you have a limited credit history, you may still be able to qualify for a personal loan. But you may need to provide additional information to the lender, such as proof of income or asset documentation.


“How big of a personal loan can I get?” is a question most of us have asked at some point in our lives.

Income is one of the primary factors that lenders look at when considering a personal loan. Lenders want to be sure you can repay your loan, and income is a good indicator of this. That’s why most lenders require you to provide proof of your gross monthly income when applying for a loan.

If your income is high, you may be able to qualify for a larger loan. But even if you currently have a low income, you may still be able to qualify for a personal loan if you have a good credit score and history.

Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is another thing lenders will consider when determining how much you can borrow with a personal loan. DTI measures how much of your income goes towards paying debts. Lenders consider 35% or less as a favorable DTI ratio.

For example, if you make $50,000 yearly and your monthly debt payments are $500. This gives you a DTI ratio of 12%.

Let’s say you make the same $50,000 yearly, but your total monthly debt payments are $2000. This gives you a debt-to-income ratio of 48%. 

As you can see, in the second example, a debt-to-income ratio is higher, which means that more of your income is going towards debt payments. As a result, you may have a harder time qualifying for a personal loan.

Other Things To Consider

Before making your decision and reaching out to the lender asking, “How much of a personal loan can I get?” there are a few other things you should consider. Here’s what you should be aware of:

Monthly Repayments

Most personal loans have fixed monthly repayments, meaning you’ll need to be able to afford the same amount each month. A budget can be a great tool to help you stay on track. You may consider using a personal loan calculator to see how much your repayments will be.

Interest Rates

Personal loan interest rates can vary, so comparing rates from multiple lenders is crucial before applying. You may also want to consider whether you’re willing to pay a higher interest rate for a shorter loan or a lower interest rate for a longer repayment term.

Fees and Charges

Personal loans usually come with fees such as application, origination, or prepayment penalties. So, before you apply for a loan, you must check all the accompanying charges to know what to expect.

By understanding how much you can borrow by taking a personal loan, you can be better prepared when applying for one. Remember that your credit score, credit history, annual income, and debts will all play a role in determining the loan size you can qualify for. And be sure to allocate a monthly budget to make your repayments on time.

Also, don’t forget to do your research and compare rates from different lenders to ensure you get the best loan terms on your loan.

Final Thoughts

There are a few things to consider before taking out a personal loan. So when asking, “How much personal loan can I get?” you should think about why you need the money and if you will be able to repay the loan. You should also compare interest rates and fees from different lenders to get the best deal.

Personal loans can be a great way to borrow money for major expenses, but borrowers should be aware of all the possible risks before taking out a loan.


What is a good credit score?


Your credit score can determine much of your financial future. Generally, credit scores between 580 and 669 are considered fair, 670 to 739 is good, 740 to 799 is very good, and anything above 800 is excellent. At least a good credit score is required for most personal loans. If you’re considering applying for a loan, it’s best if your credit score is 670 or higher. 

Your payment history determines your credit score, the amount of debt you currently have, and the length of your credit history. These are some of the factors that affect your loan amount, and it’s something you should keep in mind when taking out a loan.

If your credit score is lower than 670, you might still be able to get a personal loan, but the interest rate is likely to be higher. This is because lenders see borrowers with lower credit scores as riskier.

What is a principal loan amount?


The principal loan amount is the money you borrow from the lender. You will be responsible for repaying this amount, plus any interest and fees.

When paying off your loan, you should focus on paying down the principal loan amount first, as that will reduce the amount of interest that accrues every month. So, in addition to asking, “How much loan can I qualify for,” you should also ask, “How much can I afford to pay back each month?”

Do large principal payments reduce monthly payments?


Large principal payments do not reduce monthly payments, but this strategy has multiple benefits. By making larger principal payments, you will reduce the interest you pay over the life of the loan. This can save you a significant amount of money in the long run.

In addition, large principal payments can help you repay your loan more quickly. 

About author

I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.

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