Learn everything about your borrowing capacity. Discover the answer to How Much Can I Borrow with a Personal Loan?
How Much Can I Borrow?
Any new credit commitment involves repayment.
The question typically asked before applying for a loan or personal credit is: “How much can I borrow?” However, specialists often ask instead: “How much can you repay?”
Borrowing capacity or debt-to-income ratio is calculated using the formula: total of the loan and current credits < 1/3 (stable income). This general rule helps to prevent over-indebtedness.
An mortgage loan, applicable to real estate, is subject to higher repayment guarantees than a personal loan or credit consolidation.
A installment loan (personal loan or credit consolidation) is an unsecured borrowing option available to any adult with a job.
In such cases, the borrower does not specify in advance how the funds will be used. Credit consolidation offers the advantage of reducing numerous credits into a single one, along with the monthly payments and interest rates.
Determining how much one can borrow is not a standard question. It is something that every bank and credit broker considers based on the person’s family situation, personal circumstances, and ability to repay the loan.
In Belgium, the maximum amount a person can borrow is determined by the bank they contact, and there is no fixed answer to the question “how much can I borrow?”
A tool to give you an idea of how much you can borrow is available further in the article.
To assist you in understanding the largest loan you can take out, here are some details. Check out our simulation tool and apply for a personal loan.
Find the frequently asked questions below:
