Before approving your personal loan application, the bank will assess whether you can realistically repay it. They consider various factors such as total income, particularly your salary. The type of loan requested is also significant, as the process differs for debt consolidation. So, what loan for what salary?
Maintaining a Certain Balance
To ensure that debt doesn’t become overwhelming, make sure that the monthly payments for a personal loan or debt consolidation do not exceed one-third of your income, including your salary. For instance, someone earning 3,000 euros per month should limit their maximum monthly payments to 1,000 euros.
While it’s strongly recommended to follow this principle, adjustments can be made upward or downward. Depending on your total income, expenses, and the collateral associated with the loan, modifications are possible.
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