Do you know how much you can take on the personal loan? Not everyone knows, but there is a personal loan limit amount that a consumer can take that is totally tied to their salary and their income commitment.
In addition, there may be other variables that change this value, such as your relationship with the institution and the type of credit you are seeking.
Therefore, in this article we will explain what your personal loan limit may be.
Limit to take personal loan
In personal loan the credit limit for a customer considers several factors. Income is an important factor in the calculation, because as of this date it is possible to make an estimate that the value would not affect the client’s financial health and would have installments that fit their budget.
As well, who is a bank account holder, for example, tends to have a pre-approved limit at the institution and even a higher amount to take than a person who has never related to that company.
Thus, the loan application may not be approved due to factors such as score, lack of financial capacity to obtain a new debt, age, wrong information, among others. It is up to the granting institution to define whether the customer is within the accepted profile or not.
How to decide how much to borrow
Before getting a personal loan it is important that you make your own assessment of your financial health. Mainly reflect the following points:
- Can I really pay the proposed installment?
- Do I need this loan amount?
- Have I researched different personal loan options?
- What is my financial forecast for the coming months? Does the plot fit this projection?
- Do I Know What Total Effective Cost of the Loan I’m Taking?
How to raise my pre-approved limit
If you apply for a loan , the pre-approved limit will only change if the credit analysis identifies factors that determine that you can take a larger or smaller amount of credit, as we always think about ensuring your financial health by avoiding a large amount impairment of your income.