How Much Can I Borrow For a Personal Loan?
The amount you can borrow for a personal loan is determined in the same manner as other loans. Borrowing capacity helps loan specialists reach final loan terms for every applicant.
Personal loans are a financial product that provides a more competitive interest rate than credit cards, but higher than a home loan. Thus, it’s a solid option for a vehicle purchase. In this case, it doubles as a car loan.
Others use personal loans for emergencies. For example, they use the funds to invest in a new central air system or to purchase a new refrigerator. The most qualified applicants can receive up to $100,000 in a personal loan. An average personal loan is $30,000.
Those who borrow thousands often use it to cover a home purchase down payment because the interest rate is lower than the lender’s mortgage insurance fee. This short-term solution acts as a bridge from one pay period to another for some clients.
To determine personal loan borrowing capacity, the lender finds out the loan’s purpose. They consider your income and existing debt. Lenders factor in other expenses and your credit history. This loan has a short payback term. Some offer 30 days. Others up to seven years.
Non-bank lenders, such as Mortgage House, explore this loan option for applicants. Our loan specialists also explore alternative solutions.
Personal Loan Borrowing Capacity Conclusion
To determine your personal loan borrowing capacity, speak with a Mortgage House loan specialist. We also offer online tools to prepare you for the meeting. Contact our team today.