If you are looking for a loan, it is nice to have an idea of the maximum amount you could borrow. If you want to request a small advance via a private loan from someone in your family, you are of course only one phone call away from your answer. But if you have to look for another, commercial lender, it is a bit more difficult to immediately get a concrete answer to the question 'how much can I borrow'. We help you on your way in your search for a suitable, maximum loan and list the information for each loan type for you:
A small advance
If you have a setback, such as a car that suddenly has to go to the garage or a washing machine that breaks down, you may not have the time to wait for your wages to be paid again. At such a moment it can be very nice if you can quickly borrow a small amount somewhere.
Small loans with a term of no more than three months are also known as mini loans, mini loans or payday loans. They have a negative name because of the high interest rates and high borrowing costs, but in some cases they can indeed offer a solution. Make sure you are sure that you can repay the loan on time, otherwise high fines are often charged.
The maximum you can borrow with such an advance does not depend on your personal income but has to do with regulations. The maximum you can borrow is set by most providers of flash loans at 750 or 800 US dollars. The maximum interest that can be charged on it is 15 percent, but the providers often work around this by charging so-called loan costs: a fixed amount that you pay when you take out the loan.
Borrow a large amount
When you do not need a small advance but want to borrow a large amount, the maximum amount that you can borrow is determined in a completely different way. If you want to borrow money, for example to buy a car or for a renovation, most lenders will check extensively whether you will be able to repay the loan and the additional costs. They want to know what your fixed income is and, for example, whether you have a BKR listing. Depending on that information, your application for a loan may even be rejected and they will not lend you anything at all. If everything is favorable, there is in principle no upper limit to the amount that you can borrow and it is mainly dependent on your own income.
Incidentally, it is not the case that if you get zero appeal with one provider, you have no chance of a loan from another provider. For example, there are lenders who disregard a BKR listing and who do not perform an income check. These lenders themselves run a higher risk that people will not repay their loan on time. That is the reason that they often charge higher interest rates and hand out heavy fines when a installment is not paid on time. That is therefore something to take into account: make sure that you are sure that you can pay the loan and the costs on time.
Borrow with benefits
If you do not have a fixed income from employment or from your own company, it will be a lot more difficult to borrow money. With some lenders, if you live on benefits, you do not have to apply for a loan at all. With other lenders, certain requirements are set, such as a minimum income that the partner must have. Only a few lenders are always willing to provide you with a loan up to a certain amount, even when you have to make ends meet. The maximum amount is often set for that type of loan and not based on your personal income. It is therefore not easy to say what you can borrow when you receive benefits, but you should of course think of a few hundred US dollars as a maximum rather than a few thousand US dollars.
Also carefully check for yourself what you can spend every month with your benefit to repay the loan and pay the interest before you request a quote or take out a loan. See also: borrowing with benefits
The maximum amount you can borrow if you want to take out a mortgage is not that easy to calculate. There are a lot of factors involved in the amount of that amount. You can read more about it on this website. In ' Borrowing for a house ' and ' How much mortgage can I get? 'we will explain in detail how you can find out the maximum you can borrow for a mortgage.