How Much of a Personal Loan Can You Secure?

If you’re considering a personal loan to meet your financial goals, you might be wondering, “How much of a personal loan can I get?” It’s a common question, and the answer depends on several factors. In this blog, we’ll break down the key considerations that determine your loan amount and introduce you to Loanitt, your trusted partner for personal loans.

1. Credit History: The Foundation of Loan Eligibility

Your credit history is a critical factor in securing a personal loan. When applying for a loan, lenders will request your credit history from the Central Credit Register (CCR) . This profile of you will contain all information to any borrowing you have over €500. The better your credit history, the more likely you are to qualify for a larger loan amount.

2. Income: Demonstrating Repayment Capability

Your income is a significant consideration for lenders. They want assurance that you can comfortably repay the loan. Lenders assess your ability to repay based on your income, employment stability, and existing financial obligations. A steady, verifiable income stream assures lenders that you can meet monthly payments. Additionally, maintaining a strong credit history and keeping outstanding debts in check can positively influence lenders’ confidence in your repayment capacity. By showcasing these factors, you increase your eligibility for a higher loan amount and more favourable loan terms.

3. Loan-to-Income limit (LTI): Balancing Existing and New Debts

Loan-to-Income limit (LTI) is like a financial measuring stick. It shows how much of your monthly income goes towards paying off debts, such as loans and credit cards. To calculate it, add up all your monthly debt payments and divide that by your total monthly income. The lower the LTI, the better, because it means you have more money available for new expenses or savings. Lenders use this ratio to decide if you can handle more debt, like a new loan, so a lower LTI is usually a good thing.

4. Loan Purpose: Tailored to Your Needs

The purpose of a personal loan can greatly influence how much you can borrow. Personal loans are versatile and can be used for various needs like home improvements, debt consolidation, education expenses, or even a dream holiday. Lenders often set different borrowing limits depending on the loan’s intended purpose. For instance, home improvement loans may allow for higher amounts as they are usually secured by the value added to your home. On the other hand, debt consolidation loans may have stricter limits to help you manage existing debts. So, why you need the loan affects how much you can get, making it important to choose wisely based on your specific goal.

5. Explore Your Options with Loanitt

Loanitt simplifies your quest for the ideal personal loan. Here’s why you should consider our platform:
Loan Comparison: Use our website to compare personal loan options from various lenders. Find the best interest rates, terms, and loan amounts that align with your needs.
Informative Resources: Access a wealth of information on personal loans, and the key criteria to understand before applying.
For a hassle-free personal loan comparing experience, choose Loanitt. We empower you with live rates and lender requirements at your fingertips with the click of a button. Visit www.loanitt.ie today to explore your options and take the first step toward achieving your financial goals.

In summary, the loan amount you can secure depends on your credit history, income, LTI, and the purpose of the loan. Loanitt offers a user-friendly platform to compare personal loan options in Ireland, ensuring you make an informed decision that suits your financial needs.