Personal loan borrowing power
Work backwards from your budget to find a comfortable loan amount.
Your loan
Set loan amount and purpose.
Loan amount$20,000
$5,000$100,000
Purpose
Adjust the loan amount until the repayment fits your budget. The safety indicator shows whether your repayment is within a comfortable range relative to your income.
Lenders assess your capacity to repay by looking at your income minus living expenses and existing debt obligations. Keeping your total debt-to-income ratio low improves your chances of approval and may unlock better rates.
Frequently Asked Questions
How much can I borrow with a personal loan?
Most Australian lenders offer personal loans from $2,000 to $50,000. Your limit depends on income, expenses, credit score, and existing debts.
What percentage of income should go to loan repayments?
Financial guidance suggests keeping total debt repayments under 30% of your gross income. For personal loans alone, aim for under 10-15% of take-home pay.
Does my credit score affect borrowing power?
Yes. A higher credit score can qualify you for larger amounts and better rates. Check your credit score for free through the major bureaus before applying.