Personal loan: how much can I borrow?

If you're looking to get a personal loan, then you're probably wondering - how much can I borrow? Well there are a number of factors that influence this decision, and in this blog we'll be hoping to make things a little clearer for you.

Getting a personal loan these days has never been easier. Banks and other financial institutions are eager to do business once again, and rates are extremely favourable right now too, so the temptation to get yourself into debt is quite high! It's important you keep this mind and only borrow an amount you can comfortably afford.

The formula for taking out a loan is quite simple. You should borrow as little as possible, for as short a term as possible, so you can avoid "over borrowing", which leads to paying more interest than necessary.

There are even online calculators for helping you to work out exactly how much you can afford to pay back each month on your loan, and you can find one of these calculators at moneysavingexpert.com/loans. This calculator will give you an idea of how much you can safely afford to take on when you input a few simple bits of information like how much you earn, and the interest.

The calculator will even help you decide if you should switch your loan to a different provider as it allows you to compare different loans: you simply put in the different APR rates into the calculator in each instance, and make your decision from there.

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