Maximum Limit for Personal Loan Amounts

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Updated: July 18, 2024

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Personal loans typically range from $1,000 to $50,000, but some lenders may offer up to $100,000. According to TransUnion, the average personal loan balance for new accounts was $7,229 in the first quarter of 2024.

You can borrow personal loan funds for various uses like debt consolidation, home improvements, medical expenses or major purchases. How much you can borrow depends on several factors, including your credit score, income and current debts. Understanding your financial situation can help you determine your borrowing capacity and choose the right loan amount for your needs.

Personal Loan Amount Limits

Personal loan lenders vary in their approach to setting minimum and maximum loan amounts, tailoring these limits to align with their risk management policies and the financial needs of their customers. The minimum amount for a personal loan typically starts at around $1,000. Some lenders may offer amounts as low as $500, ideal for minor expenses or emergencies.

Most lenders offer maximum loan amounts of up to $50,000. Some lenders may extend even larger loans to very qualified borrowers. For example, Alliant Credit Union and SoFi are known to offer personal loans up to $100,000. These larger loans are usually available to those with excellent credit histories and strong financial standing.

A higher loan limit indicates a lender's trust in a borrower's financial stability and creditworthiness. The specific amount you can qualify for depends on factors like your income and credit score.

Factors Affecting How Much You Can Borrow With a Personal Loan

The maximum amount you can borrow with a personal loan is impacted by several factors, including:

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    Credit score

    Lenders use your credit score to assess your creditworthiness, which helps them determine how likely you are to manage debt. A higher credit score indicates a lower risk for the lender, allowing you to borrow larger amounts. Conversely, a lower credit score suggests a higher risk of default, leading lenders to limit the loan amount you can access to mitigate their risk.

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    Income

    Lenders look at your income to assess your ability to repay the loan. Higher income levels generally indicate that you have a greater capacity to manage monthly loan payments, which can lead to higher borrowing limits. When applying for a personal loan, you typically need to submit proof of income such as pay stubs, tax returns or bank statements to verify your earnings.

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    Current debt

    Lenders examine your existing debts to understand your overall financial obligations. They use a measure called the debt-to-income ratio (DTI), which compares your monthly debt payments to your monthly gross income. A high DTI ratio indicates that a large portion of your income is already committed to debt repayment, which can reduce your borrowing capacity for a new loan.

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    Employment history

    Lenders typically prefer borrowers who have been employed in the same job or industry for a considerable period. This consistency indicates that you are less likely to experience sudden income loss, which reassures lenders of your repayment capacity.

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    Loan type

    Personal loans can be either secured or unsecured. Secured loans require collateral, allowing you to borrow larger amounts because the lender’s risk is reduced. Unsecured loans, which rely solely on your creditworthiness and financial situation, often come with lower borrowing limits to mitigate the lender's risk.

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    Loan purpose

    The reason for your loan can influence how much you can borrow. For example, loans for debt consolidation might have higher borrowing limits because they aim to simplify and manage existing debts. Conversely, loans for more discretionary purposes, such as vacations or luxury purchases, might come with lower limits due to the higher perceived risk of non-essential spending.

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    Loan Term

    Longer loan terms generally allow for higher loan amounts because the payments are spread out over a longer period. This can make larger loans more manageable, but it also means higher overall interest costs due to the extended period of the loan.

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    Bank Relationship

    Having a long relationship with a bank or credit union can sometimes lead to more favorable loan terms because they may have a better understanding of the borrower’s financial history and risk profile.


    Best Lender for $50,000 Personal Loans

  • First Tech
    • 97MG Score
    • 8.94% to 18.00%APR Range
    • UndisclosedMinimum Credit Score
    • $500 to $50,000Loan Amount Range
    • 6 to 84 monthsRepayment Terms

    First Tech Federal Credit Union is the best personal loan lender for individuals looking to borrow $50,000, earning a MoneyGeek score of 97 out of 100. This credit union is federally insured by the NCUA, allowing you to borrow as little as $500 or as much as $50,000. It offers interest rates from 8.94% to 18.00% APR and repayment terms between 6 and 84 months. There are no origination fees or prepayment penalties. However, you need to become a member to apply for a personal loan.

    Pros

    • No origination or prepayment fees
    • Option to defer first payment up to 45 days
    • Insured by the National Credit Union Administration (NCUA)

    Cons

    • No rate discounts
    • Requires membership to apply
    • Limited details on qualification requirements
    First Tech

    Best Lender for $100,000 Personal Loans

  • Alliant Credit Union
    • 94MG Score
    • 10.99% to 13.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms

    With a MoneyGeek score of 94 out of 100, Alliant Credit Union is our pick for the best lender for $100,000 personal loans. This federally insured credit union provides personal loans from $1,000 to $100,000, with interest rates from 10.99% and repayment terms between 12 and 60 months. It doesn’t charge origination fees and prepayment penalties. Plus, it offers a rate discount of 0.4% for automatic payments. That said, you need to be a member for at least 90 days to be eligible for a personal loan.

    Pros

    • Doesn’t charge origination or prepayment fees
    • Has autopay discount
    • Offers a debt protection benefit plan

    Cons

    • No soft credit inquiries
    • Need to be a member for at least 90 days to apply
    • Doesn't disclose qualification requirements
    Alliant Credit Union

Calculate Your Monthly Personal Loan Payment

Use MoneyGeek’s personal loan calculator to estimate your monthly payments and total loan costs based on different loan amounts, interest rates and repayment periods.

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Updated: Jul 26, 2024

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Deciding how much you should borrow with a personal loan largely depends on your intended use of the funds and your financial profile. To navigate this process, consider the following strategies:

Evaluate your financial needs: Start by pinpointing the exact reason for the loan — whether it's to cover an unexpected expense or a planned purchase. Determine your budget: Analyze your monthly budget to determine how much you can afford in loan repayments without financial strain.

  • Anticipate future financial situations: By anticipating any potential changes in your financial situation, such as a job change, you can opt for a loan amount that allows for these uncertainties and prevents financial stress in the future.
  • Check loan terms and interest rates: Understand how different loan amounts affect the terms and interest rates offered. Sometimes, borrowing slightly more can secure a better interest rate, but make sure to balance this with your ability to repay.
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STATE SPECIFIC REGULATIONS ON PERSONAL LOANS

The maximum amount you can borrow and interest rate caps on a personal loan vary depending on where you live. Some states have regulations that limit these to protect consumers. For example:

  • California has a $300 limit for payday loans, which are short-term loans with high interest rates. Payday lenders in California can charge a maximum fee of $45 for these loans.
  • Florida allows consumer finance companies to make loans up to $25,000 at an interest rate higher than 18%. The maximum interest rates are tiered based on the loan amount
  • In New York state, for personal loans of $25,000 or less, unlicensed payday lenders are not allowed to charge interest rates higher than 16%. Licensed payday lenders in the state are allowed to charge a maximum interest rate of 25%.

— Alvin Yam, CFP

Alternatives to Using Personal Loans

Personal loans offer flexibility and can be used for various purposes, but they are not the only solution. Depending on your credit score, financial goals and the amount you need to borrow, other financing options may provide more favorable terms or better align with your needs.

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    Credit cards

    Credit cards offer a revolving line of credit with limits typically ranging from a few hundred to several thousand dollars based on your credit score and financial history. They are suitable for smaller, ongoing expenses rather than large one-time purchases.

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    Home equity loans

    Home equity loans allow you to borrow against the equity in your home, often with limits up to 85% of your home's value. These loans are ideal for large expenses like home renovations or debt consolidation.

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    Personal line of credit

    A personal line of credit provides flexible access to funds up to a predetermined limit, often ranging from $1,000 to $100,000. You can borrow as much as you need within this limit and only pay interest on the amount you use. However, qualifying for a personal line of credit often requires a strong credit history and higher income.

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    Peer-to-peer loans

    Peer-to-peer (P2P) loans are funded by individual investors through online platforms, with borrowing limits typically between $1,000 and $50,000. These loans can be a good option if you have less-than-perfect credit and need a moderate loan amount.

FAQ: How Much You Can Borrow With Personal Loans

We answered some frequently asked questions about personal loans to help you decide if pursuing an application is a wise financial decision.

How much can I borrow with a personal loan?
Can I get a personal loan if I have a low credit score?
Can first-time borrowers get high loan amounts?
Are there fees that affect the amount I receive?
How quickly can I receive the loan amount once approved?
Can I increase my borrowing limit over time?
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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.

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