Loans - how much salary do you need?

hcg0706

For an unsecured personal loan from a major bank, how much salary do you usually need in order to borrow the maximum amount - £25K?

I am going to take an unsecured personal loan of £25K from a major bank. But I am worrying the lender thinks my salary is not high enough, my application will be rejected. Please can anyone with relevant experience tell me how much salary is sufficient to apply for a £25K personal loan?

Any advice/help would be appreciated.

Tixy

Its not just your salary they will look at.
Its your salary in relation to your existing debts, any existing available credit and other commitments.

Roughly someone with no other debts/credit but a good credit history might only need to earn around £50k.

Whereas if you already had £15k in debts then you'd probably need to be closer to £80k.

jonesMUFCforever

I don't think the salary would have to be as high as Tixy suggests but they will go through an affordability exercise to see in their eyes whether you can COMFORTABLY afford the repayments.

Have you been pre - approved for this loan? If you think your salary is not high enough then don't do it is my advice.

iolanthe07

An unsecured personal loan of £25K would normally need at least a salary of double that - £50K. That is assuming no other debts.

Rupert_Bear

iolanthe07 wrote: »

Anim unsecured personal loan of £25K would normally need at least a salary of double that - £50K. That is assuming no other debts.

I applied for a loan with Lloyds for 25k and was accepted immediately. I hasten to add my income is no where near 50k.

Congratulations, your loan has been agreed

Summary of the loan you chose

Loan Amount
£25000.00
Credit to )
APR
8.9%
Number of monthly repayments
60 months
Amount you pay each month for your loan
£541.03
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The name of this Direct Debit will be Loansdirect
Total amount repayable for the loan
£32,461.80
Loan Protection Insurance per month
Not Selected

Total amount you pay each month for your Loan
£541.03
Date you pay each month
1st
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iolanthe07

I applied for a loan with Lloyds for 25k and was accepted immediately. I hasten to add my income is no where near 50k.


You did well, given the current lending situation, but almost 9% APR is high for a large loan - you'll be paying well over £100 a month in interest alone.

Rupert_Bear

iolanthe07 wrote: »

I applied for a loan with Lloyds for 25k and was accepted immediately. I hasten to add my income is no where near 50k.


You did well, given the current lending situation, but almost 9% APR is high for a large loan - you'll be paying well over £100 a month in interest alone.

Do not need the money but did this purely as an exercise.