Personal loan vs salary ratio

jeffmonson

Hi

Is there any set criteria that lender use to calculate affordability for loans .For example, certain percentage of annual wages or it depends on the lender ? I mean something like 50% of your annual salary ?

[Deleted User]

It varies tremendously.

Ebe_Scrooge

50% (maximum) of your income is often touted as a very rough rule of thumb, and in the absence of any other data it's a reasonable starting point. But as ZX81 says, it does vary hugely - each lender will have their own specific criteria ( which are NOT published ), and they'll take into account things like your credit history. There are plenty of folk on here ( myself included ) that have access to credit way in excess of 50% of their income ( not that I use it, but in theory I could if I wanted to ). Conversely there are numerous threads on here along the lines of "Why have I been declined for a £6000 loan when I earn £30,000?".


Sorry, that's probably not much help to you, but the reality is, there is no single magic figure.

DCFC79

Find a lender and apply is what I suggest.

Try your own bank.

How much were you thinking of applying for ?