How much can I borrow with a personal loan?

If you need to finance an unexpected cost, such as a high medical or auto repair bill, a personal loan is worth considering. These loans offer flexibility, fairly low rates, and a simple application process — plus, lenders often disburse the money within a couple of business days after you’re approved. This makes them a useful alternative to credit cards, which often have high rates and stricter approval requirements.

While personal loans have several benefits, an important question remains: How much can you borrow with a personal loan? Here’s what to know.

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The amount you can borrow varies based on the lender, your credit profile, and what you will use the money for. It’s common to see minimum loan amounts of $1,000 to $5,000 up to a maximum of $50,000 or even $100,000.

However, some lenders offer wider ranges. For example, Navy Federal Credit Union offers personal loans ranging from $250 to $150,000 for qualified borrowers.

But just because you can qualify for a large loan doesn’t mean you should borrow the full amount. Instead, consider the cost you’re covering and how much you actually need to take out. This will help you keep your debt manageable, allowing you to set aside extra funds for things like savings, investing, or other beneficial purposes.

Several factors influence how much you can borrow with a personal loan, including:

Lender: There’s no standard minimum or maximum loan amount. Instead, some lenders may let you borrow as little as $1,000 or as much as $50,000 or $100,000. You may need to shop around to find a lender that offers the amount you need.
Credit score: You’ll generally need a credit score of at least 580 to qualify for a personal loan, but again, requirements vary by lender. The better your credit, the more likely you are to qualify for a low rate and a large loan.
Debt-to-income ratio: Lenders also look at your debt-to-income ratio, or DTI, when you apply for a personal loan. This measures your total monthly debt payments compared to your total monthly income, and it helps lenders determine if you can afford to borrow more money. You may be eligible for a larger loan if you have a low DTI.
Income: You need a consistent income to qualify for a personal loan, and how much you earn affects how much you can borrow. High income and low debt could increase your likelihood of qualifying for a large loan.
Collateral: Most personal loans are unsecured, meaning collateral isn’t required to borrow. However, some lenders allow you to secure a personal loan with something valuable, such as a car, bank account, or investment portfolio. You can likely borrow more if you put down collateral, but the lender can seize your pledged asset if you default on the loan.
Loan purpose: How you plan to use the personal loan can also affect how much you qualify for. Lenders may lend you more money for a home improvement project or debt consolidation than they might for a vacation or other discretionary spending.

If you’re concerned you won’t qualify for a large enough loan, there are a few things you can do to increase your borrowing power:

Improve your credit: One of the best ways to increase your likelihood of a larger loan is to improve your credit. Ensure you make your monthly debt payments on time, pay down your debt as much as possible, keep your old accounts open, and avoid applying for new credit.
Increase your income: Increasing your income might also make you eligible for a larger loan. Besides finding a higher-paying job, you can also request a raise or pick up a side gig to supplement your full-time earnings.
Consider a co-borrower: Some lenders let you apply for a personal loan with a co-borrower or co-signer. This is a trusted person in your life — and ideally, someone with great credit — who has equal access to the loan funds and shared responsibility for repaying the debt. If your co-borrower is well qualified, you’re likely to get better loan terms and lower rates.

If personal loans don’t seem like the best fit for your situation, there are alternatives. Here are some options.

Some credit cards offer a 0% introductory APR for as long as 18 or 21 months, allowing you to borrow money interest-free during this time. These cards are often reserved for people with excellent credit, but if you can qualify for a card like this, it could give you the flexibility to pay off a large balance without incurring interest charges. Just ensure you pay your card off before the intro period ends, or you could end up with hefty interest charges on any remaining balance.

Here are some top 0% APR cards to consider:

If you need to borrow a large amount of money and have significant equity in your home, a home equity loan or home equity line of credit (HELOC) could be a good choice. With a home equity loan, you borrow a lump-sum amount and use your home equity as collateral. You’ll then make monthly payments on your home equity loan until it’s repaid.

HELOCs are slightly more flexible. Instead of a lump-sum loan, you open a credit line against your home equity. You can then draw down on this credit line for a set period, often five or 10 years. During this time, you can make interest-only payments on your HELOC. After that, you’ll enter a repayment period — often 20 years — during which you’ll make full principal and interest payments.

This article was edited by Alicia Hahn.