Most personal loans are for $1,000 to $50,000, although some lenders will consider loans of up to $100,000 in some cases. Many personal loans are for a lot less. The average personal loan balance for new originations in the third quarter (Q3) of 2023 was $19,402, according to Experian research.
The best personal loans have low interest rates, but large personal loans can have large monthly payments even with low interest rates. Weigh the pros and cons before taking out a large personal loan.
Key Takeaways
- Most personal loan providers offer personal loans of up to $50,000, but only for borrowers with high credit scores and incomes.
- It’s possible to get a personal loan for $100,000 or even more if you have a strong financial situation.
- The maximum amount you can borrow on a personal loan will depend on your credit score, income, and debt-to-income (DTI) ratio.
Personal Loan Maximums
Personal loans are often unsecured, meaning you don’t have to risk your assets as collateral. For lenders, personal loans are riskier because they have no collateral to use to recoup losses if you fail to make payments.
As a result, interest rates for unsecured personal loans tend to be higher than for loans like mortgages or auto loans, and lenders are hesitant to offer large, unsecured personal loans.
Most lenders state that their maximum personal loan amount is $50,000, though some will go as high as $100,000. Some borrowers, usually wealthy and with high credit scores, might be able to borrow more.
Here are the personal loan ranges for the best personal loan lenders in 2023:
| SoFi | $5,000–$100,000 |
| PenFed | $600–$50,000 |
| Upgrade | $1,000–$50,000 |
| US Bank | $1,000–$50,000 |
| Regions | $2,000–$50,000 |
You can calculate how much a personal loan will cost you using Investopedia’s personal loans calculator.
Factors That Determine How Much You Can Borrow With a Personal Loan
Even though most lenders may lend up to $50,000 on a personal loan, the maximum amount you can borrow depends on several factors about your financial situation. These are:
- Income: Lenders will look at your income to assess if you can repay your loan.
- Credit score: You’ll need a credit score of at least 640 to get a personal loan, and large loans are only available to borrowers with very high credit scores.
- Current debts: If you want to take out a large personal loan, your lender will likely look at your debt-to-income (DTI) ratio. If you have large outstanding debts, they are likely to lower your maximum loan amount.
- Loan type: Most personal loans are unsecured, but if you can offer collateral for your loan, you may be able to borrow more.
- Co-signers: If your loan application has a co-signer with a high income and credit score, your lender may be more willing to lend larger amounts.
How Much Should I Borrow With a Personal Loan?
The amount you should borrow with a personal loan depends on what you want to use it for and your personal financial circ*mstances. You can use a personal loan for almost any expense (with exceptions such as a mortgage down payment), but large loans can be expensive if you don’t pay them off quickly.
In general, you should get the smallest personal loan that meets your requirements and pay it back as quickly as you can. This will minimize the impact of your interest rate, thus making the loan less expensive overall.
When you decide how much you should borrow with a personal loan, consider:
- The loan’s purpose: Your loan will need to cover your planned costs. Sometimes, you may want to borrow a little more than you need to cover your costs.
- Your monthly repayments: The amount you will pay back each month on the loan is affected by two factors: your interest rate and the length of your loan. Make sure that you can afford the monthly repayments. If you miss your payments, you will likely have to pay penalties, and your credit score will suffer.
- Your debt-to-income (DTI) ratio: If you take out a large loan, your DTI ratio will increase significantly. This can make it hard to access additional credit, such as a mortgage.
What Can I Do if I Don’t Qualify for the Loan Amount I Need?
If you are denied a personal loan for the amount you need, even after trying several loan providers, your options are somewhat limited. However, there are alternative steps you can take.
First, you can find a co-signer—ideally someone with a high income and good credit—to co-sign your loan application. Lenders will then be more willing to offer you a larger loan.
Some lenders offer large loans to people whose credit score wouldn’t qualify them for a personal loan with a regular lender. However, these lenders tend to charge high interest rates, which can make these loans very expensive over the long term.
You could also consider alternative ways of raising cash. If you can sell your vehicle or other household goods, you can raise money quickly.
Finally, if you have equity invested in your home, you can also consider a home equity loan or a home equity line of credit (HELOC). These loans use your home equity as collateral to secure a loan that can provide lower interest rates.
If you cannot afford to repay a home equity loan or a HELOC, you risk losing your home.
There are also ways to raise the maximum personal loan you can get over the long term. Specifically:
- Improve your credit score. You can establish a solid credit history or repair a damaged one in several ways: taking out credit cards designed to build your score, using credit-builder loans, or simply making debt repayments on time.
- Pay down debt. Your DTI ratio will affect how much a lender is willing to lend you on a personal loan. Reducing your debt level can, therefore, lead to you being able to borrow more.
What Credit Score Do You Need for a Personal Loan?
Most lenders consider a credit score of 640 as the minimum for a personal loan. Some lenders will offer loans to people with lower credit scores, but these loans tend to be expensive.
What Can’t You Use a Personal Loan for?
With most lenders, you can use your personal loan for just about anything. Some lenders base your personal loan rate on your loan purpose, while others restrict how you can use your loan. For instance, some might not allow you to use funds to pay for higher education or business expenses.
How Big of a Personal Loan Is Too Much?
The personal loan amount that is right for you depends on your circ*mstances. But you should make sure you can easily afford your repayments over the life of the loan.
What Is a Good Rate for a Personal Loan?
The best personal loan lenders in 2024 offer personal loans with rates from 8% to 25%. Your loan rate will depend on the size of the loan and your credit score, but a rate below 15% is generally considered good.
The Bottom Line
Most personal loan providers offer personal loans of up to $50,000, but only for borrowers with high credit scores and incomes. In rare cases, it’s possible to get personal loans for $100,000 or even more.
The maximum amount you can borrow on a personal loan will depend on your credit score, income, debt-to-income (DTI) ratio, and the lender’s criteria.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Experian. "Average Personal Loan Balance Grows 6.3% in 2023."
Board of Governors of the Federal Reserve System. “Consumer Credit—G.19.”
Federal Reserve Economic Data (FRED), Federal Reserve Bank of St. Louis. “30-Year Fixed Rate Mortgage Average in the United States.”
Consumer Financial Protection Bureau. “What Is a Personal Installment Loan?”
Consumer Financial Protection Bureau. “What Is a Debt-to-Income Ratio?”
Experian. “Co-Borrower vs. Cosigner: What’s the Difference?”
Federal Trade Commission, Consumer Advice. “Home Equity Loans and Home Equity Lines of Credit.”
myFICO. “How to Repair Your Credit and Improve Your FICO® Scores.”
myFICO. “What Is Amounts Owed?”
