A loan can be used to finance a house, car, vacations and consumer goods. But how high can the credit be? We give tips for calculating the loan amount.
Loans come in handy when you don’t have the necessary financial resources to pay for an equity-based investment. They cover the financial requirements and increase liquidity. Loans are particularly recommended in times of negative interest rates. Despite existing equity, borrowing is lucrative. If you want to have a loan, the question inevitably arises: “How much credit can I afford?”. We give tips.
How tight can your disposable household income really be? In the following video you will learn how to best plan your financial expenses:
How is the loan amount calculated?
Banks grant loans of various amounts. The loan amount depends on the individual financial situation. the Loan amount is based on factors such as the income level of a household, SCHUFA rating, age and the amount of regular expenses. Existing collateral also increases the possible loan amount. Before borrowing, you should get an overview of your own income and expenses as well as assets. Take a piece of paper or an Excel spreadsheet and record a complete overview of your income and expenses. These include:
- household net income
- Other net income (e.g. income from self-employment or income from rent and leasing)
- Existing Collateral (e.g. land, raw materials, agricultural land)
- fixed costs (e.g. rent, current loans, insurance premiums, memberships and subscriptions)
- Recurring expenses (e.g. groceries, spending on recreational consumption)
At the end of the bill you can see the amount that is freely available to you each month. Also better known as disposable household income. It is the maximum amount that banks offer you for the repayment of the monthly installment. However, you should not estimate the entire amount for a loan. Subtract something from this sum to save and for unforeseen expenses. Now you can see the loan amount that you can afford.
How you can earn money with almost nothing, we tell you in the picture series:
How high can the credit be?
Now you know the monthly amount you can spend on a loan. The actual loan amount depends on the investment amount, the term and the interest. The general rule: The faster you want to pay off the loan, the higher the monthly loan amount. There is less time to repay the loan amount. Let’s let the numbers do the talking: we’ll show you repayment installments that match monthly household incomes.
- From 1000 euros net per month: not creditworthy. Exceptions: existing assets or microloans
- From 2,000 euros net per month: up to 160,000 euros
- From 3,000 euros net per month: Up to 220,000 euros
- From 4,000 euros net per month: Up to 360,000 euros
Note, however, that the actual loan amounts are always contractually agreed individually between the borrower and the lender.
How high the monthly loan installment may be depends on individual factors. It is important to always have a financial cushion and to carefully select contractual partners for borrowing. Then it also works with the financing!
The loan is intended for your hobby? Tell us how much your new gaming set-up costs:
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