💰 What Affects Your Loan Limit?
- Credit Score: A score above 650 increases your odds significantly. You can check your credit score for free with TransUnion SA.
- Income & Debt-to-Income Ratio: Lenders look at how much you earn vs. how much you owe monthly. Ideally, less than 30–40% of your income should go to debt.
- Employment Type: Self-employed? Some banks consider you a higher risk. Find the right providers in our list of top personal loan lenders.
- Loan Purpose: Some lenders will limit the amount based on whether it’s for education, medical bills, or debt consolidation.
📉 The Banks Don’t Tell You This…
While banks promote high maximums, most people qualify for much less. Many applicants only get approved for between R5,000 – R50,000 depending on risk profile.
And that shiny “low interest rate”? It’s often buried under fees and loan insurance you didn’t plan for.
🔎 Quick Calculation Example:
If you earn R10,000/month and already have R3,500 in debt repayments, your chances of getting another big loan are low. But if your income-to-debt ratio is better, you may qualify for more — learn how to fix your profile before reapplying.
🤔 Loan or Credit Card?
If you only need a small amount, you might consider a credit card instead — compare both options in this side-by-side breakdown: Credit Card vs Personal Loan.
💡 Don’t Borrow Blindly
Sometimes people borrow more than they can repay — and fall into a trap. If this sounds familiar, here’s how to escape a bad loan deal safely.
🧠 Final Word: Know Before You Apply
There’s no one-size-fits-all answer. Use free credit checks, speak to your bank, and compare offers before committing to a loan.
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