The maximum loan amount is the highest amount that your lender authorizes to you. This loan amount applies to standard loans, credit cards, and even line-of-credit accounts.
Several factors are taken into consideration while deciding your maximum loan amount during the underwriting process. It is usually determined based on your debt-to-income ratio. With this ratio:
- Your lender will be able to assess your repayment capacity.
- A higher debt-to-income ratio suggests a higher burden on you when repaying the loan. So, most of the lenders prefer borrowers whose debt-to-income ratio is 36% or lesser.
Remember that, risk diversification of your lender can help estimate the maximum loan amount that should be authorized. So, additional factors that are considered during your underwriting process include your credit history and credit score.
What is the Maximum Loan Amount You Can Get?
Unintended expenses can come knocking at your door without any warning. It could be an emergency expense that you didn’t see coming. But whatever is your goal, an instant loan can help fulfil your needs in a timely and convenient manner.
- An instant loan can offer you the additional benefit of accessing funds without having to pledge your assets as collateral.
- Instant loans have emerged as the best solution to many, and help them finance their purchases which would otherwise be a challenging task.
- Most importantly, an instant loan can be your cushion which you can happily rely on, in times of temporary financial crisis.
Because of these additional advantages, these loans have become an instant hit. So, the next billion-dollar question is choosing a wise lender who can help you get an instant loan. If you are looking out for a lendere, then, try FlexSalary!
FlexSalary offers instant loans to help fulfil all your emergency financial needs. It is one of the loan offering products of an NBFC (Non-Banking Financial Company) called Vivifi India Finance Private Limited, which is one of the most genuine, and RBI-registered loan lending companies.
Advantages of Applying for an Instant Loan with FlexSalary
- You have to submit only a few documents to get approved for a loan.
- The maximum loan amount you get from FlexSalary is INR 2,00,000. You can repay the borrowed money in flexible repayments every month as there is no fixed EMI, which will be a huge relief for borrowers.
- FlexSalary does not ask for any security, as they provide unsecured loans.
- The entire loan application process right from applying for a loan with FlexSalary till loan disbursement is entirely paperless and carried out online.
- With FlexSalary, you will not have a burden of hidden charges levied when you apply for a loan.
- You can withdraw money from your credit limit. You pay interest only on the withdrawn amount and not on the total amount that is approved.
Hence, with so many advantages in the bucket, it can definitely be tough to find a better loan lender in the market, other than FlexSalary. The next thing you need to check on is how to apply for an instant loan?
How to Get an Instant Loan From FlexSalary?
You can get an instant loan from FlexSalary, by following these 3 simple steps:
- You can apply for a loan either by visiting the website https://www.flexsalary.com/ or just download the FlexSalary app either from the Play Store or the App Store, and apply easily.
- Fill in all the mandatory fields requested in the online application form.
- Upload all the necessary documents and then click on ‘Submit’.
Once you are approved, the loan amount will be disbursed to your account within a few hours.
Secured Lending
With secured loans—specifically mortgage loans—lenders use an additional qualifying ratio called the housing expense ratio, which compares the borrower’s housing expenses to their pre-tax income. Housing expenses generally include the potential mortgage principal and interest payments, property taxes, hazard insurance, mortgage insurance, and association fees. Lenders will typically look for a housing expense ratio no higher than 28%. Similar to standard loans, secured lenders will also analyze a borrower’s debt-to-income with 36% being the common threshold required.
They also base a maximum loan amount on customized loan-to-value thresholds. Secured lenders will often lend between 70%-90% of a secured asset’s collateral value. Mortgage loans generally follow standard underwriting procedures with these variables also a part of the decision on how much to lend to a borrower.
A home-equity line of credit (HELOC) is another form of secured lending. As its name implies, the maximum loan amount is based on the equity you have in your home. If you need money, it can be a better choice than a credit card because the interest rate may be lower and the amount you can borrow higher. If you have trouble paying back what you borrow, however, you can risk losing your home.
Government-Sponsored Loans
Government-sponsored loans offer some exceptions to the underwriting requirements and maximum loan amounts for certain types of home loans. These loans may accept borrowers with debt-to-income ratios of up to 50%.2 In the mortgage industry, the Federal Housing Finance Agency (FHFA) publishes the maximum amounts for loans sponsored by Fannie Mae.3 Freddie Mac also publishes loan limits annually. Since Fannie Mae and Freddie Mac guarantee a large percentage of mortgages originated in the United States, the “conforming loan limit”—that is, loans that conform to these entities’ guidelines—is an important number in the mortgage finance industry.
