What is the Biggest Loan You Can Get From a Bank?

Getting a loan from a bank can be a great way to finance large purchases or consolidate debt. But when it comes to personal loans, there are limits on how much you can borrow So what is the biggest loan you can get from a bank?

The short answer is that most banks top out at around $100,000 for personal loans. However, qualifying for the maximum amount depends on your financial situation Factors like your income, credit score, and debt-to-income ratio determine the loan amount you can get approved for.

While some borrowers may be able to get a $100,000 personal loan, smaller limits of $50,000 or less are more common. And just because you qualify for a big loan doesn’t mean you should take out the maximum amount. It’s important to only borrow what you need and can comfortably afford to repay.

Typical Maximum Personal Loan Amounts From Banks

Most big banks and credit unions cap their personal loans in the range of $35,000 to $50,000. For example:

• Wells Fargo: Up to $50,000
• Bank of America: $20,000 to $50,000
• Chase: $35,000
• Citi: Up to $50,000
• U.S. Bank: Up to $50,000

Online lenders and some credit unions may offer higher limits, up to $100,000:

• Lightstream: $5,000 to $100,000
• SoFi: $5,000 to $100,000
• LendingClub: $1,000 to $40,000
• Upgrade: $1,000 to $50,000
• PenFed Credit Union: Up to $50,000

The average personal loan amount taken out in 2022 was around $17,000 according to Experian. So while six-figure loan limits capture attention, most borrowers take out much smaller loans.

What Determines How Much You Can Borrow?

When you apply for a personal loan, the bank will assess your creditworthiness to decide the loan amount you qualify for. Here are some of the key factors that influence borrowing limits:

Credit score: Your credit score gives lenders insight into your repayment history. Borrowers with excellent credit (scores around 700 or higher) typically qualify for larger loans and better rates.

Income: Lenders want to confirm your income is enough to manage the loan payments. High earners may qualify for bigger loans.

Debt-to-income ratio: Lenders calculate your DTI by comparing your monthly debts to your gross monthly income. The lower your DTI, the more likely you are to be approved for a large loan.

Employment status: Full-time employment provides proof of steady income. Lenders may offer higher limits to salaried applicants.

Loan purpose: Some lenders provide higher borrowing amounts for certain purposes like home improvement.

Your relationship with the lender: Existing customers in good standing may get access to better loan offers.

Should You Take Out the Maximum Amount?

Qualifying for a $50,000 or $100,000 loan may be tempting, but it’s not always the smart move financially. Here are some risks of over-borrowing:

• Higher monthly payments: Bigger loans mean higher monthly bills, which may stretch your budget.

• More interest paid: With larger balances, you’ll pay more in interest charges over the loan’s term.

• Longer payoff time: Opting for lower payments on a big loan means you’ll be paying it off for more years.

• Lower savings: More money going toward debt payments means fewer funds to save for other goals.

• Credit damage: If the payments become unaffordable, missed or late payments could hurt your credit.

That’s why it’s critical to only borrow what you need and can reasonably fit into your budget. A loan calculator can help you estimate affordable payments for different loan amounts. Avoid borrowing the maximum just because you qualify for it.

Alternatives for Borrowing Over $100,000

What if you need to finance an expense over $100,000 like a business expansion or home construction? A personal loan probably won’t suffice, but banks offer other options including:

• Small business loans – Banks provide various business loan and line of credit products up to $500,000 or more.

• Home equity loan – Borrow against the equity in your home. HELOCs allow borrowing up to 85% of your equity.

• Auto loans – Finance very expensive cars with a bank auto loan. No set limits, but six-figure luxury car loans are issued.

• Mortgages – Purchase an expensive home with a jumbo mortgage exceeding conforming loan limits.

• Secured loans – Banks may offer secured personal loans up to $100,000 when backed by savings or CD accounts.

These loans may provide higher limits than personal loans, but also tend to have stricter eligibility requirements.

Tips for Getting the Biggest Personal Loan From Your Bank

If you’ve determined you need a large personal loan, here are some tips that may help you qualify and get approved for a higher amount:

• Have excellent credit. Aim for a credit score over 720.

• Lower your debt-to-income ratio below 36% if possible.

• Build your relationship with the lender by having accounts in good standing.

• Apply with a cosigner who has great credit and income.

• Use loan amount calculators to find the optimal amount you can afford.

• Opt for shorter loan terms so payments are manageable.

• Be prepared to provide documentation to verify your income and assets.

• Know the lender’s maximum limits before applying, and the factors that determine approvals.

• Shop around with multiple lenders to compare loan offers if you’re denied.

The Bottom Line

While some lenders will approve personal loans up to $100,000 for borrowers with exceptional finances, loan limits of around $50,000 are more typical. Your personal situation including income, debts, credit score and relationship with the lender all factor into the loan amount you can qualify for. Make sure to borrow only what you need, and explore alternative financing options if you need more than $100,000. With careful planning and research, you can find the right loan package to fund your needs.