Do you earn around 2500 dollars net per month and want to find out how much credit you can get with this salary? Without specific credit inquiries, the maximum loan amount cannot be determined.
You can use the credit calculator from our cooperation partner to probe the credit market and have credit offers tailored to your individual needs. But first read how you can make a realistic loan application. Reconcile the maximum possible loan amount with your monthly net income, avoid time delays and unnecessary loan refusals.
The expected maximum loan amount can be estimated quite well.
You can use the credit calculator from our cooperation partner to probe the credit market and have credit offers tailored to your individual needs. But first read how you can make a realistic loan application. Reconcile the maximum possible loan amount with your monthly net income, avoid time delays and unnecessary loan refusals.You can get the first impression of the maximum loan amount by using a simple formula.
Banks often give 10 to 15 times their regular net salary. With 2500 dollars net, depending on the bank, you can count on loan amounts between 25,000 dollars and approximately 37,000 dollars. At 2600 dollars per month, it is between 26,000 dollars and 39,000 dollars. Earn 2700 dollars net monthly, the maximum loan amounts can be between 27,000 dollars and 41,000 dollars; with a net salary of 2800 between 28,000 dollars and 42,000 dollars.
These are only rough estimates for installment loans with no earmarking, rather they are abstract calculation examples. However, we can further narrow down and specify the results.
The household flat rate as a starting point
Free disposable income plays a crucial role in assessing economic creditworthiness. This is the part of the salary that is available to pay the monthly loan installment. In other words, disposable income is the amount that results from the difference between net income and living expenses or housekeeping costs. There may be banks that calculate the disposable income in individual cases and use the information from the credit request.
Many banks work with so-called household flat rates, which are set out in the relevant lending guidelines. Different flat rates are used depending on the bank. The bank does not have to disclose how high the flat rates are set in individual cases and usually does not. Apparently there are empirical values for household flat rates. For the first person in a household, it is usually set at 600 to 800 dollars, for each additional person the household flat rate should be 200 dollars. For the further considerations we assume a family with two children and a flat rate of 700 dollars for the first person.
The stated income should be the family income. Family income can be applied if both spouses become borrowers, i.e. sign the loan agreement together. According to this calculation, the household flat rate for a four-person household is 1300 dollars. If an installment loan is applied for free use, the costs for the apartment are added. Let us estimate these costs at 700 dollars. This results in a total living expenses of USD 2000 per month.
The following amounts are therefore available to pay the loan installment:
- 500 dollars with a net income of 2500 dollars,
- 600 dollars with a net income of 2600 dollars,
- 700 dollars with a net income of 2700 dollars,
- 800 dollars with a net income of 2800 dollars.
The bank’s considerations did not end with the determination of the household flat rate. The bank will not be satisfied with determining the theoretically freely disposable income alone.
The next step depends on the extent to which the freely disposable income is subject to the attachment.
The attachable amount does not necessarily have to reach the respective amount of the credit installment. But banks will be very cautious when it comes to lending if the credit rate and the monthly disposable income are too wide apart. The monthly wage subject to the attachment is therefore significantly lower than the freely disposable income calculated on the basis of lump sums.
How banks deal with these numbers now also depends on the loan option that is desired.
With installment loans for free use, there is basically only one security that banks accept – the assignment of attachable wage claims. Banks may therefore be closer to the attachable income. Purpose-linked car loans, on the other hand, are granted against the vehicle being assigned as security. Banks are expected to be a little more generous with this type of loan. Real estate loans are secured with a land charge, which is entered in the land register. If the financed property serves its own use, the cost share for rent is also eliminated. Therefore, the attachable amount will play a rather minor role in addition to the household flat rate.
How much credit can I afford?
So far we have looked at economic performance from the bank’s perspective. As a borrower, you should always consider your economic options. The credit default risk is not the same as your risk of falling into debt. The bank is not particularly interested in whether it will be extremely difficult to maintain your accustomed standard of living due to an excessively high credit rate. For you, on the other hand, this point is of crucial importance. How much credit rate you can afford can be easily determined with a household bill. It is best to use a household calculator from the Internet.
The portion of the monthly salary not subject to the attachment is intended to secure the material basis for the cost of living for individuals and families.
A rule of thumb is therefore that the credit rate should correspond approximately to the attachable part of the current net salary. A second rule of thumb is that borrowers should not spend more than 20% of their net wages on the loan installment.
How much credit do you get from USD 2500 to USD 2800 net?
The maximum loan amount is determined by the term, the loan rate and the effective annual interest.
The credit rate possible according to the freely disposable income is a determining factor for the maximum loan amount. The following example calculations assume three possible credit installments: the freely disposable income without taking into account the seizure limits, the non-seizure monthly income and the amount that corresponds to 20% of the net income. The effective interest rates are based on the average interest rates from the statistics on consumer loans to households.
Up to a term of 60 months, the average interest rate is currently around 4.6%, with longer terms around 6.79%.