How Much Loan Can I Get? How to Calculate and Factors Affecting Loan Amount

Know Your Borrowing Capacity

“How much loan can I get?” is one of the first questions anyone asks before applying to a bank. The loan amount depends not only on your income but also on your credit score, existing debts, and the bank’s policies.

In This Guide:

• How is the loan amount calculated?

• What is verifiable income?

• Does credit score affect it?

• How do existing installments affect the loan amount?

💡 Tip: You can quickly estimate your loan amount using the Loan Amount Calculator at the top of this page!

How Much Loan Will the Bank Give?

Banks assume that applicants can pay monthly installments up to half of their verifiable income.
This calculation excludes any existing loan installments.

Example Calculation:

• Monthly income: 20,000 TRY

• Maximum monthly installment: 20,000 ÷ 2 = 10,000 TRY

• Existing installment: 3,000 TRY

• Available installment for a new loan: 10,000 − 3,000 = 7,000 TRY

Using this available installment, a corresponding loan amount can be calculated.

What is Verifiable Income?

Verifiable income is the income that banks can confirm with official documentation when evaluating your application.

Example Documents:

• Employees (public or private sector): Pay slips, social security contribution records

• Self-employed: Tax declaration, business registration certificate

• Business owners: Commercial account statements, income tracking documents

💡 Note: Loan applications are usually rejected without verifiable income.

Does Credit Score Affect Loan Amount?

Yes, your credit score (e.g., TKDK score) directly affects approval chances and maximum loan amount.

• High score: Higher loan amount and better interest rates

• Low score: Application may be rejected or limited to a lower amount

How Do Existing Installments Affect Loan Amount?

Banks allow monthly installments up to half of your total income, minus existing loan payments.

Example:

• Monthly income: 25,000 TRY

• Maximum installment: 12,500 TRY

• Existing installments: 5,000 TRY

• Available for a new loan: 7,500 TRY

Legal Limits

• Monthly total installments cannot exceed 50% of verifiable household income.

• This rule prevents over-indebtedness.

How is Loan Amount Calculated?

Loan amount can be estimated using the annuity formula:

$$P = \frac{PMT \times \left((1 + r)^n – 1\right)}{r \times (1 + r)^n}$$

Where:

• P: Loan amount

• PMT: Monthly installment

• r: Monthly interest rate

• n: Term (months)

Frequently Asked Questions (FAQ)

Q: Can I get a loan without verifiable income?
A: No, banks require proof of income.

Q: What if my credit score is low?
A: It may be harder to get a loan, but some banks offer special campaigns.

Q: Does household income affect loan amount?
A: Yes, the combined income of all household members may be considered.

Q: Are vehicle and personal loans calculated the same way?
A: Yes, the calculation method is generally the same.

Conclusion: Plan Your Loan Wisely

When applying for a loan:

• Carefully calculate income and expenses

• Consider your existing debts

• Avoid actions that may harm your credit score

• Compare offers from different banks

🏦 Warning: This calculator is for informational purposes only. Contact your bank for exact figures.