How much can I borrow?

Short answer

The bank looks at what you have left once everything else is paid, KALP (kvar att leva på, money left to live on), and at how large your debts are compared with your income, the debt-to-income ratio. Both are calculated at a higher rate than the one you are offered. Work it out yourself at 15% interest before you apply.

KALP decides how much you can borrow

KALP (kvar att leva på, money left to live on) is the bank's calculation of your monthly finances. From your net salary it subtracts housing costs, existing loans, childcare and a standard amount for living costs, which the bank takes from the reference values of Konsumentverket, the Swedish Consumer Agency. What is left must cover the new loan's monthly cost, with a margin.

The bank does not use your current rate but a higher, stressed rate, to see whether you could keep paying if rates rose. A loan that looks comfortable at 8% can therefore fail because the bank calculates it at a considerably higher rate.

Net salary: all income you can document
Minus housing costs: rent, or running costs plus interest and amortisation
Minus existing loans and credit, including unused card limits
Minus Konsumentverket's standard amount for food, clothes, hygiene and insurance
Left over: what has to carry the new loan at the stressed rate

The debt-to-income ratio sets a ceiling on top

Besides KALP, the bank looks at your debt-to-income ratio: your total debts divided by your annual income before tax. Many banks have a ceiling on how high it may be, with all loans included. A mortgage counts too, which is why a large mortgage can block a small personal loan.

Unused credit cards often count as debt up to the full limit, even if the balance is zero. A card with a SEK 60,000 limit can therefore lower your borrowing capacity by SEK 60,000. Cancelling cards you do not use costs nothing and can make a difference before an application.

Work out your borrowing room yourself first

Take your net salary, subtract housing and all existing payments, then subtract Konsumentverket's reference value for living costs for your household. What is left is roughly what the bank sees. If that amount covers the loan's monthly cost at 15% interest, not at the rate you hope to get, you are probably within range.

Our calculator works out the monthly cost at any rate you choose. Set a high rate and see whether the figure still feels comfortable.

Work out your loan

Questions and answers

Does my CSN loan count?

Yes, in the debt-to-income ratio. But CSN, Swedish student finance, has a low rate and a long term, so the monthly payment weighs less on KALP than a personal loan of the same size.

Does it matter if I have a permanent job?

Yes, a lot. Probationary, fixed-term and self-employed work almost always lead to a lower amount, because the bank wants to see income it can count on. If you are self-employed, you normally need to show declared income for previous years.

Does a co-applicant raise the amount?

Usually. Two incomes are assessed against shared living costs, which gives a better KALP than two separate calculations. Remember that both of you become jointly liable for the whole debt.