How Much Can I Borrow for a Personal Loan?

The legal framework

All lenders in New Zealand operate under the Credit Contracts and Consumer Finance Act (CCCFA). Under this legislation, lenders are required to make reasonable enquiries to satisfy themselves that a borrower can meet the proposed repayments without suffering substantial hardship.

This means lenders cannot simply approve a loan based on income alone. They must assess the full financial picture - income, existing commitments, and living costs, to confirm a genuine surplus remains after all expenses are considered.

Following amendments to the CCCFA in July 2024, lenders have more flexibility in how they conduct this affordability assessment, but the core requirement remains in place. Any approved loan must be affordable.

How borrowing capacity is calculated

The starting point is verified net income,  what actually arrives in your bank account safter tax.

From that figure, lenders deduct:

• Existing debt repayments - loan repayments, credit card minimum payments, Buy Now Pay Later commitments, and any other regular financial obligations
• Living costs - lenders typically use the higher of your declared expenses or a standard minimum cost of living allowance. If declared expenses appear lower than a typical household baseline, the lender may use their own benchmark figure rather than the declared amount
• A buffer - most lenders apply a margin above the minimum surplus to account for interest rate changes or unexpected expenses

What remains after these deductions is the assessed surplus. The maximum repayment a lender can approve is constrained by this figure. From that repayment amount, the maximum loan size is calculated based on the proposed interest rate and term.

What affects how much you can borrow

Several factors directly influence the calculated surplus and therefore the maximum loan amount you can borrow for a personal loan:

Income level and type - higher verified income generally supports a higher loan amount. The nature of income also matters. Regular PAYE employment is straightforward to verify. Self-employed income, variable income, or benefit income requires more documentation but is assessed on the same basis once verified.

Existing commitments - every existing debt repayment reduces the surplus available for a new loan. A borrower with multiple existing commitments (eg. credit cards, car loans, BNPL) will have less assessed surplus than a borrower with the same income and no existing debt.

Credit card limits - most lenders apply a minimum repayment assumption against the full credit limit, not just the current balance. An unused credit card with a high limit can reduce assessed borrowing capacity even if the balance is zero. This is standard practice across NZ lenders.

Loan term - a longer term reduces the weekly or monthly repayment on the same loan amount, which can increase the maximum amount a lender is prepared to approve. However a longer term increases total interest paid over the life of the loan.

Interest rate - a higher interest rate increases the repayment amount on the same loan, which reduces the maximum loan size within the same surplus constraint.

Credit profile — adverse credit history can affect both the interest rate offered and, in some cases, the maximum amount a lender is willing to approve.

Nomu's lending range

Nomu arranges personal loans from $3,000 to $100,000 over terms of 1 to 7 years. Whether a specific amount is available depends entirely on individual circumstances, the range reflects what lenders on our panel can accommodate, not a guarantee of any specific outcome.

Using the loan calculator at nomu.co.nz/loan-calculator gives an indication of what a repayment might look like at a given amount, rate, and term - which can help frame a realistic expectation before applying.

Make sure your loan fits your needs

The CCCFA requires lenders to assess whether a loan is suitable as well as affordable. Borrowing more than you need increases the total interest paid and extends the financial commitment. A useful approach is to identify the specific amount required for the purpose of the loan rather than applying for the maximum available.

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