What is the term for the maximum dollar amount that can be borrowed?

The term that refers to the maximum dollar amount that can be borrowed is commonly known as the "credit limit." This term specifically relates to the maximum amount of credit that a lender extends to a borrower, whether it involves credit cards, personal loans, or other forms of credit. The credit limit is established based on various factors, including the borrower's creditworthiness, income, and overall financial history.

While "loan limit" might be seen as relevant, it is generally associated with specific types of loans, such as government-backed loans with set caps. "Interest cap" pertains to the maximum interest rate that can be charged, rather than the borrowing limit itself. "Mortgage constraint" suggests limitations specific to mortgage loans, but it does not encompass the broader lending context, which the credit limit does. Thus, the concept of a credit limit best captures the essence of the maximum dollar amount that can be borrowed across various forms of borrowing.