diff --git a/public/question/classes/local/bank/question_bank_helper.php b/public/question/classes/local/bank/question_bank_helper.php
index 477b4e82d2d..2df94efc8e5 100644
--- a/public/question/classes/local/bank/question_bank_helper.php
+++ b/public/question/classes/local/bank/question_bank_helper.php
@@ -19,6 +19,7 @@ namespace core_question\local\bank;
 use cm_info;
 use context;
 use context_course;
+use core\context_helper;
 use core\task\manager;
 use moodle_url;
 use stdClass;
@@ -227,6 +228,16 @@ class question_bank_helper {
         $pluginssql = [];
         $params = [];
 
+        if ($getcategories || !empty($havingcap)) {
+            $contextselect = ', ' . context_helper::get_preload_record_columns_sql('c');
+            $contextsql = ' JOIN {context} c ON c.instanceid = cm.id AND c.contextlevel = ' . CONTEXT_MODULE . ' ';
+            $contextgroupby = ', ' . implode(', ', array_keys(context_helper::get_preload_record_columns('c')));
+        } else {
+            $contextselect = '';
+            $contextsql = '';
+            $contextgroupby = '';
+        }
+
         // Build the SELECT portion of the SQL and include question category joins as required.
         if ($getcategories) {
             $concat = $DB->sql_concat('qc.id',
@@ -237,8 +248,7 @@ class question_bank_helper {
             );
             $groupconcat = $DB->sql_group_concat($concat, self::CATEGORY_SEPARATOR);
             $select = "SELECT cm.id, cm.course, {$groupconcat} AS cats";
-            $catsql = ' JOIN {context} c ON c.instanceid = cm.id AND c.contextlevel = ' . CONTEXT_MODULE .
-                ' JOIN {question_categories} qc ON qc.contextid = c.id AND qc.parent <> 0';
+            $catsql = ' JOIN {question_categories} qc ON qc.contextid = c.id AND qc.parent <> 0';
         } else {
             $select = 'SELECT cm.id, cm.course';
             $catsql = '';
@@ -296,22 +306,27 @@ class question_bank_helper {
             $orderbysql = '';
         }
 
-        $sql = "{$select}
+        $sql = "{$select} {$contextselect}
                 FROM {course_modules} cm
                 JOIN {modules} m ON m.id = cm.module
                 {$pluginssql}
+                {$contextsql}
                 {$catsql}
                 WHERE 1=1 {$notincoursesql} {$incoursesql}
-                GROUP BY cm.id, cm.course
+                GROUP BY cm.id, cm.course {$contextgroupby}
                 {$orderbysql}";
 
-        $rs = $DB->get_recordset_sql($sql, $params, limitnum: $limit);
+        $limitforsql = $limit !== 0 && !empty($havingcap) ? 0 : $limit;
+        $rs = $DB->get_recordset_sql($sql, $params, limitnum: $limitforsql);
         $banks = [];
 
         foreach ($rs as $cm) {
             // If capabilities have been supplied as a method argument then ensure the viewing user has at least one of those
             // capabilities on the module itself.
             if (!empty($havingcap)) {
+                // We can preload because we made sure that in case of capabilities being passed we have the context joined in the
+                // SQL.
+                context_helper::preload_from_record($cm);
                 $context = \context_module::instance($cm->id);
                 if (!(new question_edit_contexts($context))->have_one_cap($havingcap)) {
                     continue;
@@ -319,6 +334,9 @@ class question_bank_helper {
             }
             // Populate the raw record.
             $banks[] = self::get_formatted_bank($cm, $currentbankid, filtercontext: $filtercontext);
+            if (!empty($limit) && count($banks) === $limit) {
+                break;
+            }
         }
         $rs->close();
 
diff --git a/public/question/tests/local/bank/question_bank_helper_test.php b/public/question/tests/local/bank/question_bank_helper_test.php
index 5a40d7bdcb6..dbf363caae8 100644
--- a/public/question/tests/local/bank/question_bank_helper_test.php
+++ b/public/question/tests/local/bank/question_bank_helper_test.php
@@ -160,6 +160,54 @@ final class question_bank_helper_test extends \advanced_testcase {
         $this->assertEquals(1, $count);
     }
 
+    /**
+     * Tests if applying the limit and capability checks are interacting properly.
+     *
+     * @covers ::get_activity_instances_with_shareable_questions
+     * @covers ::get_activity_instances_with_private_questions
+     */
+    public function test_get_instances_with_limit_and_capabilities(): void {
+        global $DB;
+        $this->resetAfterTest();
+        $course = $this->getDataGenerator()->create_course();
+        $teacher = self::getDataGenerator()->create_user();
+        self::setUser($teacher);
+        $editingteacherroleid = $DB->get_record('role', ['shortname' => 'editingteacher'])->id;
+
+        $sharedmodgen = self::getDataGenerator()->get_plugin_generator('mod_qbank');
+        // Create 20 question banks, and give the teacher permission to edit only in the last 5.
+        for ($i = 0; $i < 20; $i++) {
+            $sharedmod = $sharedmodgen->create_instance(['course' => $course]);
+            if ($i >= 15) {
+                role_assign($editingteacherroleid, $teacher->id, \context_module::instance($sharedmod->cmid));
+            }
+        }
+
+        // We now have created 20 banks. If the limit is below 20, we have to make sure that the code does NOT first apply a limit
+        // of, for example, 15 and check capabilities afterward. This would mean we end up returning 0 qbanks.
+        $sharedbanks = question_bank_helper::get_activity_instances_with_shareable_questions(
+            havingcap: ['moodle/question:add'],
+            limit: 15
+        );
+        $this->assertCount(5, $sharedbanks);
+
+        // On the other hand, check if the limit parameter works at all and is being applied correctly.
+        $sharedbanks = question_bank_helper::get_activity_instances_with_shareable_questions(
+            havingcap: ['moodle/question:add'],
+            limit: 2
+        );
+        $this->assertCount(2, $sharedbanks);
+
+        $sharedbanks = question_bank_helper::get_activity_instances_with_shareable_questions(limit: 10);
+        $this->assertCount(10, $sharedbanks);
+
+        $sharedbanks = question_bank_helper::get_activity_instances_with_shareable_questions(limit: 30);
+        $this->assertCount(20, $sharedbanks);
+
+        $sharedbanks = question_bank_helper::get_activity_instances_with_shareable_questions(limit: 0);
+        $this->assertCount(20, $sharedbanks);
+    }
+
     /**
      * We should be able to filter sharable question bank instances by name.
      *