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How much Personal Loan Can I Get on 50000 Salary in India?

Updated on: 24 Feb 2022 // 36 min read // Personal Loans
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How much Personal Loan Can I Get on 50000 Salary in India?

Personal loans are an easy solution for immediate cash requirements during uncertainties. Personal loans not only come in handy during emergencies but also enable you to plan a wedding, a holiday, consolidate debts, invest in property etc. Suppose you are earning a salary of Rs. 50000/- and would intend to avail of a personal loan for any of the above-mentioned purposes, you will wonder as to how much personal loan can I get on 50000 salary. The loan amount again depends on your existing financial obligations vis-a-vis your present monthly income and your credit score.

Note: Check different Lenders of Personal Loan for Low Salary

How much personal loan can I get on 50000 salary?

If you intend to avail of a personal loan to meet wedding expenses, planning a holiday or invest in a property, the first thing that you would do is draw the budget for these purposes. The next concern would be how much personal loan can I get on 50000 salary, and will it be commensurate with the budget drawn for the required purpose? 

All financial institutions adopt the multiplier method to arrive at the maximum loan amount for a declared income. The maximum loan provided will be 10 to 20 times the monthly gross income. The FOIR ratio will be drawn before approving the loan and deciding on the loan amount. Your existing EMIs, credit card dues, mandatory bills, as well as the proposed EMI will be considered while drawing the FOIR. If the FOIR exceeds 40% to 50%, then either the loan will be rejected, or the EMI for the proposed loan will be managed by increasing the tenure so as to accommodate the FOIR within the benchmark level of 40% to 50%.

Considering that FOIR is within the desired level, you can apply for a personal loan on 50000 salary and get loan upto Rs. 5 lakhs or Rs. 10 lakhs depending on the internal credit policy of the lender you have chosen.

Eligibility criteria to avail a personal loan on 50000 salary

The eligibility criteria to be fulfilled to qualify for a personal loan on 50000 salary are given below.

  • Age: The applicant should be within 21 to 58 years on the date of submitting the application.
  • Income: The minimum income requirement varies from lender to lender. It could vary anywhere between Rs. 15000/- to Rs. 25000/-. Some financial institutions have the minimum income stipulation based on the city of residence.
  • Employment: Both salaried, as well as self-employed individuals/professionals, are eligible for the personal loan. Salaried individuals employed with State/Central Government Organisations, PSUs or any reputed private company are more likely to get a personal loan easily.
  • Job Stability: Salaried individuals/professionals should have a minimum work experience of 1 to 2 years and should have been with the current employer for a minimum of 6 months. For self-employed individuals/professionals, business existence of a minimum of 3 to 5 years is mandatory.
  • Credit Score: The desired level of credit score varies from 700 to 750 and above, depending on the lender.
  • Debt to income ratio: The debt to income ratio should not exceed 40% to 50%. Some of the lenders stipulate 40% of monthly income, while some of them permit up to 50% of monthly income.

Documents required for a personal loan on 50000 salary

There are some mandatory documents required to avail personal loan on 50000 salary. They are:

KYC documents: Aadhar Card, PAN Card, Voter’s ID, Passport

Income Proof for salaried individuals professionals: Latest Salary slips(last three months), Form 16, 6 months bank account statement of salary account.

Income Proof for self-employed individuals/professionals: Audited financial statement and Income Tax Returns with Income computation for the last two years. 1-year bank account statement of operative account.

Job Stability Proof: Appointment letter of the current employer or contract agreement from the current employer.

Business existence proof: GST Certificate, MOA, AOA, Partnership Deed, Shops and Establishment Act certificate.

Signature Proof: PAN Card, Passport, Certificate from Bank

Age Proof: PAN Card, Aadhar Card, Voter’s ID, Passport

Best Personal Loan Interest Rates in India 2021

 A list containing existing personal interest rates offered by top banks/NBFCs is given below to enable a comparison of the latest interest rates in the market.

Name of the Bank/NBFCInterest Rate
Bandhan Bank15.90% onwards
Tata Capital10.50% onwards
Bajaj Finserv12.99% 
DBS Bank10.99% onwards
Deutsche Bank10.99% onwards
State Bank of India9.60% onwards
Muthoot Finance14.50% onwards
Indian Bank9.05% onwards
Federal Bank10/49% onwards
Axis Bank12% onwards

Steps to Avail a Personal Loan on 50000 salary

After you have done the groundwork before applying for a personal loan on 50000 salary, the next step will be applying for the loan. Applying for a personal loan comprises a simple procedure, and it is furnished below. Follow the step-to-step guide to complete the application process.

  • You will have to access the website of the bank/NBFC.
  • Go to ‘Loans’ or ‘Products’ and choose ‘Personal Loan.’
  • On the personal loan page, click on the ‘Apply Now’ tab.
  • An online application will crop up.
  • Fill in the required personal, contact, and income details. Agree to the terms and conditions and click on the submit button.
  • For the monthly income and the existing EMI details provided, the eligible offers will be displayed.
  • If you are convinced of the offer, click on the continue button.
  • You will be directed to upload mandatory documents, or a message will appear that the representative of the bank/NBFC will contact you for further details.
  • The documents and the details provided will be verified, and on proper appraisal of the application, the credit decision will be conveyed either through SMS to the registered mobile number or vide email to the registered email ID.
  • Execution of the prescribed documents is the final step.
  • The loan amount will then be credited to your bank account.

You can also apply for the loan by visiting a branch and submitting the application after getting the entire details of the personal loan on 50000 salary like the interest rate, the maximum amount eligible, processing charges, etc. You should go equipped with mandatory documents if you intend to apply for a personal loan.

How can I improve my eligibility for a personal loan on 50000 salary?

The maximum personal loan amount permitted for a salary of 50000 will be Rs. 5.00 lakhs to Rs. 10.00 lakhs. If you desire to avail of the maximum amount, you should be eligible for the same. The eligibility depends on the debt to income ratio, credit score, income and repayment capacity. In case you are not eligible for the maximum limit, then you should deliberate on ways to improve your eligibility. Here are a few pointers that can help you enhance your eligibility.

  • Declare other sources of income like rent, fixed deposit interest, dividends, etc., to enhance the income level. With an enhanced income level, the debt to income ratio will improve, which will accommodate for an increased EMI. Your ability to pay a higher EMI will, in turn, enhance your eligibility.
  • Work on improving the credit score. Pay off some of the existing loans if you have to improve your credit score. With a higher credit score, you will be offered a lower interest rate that will impact the eligibility.
  • Avoid any action that will deplete the credit score. One of the critical actions to avoid is multiple applications for a personal loan simultaneously with various lenders. Every time you submit an application, a credit report will be drawn, which will be recorded in your credit history. For every enquiry, your credit score will decrease by 50 to 70 points. If you intend to successfully avail of a personal loan, maintain a gap between enquiries. Do not jump to the next lender the moment one of them rejects your application.
  • Opt for a longer tenure to lower the EMI so that your existing income can fetch you a higher loan amount. 
  • Improve your debt to income ratio by paying off existing loans, including credit card dues.
  • Include a co-applicant who has a regular income. The credit score of the co-applicant also should be 750 and above.

Frequently Asked Questions

✅ What is FOIR, and how is it calculated?

FOIR is one of the prominent parameters that financial institutions consider to gauge repayment capacity. It is a yardstick to measure the residual amount that will be available out of the monthly income for your sustenance after meeting the fixed obligations like EMI of existing loans, utility bills, credit card dues and the EMI of the proposed personal loan. The formula to compute the FOIR is 

FOIR= [Total of existing fixed obligations including the proposed EMI/Monthly Income] X 100

The FOIR should ideally be within 40% to 50% of the monthly income. 

✅What is the maximum loan amount offered for a salary of Rs. 50000/-?

The maximum personal loan limit for a salary of 50000 depends on the lender of your choice. If the lender provides ten times the monthly salary, you will be able to get Rs. 5.00 lakhs, and if the lender provides 20 times the monthly salary, you will be able to get Rs. 10.00 lakhs provided you have a good credit score and the FOIR is within the desired level of 40% to 50% of the monthly income.

✅. What are the factors that affect the eligibility of a personal loan on 50000 salary?

The following are the factors that affect the eligibility of a personal loan are 

Rate of interest: Before deciding on availing of a personal loan, you should compare the interest rates of various banks/NBFCs and choose the lowest of all. With a lower rate of interest, the EMI also will be lower. This will enable you to get a higher loan amount.

Credit Score: With a higher credit score, you will be offered a personal at the best rate, which will impact the EMI. The lower the EMI, the higher will be the eligible loan amount.

Income: Your monthly income is the main parameter that will decide your repayment capacity. Increase the income by either declaring other income sources, if any or include a co-applicant with a stable income.

Tenure: The tenure you choose has a direct impact on the loan amount. If you have a high income and you can afford a higher EMI, you can opt for a short tenure. But if your income is not adequate, then you can choose a longer tenure to reduce the EMI in order to enhance the eligibility.

✅Is debt consolidation by availing a personal loan a good option?

If your existing debts comprise loans and credit card dues with heavy interest rates, then it is advisable to pay off these debts by availing of a personal loan which will be available at a comparatively lower rate. You can reduce the cost of the loan by doing so.

✅ What is the maximum tenure that will be available for a personal loan?

The maximum tenure that will be available for a personal loan will be 36 months to 60 months, depending on the lender.