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
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.
The eligibility criteria to be fulfilled to qualify for a personal loan on 50000 salary are given below.
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
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/NBFC||Interest Rate|
|Bandhan Bank||15.90% onwards|
|Tata Capital||10.50% onwards|
|DBS Bank||10.99% onwards|
|Deutsche Bank||10.99% onwards|
|State Bank of India||9.60% onwards|
|Muthoot Finance||14.50% onwards|
|Indian Bank||9.05% onwards|
|Federal Bank||10/49% onwards|
|Axis Bank||12% onwards|
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 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.
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.
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.
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.
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.
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.
The maximum tenure that will be available for a personal loan will be 36 months to 60 months, depending on the lender.