How much personal loan can I get for 50000 salary?
Taking a personal loan is an easy solution for cash crunch and instant cash. Personal loans not only come in handy during emergencies but also enable you to plan for a wedding, vacation, loan repayment, property investment, etc. Suppose you are earning a monthly salary of Rs 50000, and intend to take a personal loan for any of the above purposes, then the question may come in your mind that how much personal loan can be availed on 50000 income? The loan amount depends on your current financial obligations, your current monthly income and your credit score.
How much personal loan can I get for 50000 monthly salary?
If you are thinking of taking a personal loan to meet wedding expenses, plan a vacation or invest in a property, first of all, prepare a budget for these purposes. Next thing would be how much personal loan can you get on 50000 salary, and will it be in line with the budget designed for the required purpose or not?
All the banks follow the multiplier method to get the maximum loan amount as per the income. The maximum loan can be from 10 to 20 times of the monthly income. The FOIR ratio will be worked out before sanctioning the loan and deciding on the loan amount. Your current EMI, credit card dues, mandatory bills and proposed EMI will be considered while working out the FOIR. If the FOIR is more than 50% to 40%, then either the loan will be rejected, or the EMI for the proposed loan amount will be managed by extending the tenure so that the FOIR is adjusted within the benchmark level of 40% to 50% Can you
Keeping in mind that the FOIR is within the desired level, you can apply for a personal loan of 50000 salary and get a loan of Rs 5 lakh to Rs 10 lakh. This is decided based on the internal loan policy of the lender.
Eligibility Criteria to get Personal Loan against 50000 Salary
Given below are the personal loan eligibility criteria against 50000 salary:-
Age: The age of the applicant should be within 21 to 58 years as on the date of submission of application.
Income: The minimum income should be between 15000 to 25000 which varies from lender to lender. Some financial institutions have a minimum income requirement at the place of residence.
Employment: Salaried as well as self-employed individuals are both eligible for Personal Loan. Salaried individuals working in state or central government organizations, PSUs or any reputed private company are likely to get a personal loan easily.
Job Stability: Salaried individuals should have minimum 1 to 2 years of work experience. It is mandatory for self-employed persons to have a business of at least 3 to 5 years.
Credit Score: A credit score level of 700 to 750 or above is considered good depending on the lender.
Debt to Income Ratio: Loan to Income Ratio should not exceed 40% to 50%. Some lenders set 40% of the monthly income, while some of them allow up to 50% of the monthly income.
Documents Required for Personal Loan Against 50000 Salary
Certain mandatory documents are required to take personal loan against 50000 salary. They are the following:-
KYC Documents: Aadhar Card, PAN Card, Voter ID Card, Passport
Income Proof for Salaried Individuals: Latest Salary Slip (last three months), Form 16, 6 Months Salary Account details.
Income proof for self-employed individuals: Financial statement and income tax return with income calculation for the last two years. 1 year bank account statement of current account.
Job Stability Proof: Present appointment letter.
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 ID Card, Passport
Personal Loan Interest Rate 2022 in India
Given below is a list of current interest rates offered by banks and NBFCs to compare the latest interest rates in the market.
|Bank/NBFC||Rate of interest|
|Bandhan Bank||15.90% or more|
|Tata Capital||10.50% or more|
|DBS Bank||10.99% or more|
|Deutsche Bank||10.99% or more|
|state Bank of India||9.60% or more|
|Muthoot Finance||14.50% or more|
|Indian Bank||9.05% or more|
|federal bank||10/49% or more|
|axis Bank||12% or more|
Steps taken to take personal loan on 50000 salary
The first step for you to apply for Personal Loan on 50000 Salary would be to apply for the loan. The simple process to apply for a personal loan is presented below. Follow these step by step steps to complete the application process.
- You have to access the website of the Bank/NBFC.
- Go to ‘Loans’ or ‘Products’ and select ‘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 submit button.
- To provide monthly income and current EMI details, eligible offers will be displayed.
- If you are sure of the offer, click on the continue button.
- You will be directed to upload the mandatory documents, or a message will appear that bank/NBFC representative will contact you for more details.
- The documents and details provided will be verified, and on proper evaluation of the application, the credit decision will be communicated either through SMS on the registered mobile number or through email on the registered email ID.
- The final stage is the execution of the prescribed documents.
- Then the loan amount will be credited to your bank account.
- You can also apply for the loan by visiting any branch and submit the application after getting the complete details of Personal Loan on 50000 Salary like interest rate, maximum amount eligible, processing fee, etc. You must be furnished with the mandatory documents if you intend to apply for a personal loan.
How can I improve my eligibility for Personal Loan on 50000 Salary?
The maximum personal loan amount for those with a salary of Rs 50000 is Rs 5 lakh to Rs 10 lakh. If you want to avail the maximum amount, you should be eligible for it. Eligibility depends on income, credit score, income and repayment capacity. If you are not eligible for the maximum limit, you should consider ways to improve your eligibility. Here are a few things that can help you increase your qualifications.
Declare other sources of income like rent, fixed deposit interest, dividend etc. to increase the level of income. With the increased income level, the loan-to-income ratio will improve, adjusting for the increased EMIs. Your ability to pay higher EMIs, in turn, will increase your eligibility.
Work on improving your credit score. Pay off some existing loans if you want to improve your credit score. With a higher credit score, you will be offered a lower interest rate which will affect eligibility.
Avoid anything that lowers your credit score. Each time you submit an application, a credit report will be generated, which will be recorded in your credit history. For every enquiry, your credit score will decrease by 50 to 70 points so one of the important things to avoid is not to make multiple personal loan applications with different lenders. If you intend to take a personal loan successfully, maintain a gap between enquiries.
Opt for a longer tenure to lower the EMI so that your current income can fetch you a higher loan amount.
Improve your loan-to-income ratio by paying off existing loans including credit card dues.
Include one co-applicant who has regular income. The co-applicant should also have a credit score of 750 and above.
Frequently Asked Questions (FAQs)
Q: What is FOIR, and how is it calculated?
Answer: FOIR is one of the major parameters that financial institutions consider for assessing repayment capacity. It is a measure to measure the balance available out of your monthly income for sustenance after meeting certain obligations like EMIs of existing loans, utility bills, credit card dues and proposed personal loan EMIs. The formula to calculate FOIR is
- FOIR = [aggregate of existing fixed liabilities including proposed EMI/monthly income] X 100
- The FOIR should ideally be within 40% to 50% of the monthly income.
Question: What is the maximum loan amount that can be given to those with a salary of Rs 50000?
Ans: The maximum personal loan limit for a salary of Rs 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 lakh and if the lender provides 20 times the monthly salary, you can get Rs 10 lakh, provided you have a good credit score and FOIR monthly Be within the 40% to 50% level of income.
Question: What are the factors affecting the eligibility of personal loan against salary of 50,000?
Answer: The following are the factors that affect personal loan eligibility:
- Interest Rate: Before deciding to take a personal loan, you should compare the interest rates of different banks and choose the lowest interest rates. Due to the lower interest rate, the EMI will also be lower. This will help you get a higher loan amount.
- Credit Score: With a higher credit score, you will be offered a personalized offer at the best rate, which will affect the EMI. Lower the EMI, higher will be the loan amount.
- Income: Your monthly income is the main parameter which will decide your repayment capacity.
- Tenure: The tenure chosen by you has a direct impact on the loan amount. If your income is high and you can afford a higher EMI, you can opt for a shorter tenure. But if your income is not sufficient, you can choose a longer tenure to lower the EMI to increase the eligibility.
Question: What is the maximum tenure of the personal loan?
Ans: The maximum tenure available for a personal loan will range from 36 months to 60 months depending on the lender.