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

how much personal loan can i get on 50000 salary

When you’re earning ₹50,000 a month, considering a personal loan can often bring up a lot of questions. How much can you borrow? What will your repayments look like? And what do you need to apply? These questions are particularly relevant when you’re planning for unforeseen expenses or big life events. This blog is here to simplify the world of personal loans for those earning a ₹50,000 salary. We’ll explore what personal loans are, how much you might be eligible to borrow, and what the application process involves, all presented in an easy-to-understand manner. Whether you’re new to the world of personal finance or looking to brush up on your knowledge, this blog is designed to help you navigate the process with confidence and clarity.

personal loan

What are Personal Loans?

Personal loans are unsecured loans provided by financial institutions without the need for collateral. They are versatile, allowing borrowers to use the funds for various purposes, including medical emergencies, education, weddings, or consolidating debt. Unlike specific loans like home or car loans, personal loans give you the freedom to use the amount as you see fit.

How Much Personal Loan Can I Get on 50,000 Salary?

If you’re planning a wedding, holiday, or property investment and have a ₹50,000 salary, you’ll likely start by budgeting for these needs. Then, you’ll wonder, “What size personal loan can I secure with my salary, and will it match my budget?”

Banks and lenders use a multiplier method to decide the maximum loan you can get, usually 10 to 20 times your monthly income. They also consider your Fixed Obligations to Income Ratio (FOIR) before approving a loan. This includes your current EMIs, credit card payments, essential bills, and the potential new EMI. If your FOIR is over 40-50%, your loan might be denied or the repayment period extended to keep the FOIR within acceptable limits.

If your FOIR is reasonable, on a ₹50,000 salary, you could be eligible for a loan ranging from ₹5 lakhs to ₹10 lakhs, depending on the lender’s credit policy.

To Get a Much Deeper Understanding of this, Here are Two Methods that Lenders Commonly Follow:

1. The Multiplier Method

The multiplier method is a way of determining loan eligibility based on a fixed multiplier times the monthly salary. This multiplier varies between lenders and is influenced by factors such as the company you work for and your salary.

Multiplier Method Example: If a bank uses a multiplier of 20 for a ₹50,000 salary, the maximum loan amount you’d be eligible for would be ₹50,000 multiplied by 20, which equals ₹10,00,000.

2. The Fixed Obligation to Income Ratio (FOIR)

The fixe d obligation to income ratio method calculates the maximum EMI you can service as a percentage of your monthly income, subtracting any existing fixed obligations like other EMIs. Lenders use this to ensure you have sufficient disposable income to pay back the loan.

FOIR Method Example: Assuming the bank prefers a FOIR at 50%, and you have existing obligations of ₹10,000 monthly, the calculation for a ₹50,000 salary would be 50% of ₹50,000 (which is ₹25,000) minus ₹10,000, equaling ₹15,000. This ₹15,000 would be the maximum EMI you’re eligible for under the FOIR method.

Now, before we tell you the steps on how you can get a personal loan with 50,000 salary, let’s look at the interest rate they come with:

Interest Rate on a Personal Loan with 50,000 Salary:

The interest rate for a personal loan on a salary of ₹50,000 varies and is determined based on factors like the applicant’s credit score, employment status, and the lender’s policy. Let’s look at some of the banks and the interest rates that they offer:

LenderInterest Rate they offer:
SBI Loan11.00% onwards
 HDFC Loan10.05% onwards 
ICICI Loan10.75% onwards
Axis Loan10.49% onwards
Kotak Loan10.99% onwards
PaySense Loan16.80% onwards
Bajaj Finserv Loan11.00% onwards
Money View Loan15.96% onwards
Cashe Loan  27.00% onwards  
Kredit Bee Loan  29.88% onwards
 Tata Capital Loan 10.99% onwards 

Also Read: I Need 30,000 Rupees Loan Urgently In a Day

Eligibility for Personal Loan on ₹50,000 Salary:

  • Age: Applicants should be between 21 and 58 years old when applying.
  • Income: Minimum income requirements differ among lenders, usually ranging from ₹15,000 to ₹25,000. This may also depend on the city where you live.
  • Employment: Both salaried and self-employed individuals are eligible. Salaried employees working in government, public sector units, or well-known private firms often find it easier to obtain a loan.
  • Work Experience: Salaried individuals need 1 to 2 years of overall work experience and should be with their current employer for at least 6 months. Self-employed individuals must have been in business for 3 to 5 years.
  • Credit Score: Lenders generally look for credit scores ranging from 700 to 750 or higher.
  • Debt-Income Ratio: This ratio should be below 40% to 50% of monthly income, varying by lender.

Documents Required for Instant Personal Loan on ₹50,000 Salary:

  • Identity Proof: PAN card, Aadhaar card, or Passport.
  • Address Proof: Utility bills, Aadhaar card, or Passport.
  • Income Proof: Salary slips, bank statements, and Form 16.
  • Employment Proof: Employer ID card or work experience documents.

₹50,000 Salary Personal Loan EMI Calculator:

Here is a breakdown of the steps:

1. Assess Your Need and Capability: Determine how much you need and your ability to repay.
2. Check Your Credit Score: A good credit score increases your chances of loan approval and better interest rates.
3. Research Lenders: Compare different lenders, their interest rates, and loan terms.
4. Calculate EMIs: Use online EMI calculators to understand your repayment structure.
5. Apply for the Loan: Submit an application online or in person with the chosen lender.

How Will I Pay the EMIs for 50000 Salary Loan?

Repayment of your personal loan is typically done through monthly EMIs (Equated Monthly Installments). The EMI amount will depend on the loan amount, interest rate, and tenure. Ensure that the EMI fits comfortably within your monthly budget without straining your finances.
Remember, EMIs are like monthly gym memberships – you gotta stick to them! Here are some tips:

  • Budget Wisely: Plan your expenses around your EMI payments.
  • Set Up Auto-Debit: This ensures you never miss a payment and avoids late fees.
  • Increase Your Income: Look for ways to boost your income to make repayments easier.

What is the Maximum Loan Amount Offered for a Salary of ₹50,000?

While the maximum loan amount can vary, a common benchmark used by many lenders is up to 20 times your monthly income. For a ₹50,000 salary, this could translate to a loan amount of up to ₹10 lakhs. However, this is subject to your credit profile and the lender’s discretion.

Remember, readers:

1. Borrowing responsibly is key. Only take a loan if absolutely necessary and be sure you can comfortably repay it.

2. Compare, compare, compare! Don’t just grab the first loan offer you see.

3. Read the fine print before signing anything. Understand the interest rates, fees, and repayment terms.

The journey of getting a personal loan with a ₹50,000 salary might seem like a maze at first. Think of it as balancing your financial well-being while exploring the options available. It’s all about being smart with your money – doing your homework to understand how loans work and making choices that fit your financial life. Remember, it’s crucial to only borrow what you can comfortably repay and keep that credit score shining for the best loan deals.

We hope this blog has shed some light on the path to securing a personal loan that suits your needs without weighing you down financially. Got any questions or need more insights? Feel free to drop us a comment below – we’re here to help!

Also Read: Personal Loan for Rs. 14,000 Salary: Eligibility, Tips & Top Lenders


1. Can I Cancel My Loan Application at Any Time?

You can only cancel your loan application before you submit the Loan Agreement form. After you’ve submitted this form, canceling the loan is not possible.

2. Can a Loan Impact My Credit Score?

Yes, but it depends on your payment behavior. If you miss or delay your loan repayments, your credit score will drop. However, regular and timely payments can actually help improve your credit score.

3. What’s the Longest Duration I Can Get for a Personal Loan?

Personal loans can have a duration between 36 to 60 months, but this varies depending on the lender.

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