Personal Loan For ₹50000 Salary

Personal Loan Offer for ₹50,000 Salary Earners

Personal Loan Offer for ₹50,000 Salary Earners

Our financial needs and aspirations can sometimes outpace our current resources. Personal Loan for 50000 may be required to cover unexpected expenses, high-interest debts or medical costs. When such emergencies arise, exploring the question “How much personal loan can I get on a ₹ 50,000 salary” is crucial. In this blog, we will discuss the factors of eligibility, documents required, interest rates and insights on the loan amount based on salary.

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How Do Lenders Decide on the Loan Amount For 50000 Salary?

Lenders use various methods to determine the loan amount for borrowers. The multiplier method and the fixed obligation to income ratio (FOIR) are two commonly used methods. Lenders can use either of the two methods or both to get a personal loan for a 50k salary.

Multiplier Method

The multiplier method is also known as the income multiple method. It is a common approach used by lenders to assess loan eligibility based on an individual’s income. Through this method, lenders use a predetermined income multiplier ranging from 9 to 36 for a set period of time. The lenders’ formula to calculate your loan amount using the multiplier method is (Monthly salary x set multiplier).

For example:

Your Income = ₹50,000
Let’s assume that the multiplier set by the lender = 20
Therefore, the maximum loan amount you can be eligible for
 = ₹50,000 x 20 = ₹10,00,000

FOIR (Fixed Obligation to Income Ratio)

Fixed obligation to income ratio (FOIR) is a method used by lenders to calculate the loan eligibility of a borrower. It helps calculate the loan EMI amount a borrower can repay in a month. FOIR represents the proportion of an individual’s fixed income for unavoidable expenses such as rent or existing EMIs.  

To determine your loan amount, lenders would first determine your monthly fixed obligations, such as EMIs, credit card payments and other financial commitments. The total amount is then divided by your monthly income to calculate the FOIR. The FOIR percentage that lenders prefer is usually 40% – 50%. This means that your fixed obligations should ideally not exceed more than 40% – 50% of your monthly salary. 

For example: 

For a ₹ 50,000 salary
Let’s assume the FOIR percentage = 50% 
Your existing obligation = ₹10,000. 
The loan amount will be as follows:
(Salary x FOIR percentage – Existing Obligations)
(₹ 50,000 x 50%) – ₹10,000
= ₹25,000 – ₹10,000
=₹ 15,000

Therefore, the loan amount a borrower is eligible for with a 50,000 salary is ₹15,000. 

Note- The actual amount may vary from one lender to another. Please check with your banker to get an accurate amount.  

How Much Loan Can I get on 50000 Salary in SBI

In State Bank of India, the loan amount you can get will differ depending on factors like your loan’s purpose, credit score, repayment capacity and other financial obligations.

For an SBI personal loan for a 50,000 salary, the maximum loan amount you get will be ₹ 20 lakhs. SBI also offers home loans based on salary, and with a 50,000 salary, the home loan amount you can get will be ₹33,99,059. Please note that the loan amount may vary depending on the abovementioned factors; visit your banker for an accurate loan amount on a 50,000 salary.

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Personal Loan Eligibility For 50000 Salary

A personal loan is a valuable solution to financial distress. However, you must clear certain criteria to be eligible for a loan. These eligibility criteria are implemented to ensure that the borrower can afford repayment and minimise the risk of default. The personal loan eligibility for 50,000 salary are:

Age requirement 21 – 60
Employment stability Should be working for at least 1 year.
Credit score 650 onwards
Employment type Salaried or self-employed

Also Read: How Much Personal Loan Can I Get On My Salary? Everything You Need To Know

Documents Required for Low Salary Personal Loan

Securing a personal loan with a ₹50,000 salary requires the borrower to provide the necessary documentation. Providing the right documentation will ensure loan approval. Some of the documents needed for a low-salary personal loan are:

Age and Identity proof Aadhaar card, PAN card, Voter’s ID
Address proof Rental agreement, Electricity bill, Others
Income Proof Salary slips, Bank statement
Employment Proof Offer letter, Employment contract

What Are The Interest Rate And Other Charges?

For a personal loan on 50,000 salary, the interest rates and charges are critical components that directly affect the cost of the loan. Knowing the actual market rates before applying for a loan helps any borrower to plan their future finances. Furthermore, comparing the rates and charges of different lenders will give borrowers more insight into getting a loan with favourable terms. Below is a list of lenders and their interest rates and processing fees:

Loan From Lenders Interest Rates(p.a) Processing Fees
SBI Loan 11.00% p.a onwards Up to 1.50%
HDFC Loan 10.05% p.a onwards 0.50% onwards
ICICI Loan 10.75% p.a onwards 2.50%
Axis Loan 10.49% p.a onwards 1%
Kotak Loan 10.99% p.a onwards 1%
PaySense Loan 16.80% p.a onwards Up to 2.5% + GST or Rs 500
Bajaj Finserv Loan 11.00% p.a onwards Up to 3.93%
Money View Loan 15.96% p.a onwards Up to 2% + GST
Kredit Bee Loan 29.88% p.a onwards Up to 6%
Tata Capital Loan 10.99% p.a onwards 1%
Cashe Loan 27.00% p.a onwards Up to 3%

Note: The rates mentioned above are subject to change with the finance market and differ marginally with respect to the individual banks.

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How Can I be Eligible for a Better Loan Amount with a Salary of 50000?

Getting a better personal loan amount with a salary of ₹50,000 is possible by understanding the factors lenders consider during the evaluation process. Implementing certain strategies to showcase financial responsibilities will significantly increase the chances of getting a better loan. Some actionable tips for you to follow are:

Maintain a strong credit score: A good credit score is important to get a better loan amount. A credit score is one of the main determinants of a loan amount that lenders look for when you apply for a loan. It reflects your creditworthiness and financial discipline. You must maintain a strong credit history to maximise your loan amount eligibility. This can be done by paying off credit card bills and existing debts on time. You can also keep credit utilisation low and check for errors in the credit reports. 

Lower your debt-to-income ratio: Lenders asses your debt-to-income ratio when determining your loan amount.A low DTI signifies that you have disposable income that you can use for loan repayment. To reduce your DTI, you must pay off debts and reduce unnecessary expenses. 

Improve employment stability: Lenders prefer borrowers with stable jobs and regular incomes. Working with a current employer for an extended period of time demonstrates stability and increases your credibility as a borrower. Avoid frequent job changes, as lenders will question your loan repayment capability.

  1. Opt for a longer loan tenure: With a salary of ₹50,000, you can get a better loan if you choose a longer loan tenure. A longer loan tenure will lower your monthly EMI making it more manageable for you to pay off a larger loan amount with your salary. However, a longer tenure will mean a higher interest cost.

  2. Consider a co-applicant or guarantor: To be eligible for a better loan amount, you can consider getting a co-applicant or guarantor with a higher income or credit score. They act as a reassurance for repayment to lenders, thereby increasing the chances of a better loan offer.


If you are wondering, “How much personal loan can I get on 50,000 salary?” The answer lies in a combination of factors. The maximum loan amount will depend on lenders’ calculation methods for factors such as credit score, employment stability, existing debts and Loan tenure. To increase your chances of getting favourable loan offers, you can focus on improving your eligibility and repayment capability. Always maintain financial health and stability by exploring different loan options and practise responsible borrowing.

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