Personal Loan

On A Rs 50k Salary, What Is The Maximum Amount A Person Can Borrow For A Personal Loan? 


Are you trying to determine the maximum amount you can borrow with your current salary? If yes, you will be better off knowing that the amount depends on several factors. Your income is not the only determining factor. Moreover, every lender has a different formula and rules to calculate the maximum lending amount for a given salary. Therefore, the amount you can borrow will vary from lender to lender. 

Continue reading this blog to learn more about calculating your maximum borrowing capacity. The blog will also answer questions related to a personal loan on a 50,000 salary

Maximum Personal Loan For 50,000 Salary

Most lenders use the multiplier method to calculate the maximum personal loan for a 50,000 salary. It involves working with a predetermined multiple for the salary amount. 

Depending on the lender, the multiple could be between 10 and 24. The table below will give you a fair idea of the maximum personal loan for a 50,000 salary.

Net SalaryLoan Amount
Rs. 15,000Rs. 2.25 Lakh
Rs. 20,000Rs. 3.00 Lakh
Rs. 25,000Rs. 3.75 Lakh
Rs. 30,000Rs. 4.50 Lakh
Rs. 35,000Rs. 5.25 Lakh
Rs. 40,000Rs. 6.00 Lakh
Rs. 45,000Rs. 6.75 Lakh
Rs. 50,000Rs. 7.50 Lakh
Rs. 60,000Rs. 9.00 Lakh
Rs. 70,000Rs. 10.50 Lakh
Rs. 80,000Rs. 12.00 Lakh
Rs. 90,000Rs. 13.50 Lakh
Rs. 1,00,000Rs. 15.00 Lakh

How to Calculate Your Maximum Borrowing Capacity

The factors on which the maximum personal loan for a 50,000 salary depends on include how much you make, your credit history, and the type of loan you’re applying for.  

  1. Income

Your income determines your paying capacity. A lender will be willing to loan you an amount that you can comfortably pay back with your income at the time of application. 

  1. Employment Status

Your employment status impacts your borrowing capacity. Lenders are more comfortable clearing applications from those with a regular income. Your borrowing capacity will be significantly lower if you don’t have one. In some cases, lenders may reject applications from those without a regular income. This happens when the risk is deemed to be too high. 

  1. Credit Score

If you have an excellent borrowing history, represented by a credit score above 800, you will be able to borrow more. 

  1. Age

If you are nearing retirement age or your regular income will end or decrease, your borrowing capacity will decrease significantly. 

If you want to calculate how much money you can get as a personal loan on a 50,000 salary, the simplest way is to use a loan calculator. It is an online tool that can be used to determine how much you can borrow based on your income, assets, and other factors. 

Tips For a Smooth Personal Loan Application

If you already have a lender willing to lend you money, you can apply for a personal loan on a 50,000 salary. There are a few things to note before you start applying for loans. 

There are two important things to remember here: 

  1. Make sure you have an itemised list of all your debt and expenses. Your lender may ask for it during the application process. These details are needed to work out your paying capacity. It plays an important role in determining how much money the bank can lend you without creating a substantial risk of default. Having these details compiled will make the application process easier. Make sure you have a detailed plan on how you will pay off any remaining debt. It is one of the questions your loan agent may ask you during the application process. 
  1. Apart from these, you will need a set of documents. These include:
  • A government-issued photo identity card. You can use your Aadhaar Card, driving licence or Voter ID for this purpose.
  • You will also have to supply proof of your income. Salary slips are ideal for this purpose. However, some lenders may also ask for a copy of your passbook.
  • Additionally, you will have to produce address proof and, in some cases, a cancelled cheque. It is to prove that you have an active bank account.

Interest Rates on a Personal Loan

One way to compare a personal loan to a 50,000 salary is to look at the interest rate. When looking at interest rates, you must look at the repayment duration of the loan. 

Short-term loans may have a higher interest rate, while long-term loans may have a lower interest rate. Personal loans are usually offered at higher interest rates compared to other types of loans, like home and education loans. They also have a relatively shorter repayment period. 

Interest rates for personal loans on a 50,000 salary vary from lender to lender. Therefore, checking with several lenders about their loan offers is vital before you start your application. This way, you can find the best possible deal for yourself. 

Lenders often advertise lower interest rates for loans during festive seasons. You can take advantage of such opportunities when you are seeking a loan. 

Repayment Schedule for a Personal Loan

When you borrow money from a lender, you must make monthly payments until the loan is repaid. The loan terms offered by most lenders will include the repayment schedule. The repayment schedule for a personal loan will include the monthly payment amount, when the payments start and the moratorium period, if applicable. 

The length of the repayment schedule will also depend on the type of loan you take. Most large loans will have a term ranging from 10 to 30 years. In the case of a personal loan, the repayment schedule is much shorter. The actual time, as stated, will depend on the amount of money you’re borrowing. But you will have some say in fixing the loan repayment schedule. However, you will have to come up with suggestions within the broad parameters the lender has set.


With increased digitisation in banking, it is possible to apply for personal loans on a 50,000 salary online. All lenders provide the option of online applications. Leading lenders also provide a loan and EMI calculator. You can use these to determine the loan you will get for your net salary. Apart from the obvious benefits, it will help you determine whether or not you can pay off the loan in the stipulated time. 

To find out how you can benefit by using EMI calculators, try the one developed by Piramal Finance. You can read their blogs for a deeper understanding of how these calculators work.