How much Personal Loan can I get on 50000 Salary?

Hello Saleem. I took a personal loan a while ago through one of the private banks. While looking for loans, I tried to understand the amount I could get based on my salary. So, I can help you with how much personal loan can I get on 50000 salary.

My Salary is 50000 Per Month How Much Personal Loan Can I Get?

Banks and other financial institutions use the FOIR method as shared by Ms. Malvika and the Multiplier method to calculate the eligible amount. So, let me tell you the Multiplier method here.

What is the Multiplier Method?

In this, the bank multiplies your monthly income by 27 and approves the loan amount for the tenure of 60 months i.e. 5 years. In case you have any other financial obligations, the amount will be deducted from your monthly income. Then, that figure will be multiplied by 27 and the eligible amount will be given.

So, for a 50,000 monthly salary, the multiplier method gives the eligible amount of Rs. 16.20 lakhs for 5 years. This is an estimate, which can change depending on various factors. I thus recommend you check with the bank for the amount you are eligible for.

This is all from my side. I hope you now know how much personal loan I can get if my salary is 50000.

I was wondering how much personal loan can I get on 50000 salary a couple of weeks back. My relative, who had taken a personal loan told me about the way banks usually calculate this amount. He told me about the determiners and the calculation method in detail. Let me share all that information so you can know the personal loan for 50k salary.

How much Personal Loan for 50000 Salary?

The loan value you can receive is a variable quantity, which is affected by a number of notable factors. I would like to add a notable factor to the amount of personal loans given by a bank. They use a calculation process called the Fixed Obligation to Income Ratio or FOIR method. 

The lender calculates the ratio of the total monthly expense to the monthly income of the borrower under this method. It is amongst one of the methods used by banks. The ratio is found by dividing your total fixed monthly expenses, such as rent, EMIs, etc, by your monthly salary. This ratio should not be more than 50%. This means that your fixed expenses should not be more than half of your monthly salary. The lesser the ratio, the higher will be the loan amount and vice versa. 

The amount is calculated by multiplying the disposable income, i.e. the amount left after subtracting the fixed expenses from your monthly salary. This is usually in the range of 20 to 40 times the disposable income.

You can calculate your FOIR by the below formula: 

I hope my answer helps you to know about 50000 salary personal loan.