If you're earning ₹50,000 a month and considering a personal loan, understanding your eligibility is crucial. Lenders use various methods to assess your repayment capacity, primarily focusing on your net monthly income (NMI). Let's break down how much personal loan you might be able to secure.
Lenders typically employ two main methods to determine your personal loan eligibility:
This is a common approach where lenders multiply your net monthly income by a specific number, usually ranging from 10 to 24. For instance, if a lender uses a 15x multiplier, a monthly salary of ₹50,000 would make you eligible for a maximum loan of ₹7.50 Lakh (₹50,000 x 15). It's important to note that this calculation assumes you have no existing loan repayment obligations.
This method evaluates what percentage of your income would go towards Equated Monthly Installments (EMIs). Most lenders prefer your total EMI burden (including the new loan's EMI) to be under 50-60% of your NMI.
If you already have existing loans, the new loan amount will be adjusted downwards to ensure your overall EMI/NMI ratio stays within the bank’s limits.
A personal loan of ₹50,000 comes with specific interest rates and charges:
While the multiplier method gives a general idea, specific banks and Non-Banking Financial Companies (NBFCs) have their own criteria and maximum loan amounts:
Lender | Maximum Loan Amount (approx.) |
SBI | ₹35 Lakh Or 24 times Net Monthly Income (NMI), whichever is lower. |
HDFC Bank | ₹40 Lakh |
ICICI Bank | ₹50 Lakh |
Axis Bank | ₹10 - ₹25 Lakh |
Bajaj Finserv | ₹25 Lakh |
Kotak Mahindra Bank | ₹35 Lakh |
IndusInd Bank | ₹50 Lakh |
Note: These figures are indicative and keep changing. Contact your preferred bank for getting additional information.
It's clear that while a ₹50,000 salary might open doors to a loan of ₹7.50 Lakh based on a 15x multiplier, your final eligible amount can vary significantly based on the lender's specific policies, your credit score, and existing financial obligations.
With a ₹50,000 monthly salary, you have a good chance of securing a personal loan. While a rough estimate suggests up to ₹7.50 Lakh based on a 15x multiplier, the exact amount will depend on the lender's internal policies, your debt-to-income ratio, and your credit history. Always compare offers from multiple banks and NBFCs, and carefully consider the interest rates, processing fees, and other charges before committing to a loan.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Jun 5, 2025, 10:26 AM IST
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