Personal loan with Rs 50,000 salary: Here’s what you must know before applying

Managing finances could be challenging, especially for salaried individuals. Those with average incomes often find themselves caught between meeting daily expenses and pursuing their ambitions. Balancing both requires a strategic approach.

For instance, a monthly salary of Rs 50,000 may cover basic expenses, but it can be tough to achieve bigger goals with such a limited budget. This is where a personal loan could be helpful for several purposes like big-ticket purchases, travel and home renovation, even for those earning Rs 50,000 a month.

One of the major advantages of a personal loan is the flexibility in the loan amount, ensuring that you can borrow just the right amount to meet your requirements. Along with this, personal loans also offer flexible repayment tenures. This allows you to choose the duration over which you want to repay the loan, breaking it down into manageable instalments.

Moneycontrol provides access to 100% digital loans, with no paperwork required, low processing fees and the funds disbursed directly to your bank account. All you have to do is submit your details, finish the KYC and set up the EMI repayment schedule. You can apply for loans up to Rs 15 lakhs from seven lenders with the interest rates starting at 12% per annum.

Eligibility criteria for personal loans with a Rs 50,000 salary

When applying for a personal loan, you need to meet certain eligibility criteria set by the banks and the non-bank financial companies (NBFCs).

• Minimum salary requirements: Many banks require a minimum monthly salary of Rs 25,000 for individuals applying for a personal loan in metropolitan cities. So, with a salary of Rs 50,000, you are more likely to meet or exceed this requirement.


• Employment stability: Borrowers who have a steady salary and work history are preferred by lenders. Long-term employment with the same company shows dependability, which might improve the borrower’s credibility.


• Credit score: When it comes to loan approval, a high credit score is important. Maintaining a credit score above 750 is advised because it will improve your chances of getting a loan without any issues.


• Strong credit history: Your credit score reflects your financial discipline and creditworthiness. To improve your loan eligibility, ensure you pay off existing debts and credit card bills on time. Keep your credit utilisation low and check for any errors in your credit report.


• Lower debt-to-income ratio: Lenders assess your debt-to-income (DTI) ratio to determine how much disposable income you have for loan repayment. A lower DTI indicates that you are more likely to manage your loan repayments effectively. To reduce your DTI, consider paying off outstanding debts and cutting unnecessary expenses.


• Choose longer repayment tenure: If you have a salary of Rs 50,000, opting for longer loan tenure may help you to repay the loan without any burden. A longer tenure reduces the EMI, making it easier to manage larger loan amounts. But keep in mind that a longer tenure will also lead to higher overall interest costs.


• Consider a co-applicant or guarantor: If you want to increase your loan amount eligibility, consider adding a co-applicant or guarantor with a higher income or credit score. This reassures lenders about repayment and improves your chances of receiving a better loan offer.

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Calculating your personal loan EMI

If you're considering applying for a personal loan with a salary of Rs 50,000, figuring out the EMI in advance can give you a ballpark idea of how much you'll have to pay back and how long it will take.

1. To begin, decide how much personal loan you would like to apply for based on your income and liabilities.


2. Next, decide on the tenure for loan repayment. It should be a time frame that allows you to pay back your loan in full, including interest, without any financial burden.


3. Based on the above options, the EMI calculator will provide a table with the suggested EMI repayment schedule.

Documents required for Rs 50,000 salary personal loan

Even though applying for a personal loan would turn out to be a very easy task for most of us, having the required documents ready is an important part.

While submitting an application for a personal loan, you must fill in the form where you need to mention all your details. Before granting the loan, lenders will confirm that the information is accurate. This information includes your name, birthdate, residence, occupation and other details that are required by the lender.

After completing the form, you must provide proof to back up and confirm the information you provided. Photo IDs such as Aadhaar cards, PAN cards, driver's licence, etc. can be submitted as identity proof.

Additionally, you will need to provide documents validating your income, such as pay slips, bank statements and Income Tax Returns (ITRs).

Overall, If you have a monthly salary of Rs 50,000, you can easily access a 100% digital and instant personal loan through Moneycontrol. In collaboration with seven lenders, Moneycontrol provides access to loans of up to Rs 15 lakhs. Depending on your employment status, you can choose between a personal loan or a business loan. With interest rates starting at 12% per annum and no hidden charges, the entire application process is transparent and hassle-free.