Personal Loan on Rs 50,000 Salary

If you have a strong credit score, a good repayment history and consistent monthly income, you may be eligible for pre-approved personal loans. You can get pre-approved offers from Tata Capital, Axis Bank, IndusInd Bank, Hero Fincorp, Federal Bank, Aditya Birla Capital, etc., through Paisabazaar.

Multiplier Method

Most personal loan lenders use a multiplier method to calculate your maximum loan amount. For instance, SBI considers a 24-times NMI to calculate your personal loan amount. Therefore, the loan amount you would be eligible for SBI Personal Loans would be Rs 12 lakh. However, your existing EMIs also play a crucial role in determining your loan eligibility.

EMI/NMI Ratio

Apart from NMI, SBI also considers the EMI/NMI ratio of up to 65%.  So, even if you have no existing EMIs going on, SBI would prefer to set the loan amount and repayment tenure to ensure that your maximum EMI remains around Rs 32,500 for a salary of Rs 50,000. The EMI/NMI  indicates the proportion of your monthly income allocated towards repayment of your existing EMIs.

Processing Fees & Other Charges

• Processing Fees: Usually go up to 4% of the loan amount
• Prepayment/Foreclosure Charges:
  • Can range between 2% and 5% on the outstanding loan amount for fixed-rate loans;
  • RBI barred banks and NBFCs from levying fees on floating rate loans
• Repayment mode swap charges: Around Rs 500 per transaction
• Loan Statement Charges: NIL to up to Rs 500 per statement
• Loan Cancellation Charges: Usually around Rs 3,000
• Stamp Duty: As per actuals
• Duplicate NOC: Usually around Rs 300-Rs 500
• GST: Applicable to all processing fees and charges

Charges on Late EMI Payments

• Penal Charges on EMI Overdue: Usually 2% to 3% per month on the overdue amount.
• EMI Bounce Charges: Up to Rs 450 per instance
• Cheque Bouncing or Failed Standing Instruction Charges: Up to Rs 500 – Rs 750 per instance

General personal loan documents

• Passport-sized photographs
• Identity Proof: Aadhaar Card/Passport/PAN Card/ Voter’s ID/Driving License
• Address Proof: Passport/ Aadhaar Card/ Electricity Bills (not more than 3 months old)/ Driving License
• Income Proof: Salary Slips/Form 16/Bank Account Statement

Digital Document Processing/Paperless Documents

No physical documents are required for digital personal loans. The application processing is through digital KYC (e-KYC) processes. Usually, only PAN and Aadhaar numbers are required.

Documents for Pre-Approved Loans

No documents are required for pre-approved personal loans, as the lender already has your KYC documents and the initial credit assessment of their customers is done.