Personal loans are unsecured loans that have gained huge popularity over the years. The reason being simple documentation, easy availability, unrestricted usage option, quick processing and instant cash availability. The statistics drawn by RBI shows a steep increase in the demand for personal loans. Now instant cash loans are available within seconds if all the terms and conditions set out by the financial institutions are met.
Note: Check different Lenders of Personal Loan for Low Salary
You might be in need of urgent funds to meet some urgent financial commitments, and you have a stable income of Rs 40000. You are well within the minimum income requirement to avail a personal r. But the question in your mind will be how much personal loan can I get on 40000 salary which is very valid.
Eligibility for a personal loan depends on the salary. But when it comes to computation of the loan amount, other criteria like debt to income ratio, credit score, number of dependents, work experience, residual service left in the case of salaried individuals etc. will be considered.
Most of the lenders provide personal loans up to 10 times the monthly salary, and some of them provide even up to 20 times the monthly salary. It, however, depends on the internal guidelines of the respective lender. So the answer to how much personal loan can I get on 40000 salary will be either up to Rs. 4.00 lakh or Rs. 8.00 lakhs provided the debt to income ratio is within the benchmark level, i.e., 40% to 50% of net income and the credit score is 750 and above.
Many NBFCs offer online instant personal loans on 40000 salary, which will be hassle-free and with paperless documentation. A step further is, some of the banks provide pre-approved loans to select customers who have satisfactory dealings with them. All you have to do is check for the pre-approved eligibility through net banking and apply for the required amount along with the preferred tenure. The amount will be credited to your account within seconds.
You have to fulfil the following eligibility criteria to qualify for a personal loan on 40000 salary.
With your question of how much personal loan can I get on 40000 salary answered, you should now be prepared with the documents required for a personal loan. Details of the documents required for a personal loan on 40000 salary are given below.
|Type of document||Details|
|Proof of residence address||Aadhar Card, Voter’s ID card, Passport, Driving Licence, Utility bills|
|Photo ID Proof||Passport, PAN card, Driving Licence, Aadhar Card, Voter’s Id Card|
|Age Proof||Birth Certificate, Passport, PAN Card, Aadhar Card, Voter’s ID|
Salary slips (latest three months), Form 16, Bank account statement for the last six months of salary account for salaried individuals
Audited financials and ITRs with computation of the last two years, Bank Account Statement for the previous 12 months of the operative account.
|Proof of business existence of the self-employed||GST Certificate, Shops and Establishment Certificate, MOA, AOA, Partnership Deed|
|Work experience proof for the salaried individuals||Appointment letter or work contract agreement|
Your concern about how much personal loan I can get on 40000 salary is cleared with the fact that you will be able to get a loan up to 20 times depending on the lender you choose. You should not stop at this and directly proceed to apply for a personal loan. You should also worry about the cost of the loan. It is recommended to compare the current interest rates on personal loans in the market and choose the one that would be the most economical, both cost-wise and EMI wise.
Here is a list of the best interest rates for a personal loan on 40000 salary.
|Name of the Bank||Rate of Interest 2021|
|Bank of India||9.35% to 12.35%|
|Bank of Maharashtra||9.55% onwards|
|Punjab National Bank||8.95% onwards|
|Bajaj Finserv||12.99% onwards|
|HDFC Bank||10.50% onwards|
|ICICI Bank||10.50% onwards|
|Union Bank of India||8.90% onwards|
|State Bank of India||9.60% onwards|
|Kotak Mahindra Bank||10.75% onwards|
Before you apply to get a personal loan, you should calculate the eligibility using a personal loan EMI calculator. You can try various combinations of loan amount and tenure after you have selected the lender whose personal loan interest rate is most appealing. After getting a fair idea about the eligible personal loan on 40000 salary, apply for the personal loan online by following the step by step guide given below.
On approval of the proposal, the loan amount will be credited to your bank account after the execution of loan documents.
If you are not satisfied with the eligible personal loan on 40000 salary, you will have to deliberate on how to improve the eligibility. Since you cannot improve the extent of monthly salary, you will have to work on other factors that could enhance the loan eligibility.
Do thorough scrutiny of all the aspects, be well aware of the terms and conditions before applying for the loan as it will reduce the loan processing time.
The method adopted for computation of personal loan on 40000 salary is the multiplier method wherein the salary will be multiplied by a certain number of months. For instance, if the lender has the policy of providing a maximum of 10 months gross salary, then the loan amount available on Rs. 40000/- salary will be Rs. 4.00 lakhs subject to certain other factors like debt to income ratio, credit score, etc.
The prevailing rate of interest for a personal loan is 8.95% to 12.99%, depending on the lender.
The following are the eligibility criteria for a personal loan/
You can apply for a personal loan on 40000 salary by filling up an online application with personal as well as income details and uploading the required documents. The approval will be communicated after the processing of the loan application and the documents.
You can also visit a branch of the lender and apply for the loan by personally submitting the loan application along with the documents required.
If you have accumulated dues on credit cards, it is recommended to pay off the dues with a personal loan as the interest charged on credit card dues are much higher than the personal loan interest rates.
The options available to get the maximum amount on a personal loan are to lower the EMI by opting for a longer tenure or avail of the loan at a lower interest by managing a higher credit score.
You can check on net banking if you are one of the selected customers for a pre-approved personal loan offer. If you are eligible for the pre-approved loan provided by your existing banker, you can place a request on net banking by providing the amount and tenure. The amount is instantly credited to your bank account.