How much Personal Loan Can I Get on 40000 Salary in India?

Updated on: 25 Jul 2023 // 7 min read // Personal Loans
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How much Personal Loan Can I Get on 40000 Salary in India?

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

How much Personal Loan Can I Get on 40000 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.

Eligibility criteria to avail personal loan on 40000 salary

You have to fulfil the following eligibility criteria to qualify for a personal loan on 40000 salary.

  • The age of the applicant must be 21 to 60 years.
  • Salaried individuals should be employed with reputed private organisations or with Government Organisations/PSUs.
  • A work experience of a minimum of 2 years with a minimum experience of 6 months with the present employer is mandatory for salaried individuals.
  • A minimum of 5 years of existence in the present business is compulsory for self-employed individuals/professionals.
  • The minimum income criteria depend on the city of residence and range between Rs. 15000/- to Rs. 25000/-

Documents required

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 documentDetails
Proof  of residence addressAadhar Card, Voter’s ID card, Passport, Driving Licence, Utility bills
Photo ID ProofPassport, PAN card, Driving Licence, Aadhar Card, Voter’s Id Card
Age ProofBirth Certificate, Passport, PAN Card, Aadhar Card, Voter’s ID
Income Proof

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-employedGST Certificate, Shops and Establishment Certificate, MOA, AOA, Partnership Deed
Work experience proof for the salaried individualsAppointment letter or work contract agreement 

Best Personal Loan Interest Rates in India 2023

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.

BankInterest Rate (p.a.)
Bajaj Finserv11% p.a. onwards
Kotak Mahindra10.99%
YES Bank10.99% onwards
Tata Capital10.99% onwards

Steps to avail personal loans with salary up to Rs.40000

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.

  • Access the official website of the financial institution.
  • Choose ‘personal loan’ under the ‘loans option.’
  • An online application will open up, and you will have to fill in basic personal details like name, address, pan number, date of birth, email id, mobile number, city of residence, etc. 
  • Employment details like type of employment, details of employer, type of business, work experience/period of business existence will also be required.
  • Income details and existing financial commitments comprising EMIs, credit card bills, utility bills etc should be provided to arrive at the FOIR.
  • A verification code is sent to your registered mobile number by some lenders.
  • Otherwise, you can click on the ‘submit button after agreeing to the terms and conditions.
  • An approximate offer consisting of the loan amount, interest rate and tenure will be displayed.
  • Agree to the offer by clicking the continue button. You might have to upload the required documents for a personal loan on 40000 salary, or the lender's representative will contact you to continue with the loan application process.

On approval of the proposal, the loan amount will be credited to your bank account after the execution of loan documents.

How can I improve my eligibility for a personal loan in India?

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.

  • Credit Score: Check your credit score before approaching the lender for a personal loan on 40000 salary. If you have a higher score, you will be offered a loan at a lower rate of interest that will reduce the EMI. With a reduced EMI, you will be able to get an enhanced amount. If there are any discrepancies, get them sorted by contacting the support group of the credit bureau or the lender as the case may be. For any other reason like missing an EMI, overdue in loan account or credit card bills etc., you should sort the issue by regularising all the accounts before approaching the lender for the loan.
  • Increase the loan tenure: Opt for a higher loan tenure to reduce the EMI. Reduced EMI  will enhance the loan amount.
  • Avoid multiple loan applications: Do not apply for a loan with multiple lenders at the same time, as this will reduce the credit score.

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.

✅ How do the lenders compute the loan amount for a personal loan on 40000 salary?

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.

✅ What is the prevailing rate of interest for a personal loan?

The prevailing rate of interest for a personal loan is 8.95% to 12.99%, depending on the lender.

✅ What is the eligibility criteria for a personal loan?

The following are  the eligibility criteria  for a personal loan/

  • Age: 21 years to 60 years
  • Minimum Income: Rs. 15000/- to Rs.25000/- depending on the city of residence and the lender chosen.
  • Residential status: Resident Indian
  • Debt to Income ratio: 40% to 50% of income
  • Employment Type: Salaried or self-employed. If salaried should be employed with  reputed companies or Government Organisations
  • Work Experience: Minimum 2 years with at least six months with the current employer in the case of salaried individuals. Minimum 5 years of business existence for the self-employed.

✅ How to apply for a personal loan on 40000 salary?

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.

✅ Does it help to pay off credit card dues with a personal loan?

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.

✅ What are the options available to get a maximum personal loan?

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.

✅How can I get an instant personal loan with a salary of Rs. 40000/-?

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.