How much personal loan can I get for 40,000 salary?
Personal loan is an unsecured loan where no guarantor is required and hence it has gained huge popularity over the years. This is because of easy documentation and availability, no restrictions on loan usage, quick processing and instant cash flow into the bank account. The data prepared by RBI shows a huge increase in the demand for personal loans. If all the terms and conditions set by the bank or financial institutions are met, the loan amount is transferred to the account in seconds.
The question is, how much personal loan can I get if my salary is Rs 40,000?
You may need cash immediately to meet any kind of financial problem, and you have a steady monthly income of up to Rs.40,000. The minimum income for availing a personal loan is Rs 15000 and you are well above this minimum income. But the question will be in your mind that what is the maximum personal loan I can get on 40000 salary which is a very valid point.
Eligibility for a personal loan depends on the salary and your CIBIL score. But when it comes to calculation of the loan amount, other parameters like loan to income ratio, credit score, work experience, old running loan etc. will be considered.
Most of the banks offer personal loans up to 10 times the monthly salary, and some of them even offer up to 20 times the monthly salary. However, it depends on the internal terms and conditions of the respective bank. So on 40000 salary you can get 4 lakh to 8 lakh rupees. The condition is that the loan-to-income ratio should be within the benchmark level, i.e., 40% to 50% of the monthly income and the credit score should be 750 or above.
Many NBFC companies offer online instant personal loan for Rs 40,000 salary, which is hassle-free and accompanied by paperless documentation. Some banks offer pre-approved loans to select customers who have a salary account with that bank. All you have to do is check the pre-approved eligibility through net banking and apply for the required amount with preferred repayment tenure. The loan amount will be credited to your account in a few seconds.
What is the eligibility criteria to avail personal loan against 40,000 salary?
You need to fulfill the following eligibility criteria to avail personal loan against 40,000 salary.
- Applicant age should be 21 to 60 years.
- The salary taker should be associated with reputed private organizations or government organizations.
- For salaried individuals minimum 2 years work experience with minimum 6 months minimum experience with current employer.
- For those who have their own business, it is mandatory to have at least 5 years of existence in the current business.
- The minimum monthly income criterion depending on the place of residence, city is between 15000 to 25000 rupees. Those living in big cities like Mumbai, Delhi, Bangalore should have minimum monthly income of 20000 to 25000.
Documents Required for Personal Loan Against Rs 40000 Salary
With the question of how much personal loan can you get with 40000 salary, you should be ready with the documents required for personal loan. The documents required for personal loan against salary 40,000 are shown below.
|Address proof||Aadhar Card, Voter ID, Passport, Driving License, Utility Bill|
|photo id proof||Passport, PAN Card, Driving License, Aadhar Card, Voter ID Card|
|age proof||Birth Certificate, Passport, Pan Card, Aadhar Card, Voter ID Card|
|income proof|| |
|proof of business existence||GST Certificate, Shops and Establishment Certificate, MoA, AOA, Partnership Deed|
|Work Experience Proof for Salaried Persons||Appointment letter or work contract agreement|
Best Personal Loan Interest Rates in 2022
We have just discussed above about how much personal loan you can get on 40000 salary and hope you got the answer of the question, you are able to get loan up to 20 times depending on the bank you choose . Now you should proceed to apply for a personal loan directly. You should also worry about the cost of the loan. One should move towards comparing the interest rates on personal loans in the market and choosing the most affordable option in terms of EMI.
Here is a list of the best interest rates for Personal Loan against Salary 40,000.
|Name of bank||interest rate 2022|
|bank of india||9.35% to 12.35%|
|Bank Of Maharashtra||more than 9.55%|
|Punjab National Bank||over 8.95%|
|Bajaj Finserv||over 12.99%|
|HDFC bank||more than 10.50%|
|ICICI Bank||more than 10.50%|
|Union Bank of India||more than 8.90%|
|state Bank of India||over 9.60%|
|Mahindra Bank Box||more than 10.75%|
Steps to take personal loan on salary of Rs 40000
Before applying to get a personal loan, you should calculate the monthly repayment amount using the personal loan EMI calculator. After choosing the lender whose personal loan interest rate is most attractive, you can try out different combinations of loan amount and tenure. After getting a fair idea about personal loan against 40000 salary, apply for personal loan online by following the steps given below.
Visit the official website of the bank or financial institution.
- Select ‘Online’ under ‘Loan Options’.
- An online application will open, and you will have to fill basic personal details like name, address, PAN number, date of birth, email id, mobile number, place 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 current financials including EMIs, credit card bills, utility bills, etc. must be provided to arrive at the FOIR.
- A verification code is sent by some lenders to your registered mobile number.
- You can click on the ‘Submit’ button after agreeing to the terms and conditions.
- An approximate offer containing the loan amount, interest rate and tenure will be displayed.
- Agree to the offer by clicking the Continue button. You may have to upload required documents for online at 40000 Salary or
- The lender’s representative will get in touch with you to continue with the loan application process.
After the loan documents are verified, the loan amount will be credited to your bank account.
How can I improve my eligibility for a personal loan?
If personal loan eligibility is denied even with 40,000 salary, then you need to consider improving the eligibility. Since you cannot improve the monthly salary limit, you will have to work out other factors that can increase the loan eligibility.
Credit Score : Check your credit score before approaching the lender for Personal Loan on 40,000 Salary. If you have a high score, you will be offered a loan at a lower interest rate which will reduce the EMI. With lower EMI, you will be able to get an increased amount. If there are any discrepancies, resolve them by contacting the credit bureau or the lender’s support group. For any other reason like missing EMIs, loan account overdue or credit card bills etc., you should solve the problem by regularizing all the accounts before approaching the lender for the loan.
Extend Loan Tenure: Opt for a longer loan tenure to reduce EMI. Lower EMI will increase the loan amount.
Avoid multiple loan applications: Do not apply for loans with multiple lenders at the same time, as this will lower the credit score.
Do a thorough check 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 banks or financial companies calculate personal loan amount against 40000 salary?
The method adopted to calculate personal loan against 40000 salary is the multiplier method in which the salary will be multiplied by a certain number of months. For example, if the bank has a policy to provide a maximum gross salary of 10 months, then the loan amount will be given up to Rs 4 lakhs on Rs 40000. Some of the other factors of loan amount are loan to income ratio, credit score etc.
What is the prevailing interest rate for personal loan?
The current interest rates for personal loans range from 8.95% to 12.99% depending on the bank.
Frequently Asked Questions (FAQs) related to Personal Loan against 40000 Salary
Question: What is the eligibility criteria for personal loan?
Answer: Following are the eligibility criteria for personal loan :-
- Age : 21 Years to 60 Years
- Minimum Income: Rs 15000 to 25000 and it depends on the place of residence and the chosen lender.
- Loan to Income Ratio : 40% to 50% of the income
- Employment Type: Salaried or self-employed. Salaried should be employed in reputed companies or government organizations.
- Work Experience: Minimum 2 years with at least six months with the present employer in case of salaried individuals. Business existence of minimum 5 years for self employed.
Question: How to apply for personal loan against 40000 salary?
Ans: You can apply for Personal Loan on Salary 40,000 by filling an online application with income details and uploading required documents. Approval will be communicated after processing of loan application and documents.
Answer: You can also visit the bank branch and submit the personal loan application along with the required documents.
Question: Does personal loan help in clearing credit card dues?
Answer: Paying off the credit card dues with a personal loan is recommended as the interest charged on the credit card balance is much higher than the personal loan interest rates.
Question: What are the options available to get the maximum loan amount?
Ans: The options available to get the maximum amount on a personal loan are to lower the EMI for a longer tenure or to avail low interest loans by managing a high credit score.
Question: How can I get instant loan with salary of Rs 40000?
Answer: If you are one of the customers selected for the pre-approved personal loan offer, you can check on net banking. If you are eligible for a pre-approved loan provided by your existing banker, the amount is credited to your bank account immediately.