How Much Personal Loan Can I Get on 40,000 Salary?

Are your big dreams not matching up with your salary of ₹40,000? Do not let financial hurdles hold you back! Finnable is here to assist you with personalised personal loan options that cater to your unique needs. Our loans provide the boost you need to tackle your goals and make your dreams a reality.  

There are many reasons you may want to opt for a personal loan. Take, for example:

  1. Travel and Vacation:

    Loans can enable you to fulfil your desire for travel, allowing you to explore new destinations, create cherished memories, and take a break from your routine life.

  2. Medical Emergencies:

    You may require small personal loans to cover unexpected medical expenses, such as hospital bills, surgeries, or ongoing treatment for yourself or your family members.

  3. Debt Consolidation:

    You may need personal loans to consolidate your existing debts, such as credit card bills or multiple high-interest loans, into a single, more manageable loan with a lower interest rate and structured repayment plan.

  4. Business Start-Up:

    f you are planning on pursuing entrepreneurship but do not know how to get your hands on some starting capital, personal loans can be of great help.

  5. Wedding Expenses:

    Weddings can be expensive and personal loans can help cover wedding-related costs, including venue bookings, catering, decorations, and other essential arrangements.

  6. Emergency Situations:

    Unexpected emergencies, such as a natural disaster, sudden job loss, or major repairs, can create financial strain. Personal loans can provide immediate funds to address these emergencies and ensure stability during challenging times.

  7. Personal Expenses:

    Loans can be used for various personal expenses, such as purchasing electronic appliances, funding a special occasion, or meeting financial obligations during periods of temporary financial strain.small

Determining Your Loan Eligibility

It is not only your salary that determines the amount of loan you can borrow. When the lender evaluates your loan eligibility, several factors come into play. These factors may vary from lender to lender but generally include the following:

  1. Credit Score:

    Your credit score is a significant factor in determining your eligibility for a personal loan. It represents your creditworthiness and indicates how responsibly you have managed credit in the past. Lenders typically prefer applicants with a good credit score as it reflects their ability to repay the loan.

  2. Income and Employment Stability:

    Lenders assess your income level and stability to gauge your repayment capacity. A higher income and steady employment history indicate a higher likelihood of timely loan repayments. It’s common for lenders to have a minimum income requirement for loan eligibility.

  3. Debt-to-Income Ratio:

    Lenders analyse your debt-to-income ratio, which compares your monthly debt obligations to your monthly income. A lower ratio suggests a better ability to handle additional debt and increases the likelihood of loan approval.

  4. Employment Type:

    The nature of your employment, whether salaried or self-employed, can influence loan eligibility. Salaried individuals often find it easier to secure loans due to the stability of their income, while self-employed individuals may need to provide additional documentation to prove their income stability.

  5.  Loan Amount and Tenure:

    The loan amount you seek and the repayment tenure can impact your eligibility. Lenders may have specific criteria and limits based on the loan amount and tenure, ensuring that the monthly EMIs remain affordable for the borrower.

  6. Credit History:

    Apart from the credit score, lenders also consider your credit history, which includes factors like past loan repayments, credit card usage, and any defaults or late payments. A positive credit history strengthens your eligibility and increases the chances of loan approval.

  7. Previous Financial Obligations:

    Lenders take into account your existing financial commitments, such as outstanding loans, credit card debt, or other monthly obligations. These obligations affect your repayment capacity and may influence the loan amount you can be approved for.

  8. Age and Citizenship:

    Your age also contributes to determining your loan eligibility. Most lenders require borrowers to be of legal age and citizens or permanent residents of the country where the loan is being offered.

Using the EMI Calculator to Determine Your Loan Eligibility

You can try this procedure out using Finnable’s personal loan EMI calculator.  

Let us assume that your EMI, ideally 40% of your salary, is ₹ 16,000 a month. If you have 30 months to repay the loan and avail of the minimum interest offered by Finnable, 16%, you will be eligible for a loan of around ₹ 4, 00,000.

However, note that your credit history, employment status, and other factors can affect the amount of loan you can take.

To Conclude

Now that you understand the amount of loan you can get with a salary of  ₹ 40,000, you have the potential to fulfil your dream of travelling worldwide or addressing other financial needs. Finnable is here to guide you through the loan application process and provide personalised assistance. If you are ready to take the next step, apply for a personal with Finnable today. Let us help you turn your aspirations into reality!

Frequently Asked Questions (FAQs):

Finnable typically considers a loan-to-income ratio of around 40-50%. Based on this, you could be eligible for a loan with an EMI not exceeding ₹20,000 (40% of ₹40,000).  

No. Finnable provides collateral-free personal loans.

The minimum salary requirement to take a loan from Finnable is ₹15,000. 

No, Finnable offers personal loans for individuals between 21 to 45 years old. 

Yes. Top-up options are available for personal loans from Finnable.

Amit Arora


I am a seasoned retail banker with over 21 years of global experience across business, risk and digital. In my last assignment as Global Head Digital Capabilities, I drove the largest change initiative in the bank to deliver the end-to-end digital program with over US$1 billion in planned investment. Prior to that, as COO for Group Retail Products & Digital, I implemented a risk management framework for retail banking across the group.
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