Personal Loan For ₹40000 Salary

personal loan for ₹40000 salary

personal loan for ₹40000 salary

Getting a Personal Loan on 40000 Salary

Wondering ‘How much personal loan can i get on 40000 salary’? Personal loans and credit scores are parallel to each other, but they aren’t the only factor that determine your personal loan for 40000 salary. Personal loan eligibility also revolves around your salary and budget. The loan amount, tenure and other key factors change while taking a 40000 salary personal loan. 

Personal loans are unsecured loans used for a variety of purposes. They get used for consolidating debt, paying for medical expenses, or making home improvements. Banks offer personal Loans, non-banking financial companies (NBFCs), and other lending institutions.

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How Much Personal Loan can I get on 40000 Salary

Several factors determine how much money you can borrow with your income. Lenders usually assign loans as per the income to borrow ratio when lending out a personal loan. when taking a loan. 

It is always the question of ‘How much personal loan can I get on 40000 salary’  depending  on the lender’s policies like creditworthiness, and other financial obligations.  Lenders consider your income, credit score, and debt-to-income ratio when determining the loan amount they are willing to offer.

As a general guideline, lenders may approve a personal loan of up to 10-20 times your monthly salary. With a salary of ₹40,000, you may be eligible for a personal loan ranging from ₹4,00,000 to ₹8,00,000.

Note:  The final loan amount will be determined by the lender based on their specific criteria.

To get an accurate understanding of the personal loan amount you can qualify for, it is recommended to reach out to lenders and discuss your financial situation, including your salary, expenses, and credit history. They will assess your eligibility and provide you with loan options that align with your financial circumstances.

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Benefits of Getting a Personal Loan for 40,000 salary

  • You can borrow a large amount of money.
  • You can use the loan for any purpose.
  • The repayment period is flexible.
  • The interest rates are relatively low.

How do Lenders Decide on Loan Amount For 40000 Salary?

Lenders use various factors to determine the loan amount for an individual with a salary of ₹40,000. These factors include:

  • Income: Lenders assess your monthly salary to determine your repayment capacity. A higher salary generally increases your eligibility for a larger loan amount.
  • Debt-to-Income Ratio: Lenders consider your existing financial obligations, such as outstanding loans or credit card debt, in relation to your income. They typically prefer a lower debt-to-income ratio, which indicates a better ability to handle additional loan repayments.
  • Credit History and Score: Your credit history and credit score play a significant role in determining the loan amount. A good credit score indicates responsible financial behavior and may lead to a higher loan amount.
  • Employment Stability: Lenders consider the stability of your employment. If you have a consistent employment history with a stable income source, it increases your chances of getting a higher loan amount.
  • Other Factors: Lenders may also take into account your age, years of work experience, and any collateral you can provide (such as property or investments) that can secure the loan.

NOTE– It’s important to note that different lenders may have varying criterias and policies. 

These factors may only be a roadmap towards how lenders decide on a loan amount for 40000 salary, apart from the same there are other methods that lenders use to determine your eligibility which are-

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Multiplier Method

This is a simple way to estimate how much money you can borrow based on your salary. It is a calculation used by lenders to determine the maximum amount of money that you can borrow. 

The multiplier will vary depending on the lender and your credit score. Lenders with lower credit scores will typically have lower multipliers. The lenders can take any set multiplier from the range 3 to 36 to multiply it against your monthly income, this is done to determine how much loan amount you are eligible for.

The formula for Multiplier method is as follows:
Loan amount = Multiplier x Monthly income

For a ₹ 40,000 salary
Let’s assume the FOIR percentage = 50% 
Your existing obligation = ₹10,000. 
The loan amount will be as follows:
(Salary x FOIR percentage – Existing Obligations)
(₹ 40,000 x 50%) – ₹10,000
= ₹20,000 – ₹10,000
=₹ 10,000

Personal Loan Eligibility For 40000 Salary

The personal loan eligibility for a salary of ₹40,000 will depend on several factors, including the lender’s policies and your financial profile. While I don’t have access to specific information about individual lenders, I can provide a general understanding of the criteria considered for personal loan eligibility:

  • Income: Your salary of ₹40,000 will be a crucial factor in determining your eligibility. Lenders typically require a minimum income threshold, and a higher salary increases your chances of being eligible for a personal loan.
  • Credit Score: Your credit score reflects your creditworthiness and repayment history. A higher credit score improves your eligibility for a personal loan. Most lenders prefer a credit score of 700 or above.
  • Debt-to-Income Ratio: Lenders evaluate your debt-to-income ratio, which is the proportion of your monthly income that goes towards debt repayments. A lower ratio indicates better repayment capacity and increases your eligibility.
  • Employment History: A stable employment history, including the length of employment with your current employer, can positively impact your eligibility for a personal loan.
  • Existing Financial Obligations: Lenders consider your existing loans, credit card debt, and other financial obligations. Having a lower debt burden improves your eligibility for a personal loan.
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Documents Required for Low Salary Personal Loan

  • Identity proof: Valid government-issued identification document.
  • Address proof: Utility bill or rental agreement.
  • Income proof: Salary slips or bank statements.
  • Employment proof: Employment contract or employer’s letter.
  • Bank statements: Recent statements showing transaction history.
  • Loan application form: Fill out the lender’s application form.

How to Apply for Rs 40000 loan with Buddy Loan

Here’s the step-by-step process that you can follow to apply for personal loan for 40000 salary on Buddy Loan:


1: Visit or Download & install the Buddy Loan app (Android or iOS).

2: Open the personal loan application page. Provide the mobile number and enter the received OTP.

3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option

4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).

5: Enter your work details (Including company name, years of service and Designation) 

6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)

7: Provide your communication address, and income details and Click the ‘Submit’ button.

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How Can I be Eligible for a Better Loan Amount with a Salary of 40000?

Improve your eligibility for 40000 salary personal loan with these strategies-

Maintaining a good Credit Score –

To maintain a good credit score, you need to make timely payments on all your credit obligations and keep your credit utilisation low. On-time payments and low credit utilisation positively impact your credit history, helping you get diverse loan options.

Minimising Debt –

 Minimising debt is essential for financial stability. It is an effective way to improve your debt-to-income ratio.  By reducing existing debts and increasing your income it helps lenders understand that you are financially capable of managing loan repayments. This increases your chances of obtaining favourable loan terms and maintaining a healthy financial profile.

Getting a Co-Applicant –  

  • Co-applicant – Someone who agrees to be jointly responsible for repaying the loan. 
  • Guarantor – Someone who agrees to repay the loan if the primary borrower defaults. Lenders often look favourably on loans that have co-applicants or guarantors, as it shows that there is another person who is willing to help repay the loan. This can make it easier to get approved for a loan and may also result in a lower interest rate.

Look for Opportunities to increase income –

 There are many ways to increase your income. You can look for a higher-paying job, start a side hustle, or freelance in your spare time. You can also make use of extra resources that come your way. By increasing your income, you can improve your financial situation and reach your financial goals. It is important to be creative and persistent when looking for ways to increase your income.


Before you take out a loan, it is important to do your research and understand the terms and conditions. This will help you ensure that you are getting the best possible deal and that you understand what you are getting into.


In conclusion, a personal loan for 40000 salary  will depend on a number of factors, including your credit score, the lender, and the purpose of the loan. It is important to compare different lenders and interest rates before choosing a personal loan. You should also make sure that you can afford the monthly payments and ensure a smooth flow in your loan payments.

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Q. How much personal loan can I get on a 40000 salary in HDFC?
The maximum personal loan amount you can get on a salary of ₹40,000 in HDFC may vary depending on factors such as credit history, existing financial obligations, and repayment capacity.
Q. How much is a home loan for a 40000 salary ?
The maximum home loan amount you can get on a salary of ₹40,000 may vary depending on factors such as credit history, existing financial obligations, and the lender’s policies.