How much Personal Loan can I get on 40000 Salary?

If you are earning a monthly salary of Rs. 40,000 and are looking to take a personal loan from a Bank, the exact loan amount depends on multiple factors. It includes the lender you choose, your CIBIL score, and your debt to income ratio. Coming to your query, how much personal loan can I get on 40000 salary? You can get a minimum of Rs. 4 lakhs.

What is the Personal Loan on 40000 Salary?

While the bank does not specify a fixed loan amount tied strictly to a Rs 40,000 salary, it does advertise that personal loans range from Rs 50,000 up to Rs 10 lakh, depending on salary, credit history, tenure, and customer relationship.

1. With a Rs 40,000 salary, you are firmly within the income eligibility margin, so you could be approved for a reasonable loan.

2. However, your actual sanctioned amount will be based on your other commitments (existing EMIs), credit score (preferably 700+), employment history, age (must be at least 21 and maturity ≤ 60 years), and how much you can afford to repay comfortably each month.

You may well secure a personal loan, probably in the range of a few lakhs (depending on your tenure and credit profile), but don’t expect an automatic high figure just because your salary is Rs 40,000.

It’s best to use the bank’s Personal Loan Eligibility Calculator or talk with your manager to get a more precise estimate based on your actual income, expenses, and tenure.

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​The amount of personal loan for 40000 salary depends on several factors. It includes your credit score, financial history, and the lender's standards. However, on average, with this salary you will get a 1.5x of your salary, which is Rs. 6 lakhs. Let me share more details on it below.

How much Personal Loan can I Get on 40,000 Salary?

If you earn Rs40,000 per month in India, your eligibility for a personal loan can be estimated using the Multiplier Method. It is a common approach employed by banks and financial institutions.​

1. Under this method, lenders typically multiply your net monthly income (NMI) by a predetermined factor, which generally ranges between 10 and 24. 

2. This multiplier varies based on factors such as the lender's policies, your credit profile, and employment stability.​

3. For instance, if a lender applies a multiplier of 15 to your Rs40,000 salary, the calculation would be:​ Rs 40,000 × 15 = Rs 6,00,000​.

Under ideal conditions, you might qualify for a personal loan of up to Rs 6 lakh.​ I hope you understand the allowed personal loan for 40k salary.

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Hi, I have an account in Axis Bank and as I require a personal loan; I planned to opt for it from Axis Bank. To know how much amount I was eligible for, I got in touch with the customer service of the bank. I asked them how much loan can I get on 40 000 salary? He told me I would be eligible for Rs. 13.50 Lakhs. 

How Much Loan Can I Get On 40k Salary?

The bank employee told me that the bank calculates personal loan amounts by the Fixed Obligation Income Ratio method. In this method, the bank would examine my bank statement, running EMI, creditworthiness and check the monthly expenses. Only after that the bank will decide whether I would be eligible for a loan or not. 

As I mentioned above, the bank employee told me I would be eligible for Rs. 13.50 lakhs based on this method. He also said that the amount would be for a tenure of 5 years. 

• According to this method, if I have any monthly EMI of Rs. 3,000, then I would get Rs. 8.80 lakhs. 

• If the EMI is Rs. 5,000, then the amount would be Rs. 8.40 lakhs. 

• With an EMI of Rs. 8,000, the amount will be Rs. 7.68 lakhs. 

• Finally, if the EMI is Rs. 10,000, then the eligible loan amount will be Rs. 7.28 lakhs. 

And that’s it. I hope this helps. 

I availed a personal loan of Rs. 13.50 lakhs from IDFC bank last year. Before taking the loan, I wasn’t aware of how much amount I would be eligible for, and thus I called the IDFC bank customer service. I told them that I had an account with them and how much loan can I get on 40 000 salary. The executive told me the following. 

How Much Personal Loan For 40K Salary?

The executive told me that the amount of personal loan that I am eligible for is done through the multiplier method. In this method, the bank multiplies my monthly income by 27 and approves the amount for the tenure of 5 Years. 

She then told me that if I have any financial obligations, such as other EMI’s, etc, then that will deducted from my salary and then multiplied by 27.

Since I don’t have any financial obligations, she told me that I would get a personal loan of Rs. 13.50 lakhs for 5 years.

That is all that she told me when I asked her about the 40000 salary personal loan. I hope this helps. 

A personal loan can help you big time. I realised this 2 years back when my mother was suffering from heart disease, and we needed a big sum of money for her treatment. I opted to avail of a personal loan to arrange the funds. With an instant loan disbursement, we were able to get the treatment done on time, which saved my mother’s life. At that time, my salary was somewhere around 35000 rupees. I would like to share how much personal loan can I get on 40000 salary to help you out.

What is the personal loan for 40000 salary?

I would like to tell you that certain factors contribute to the actual loan amount that you receive. This consists of your income, expenses, current debts (if any), etc. In general, the minimum monthly salary of a borrower needs to be 20,000 rupees. This can vary based on the policies of the lender and also the city you’re in. 

Now, talking about how much loan amount you can receive if your salary is 40,000, we can calculate this with the help of a process called the multiplier method. The IDFC First Bank multiplies your monthly income by 27 to calculate the loan amount and lends it for a tenure of 60 months or 5 years.

Going by this calculation,

There is another method called the FOIR method, which is used by several banks for the same purpose.

Hopefully, my answer will help you to know the loan amount you can receive if your monthly income is 40,000 rupees. Have a nice day!