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Everything You Need to Know About Getting a $40,000 Personal Loan

Everything You Need to Know About Getting a $40,000 Personal Loan
Susan Guillory
Susan GuilloryUpdated October 31, 2022
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
If you’re faced with a major expense, such as a medical procedure or emergency home repairs, and you don’t have enough in the bank to cover it, you might be able to take out a personal loan. There are personal loans for $40,000 available.Here’s how these loans work and what you need to qualify for a $40,000 personal loan.

What Is a Personal Loan?

A personal loan is a type of loan that you take out from a bank, credit union, or online lender. You receive a lump sum of money that you pay back in monthly installments over time with interest. What are personal loans used for? These loans are flexible, so you can use them for almost any purpose. They can help you finance things like home repairs, a wedding, or any other expense you don’t have the cash to pay for. There are large personal loans, like those for $40,000, and small personal loans that typically start at about $500.

Qualifying Criteria for a $40,000 Loan

To get a personal loan of $40,000, lenders have certain criteria you’ll need to meet. Requirements may include:
  • A minimum credit score
  • A minimum annual income
  • A low debt-to-income ratio (your gross monthly income as compared to your monthly debts)
Specific requirements will vary from one lender to another. Generally, you’ll need a credit score of at least 580 to qualify for a $40,000 loan. If your score is lower, there are some lenders who may be willing to offer you a $40,000 personal loan, but you may pay more in interest.The best way to see whether you qualify is to get preapproval for a personal loan. This typically won’t impact your credit score, and you can compare offers from different lenders to find the lowest rate.

Typical $40,000 Loan Terms

The terms you can get for a $40,000 loan depend on your qualifying criteria (such as your credit score) and the amount of time you’ll need to pay back the loan.For personal loan amounts as high as $40,000, many lenders offer repayment terms of up to 12 years. Keep in mind, though, that with a longer loan term, you’ll pay more in interest overall.

$40,000 Personal Loan Monthly Payments

Your monthly payment for a $40,000 personal loan will depend upon your repayment term and interest rate. A shorter term means higher monthly payments, but you’ll pay less in interest. A longer loan term will make your monthly payments lower, but could cost you thousands of extra dollars in interest.The interest rate you’ll pay will depend on your credit score, income, debt-to-income ratio, and credit history, among other things. Also, an origination fee may be added to your interest rate. To know the true cost, look at a loan’s APR, which includes the interest rate plus any fees.

Top $40,000 Personal Loan Lenders

So where can you find a $40,000 personal loan? Here are 6 top lenders to consider. (Terms were accurate as of July 2022.)
LenderAmountAPRRepaymentCredit Score Needed
Acorn FinanceUp to $100,000Starting at 4.99%Up to 12 years580+
Marcus by Goldman SachsUp to $40,0006.99% to 24.99%3 to 6 years 660+
Lending ClubUp to $40,0008.30% to 36.00%3 to 5 years670+
Wells FargoUp to $100,0005.99% to 21.74%1 to 7 yearsNot listed
ProsperUp to $40,0006.99% to 35.99%3 to 5 years600+
UpgradeUp to $50,0007.46% to 35.97%2 to 7 yearsNot listed

Acorn Finance

Acorn Finance lends up to $100,000, with an APR starting at 4.99%, and terms up to 12 years. You’ll need a credit score of 580 or higher to qualify. If your credit score is lower, you may want to consider using a cosigner for the loan.

Marcus by Goldman Sachs

Marcus offers loans up to $40,000, with no fees, and fixed rates ranging from 6.99% to 24.99%. You can save 0.25% if you enroll in Autopay. To qualify, you’ll get the best offers with a credit score of 660 or higher. Loan terms are between 3 and 6 years.

Lending Club

Lending Club has loans up to $40,000 with rates that range from 8.30% to 36.00%. The repayment terms are 3 or 5 years. Lending Club doesn’t publish the required credit score for personal loans but does mention that most lenders want a score of 670 or higher.

Wells Fargo

Wells Fargo personal loans go up to $100,000, with interest rates that range from 5.99% to 21.74%. There is no origination fee or prepayment penalty.  Wells Fargo does not publish a required credit score.


Prosper lends up to $40,000 in as little as one business day. Interest rates range from 6.99% to 35.99%. You can choose to pay off your loan in 3 or 5 years. To qualify, you need a credit score of 600 or greater.


Upgrade offers personal loans up to $50,000 with an APR ranging from 7.46% to 35.97% and a repayment term of 2 to 7 years. There is an origination fee. Upgrade does not list a required credit score.If none of these options is a good fit for you, you might consider exploring the option of a private lender. What is a private lender? They are generally private lending companies that offer various kinds of loans.

Compare Personal Loan Rates

It’s important to weigh the rewards and disadvantages of personal loans. One of the disadvantages of some personal loans is that the interest can be high. You’ll want to compare rates from different lenders to find the best option for you.If you don’t have good credit, you may end up paying as much as 35% or more in interest. In this case, consider carefully whether you need to take out a loan now, or if you can afford to wait until you’ve improved your credit score and can qualify for a lower interest rate.

Getting Preapproved for a Personal Loan 

Whether you’re applying for a $40,000 unsecured personal loan or thinking about something larger, like $50,000 personal loans or  $75,000 personal loans, it makes sense to get preapproved before choosing a lender. Preapproval allows you to see what rates you qualify for, so you can compare offers from different lenders. And preapproval requires only a soft credit check, which doesn’t negatively impact your credit score.

The Takeaway   

If you’re considering a $40,000 personal loan to cover a large, unexpected expense, you’ll want to shop around to ensure you get the best deal. With Lantern by SoFi, you can easily and conveniently compare personal loan interest rates and terms from multiple lenders by filling out one quick application. Check your rates today with Lantern!

Frequently Asked Questions

What would be the monthly payment on a $40,000 loan?
What credit score do I need for a $40,000 loan?
Is it smart to get a $40,000 loan?
Where can I get a $40,000 personal loan?
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Photo credit: iStock/Drazen Zigic

About the Author

Susan Guillory

Susan Guillory

Susan Guillory is the president of Egg Marketing, a content marketing firm based in San Diego. She’s written several business books, and has been published on sites including Forbes, AllBusiness, and Cision. She enjoys writing about business and personal credit, financial strategies, loans, and credit cards. Follow her on Twitter @eggmarketing.
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