Key takeaways

  • Many personal loan lenders offer $40,000 loans, including local banks, credit unions, online lenders and peer-to-peer lenders.
  • To qualify, you'll likely need a good or excellent credit score and healthy finances or a co-signer that meets these criteria.
  • Researching lenders and comparing offers is crucial to ensuring you get the best term.

To get a $40,000 personal loan, it’s vital to research different types of lenders and shop around the best offer. While lenders offering this sizable a loan are relatively common, qualifying may be more difficult than with smaller loan amounts. And seeking the best personal loan rates may help you save thousands of dollars in interest.

There are several reasons to get a $40,000 personal loan — from refinancing credit card debt to paying for your wedding. If you choose and plan carefully, you may get a personal loan that helps rather than harms your finances.

Personal loan lenders that offer $40,000 loans

You can get a $40,000 personal loan from a credit union, local bank, online lender or peer-to-peer lender. Before applying, compare offers from multiple lenders to find the loan with the most competitive terms.

Here are a few options from reputable lenders to consider:

APR range Loan amount range Minimum credit score requirement
Prosper 8.99%-35.99% $2,000–$50,000 640
LightStream 7.49%-25.49%* (with AutoPay) $5,000–$100,000 695
Happy Money 11.72%-17.99% $5,000–$40,000 640
SoFi 8.99%-29.49% (with autopay) $5,000–$100,000 680
Best Egg 8.99%-35.99% $2,000–$50,000 600
LendingClub 8.98%-35.99% $1,000–$40,000 600


A peer-to-peer lender, Prosper works a bit differently than traditional lenders. Funds come from “peers” — other individuals who evaluate your request for funding and decide if they want to lend you money.

The application process remains similar to traditional online lenders, though. You fill out an application online, and if approved, often get funds within one business day. You can also get prequalified and view potential loan offers and rates without impacting your credit score.


LightStream aims to give the best rates to those with an outstanding credit history and solid financials. If you don’t need the loan proceeds right away, you get up to 30 days — or 90 days for home improvement loans — to defer the disbursement date and prevent interest from accruing.

LightStream also offers a 0.5 percent rate discount for borrowers that use autopay to make their monthly payments. And you can conveniently monitor your loan and payment progress by downloading the mobile app. The lender also offers a rate beat program. It will better any competing offer for the same loan by .10 percentage points.

Happy Money

Happy Money offers loans specifically for credit card debt consolidation. Though this may seem limited, if your main goal is to pay off credit card debt, then it’s an excellent option to consider.

Unlike the many lenders that cap annual percentage rates (APRs) at 35.99 percent, Happy Money’s rates top out at 17.99 percent. This is lower than the average credit card APR of nearly 21 percent. The lender also offers direct payment to creditors, which streamlines the consolidation process.

Just like many other lenders, Happy Money lets you check your rates for free by answering a few questions on their website. The rate check is fast, simple and won’t impact your credit score.


SoFi is best known for its student loan refinancing products, but its personal loans are also among the best excellent credit borrowers will find. There are no mandatory fees of any kind — not even late fees. Interest rates are competitive and funds can be sent your way as soon as the same day.

SoFi’s personal loans can be used to help pay for home improvements, credit card debt consolidation, family planning, travel and weddings. Whatever type of personal loan you need, you can check your rate on their website

The lender is also one of the few that accepts co-borrowers. Adding a joint borrower with a healthier credit history than yours can increase your chances of approval. Or it may help you qualify for the full $40,000 rather than a smaller amount. SoFi allows borrowers to view their rate before applying by filling out a prequalification form.

Best Egg

If your credit score isn’t in mint condition, Best Egg is one of the few lenders that accepts applicants with a fair credit score. The lender also offers both unsecured and secured personal loans. The latter could result in a lower rate, as it is secured by an asset (i.e. your car or your home).

Funds can be disbursed as soon as the next day after approval and borrowers can check their rate without hurting their credit.


Another lender catering to fair-credit borrowers, LendingClub‘s personal loan offer is highly versatile. Borrowers can use the funds for needs including debt consolidation, home improvement projects, healthcare or just funding a large purchase.

Borrowers can opt for joint or individual loans and change their repayment date. Prequalification is also available for those who want to view their rate without commitment.

Qualifications for a $40,000 personal loan

There are certain requirements you must meet to qualify for a personal loan. Most lenders evaluate the following before making a lending decision:

  • Credit: Your credit score shows how well you have handled past borrowed money. To qualify for a $40,000 loan, you’ll typically need a credit score upwards of 670 or a co-signer with good or excellent credit. That’s because these loans involve a higher risk for the lender, so most will limit high amounts to those with solid scores.
  • Debt-to-income (DTI) ratio: Your DTI is your total monthly debt divided by your total monthly income. Typically, the lower your DTI the better. Most lenders prefer a DTI under 36 percent, especially for larger loan amounts.
  • Documentation: When you apply, expect to provide copies of pay stubs or tax returns to verify your income. You’ll also need to provide proof of ID and address, among other documents, to get approved.

Some lenders have more flexible qualification requirements. Check each lenders’ requirements before applying to save yourself time.

Costs of a $40,000 personal loan in the long term

When you take out a personal loan, you’ll repay the amount you borrow plus interest and any applicable fees in equal monthly installments. Interest rates, which are expressed as APRs (annual percentage rates) on loans and include both interest and fees, vary by credit rating, loan type and the lender you select.

To illustrate how borrowing costs work, assume you take out a $40,000 loan with a 8.99 percent APR. See how your monthly payments differ depending on which loan term you choose.

Monthly payment Total interest cost
Three-year term $1,271.80 $5,784.91
Five-year term $830.14 $9,808.41

Opting for a five-year repayment term means paying more than $4,000 extra in interest.

Before taking out a loan, use a personal loan calculator to estimate both your monthly payment and your overall borrowing expenses.

How to determine if you need a $40,000 loan

Taking out a $40,000 loan means assuming a hefty monthly payment for years and risking credit score damage if you can’t keep up. Before applying, assess why you need the funds and determine if it’s an urgent need or if you can hold off and save up.

Here are some instances where a $40,000 loan could make sense:

  • You have a real need and want to build your credit score.Payment history is the most significant component of your credit score. By making timely loan payments, you can improve your credit health.
  • You’ll earn a return on the money. Completing home improvement projects is often expensive, but kitchen remodels, basement conversions and energy-efficient enhancements can increase your property’s value.
  • You can save money in interest. If you’re battling high-interest credit card debt, taking out a debt consolidation loan could save you hundreds — if not thousands of dollars worth of interest, depending on your rate. This can make it easier to pay off your debt faster, plus decrease your credit utilization ratio, which can improve your score.

If you decide to take out a personal loan, make sure you know how much you will owe each month and have a plan to pay it back. You should also have the means to comfortably afford the monthly payments.

The bottom line

When considering a $40,000 loan, think about the overall cost of the loan and whether the reason behind it it’s worth it. Though each lender has its own requirements, it’s likely that you’ll need a strong credit and income to qualify for a loan that size.

Crunch the numbers with the help of a calculator to ensure you don’t borrow more than you can comfortably afford. Research your options carefully and compare offers from multiple lenders to find the best loan for your needs.