Get a $40,000 personal loan: Options for unsecured loans

There are several reasons to get a $40,000 personal loan — from refinancing credit card debt to paying for your wedding. And there are a variety of lenders who will lend you the money you need. That said, it’s vital to research g different types of lenders and shop around for personal loans to find the best terms available to you.

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, explore loans from multiple lenders to find products 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 6.99%-35.99% $2,000-$50,000 600 LightStream 7.99% to 25.49%* with Autopay $5,000-$100,000 695 Happy Money 11.52%-24.81% $5,000-$40,000 640 SoFi 8.99%-25.81% $5,000-$100,000 680


As 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 liquid assets that demonstrate your ability to save money. 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.

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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.

Happy Money

Happy Money has options for multiple types of personal loans. Their goal is to help customers use money as a tool for happiness. One of their loan options, The Payoff Loan, is designed specifically to help you pay down your credit card debt in a simple way.

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.


If you are a U.S. citizen looking to refinance your student debt, SoFi could be the right lender for you. Focused on helping those who have higher education degrees repay their debt quicker. SoFi makes applying for a personal loan easy.

They also have personal loans 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.

Requirements to receive a 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 made payments in the past. Lenders often require at least fair credit, but having good credit will help you get the best loan terms.
  • 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. A DTI of 36 percent or lower is the standard lenders usually require for loans.
  • Documentation: Lenders will also require that you provide documentation to verify all of the information in your application. When you apply, expect to provide pay stubs, address verification documents and proof of identity.
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Remember, every lender has different eligibility guidelines. Some are more stringent than others, and the lender you select may consider additional factors when you apply for a personal loan.

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 three-year, $40,000 loan with a 4 percent APR. You’ll get a monthly payment of $1,180.96 and pay $2,514.54 in interest over the life of the loan.

Before taking out a personal loan, use a loan calculator to run the numbers so you’ll know what to expect in terms of monthly payments. You’ll also get an idea of how much the loan will cost you over time.

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

Taking out a $40,000 loan can significantly affect your finances. 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 viable 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 renovations or going to college costs a significant amount of money upfront. However, you could get a significant return if you increase your property value or land a higher-paying job by continuing your education.
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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.

Getting a loan isn’t the only way to pay for big expenses, though. If you can find another way to finance your big expenses, you will save money in the long run. Whatever you decide to do, make a plan and understand the long-term cost of a loan this size before you make a final decision.