The interest rate on a $40,000 loan from a major lender could be anywhere from 7.49% to 35.99%. It’s difficult to pinpoint the exact interest rate that you’ll get for a $40,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income. If you have a high credit score and income, you will likely get a low interest rate on a $40,000 loan.
LightStream has the lowest interest rates for a $40,000 loan, starting at $5,000. LightStream isn’t your only option, though. Below you can see the best $40,000 personal loans and the interest rates associated with them.
Best $40,000 Personal Loans
| Company | Loan Amounts | APRs |
| LightStream | $5,000 - $100,000 | 7.49% - 25.99% |
| Upstart | $1,000 - $50,000, typically | 7.80% - 35.99%, typically |
| Best Egg | $2,000 - $50,000 | 8.99% - 35.99% |
| SoFi | $5,000 - $100,000 | 8.99% - 29.99% Fixed APR with all discounts |
| Wells Fargo | $3,000 - $100,000 | 7.49% - 23.24% |
Some lenders will let you pre-qualify to see your potential rates before you apply. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.
Upstart Disclosure: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
This answer was first published on 07/08/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
The interest rate on a $40,000 loan from a major lender could be anywhere from 7.49% to 35.99%. It's difficult to pinpoint the exact interest rate that you'll get for a $40,000 loan since lenders take many factors into account when calculating your interest rate, such as your credit score and income.
What's the interest rate on a $40,000 loan? ›
$40,000 loan payments
The average interest rate for applicants with a credit score between 600 and 639 is around 29% for a five-year loan, based on the Credible data from January 2024. That would translate to a $1,270 monthly payment for a $40,000 loan with those terms.
How much is a $40,000 car loan payment 84 months? ›
For example, a car buyer considering a $40,000 new car loan with an 84-month term at 9% APR would have a monthly car payment of about $623 and pay $12,369 in interest over the seven-year loan.
What is 6% interest on a $30,000 loan? ›
For example, the interest on a $30,000, 36-month loan at 6% is $2,856.
What credit score do I need for a $40,000 loan? ›
Qualifications for a $40,000 personal loan
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.
How much is a $40,000 loan for 5 years? ›
If you take a loan for five years and your interest rate is 4%, your monthly payment for a $40,000 loan will be $737. Remember that the longer the loan period, the more money you will overpay to the bank.
How much a month is a $40,000 loan? ›
Monthly payments for a $40,000 personal loan
| Loan duration | Average monthly payments ($40,000 loan) | |
|---|
| Poor credit | Average credit |
|---|
| 1–12 months | $5,576.40 | $3,422.00 |
| 13–24 months | $1,849.82 | $1,858.54 |
| 25–36 months | $1,314.99 | $1,295.13 |
1 more rowMar 7, 2024
Divide your interest rate by the number of payments you'll make that year. If you have a 6 percent interest rate and you make monthly payments, you would divide 0.06 by 12 to get 0.005. Multiply that number by your remaining loan balance to find out how much you'll pay in interest that month.
Is 7% interest on a loan high? ›
A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit)
Is 7% interest rate high for a loan? ›
The lowest personal loan rates start around 7% and go to borrowers with strong credit histories, high incomes and low existing debt. Compare interest rates on. 35+ personal loans reviewed and rated by our team of experts.
What is the easiest loan to get approved for? The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.
How much would a $50,000 personal loan cost per month? ›
Example Monthly Payments on a $50,000 Personal Loan
| Payoff period | APR | Monthly payment |
|---|
| 24 months | 15% | $2,424 |
| 36 months | 15% | $1,733 |
| 48 months | 15% | $1,392 |
| 60 months | 15% | $1,189 |
3 more rowsAug 31, 2021
You can borrow over $100,000 with a 770 credit score if you get a mortgage or a home equity loan. Keep in mind, the exact amount of money you will get depends on other factors in addition to your credit score, such as your income, your employment status and even the lender.
What is a good interest rate on a loan right now? ›
Average online personal loan rates
| Borrower credit rating | Score range | Estimated APR |
|---|
| Excellent | 720-850. | 12.37%. |
| Good | 690-719. | 14.87%. |
| Fair | 630-689. | 18.40%. |
| Bad | 300-629. | 21.93%. |
May 14, 2024
It will take 47 months to pay off $40,000 with payments of $1,200 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
