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A $40,000 personal loan can help you tackle major goals—like consolidating debt or covering big expenses—without dipping into savings. Getting a personal loan can be hassle-free. It's important to understand the best way to get a $40,000 loan: how much it will cost and how to compare your options.
With the right lender and a clear repayment plan, a $40,000 loan can give you the flexibility to move forward with confidence.
A $40,000 personal loan can be a strategic way to pay down debt or cover large expenses—especially if you secure a competitive interest rate and manageable repayment terms. Many lenders offer loans up to this amount, so it’s important to do your research, prequalify, and compare offers to ensure you choose the best solution for your needs.
A $40,000 personal loan is a lump of money you can borrow from a lender and repay over a set period, typically with fixed monthly payments that include simple interest. These loans are often unsecured, meaning you don't need to put up collateral like a house or car.
People seek a $40,000 loan for various reasons, such as consolidating high-interest debt, covering unexpected medical expenses, or even investing in personal or professional growth. The funds are disbursed as a lump sum, so you’ll have the capital you need upfront to tackle your financial goals.
Personal loan qualification requirements for a $40,000 personal loan are similar to those for other loan amounts, like a $50,000 loan or a $100,000 loan. You’ll need good to excellent credit, a lower debt-to-income ratio (DTI), and positive payment history to get approved for a loan with favorable interest rates and terms.
Some lenders may be willing to consider applicants with elevated DTIs (above 36% to 40%) if they have higher incomes. But not all lenders are willing to work with borrowers with less-than-ideal credit. If your credit score needs improving, you can boost your approval odds by paying down existing debt, correcting errors on your credit report, or applying with a co-borrower.
The personal loan interest rates you qualify for depend largely on your creditworthiness and the lender you choose. The cost of a $40,000 loan depends on two main factors: the APR and the term length. A lower APR will save you money, while a longer term will reduce your monthly payment but increase the total interest you pay over time.
Here’s how your monthly payment on a $40,000 loan might look with an APR of 14.63%:
Term |
Monthly payment |
---|---|
48 months (4 years) |
$1,106 |
84 months (7 years) |
$764 |
120 months (10 years) |
$636 |
The best way to get a $40,000 loan is to compare multiple lenders to ensure you’re getting the lowest cost and the most flexible terms. A personal loan calculator can help you see how different rates and terms affect your payment. You can also prequalify with several lenders to compare offers based on your credit profile—just be sure the lenders’ prequalification process uses a soft credit inquiry rather than a hard one, so it doesn’t impact your credit.
While interest rate is critical, it’s not the only factor that matters.
Here’s what to look for when comparing lenders:
FYI: BHG Financial has earned more than 3,600 5-star reviews on Trustpilot.
The application process for a personal loan typically involves these steps:
BHG Financial is a top choice for prime borrowers seeking larger personal loans with flexible terms. With BHG, you can extend repayment terms up to 10 years2,3—making it ideal if you need to borrow a significant amount and want to keep payments manageable.
You can also compare offers online using a soft credit inquiry. This means researching and comparing loan offers won’t impact your credit.1 Plus, BHG Financial has dedicated U.S.-based loan experts who will guide you through the process.
To find the right fit, check your rate today in just a few minutes.
Yes. Most personal loans are unsecured and can be used for almost any purpose. Common uses include consolidating credit card debt, funding large purchases, or paying medical bills.
The time it takes to receive funds can vary by lender. Some lenders offer quick online applications and funding within a few business days of approval. Others may take longer depending on their processes and the complexity of your application. BHG offers fast approval decisions and funding4 and a streamlined concierge lending service.
One large loan is usually more efficient. Multiple smaller loans can mean juggling different due dates and interest rates, which can make repayment harder to track and potentially more expensive. Consolidating multiple smaller, high-interest debts into one larger loan with a potentially lower interest rate can simplify your finances and save you money on interest over time.
Will lenders ask for collateral for a $40,000 loan?
Lenders will only ask for collateral if you’re applying for a secured loan, which may be your only option if you have poor credit. Most personal loans, regardless of the amount, are unsecured, which means you don’t have to provide assets to get the loan.
Yes, it is often possible to refinance a personal loan. Refinancing involves taking out a new loan to pay off your existing one. You might consider loan refinancing if your credit score has improved, if interest rates have fallen, or if you want to change the loan term. Be sure to compare the terms and costs of a new loan with your current one to ensure refinancing is beneficial.
Not all solutions, loan amounts, rates, or terms are available in all states.
1 There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.
2 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.
3 Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.
4 This is not a guaranteed offer of credit and is subject to credit approval.
No application fees, commitment, or impact on personal credit to estimate your payment.
Consumer loans funded by Pinnacle Bank, a Tennessee bank, or County Bank. Equal Housing Lenders.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.