Personal Loans
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Advertiser Disclosure

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers, see our disclosure page.

Average Personal Loan Interest Rates for 2017

For 2017, the average personal loan interest rates are between 10% to 28%. Actual interest rates vary based on the qualifications of a borrower, the length of the loan, the loan amount and the lender. Below, we have compiled the average personal loan interest rates by credit score and by lender.

Average Personal Loan Interest Rates by Credit Score

Your credit score will be one of the largest factors in determining the annual percentage rate (APR) on a personal loan. In general, the higher your credit score, the lower the interest rate and APR. Individuals with excellent credit, which is defined as any credit score between 720 and 850, should expect to find rates around 10% to 12% and may qualify for lower rates. However, if you do have an excellent credit score, you may want to consider a 0% balance transfer credit card instead, as you can save money on interest this way.

Credit ScoreAverage Personal Loan APRs
Excellent (720 - 850)10.3% - 12.5%
Good (680 - 719)13.5% - 15.5%
Average (640 - 679)17.8% - 19.9%
Poor (300 - 639)28.5% - 32.0%

For individuals with average to poor credit, APRs on personal loans can be between 18% and 36%. In many states, a 36% APR is the legally allowed cap on personal loans, though exceptions do apply. If you don’t have a credit score or credit history, you may have difficulty qualifying for a personal loan. However, this doesn’t mean you should turn to payday loans, which are predatory products that can easily trap consumers in a cycle of never-ending debt. Consider going to a local credit union or non-profit financial assistance organization for a loan instead.

Average Personal Loan Interest Rates by Lender

Interest rates on personal loans vary between 2.5% and 36% depending on the lender. Banks and credit unions will offer competitive rates, but some of the lowest rates you can find are from online lenders that focus on creditworthy borrowers. If you have a lower credit score, you will also have more luck with online lenders, as some online lenders will accept borrowers with scores as low as 580 (sometimes lower). However, because of this, rates will normally be on the higher end.

LenderAPR
LightStream2.49% - 17.49% with AutoPay (rates vary by loan purpose)
Backed2.90% - 15.99%
LoanStart4.84% - 35.99%
Upstart7.37% - 29.99%
Earnest5.25% - 12.00%
SoFi5.49% - 14.24% with AutoPay (variable rates also available)
Citizens Bank6.00% - 16.25%
RocketLoans5.983% - 28.990%
Lending Club5.99% - 35.89%
Best Egg5.99% - 29.99%
Prosper5.99% - 36.00%
Marcus by Goldman Sachs5.99% - 22.99%
E-LOAN5.99% - 35.89%
PersonalLoans.com5.99% - 35.99%
PNC Bank5.99% - 36.00%
LoanDepot6% - 22%
American Express6.90% - 19.97%
Wells Fargo6.99% - 23.99%
Discover Personal Loans6.99% - 24.99%
Navy Federal6.99% - 18%
Santander6.99% - 16.99% with ePay
Promise Financial6.99% - 29.99%
Peerform5.99% - 29.99%
Pave7.18% - 31.16%
BorrowersFirst7.22% - 29.99%
FreedomPlus4.99% - 29.99%
Payoff8.00% - 25.00%
Citibank7.99% - 17.99% with discounts (rate may be higher)
TD Bank8.99% - 15.99% with AutoPay
Avant9.95% - 35.99%
Springleaf / OneMain Financial9.99% - 36.00%
Affirm10% - 30%
Self Lender10.58% - 14.77%
iLoan17.60% - 35.99%
LendingPoint17.46% - 35.99%
Mr. Amazing Loans19.9% - 29.9%
Mariner Finance24% - 36%
Basix25.99% - 35.99%
Ascend27.49% - 35.99%

Other Factors That Affect Your Personal Loan Interest Rate

Lenders will look at a variety of data points when making a decision about whether to extend you a loan. Chief among these are your credit score and history, your employment status and your debt-to-income ratio. For your credit history, lenders may look at the length of your credit history, the number of delinquencies, charge-offs or bankruptcies in recent years and the number of credit inquiries you’ve had over the last year. Many lenders will want to see a credit history of at least one to three years with no bankruptcies within the past one or two years.

Another factor lenders consider is your employment status and history. Some lenders will require that you provide proof of income, whether through full- or part-time employment or self-employment. Other lenders may also require a minimum personal or household income to apply, with minimums frequently between $20,000 to $40,000 per year. If the lender has these requirements, you’ll be expected to provide documentation that shows proof of your employment and income.

Debt-to-income (DTI) ratio is another important measure that lenders will use to evaluate applicants. Your debt-to-income ratio is the amount of debt (including mortgage or rent payments) you carry relative to your pre-tax monthly income. If your DTI ratio is 40%, this means that your monthly debt payments account for 40% of your pre-tax monthly pay. In general, lenders will want to see applicants with DTI ratios under 35% to 45%. A DTI ratio of 50% or more is typically a bad sign to lenders, as it means you may have trouble paying back your debts.

The length and amount of the loan will also affect your interest rate. Typically, longer terms and higher loan amounts will mean higher APRs.

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