Personal Loan Rates and Terms of June 2024

Explore the latest rates and terms for personal loans, including key features, eligibility requirements and application processes vetted by our experts. As of 22.06.2024, you have 1 options available. Understand how to secure the best rates and terms for your financial needs.
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Recommended FinScore™
100.00 – 20000.00 $

Interest rate

from 0.05 %

Loan term for the financial product

5 days – 3 months

A personal loan is a type of installment loan that provides a lump sum of money to finance large purchases, consolidate debt, cover emergency expenses, or invest in personal needs. Personal loan lenders include banks, credit unions, and online lenders, offering various loan amounts typically ranging from $1,000 to $50,000 or more. Once approved, borrowers receive the funds in their personal bank account and repay the loan through fixed monthly payments over a set term, usually between one and seven years. The repayment terms, interest rates, and monthly payments depend on factors like the borrower's credit score, income, and debt-to-income ratio.

Most personal loans are unsecured, meaning they don't require collateral, unlike secured loans such as auto loans or home equity loans. Instead, lenders assess the borrower's credit history and financial stability to determine eligibility and loan terms. Personal loans often have fixed interest rates, providing predictable monthly payments throughout the loan term.


  1. Origination Fee. An origination fee covers the cost of processing the personal loan application and is typically deducted from the loan amount or added to the loan balance. While not all lenders charge origination fees, they are more common with online lenders and can range from 1% to 10% of the total loan amount.

  2. Fixed Monthly Payments. Personal loans often come with fixed interest rates and monthly payments, providing borrowers with a consistent repayment schedule throughout the loan term. This stability can make budgeting easier compared to loans with variable rates.

  3. No Collateral Required. Most personal loans are unsecured, meaning borrowers do not need to pledge collateral, such as a car or home, to secure the loan. While unsecured loans typically have higher interest rates than secured loans, borrowers do not risk losing assets if they fail to repay the loan.

  4. Repayment Terms. Personal loans offer repayment terms typically ranging from two to seven years. Longer repayment periods result in lower monthly payments but may incur more interest over the life of the loan, while shorter terms may have higher monthly payments but less interest paid overall.

How Personal Loan Rates Work

Personal loan rates are primarily determined by factors such as the borrower's credit score, income, debt-to-income ratio, and loan term. Lenders offer fixed interest rates, which remain constant throughout the loan term, making it easier for borrowers to budget and plan for repayments. Borrowers with higher credit scores typically qualify for lower interest rates, while those with lower credit scores may face higher rates to offset the perceived risk. Additionally, loan terms, such as the duration of the repayment period, can also impact the interest rate offered, with shorter terms often associated with lower rates.

Cost of Personal Loans

The cost of personal loans encompasses not only the interest rate but also any applicable fees and charges. For instance, borrowers may encounter origination fees, which cover the administrative costs of processing the loan application. These fees typically range from 1% to 10% of the total loan amount. Additionally, late payment fees may apply if borrowers miss their scheduled payments. Understanding the annual percentage rate (APR) is crucial as it represents the total cost of borrowing, including both interest and fees, expressed as an annual percentage. For example, a $10,000 personal loan with a 10% interest rate and a 3% origination fee would have an APR slightly higher than the stated interest rate, reflecting the total cost of borrowing over the loan term.

Legal regulations govern the rates and terms of personal loans to protect consumers and ensure fair lending practices. These regulations often set limits on interest rates and fees that lenders can charge. For example, the Truth in Lending Act requires lenders to disclose the annual percentage rate (APR) to borrowers, providing a comprehensive view of the loan's cost. Depending on the borrower's creditworthiness, personal loan interest rates can vary widely, ranging from about 6% to 36%. Borrowers with excellent credit scores (720-850) may qualify for rates between 10.73% and 12.50%, while those with fair credit (630-689) might face rates between 17.80% and 19.90%. Conversely, borrowers with poor credit scores (300-629) may encounter rates as high as 28.50% to 32.00%. These regulations aim to promote transparency and fairness in lending practices while ensuring borrowers understand the true cost of their loans.

How to Get a Personal Loan

Apply for a loan

  1. Determine the Loan Amount and Purpose. Decide on the amount you need and the purpose of the loan. Whether it's for debt consolidation, home improvement, or an emergency expense, knowing this will help you find the most suitable loan options and terms.

  2. Shop Around and Compare Personal Loans. Research multiple lenders, including banks, credit unions, and online lenders, to compare personal loan rates, terms, and fees. Use online comparison tools and personal loan calculators to estimate monthly payments and total costs. Look for lenders offering competitive interest rates and favorable terms for your credit profile.

  3. Check Eligibility Requirements. Review each lender's eligibility criteria, such as minimum credit score requirements, income thresholds, and debt-to-income ratio limits. Ensure you meet these requirements before applying to increase your chances of approval and avoid unnecessary credit inquiries.

  4. Gather Necessary Documentation. Prepare the required documentation, which typically includes proof of identity (e.g., driver’s license, passport), proof of income (e.g., pay stubs, tax returns), and proof of residence (e.g., utility bills). Having these documents ready can expedite the application process.

  5. Submit Your Application. Complete the loan application with your chosen lender. You may need to provide personal information, financial details, and the purpose of the loan. Some lenders allow you to apply online, while others may require an in-person visit. You can utilize pre-approval with the lender, or personal loan calculator if the lender offers it.

  6. Review Loan Offers. Once you receive loan offers, review the terms carefully. Pay attention to the interest rate, APR, monthly payments, loan term, and any fees, such as origination fees or prepayment penalties. Choose the offer that best suits your financial needs and budget.

  7. Accept the Loan and Receive Funds. After selecting the best loan offer, formally accept it. The lender will then disburse the loan funds, typically into your bank account. Depending on the lender, this process can take from a few hours to several days.


  1. Loan Amounts. Personal loans typically range from $1,000 to $50,000, though some lenders may offer amounts as low as $250 and as high as $100,000. This flexibility allows borrowers to choose a loan amount that fits their specific financial needs.

  2. Interest Rates. Interest rates vary based on the borrower's creditworthiness, ranging from about 6% to 36%. Borrowers with excellent credit (720-850) can expect rates between 10.73% and 12.50%, while those with poor credit (300-629) may face rates between 28.50% and 32.00%.

  3. Repayment Terms. Repayment terms usually span from one to seven years. Longer terms result in lower monthly payments but higher total interest paid, whereas shorter terms lead to higher monthly payments but lower total interest.

  4. Origination Fees. Origination fees can range from 1% to 10% of the loan amount, covering the cost of processing the loan. This fee is typically deducted from the loan proceeds or added to the loan balance.

  5. Fixed Interest Rates. Most personal loans come with fixed interest rates, ensuring consistent monthly payments throughout the loan term. This predictability helps with budgeting and financial planning.

  6. No Collateral Required. Most personal loans are unsecured, meaning no collateral is needed. This increases accessibility but may result in higher interest rates compared to secured loans.


  1. Credit Score. Lenders typically require a minimum credit score of 600 for approval. However, some lenders offer bad credit personal loans for scores as low as 500, though these often come with higher interest rates and stricter terms.

  2. Income Verification. Borrowers need to provide proof of a steady income, such as pay stubs, tax returns, or bank statements. This demonstrates the ability to repay the loan.

  3. Debt-to-Income Ratio. A debt-to-income ratio (DTI) of 36% or lower is preferred by most lenders. This ratio measures monthly debt payments against gross monthly income, indicating the borrower's ability to manage additional debt.

  4. Employment Status. Lenders prefer borrowers with stable employment, ideally full-time. Proof of consistent employment history can improve loan approval chances.

  5. Identification. Borrowers must provide valid identification, such as a driver’s license, passport, or Social Security number, to verify their identity.

  6. Residency. Lenders require proof of residency, such as a utility bill or lease agreement, to confirm the borrower’s address.

  7. Bank Account. A verifiable bank account is necessary for loan disbursement and repayment. This ensures lenders have a reliable method to deposit funds and collect payments.

  8. Credit Report. A review of the borrower's credit history helps lenders assess payment reliability. A history of on-time payments and responsible credit use improves approval chances and loan terms.

Best Places to Get a Personal Loan

  1. Upstart is an online lending platform known for its quick application process, enabling borrowers to receive funds in as fast as 1 business day. Its innovative credit model, which considers more than just credit scores, offers borrowers 43% lower rates compared to traditional models. Upstart provides flexible loan amounts from $1,000 to $50,000 with 3 or 5-year terms.

  2. SoFi is a financial platform serving over 6 million members and facilitating $73 billion in loans. Borrowers can access loan amounts from $5,000 to $100,000, with the option of same-day funding or direct credit card balance payments. SoFi also offers significant debt consolidation savings, unemployment protection, and career support during financial uncertainty.

  3. Upgrade is a financial platform offering personal loans up to $50,000 with competitive fixed rates. It allows borrowers to consolidate multiple bills into a single, affordable monthly payment. Upgrade's fast funding process ensures prompt access to debt consolidation loans, home improvement loans, medical funding, and other needs, with transparent terms and flexible options.

  4. Avant is a financial provider offering personal loans from $2,000 to $35,000 for various purposes like medical bills and home projects. It features a fast funding process with approved funds often deposited as soon as the next business day. Avant provides predictable monthly payments and fixed interest rates, ensuring stability throughout the loan term.


  1. Credit Cards. Credit cards provide a revolving line of credit that can be used for various purchases. They are suitable for smaller, ongoing expenses rather than large, one-time purchases. Interest rates on credit cards typically range from 15% to 25%, which can be higher than personal loan rates, especially for those with excellent credit. However, introductory 0% APR offers can be an attractive short-term financing option. Unlike personal loans, credit card debt does not have fixed monthly payments, making it essential to manage spending to avoid high interest costs.

  2. Home Equity Loans. Home equity loans allow homeowners to borrow against the equity in their home. They are often used for significant expenses like home renovations or debt consolidation. These loans generally have lower interest rates compared to personal loans due to the collateral involved (the home itself). Home equity loans offer fixed interest rates and repayment terms, similar to personal loans, but the risk is higher since the home is collateral.

  3. Credit Union Loans. Credit unions offer personal loans and other credit products to their members, often with more favorable terms than traditional banks. Rates from credit unions can be lower due to their non-profit status, potentially making them a more affordable option compared to personal loans. Credit union loans come with fixed rates and terms, similar to personal loans, but membership requirements must be met.

  4. Peer-to-Peer (P2P) Loans. P2P loans are facilitated through online platforms that connect borrowers with individual investors. They can be used for various purposes, similar to personal loans. Rates are determined by the platform and can be competitive, especially for borrowers with good credit. These loans typically have fixed rates and terms, with monthly payments, much like traditional personal loans.

Editorial Opinion

Personal loan rates significantly influence borrowing decisions and economic activities. While low rates can incentivize borrowing and stimulate spending, excessively high rates may deter individuals from seeking financial assistance, potentially hindering economic growth. Borrowers are advised to carefully consider interest rates, and understand their implications on overall debt obligations and financial well-being. Policymakers and financial institutions should strive to maintain a balance between competitive rates and responsible lending practices to foster a healthy borrowing environment while minimizing financial risks for both borrowers and lenders.


Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Additional resources


What is a good interest rate for a personal loan?

A good interest rate for a personal loan generally depends on several factors, including the borrower's credit score, the loan amount, the term of the loan, and current market conditions. As of 2024, average personal loan rates range from around 6% to 36%. For borrowers with excellent credit scores (720 and above), a good interest rate typically falls between 10.73% and 12.50%. Those with good to fair credit scores (690-719) might expect rates between 13.50% and 15.50%. Understanding where your credit score falls within these ranges can help you determine what constitutes a good interest rate for your specific situation.

Is 6% on a personal loan good?

An interest rate of 6% on a personal loan is considered excellent, especially given the current market rates. This rate is typically reserved for borrowers with excellent credit scores and strong financial profiles. A 6% interest rate suggests that the borrower has a high credit score, a low debt-to-income ratio, and a stable income, making them a low-risk candidate for lenders. Securing a personal loan at this rate can significantly reduce the overall cost of borrowing, resulting in lower monthly payments and less interest paid over the life of the loan.

Is 12% interest on a personal loan good?

A 12% interest rate on a personal loan is considered moderate and can be seen as reasonable, depending on the borrower's credit profile and the loan's purpose. For borrowers with good to fair credit scores, typically in the range of 690-719, a 12% interest rate is fairly standard. While it is higher than the rates offered to those with excellent credit, it is still lower than what might be offered to those with poor credit scores, who could see rates as high as 28.50% to 32.00%. Although a 12% rate is not the lowest available, it can still be a manageable and competitive rate, particularly for borrowers looking to consolidate high-interest debt or finance significant purchases.