Current personal loan interest rates
The current average interest rate for a 24-month personal loan is 11.65% as of November 2025. Interest rates for personal loans vary depending on the lender, but a good interest rate is generally considered to be lower than the national average rate.
Current rates of top lenders
We looked at thousands of reviews and compared over 60 lenders for our list of the best personal loan companies. Here are our top picks’ current interest rates:
Current rates from traditional banks
The benefit of using a traditional bank for a personal loan is that you typically have the option of applying in person with a loan representative or applying online. However, banks can require stricter requirements for their loans, and you may receive higher interest rates than those available from credit unions or online banks.
The table below shows current interest rates from popular traditional banks:
| Company | APR* | Loan Amount |
|---|---|---|
| Citibank | 9.99% to 19.49% | $2,000 to $30,000 |
| TD Bank | 7.99% to 23.99% | $2,000 to $50,000 |
| Wells Fargo | 6.74% to 25.99% | $3,000 to $100,000 |
| US Bank | 8.74% to 24.99% | $1,000 to $50,000 |
| PNC Bank | Up to 26.44% | $1,000 to $35,000 |
Current rates from online lenders
Online lenders can be the most competitive when it comes to interest rates on personal loans. Because online lenders don’t have physical branches, they aren’t plagued by the overhead incurred by brick-and-mortar establishments. Those savings are often passed on to the customer in the form of lower interest rates.
The table below shows current interest rates at some popular online lenders:
| Company | APR* | Loan Amount |
|---|---|---|
| Lending Club | 6.53% to 35.99% | Up to $60,000 |
| SoFi | 8.74% to 35.49% | $5,000 to $100,000 |
| LendingPoint | 7.99% to 35.99% | $1,000 to $36,500 |
| Prosper | 8.99% to 35.99% | $2,000 to $50,000 |
| LightStream | 6.24% to 24.89% | $5,000 to $100,000 |
Current rates from credit unions
Credit unions often offer rates significantly lower than traditional banks. In the third quarter of 2025, credit unions offered an average rate of 10.72% for a fixed-rate 36-month personal loan. Credit unions also generally have lower loan fees.
The table below shows current interest rates from some popular credit unions:
| Company | APR* | Loan Amount |
|---|---|---|
| Pentagon Federal Credit Union | 6.74% to 17.99% | Up to $50,000 |
| First Tech Federal Credit Union | 6.99% to 18.00% | $500 to $50,000 |
| Navy Federal Credit Union | 8.74% to 18.00% | $250 to $50,000 |
| Teachers Federal Credit Union | Starting at 9.49% | Up to $35,000 |
Factors that affect personal loan interest rates
Before applying for a personal loan, it’s important to understand what factors may affect the interest rate you’ll be offered.
Credit score
Generally, the higher your credit score, the better the interest rate you’ll receive. Note that some lenders require a minimum credit score for their personal loans, which you can usually find on a lender’s website.
“Every lender is different and will have different requirements,” said Kyle Enright, president of Achieve Loans. “[A]sk lenders you are considering what their criteria are.”
Your payment history shows a potential lender the likelihood of repayment based on your activity with other loans and accounts. If you have a history of timely payments made in full, you’ll demonstrate to lenders that you’re likely to honor the terms of your new loan.
Income
Your lender will likely require you to provide proof of income, whether it’s a paystub or a W-2. These documents will demonstrate to lenders that you have enough income to afford your loan.
Debt-to-income ratio
Your debt-to-income (DTI) ratio shows how much of your monthly income goes toward debts. This indicates to lenders whether you have sufficient income left over to pay for your new loan. Each lender generally recommends a different DTI ratio, though some lenders may accept DTI ratios of up to 43%.
Loan term
Lenders generally offer better interest rates for shorter loan terms. If you opt for a longer loan term, you might encounter higher rates to account for the extended timeframe and the added risk it brings.
Economic factors
Your personal loan interest rate is also heavily influenced by economic factors beyond your control. The Federal Reserve sets the federal funds rate, which serves as the benchmark rate for many loan rates, including mortgage rates, savings account rates and personal loan rates.
The federal funds rate reflects the current state of the economy. When spending is high, interest rates are generally high to account for the demand. However, rates can fall significantly during market downturns, making it easier to get a loan.
How to shop for the best personal loan rate
When shopping for a personal loan, you’ll generally want to take the following steps to get the best rates:
1. Check your credit
Before applying for a loan, you should check your credit score and credit report to make sure there are no errors. You can get your credit score for free through your online bank account and a free copy of your credit report from AnnualCreditReport.com.
Higher credit scores mean lower interest rates — and a better chance of qualifying in the first place.”
You’ll typically qualify for the best rates if you have a very good to excellent credit score, or a FICO score of 740 to 850.
“Get your credit in tip-top shape,” Kyle Enright said. “Higher credit scores mean lower interest rates — and a better chance of qualifying in the first place.”
2. Consider secured loans or a cosigner, if needed
While there are loans for bad credit available, they generally carry the highest interest rates. Instead, if you don’t have a good credit score, you may qualify for a better interest rate by providing collateral for your loan.
This type of loan, known as a secured loan, uses an asset, such as your car or home, to guarantee the loan. However, if you go into default, the lender can seize your asset for repayment. Because this reduces the risk to your lender, you may receive a more competitive interest rate, even if you have a lower credit score than normally accepted.
You may also have the option to use a cosigner, which may help you to get a better rate. You can ask a family member or trusted friend if they will be a cosigner on your loan.
3. Research lenders and compare offers
Consider personal loans from traditional banks, credit unions and online lenders. Note that online lenders generally offer more competitive interest rates than traditional banks.
Generally, it’s best to compare at least three lenders, along with the rates and terms you might qualify for. You can typically prequalify with a lender online in a few minutes with no impact to your credit score.
» MORE: Types of Personal Loans
FAQ
What is a good interest rate for a personal loan?
A good interest rate for a personal loan will generally fall below the average interest rate. As of November 2025, the average personal loan rate is 11.65% for a 24-month personal loan, according to the Federal Reserve Bank of St. Louis.
Is 7% APR high for a personal loan?
A 7% APR is considered a highly competitive rate, given that the average national rate is above 11%. Plus, most top lenders have starting rates between 6% to 9% APR.
Can I get a lower interest rate for a personal loan?
You may be able to get a lower interest rate for a personal loan if you’re able to improve your credit score. You may also be able to qualify for a lower rate by taking out a secured loan or adding a cosigner to your loan.
How have personal loan rates varied over time?
According to the Federal Reserve, the average personal loan rate for a 24-month loan was around 13% in 2000. It fluctuated between 10% to 12% for most of the 2000s, then dipped below 10% at the end of 2014. From 2020 through most of 2022, the average rate ranged from around 8% to 10%. Since the end of 2022, the average rate has typically ranged from 10% to 13%.
Personal loan rates often fluctuate because they reflect changing economic conditions. Rates are also heavily dependent on the individuals themselves, weighing factors like income and credit score.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Federal Reserve, “Consumer Credit - G.19.” Accessed Jan. 8, 2025.
- Federal Reserve Bank of St. Louis, “Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan.” Accessed Jan. 8, 2025.
- National Credit Union Association, “Credit Union and Bank Rates 2025 Q3.” Accessed Jan. 8, 2025.
