Average Interest Rates : The length of the loan, the amount borrowed, and the lender all affect the actual interest rates on personal loans.
The average rates for unsecured personal loans are compiled in this section by lender and credit score.
Average Interest Rates for Personal Loans based on Credit Score
One of the most important factors in determining a personal loan’s annual percentage rate (APR) is your credit score.
In general, the rate will be lower the higher your credit score.
Personal loan interest rates should be between 9 and 13 percent for people who have excellent credit, which is defined as any FICO credit score between 720 and 850. Many of these people may even be eligible for lower rates.
However, if you do have excellent credit, a 0% balance transfer credit card may be a better option than a personal loan because you can save money on interest.
760-plus9.30%720-75913.32%680-71917.82%640-67922.16%Rates as of April 2021
Personal loan interest rates typically approach or exceed the higher end of the advertised APR ranges provided by lenders for customers with average to poor credit. You may have trouble getting a conventional personal loan at all if you have no credit history or a credit score below 580.
However, this does not mean that payday loans are a good option for you because they can have APRs that exceed 100%. It is all too simple to get into a debt cycle that never ends thanks to those loans. Instead, you might want to look into applying for a loan or other financial assistance through a nonprofit financial assistance organization or a local credit union.
Lender-specific personal loan interest rates Unsecured personal loan interest rates typically range from 5% to 36%.
Personal loan rates can be competitive at banks and credit unions, but online lenders often offer the lowest rates, especially for borrowers with good credit.
Online lenders are more likely to approve borrowers with credit scores as low as 580, and sometimes lower, if you have a lower score. We examine the rates offered by a variety of online and traditional lenders on an unsecured personal loan in the table below.
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What is an acceptable personal loan interest rate?
A personal loan’s term, balance, and purpose all play a role in determining an acceptable interest rate.
Sadly, you may not be eligible for the best personal loan interest rates offered by a lender; however, keep in mind that the typical rates ranged from approximately 9.00% to 22.00% in the spring of 2021.
If you want to find a good personal loan interest rate, you should apply to multiple lenders and compare their offers to see what rates you can get based on your credit history.

Consider other options or wait to apply for the loan until your credit score improves if the rates you receive are too high and you won’t be able to repay the loan with interest.