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The average overall interest rate for personal loans is a shade higher than it was last week, at 20.96%.
You can use a personal loan to pay for anything from a wedding to home renovations, medical expenses, and even income taxes. However, most borrowers use them to consolidate debt. That purpose is so popular that some lenders, including Happy Money and Reach Financial, specialize in debt consolidation loans.
Next Step: See if you’re prequalified for a loan without impacting your credit score.
Average Overall Personal Loan Rates
We’ve put together a database of 28 personal loan products and averaged their rates to help you get a handle on the current landscape of loans for all purposes. You’re more likely to get a lower rate with a better credit score.
This week’s ratesLast week’s ratesAverage overall rate20.97%20.96%Average low rate10.04%9.99%Average high rate31.91%31.93%Highest rate155%155%Lowest rate4.60%4.60%
The lowest rate of the companies we track is from Upstart, which has a minimum APR of 4.60%. The highest rate is from NetCredit, which has a maximum APR of 155.00%.
All borrowers aren’t necessarily qualified for the rates above. The rates you’ll get depend on your credit score and other aspects of your financial situation.
See Insider’s picks for the best personal loans and best debt consolidation loans »
Average Personal Loan Rates by Credit Score
These rates are based on data from 162 borrowers who applied for loans and received rates on loans for all purposes.
Credit score
This week’s average APR
Average APR from 2 weeks ago
Minimum APR
Maximum APR
Excellent (720+)
19.30%
17.23%
8.88%
35.99%
Good (660-719)
23.23%
29.74%
7.99%
162.85%
Fair (620-659)
74.74%
65.71%
17.49%
422.55%
Poor (<620)
149.58%
121.03%
26.98%
450.00%
Average Personal Loan Rates by Year
The average personal loan interest rate has fluctuated over time, and it’s now at its highest point in the past five years. There are several factors that influence the average personal loan interest rate, and the interest rate on individual loans, including the Federal Funds rate, or the amount that banks pay to borrow money. Other factors include the reason for the loan, and the loan term.
Year Average personal loan interest rate*201810.32%201910.32%20209.51%20219.38%20229.87%2023 (February)11.48%
* Rates for a 24-month personal loan.
Since 2017, the average personal loan interest rate has risen and fallen. Since 2019, the average personal loan interest rate has increased by over a whole percentage point to 11.48% in February 2023.
Percentage of Borrowers by Loan Purpose
These loan purposes are based on data from 178 borrowers who applied for personal loans and received rates.
Loan purposePercent
Debt consolidation
53.05%
Other
9.76%
Auto
7.31%
Home improvement
5.49%
Household expenses
4.88%
Large purchases
3.66%
Credit card refinancing
3.05%
Boat
2.44%
Moving
2.44%
Vacation
1.83%
Special occasion
1.22%
Business
1.22%
Medical
1.22%
Taxes
0.61%
Auto refinance
0.61%
Wedding
0.61%
Student loan
0.61%
Baby
0.61%
Average Debt Consolidation Rates
We’ve put together these average rates from our database of 25 debt-consolidation loan products for this past week:
The latest APRsAverage overall rate18.29%Average low rate9.20%Best rate5.99%
Debt Consolidation Rates by Credit Score
A higher credit score generally means you’ll receive a lower rate — but not always.
CreditScore rangeAverage APRExcellent720+14.64%Good660-71917.83%Fair620-65927.15%
The average rates (APRs), terms, and loan amounts were provided by Even Financial sourced through Fiona.com. This information is based on aggregated, anonymized offer data from Fiona’s lender marketplace of financial services providers as of July 10. The data presented in this table applies only to lenders with APRs below 30%, and is not specific to any individual lender or consumer.
Personal Loan Interest Rate FAQs
What is a typical rate for a personal loan?
Borrowers on average are getting interest of around 21% on personal loans. The rates you get will depend on the term of the loan, your credit score, and other aspects of your financial situation.
Which bank has the lowest interest rate for a personal loan?
Upstart currently has the lowest interest rate on a personal loan at 4.60%. However, personal loan interest rates vary widely, with some borrowers paying as much as 155%. Rates are determined based a broad range of factors including the borrower’s creditworthiness and the term of the loan.
Can I ask my bank for a lower interest rate on a personal loan?
The interest rate your bank will offer your for a personal loan will depend on your credit score, debt-to-income ration, income, and other aspects of your financial situation. If you receive a lower offer from another lender, it is sometimes possible to negotiate the rate with your bank.