Pricing & Math
What is the average personal loan interest rate?
Average personal loan interest rates at commercial banks typically range from about 7–8% for borrowers with excellent credit to 25–36% for subprime borrowers. The Federal Reserve G.19 Consumer Credit release tracks 24-month personal loan rates at commercial banks as a benchmark.
The full picture
Personal loan rates are not one-size-fits-all — they vary significantly by lender type, loan amount, repayment term, and your credit profile. The Federal Reserve G.19 Consumer Credit release tracks average interest rates on consumer installment loans, including 24-month personal loans at commercial banks, and is the authoritative public benchmark for average rates.
How credit score shapes your rate
- Excellent credit (720+): lenders typically offer rates in the 7–12% APR range for qualified borrowers. See ClearValue's picks for excellent-credit borrowers.
- Good credit (680–719): rates commonly fall in the 12–18% APR range. See ClearValue's picks for good-credit borrowers.
- Fair credit (640–679): rates typically run 18–25% APR; some lenders decline this tier.
- Poor credit (below 640): rates can reach 25–36% APR — approaching or exceeding credit card rates. At this level, consolidation only makes sense if the personal loan rate is meaningfully lower than the debts you're replacing.
- No credit history: limited options; secured loans or credit-builder products may be more appropriate.
Other factors that affect your rate
- Loan term: shorter terms (12–24 months) often carry lower rates than longer terms (60–84 months).
- Loan amount: smaller loans (under $5,000) sometimes carry higher rates because they are less profitable for lenders.
- Lender type: credit unions typically offer lower rates than online lenders or banks — average credit union personal loan rates often run 1–3 percentage points below bank rates.
- Debt-to-income ratio: lenders want your total monthly debt obligations (including the new loan) to be below 35–45% of gross income.
- Origination fees: a 1–8% origination fee is common and is factored into the APR — always compare APR, not just the stated interest rate.
The actual current benchmark rate
The Fed's own number: the G.19 release's Finance Rate on Personal Loans at Commercial Banks, 24-Month Loan stood at 11.86% for Q1 2026, the most recent quarter published as of this update. That single benchmark sits almost exactly in the middle of the 'good credit' band (12–18% APR) described above — a useful sanity check when a lender quotes you a rate: if you're being offered something well above 11.86% and you consider your credit good-to-excellent, it's worth getting a second quote before accepting. That 24-month bank rate prices against a $3,815.8 billion in loans nonrevolving-credit backdrop (Fed G.19, June 2026) — the fixed-term installment category personal loans belong to alongside auto and student loans. The Fed updates this release quarterly for the rate table (monthly for the balance totals), so check federalreserve.gov/releases/g19 directly for the current published quarter before relying on this figure.
A rate alone doesn't tell you the real cost. Use the personal loan calculator to turn any rate and term in these ranges into an actual monthly payment and total interest figure before you compare offers.
Personal loan rate benchmarks
- The Federal Reserve G.19 Consumer Credit release publishes average interest rates on consumer installment loans at commercial banks, updated monthly. This is the most widely cited public benchmark for average personal loan rates in the United States. — Federal Reserve — G.19 Consumer Credit
- The FTC advises borrowers to compare the Annual Percentage Rate (APR) — which includes fees — rather than the stated interest rate when evaluating personal loan offers. APR gives a true cost comparison across lenders. — FTC — What to Know About Personal Loans
Key takeaways
- Personal loan rates vary widely — credit score is the single biggest driver.
- Excellent-credit borrowers can access rates comparable to home equity products; poor-credit borrowers may find personal loan rates near or above credit card rates.
- Always compare APR (including fees), not just the stated interest rate.
- Credit unions typically offer lower rates than banks or online lenders — worth a quote if you qualify for membership.
- The Fed G.19 Consumer Credit release at federalreserve.gov is the authoritative public benchmark for average personal loan rates.
Frequently asked questions
What personal loan interest rate can I expect with good credit?
Borrowers with good credit (680–719) commonly see personal loan rates in the 12–18% APR range. Excellent credit (720+) typically qualifies for 7–12% APR. Your exact rate also depends on loan term, loan amount, and lender type — always compare the full APR, not just the headline rate, across multiple lenders. Source: Federal Reserve G.19 Consumer Credit release at federalreserve.gov.
Why is my personal loan APR higher than the interest rate I was quoted?
A 1–8% origination fee is common on personal loans and is factored into the APR but not always highlighted in the headline interest rate. The CFPB advises comparing APR — which bundles in fees — rather than the stated interest rate, since APR gives the true cost of borrowing across different lenders' fee structures. Source: CFPB, consumerfinance.gov.
Do credit unions offer lower personal loan rates than banks?
Typically, yes. Credit unions generally offer personal loan rates that run about 1–3 percentage points below bank rates, since they're member-owned and not profit-driven in the same way as banks or online lenders. It's worth getting a credit union quote if you're eligible for membership before comparing bank and online-lender offers.
Does a shorter loan term get you a lower personal loan interest rate?
Often, yes. Shorter terms (12–24 months) tend to carry lower interest rates than longer terms (60–84 months), since the lender's repayment risk window is shorter. A shorter term also means less total interest paid overall, even before accounting for the rate difference — though the tradeoff is a higher monthly payment.
Published 2026-06-03 · Updated 2026-08-27 · https://clearvaluelending.com/answers/average-personal-loan-interest-rate