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Average Cost of a Personal Loan

The average cost of a personal loan will be entirely dependent on your total loan amount, interest rates and how quickly you’re able to repay it. We built this spreadsheet to help readers better pin down the costs for any given situation. Check out the rest of this guide if you’re after some quick stats about the cost of personal loans and how they vary throughout the country.

What is the cost of a personal loan?

The total cost of a personal loan will depend on its terms. Consumers ought to pay attention to the loan’s interest rate (APR), origination fees and prepayment penalties. Note that the costs we outline in this guide deals with traditional and online personal loans. Payday loans (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) are not part of this analysis, as they represent outliers in the loan world.

Personal Loan Origination Fees

Major lenders charge between 1% and 8% of the total loan amount – this is known as an origination fee. However, instead of making you pay up front, the cost is usually deducted from the total loan amount.

For example, if you take out a $10,000 loan and pay a 5% origination fee, you would pay $500 ($10,000 x 0.05). Therefore, if you need the full $10,000, you should take out a total loan of $10,000 PLUS the origination fee. In the above example, the consumer should apply for a $10,500 loan.

Origination fees are determined by the total amount you’re requesting, the length of the loan, your credit history and whether you have a co-signer.

Personal Loan Interest Rates & APR

The biggest cost of any loan is its interest rate. The average personal loan interest rate is about 10%. However, if you have poor credit, these rates can climb as high as 32%.

Credit ScoreAverage Personal Loan APRs
Excellent (720 – 850)10%
Good (680 – 719)15%
Average (640 – 679)18%
Poor (300 – 639)29%

 

How can you translate an interest rate into a cost? That depends on how long it takes you to pay down your loan. We recommend using an interest calculator, as the calculations involved can be complicated.

Personal Loan Interest Rates by Lender

Personal loan costs are likely to vary the most by the lender itself. To provide you with a clear breakout, we collected rates across the biggest lenders in the country.

Lender

Typical APR range

Loan amounts

Barclays

5.74% – 20.99%

$5,000 – $35,000

Citibank

7.99% – 17.99%

$2,000 – $50,000

PNC Bank

5.99% – 25.44%

$1,000 – $35,000

Wells Fargo

7.49% – 24.49%

$3,000 – $100,000

 

Lender

Typical APR range

Laurel Road

8.01% – 16.30% (with autopay)

LightStream

3.99% – 16.99% (with autopay)

Marcus

5.99% – 28.99%

SoFi

5.74% – 16.99% (with autopay)

Personal Loan Rates by State

Shopping for a loan and don’t want to get ripped off or overpay? The best place to start is to check your state’s Usury Limit. Some state governments have limits on the maximum interest rate that a lender can charge you.

StateMaximum Loan Rate
Alabama 8%
 Alaska 10.5%
 Arizona 10%
 Arkansas 5% above current Federal Revenue Discount Rate (FRDR)
 Californiaconsumer loans 10% /non-consumer loans 5% above the FRBSF Discount Rate
 Coloradoconsumer loans 12% /non-consumer loans 12%
 Connecticut 12%
 Delaware5% above current Federal Revenue Discount Rate
 Florida loans < $500,000 18% /loans > $500,000 25%
 Georgia loans <$3,000 16%loans $3,000-$250,000 5%/month (must use simple interest)
 Hawaii personal loans 10%
 Idaho personal loans 12%
 Illinois personal loans 9%
 Indiana loans <$50,000 21%
 Iowa Iowa Superintendent of Banking determines Iowa monthly max rate
 Kansas 15%
 Kentuckyloans < 15,000 is the lesser between 19% or 4% above current FRDR
 Louisiana 12%
 Maine No limit
 Maryland 8%
 Massachusetts 20%
 Michigan 7%
 Minnesota 8%
 Mississippi greater of 10% and 5% of current FRDR
 Missourigreater of 10% and 3% above the long term United States government bond yield
 Montanagreater of 15% and 6% above the Wall Street Journal Prime Rate
 Nebraska 16%
 Nevada no limit
 New Hampshire no limit
 New Jersey 16%
 New Mexico No limit for written loan agreement
 New York 16%
 North Carolina loans <$25,000 is greater of 16% and 6% above 6 Month US Treasury Bills
 North Dakota consumer loans/personal loans 5.5% above the 6 Month US Treasury Bills
 Ohio loans < $100,000 is 8%
 Oklahoma 10%
 Oregonloans < $50,000 is the greater of 12% and 5% above the FRDR at the time the loan is made
 Pennsylvania unsecured loans < $50,000 is 12% / loans > $50,000 is 36%
 Rhode Island 21% or 9% above the Wall Street Journal Prime Rate
 South Carolina No Limit
 South Dakota 18%
 Tennesseelesser of 24% and 4% above the Bank Prime Rate
 Texas 10%
 Utah no limit
 Vermont 12%
 Virginia 12%
 Washington greater of 12% and 4% above the 26 Week Treasury Bill
 West Virginia 8%
 Wisconsin 8%
 Wyoming 8%

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