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 Score||Average 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.
|State||Maximum Loan Rate|
|Arkansas||5% above current Federal Revenue Discount Rate (FRDR)|
|California||consumer loans 10% /non-consumer loans 5% above the FRBSF Discount Rate|
|Colorado||consumer loans 12% /non-consumer loans 12%|
|Delaware||5% 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|
|Kentucky||loans < 15,000 is the lesser between 19% or 4% above current FRDR|
|Mississippi||greater of 10% and 5% of current FRDR|
|Missouri||greater of 10% and 3% above the long term United States government bond yield|
|Montana||greater of 15% and 6% above the Wall Street Journal Prime Rate|
|New Hampshire||no limit|
|New Mexico||No limit for written loan agreement|
|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%|
|Oregon||loans < $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|
|Tennessee||lesser of 24% and 4% above the Bank Prime Rate|
|Washington||greater of 12% and 4% above the 26 Week Treasury Bill|