Best Personal Loan Rates for January 2021
BY: Joy Wallet
| Last Updated: December 29, 2020
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Personal loan interest rates currently range from about 3 percent to 36 percent. The actual rate you receive depends on multiple factors, such as your credit score, annual income and debt ratios.
To find the best personal loan for your financial situation, it's best to shop around and compare personal loan rates from multiple lenders.
A personal loan is a shorter-term loan that consumers can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
Lenders include banks, credit unions, or private lenders, like marketplace lenders and non-bank peer-to-peer lenders.
Borrowers receive a single lump sum that’s repaid over several years. Most personal loan terms range from 24 months to 60 months, but some terms are as long as 72 months. You can usually repay a personal loan in monthly installments, like with a car loan or home mortage.
Compare personal loan offers to see what you are eligible for before applying for a personal loan. The better your credit score, the more likely you are to qualify for a personal loan with the lowest interest rate available.
As of Aug. 5, 2020, the average personal loan interest rate is 11.88 percent¹.
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Sources:
¹https://www.bankrate.com/loans/personal-loans/rates/