What is the interest rate on a $25,000 loan?

The best way to get a $25,000 loan is to take out a personal loan from TD Bank, LightStream, or Marcus by Goldman Sachs. These lenders offer personal loans of $3,500 to $100,000, with APRs as low as 2.49%, depending on an applicant's creditworthiness.

How to Get a $25,000 Loan in 6 Steps... read full answer

1. Check your credit score.
2. Check for personal loan pre-qualification to see your approval odds and potential rates.
3. Compare the terms of personal loans for which you have high approval odds.
4. Pick a loan and submit an application.
5. Wait for a decision.
6. Wait for the funds to be delivered (usually within 7 business days of applying).

Best $25,000 Loan Options

*According to either the lender or multiple third-party sources

There are several other ways to get a $25,000 loan, too. For example, you could tap into your home equity, charge the amount to a credit card, or borrow from a friend or family member. Pawnshop loans are an option, as well, though they're expensive and it's best to avoid them.

Ways to Get a $25,000 Loan

Personal loan

Personal loans offer $1,000 to $100,000 in funding for 12 to 84+ months, depending on the lender. Their APRs typically range from 6% to 36%, and they may or may not charge an origination fee to open the loan. Personal loan credit score requirements typically range from 585 to 700+, but there are some options for people with lower scores (including secured loans).

Home equity

You can get a home equity loan or home equity line of credit (HELOC) to borrow against your home. You'll be able to borrow a percentage of the difference between your home's value and the amount you have left to pay on the mortgage. There's the potential for a lot of funding if you have a lot of equity. Home equity loans usually last for 5 to 30 years, have APRs of 4% to 8%, and tend to require credit scores of 680+. If you cannot repay what you owe, you risk foreclosure on your house.

Credit card

Depending on what you need money for, you may have the option to charge it to a credit card. Credit cards have a wide range of credit limits, depending on the card and your creditworthiness. You may want to check out WalletHub's picks for the best high limit credit cards. It will likely be difficult to find a credit card with a minimum credit limit of $25,000 or higher, but it's possible to get a limit this large if your credit score and income are high enough.

Friends and family

You can always turn to someone you know to borrow money, and you're likely to get better terms than you would with a traditional lender. However, you also risk putting your relationship with that person in jeopardy if you can't repay what you owe. It may also be difficult to convince someone to lend you an amount this large.

Pawnshop loan

Pawnshops give you money for an item and let you pay it back with interest to reclaim the item. However, this interest tends to be very expensive, around 2% to 25% per month. Plus, if you don't pay back what you owe, the pawnshop can sell your item. This option is not ideal.

A typical interest rate for a personal loan is between 4% and 36%. The exact interest rate you get for a personal loan will depend on a number of factors, such as your income, existing debt, employment status and credit score, among others. Below you can see the average personal loan interest rate for each credit rating based on the latest WalletHub data.... read full answer

Average Personal Loan Interest Rate by Credit Rating

• Excellent: 12.14%
• Good: 16.14%
• Fair: 22.02%
• Bad: 27.70%

If you’re interested in getting a personal loan, check out WalletHub’s picks for the best personal loans. Additionally, some lenders let you pre-qualify to estimate your potential rates before you officially apply. To pre-qualify with multiple lenders at once, check out the free pre-qualification tool on WalletHub.

Personal loans let you borrow a sum of money from a lender and then pay it back in monthly installments over a set term – usually anywhere from 12 to 84 months. Those monthly payments include equal portions of the original loan amount, plus interest and fees. Personal loans can be used for debt consolidation, home improvements, vacations, big purchases and more. Understanding how things will go, from the time you apply to when you submit your final payment, is the key to making personal loans work for you.... read full answer

How Personal Loans Work

• Lenders Review Applications.

  You will need to provide personal information (such as your address and SSN), financial information (such as your income and employment status) and more. The lender will evaluate and hopefully approve you.

• Applicants Receive Funds After Approval.

  The issuer of the loan will deposit the money into your bank account as a lump sum. You can do whatever you wish with the money, unless the terms of the loan say otherwise.

• Interest Charges Accrue.

  From the day you take out the loan, the amount will begin accruing interest at a rate set by the issuer. So no matter how long it takes you to pay the loan back, you’ll always owe more than you originally took out.

• Borrowers Make Monthly Payments.

  The lender will give you a required amount to pay each month. You can pay more if you’d like, but make sure that there’s no penalty for paying the loan off earlier than the terms of the contract stipulate. Some lenders may charge a fee.

• Loan Payments Build Credit.

  The lender will report to the credit bureaus whether you’ve paid on time each month. Once you’ve paid off the entire balance, including interest and fees, the lender will report your loan as paid in full. Abiding by the terms of your loan can help increase your credit score.

Personal loans are pretty simple. You just have to make sure to submit your payments every month, and setting up automatic monthly payments from a bank account can go a long way in that regard. The most complicated part of the process is probably selecting the correct loan, but WalletHub’s comparison tool makes that easy.