Average Personal Loan Amount

Americans have hundreds of billions of dollars in personal loan debt, though the amount pales in comparison to other types of debt like credit cards and mortgages. That said, personal loans are very useful because they offer long-term borrowing with fixed monthly payments, and the funds can be used for nearly anything.

Between Q3 2022 and Q3 2023, most states saw decreases in their residents' average unsecured personal loan debts. However, 18 states had increases, and some of those increases were quite dramatic. In order to highlight these changes from state to state, WalletHub analyzed its latest proprietary data on consumer debt.

The average personal loan interest rate is 17.32% for Q4 2025, according to WalletHub data. Personal loan interest rates can fluctuate drastically based on factors like the borrower's credit score and where they live, as well as the type of lender the loan comes from. Overall, personal loan interest rates range from around 7% to 36%.

Key Stats

• Average Personal Loan Interest Rate (2025 Q4): 17.32% (WalletHub offers data)
• Average 24-month Personal loan Interest Rates (2025): 11.65%
• Average 36-month Personal loan Interest Rates (2025): 10.64% for Credit Unions & 12% for Banks

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What Is a Personal Loan Rate?

A personal loan rate is the cost of borrowing with a personal loan over the course of a year, and it's expressed as a percentage. Personal loan rates typically range from around 4% to 36%, according to WalletHub data, and a good rate is anything under 12%.

It is important for borrowers to understand what personal loan interest rates are and how they work because comparing one personal loan rate to another can quickly give you a sense of which offer may be more worthwhile.

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There are both pros and cons of personal loans, but the pros can easily outweigh the cons in the right situation. Some of the biggest benefits of personal loans are that they can help you build credit, they make it possible to pay off big expenses over time, and they can be used for just about anything.

Major cons of personal loans include interest charges and fees, along with potential credit score damage if things...

A personal loan is an installment loan that can offer up to $100,000 in funding with a fixed APR around 4% to 36% and a repayment period of 12 - 84 months. You generally need a credit score of 580+ to get a personal loan from a reputable lender. Most personal loans don't require collateral, which is why they're sometimes called signature loans, but some secured personal loans are available.

Key Facts About Personal Loans

• Loan Type: Installment
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The most common reasons for taking out a personal loan include medical bills, home improvements and debt consolidation. However, personal loans can be used for almost any purpose, making them one of the most versatile and common loan types.

The best reasons to get a personal loan are to pay off unavoidable, urgent expenses (e.g. hospital bills) because they can strike at any time and put a financial strain on you. Another good reason is to make investments that will...

The difference between a personal loan and a personal line of credit is how you access the money you're borrowing. A personal loan is a lump sum of money that you pay off over time, and a personal line of credit lets you borrow money on demand up to your maximum credit limit. You can borrow multiple times with a line of credit, and your available credit goes back to the full amount after you pay...

You need at least $12,000 in annual income to get a personal loan, in most cases. Minimum income requirements vary by lender, ranging from $12,000 to $100,000+, and a lender will request documents such as W-2 forms, bank statements, or pay stubs to verify that you have enough income or assets to afford the loan. Some income sources lenders will consider include full-time jobs, retirement benefits, alimony and child support.

Annual Income Requirement by...

The monthly payment on a $100,000 loan ranges from $1,367 to $10,046, depending on the APR and how long the loan lasts. For example, if you take out a $100,000 loan for one year with an APR of 36%, your monthly payment will be $10,046. But if you take out a $100,000 loan for seven years with an APR of 4%, your monthly payment will be $1,367.

Most personal loans offer payoff periods that fall...

You can use a personal loan for just about anything, from credit card debt consolidation and home improvements to large purchases, car repairs and medical procedures. As long as you don't take out a loan whose terms specify what the funds must be used for, you're free to do what you want with the money. For example, LightStream has different APR ranges specifically for different loan purposes, but most lenders do not.

The only...