BEST OF
Best Personal Loan Rates of March 2021
The best personal loan rates go to borrowers with excellent credit, low debt and strong income. Compare personal loan rates to find the best offer.
Personal loan interest rates currently range from about 5.99% to 35.99%. The actual interest rate you receive on a personal loan depends on factors such as your credit score and credit history, annual income, existing debt and whether you get a loan from a bank, credit union or online lender.
Comparing rates — along with monthly payments and total interest — can help you choose the most affordable loan. Here’s a look at average interest rates on personal loans from online lenders, banks and credit unions.
Personal loan interest rates currently range from about 5.99% to 35.99%. The actual interest rate you receive on a personal loan depends on factors such as your credit score and credit history, annual income, existing debt and whether you get a loan from a bank, credit union or online lender.
Comparing rates — along with monthly payments and total interest — can help you choose the most affordable loan. Here’s a look at average interest rates on personal loans from online lenders, banks and credit unions.
Summary of Best Personal Loan Rates of March 2021
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Lowest online personal loan interest rates | 5.99 - 24.99% | 640 | on Payoff's website | |
Best for Lowest online personal loan interest rates | 5.99 - 18.85% | 680 | on SoFi's website | |
Best for Lowest online personal loan interest rates | 4.49 - 20.49% | 660 | on LightStream's website | |
Best for Lowest online personal loan interest rates | 5.99 - 29.99% | 600 | on Best Egg's website | |
Best for Lowest personal loan interest rates at banks | 6.99 - 24.99% | 660 | See my rates on NerdWallet's secure website | |
Best for Lowest personal loan interest rates at banks | 5.99 - 24.49% | None | See my rates on NerdWallet's secure website | |
Best for Lowest personal loan interest rates at banks | 6.99 - 21.99% | 700 | See my rates on NerdWallet's secure website | |
Best for Lowest personal loan interest rates at banks | 6.99 - 22.90% | 700 | See my rates on NerdWallet's secure website | |
Best for Lowest personal loan interest rates at credit unions | 6.49 - 17.99% | 700 | See my rates on NerdWallet's secure website |
Our picks for
Lowest online personal loan interest rates
on Payoff's website
Payoff
Min. Credit Score
Est. APR
Loan Amount
on Payoff's website
on SoFi's website
SoFi

Min. Credit Score
Est. APR
Loan Amount
on SoFi's website
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
on Best Egg's website
Best Egg
Min. Credit Score
Est. APR
Loan Amount
on Best Egg's website
Our picks for
Lowest personal loan interest rates at banks
on NerdWallet's secure website
Discover® Personal Loans
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
Wells Fargo Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
TD Bank Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website

on NerdWallet's secure website
HSBC Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Our pick for
Lowest personal loan interest rates at credit unions

on NerdWallet's secure website
PenFed Credit Union Personal Loan

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Online personal loan interest rates
Online lenders offer the lowest starting annual percentage rates on personal loans to borrowers with good or excellent credit (690 or higher FICO). If you don’t know your credit score, check it for free with NerdWallet.
Here's what average estimated APRs are on personal loans, based on FICO score ranges:
How's your credit? | Score range | Estimated APR |
---|---|---|
Excellent | 720-850 | 11.8% |
Good | 690-719 | 17.4% |
Fair | 630-689 | 23.4% |
Bad | 300-629 | 28.7% (Lowest scores unlikely to qualify.) |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified in NerdWallet’s lender marketplace from Jan. 1, 2020, to Dec. 31, 2020. Rates are estimates only and not specific to any lender.
Online lenders often let you pre-qualify with a soft credit check before you formally apply for a personal loan. Banks and credit unions typically only do a hard credit pull.
You can also use a personal loan calculator to see estimated rates and payments from online lenders based on your credit score.
Rates for excellent credit
The monthly average lowest rates that excellent-credit borrowers received in 2020 were from 10.7% to 12.5%, according to data from users who pre-qualified with NerdWallet. High income and a long credit history showing on-time payments to other creditors will help you get the lowest rates. Lenders that approve borrowers in this credit band may also offer special perks, like rate discounts and zero fees.
Rates for good credit
The monthly average lowest rates good-credit borrowers received on personal loans in 2020 were from 15.5% to 19.5%, according to NerdWallet user data. The lowest rates in this credit band often go to borrowers who have low debt and high income, as well as a credit history showing accounts in good standing.
Rates for fair credit
The lowest rates NerdWallet users who pre-qualified with fair credit averaged from 21% to 25.7% in any given month of 2020. Adding a co-signer or joint borrower with better credit and higher income than you can help you receive a lower rate.
Rates for bad credit
Bad-credit borrowers can expect rates on the high end of a lender’s APR range. The lowest rates NerdWallet users who pre-qualified in this credit band in 2020 averaged from 26.7% to 32.4% in any given month. Those with the lowest scores may not qualify, but requesting a lower loan amount, adding a co-signer or securing your loan could help improve your chances.
Personal loan rates at banks
Banks may offer competitive rates — and rate discounts if you’re already a customer — but they typically have tougher eligibility requirements and can take longer to fund your loan than online lenders.
The average rate charged by banks in November 2020 for a two-year loan was 9.65%, according to the most recent data from the Federal Reserve.
Personal loan rates at credit unions
Credit union loans may carry lower rates than banks and online lenders, especially for those with fair or bad credit, and loan officers may be more willing to consider your overall financial picture.
The average rate charged by credit unions in December 2020 for a fixed-rate, 3-year loan was 9.09%, according to the National Credit Union Administration. Federal credit unions cap the APR on personal loans at 18%.
You have to become a member of a credit union to apply for a loan, which may mean paying fees or meeting certain eligibility requirements.
How to get the best personal loan rates
If you think you may not qualify for the rate you want on a personal loan, there are a few things you can do that may help you get a lower rate.
Review your credit report before you apply. If you have a low credit score, you can check your report to see what may be weighing it down and address it before you apply. For example, a past-due account could be a reason a lender would give you a high rate or not approve you at all.
Adjust your loan amounts and repayment term. Asking for a large loan or long repayment term could cause a lender to assign you a higher interest rate. Calculate your monthly payment to decide how much loan you can afford.
Get rate discounts. Lenders offer discounts for a few different reasons. Many online lenders offer rate discounts for setting up automatic payments. Some banks offer rate discounts to existing customers who hold certain bank accounts.
Find a no-fee lender. The APR includes any fees a lender tacks onto the loan, like an origination fee. If you choose a lender that doesn’t charge origination fees, you’ll avoid an interest rate that’s inflated by fees.
Add a co-signer, co-borrower or collateral. Borrowers with blemished credit who add someone with a better credit profile and higher income to their application may qualify for a lower rate. You may also be able to secure a personal loan — using collateral like a vehicle or CD account — to get a lower rate. Just know there are consequences if you default on the loan.
How COVID-19 affects personal loan rates
All personal loan lenders have tightened credit requirements since the pandemic began. That means borrowers who previously may have qualified for a loan may not qualify at all, while others may qualify for a higher rate than they would’ve had before.
How to see your personal loan rates
Unlike with some other credit products, you can see what personal loan rates and amounts you can qualify for without having to formally submit an application and undergo a hard credit check. This is called pre-qualifying and many online lenders and some banks and credit unions have this option.
You can pre-qualify through NerdWallet to compare offers from multiple lenders and find the lowest rate.
Last updated on February 3, 2021
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Best Personal Loan Rates of March 2021
- Payoff: Best for Lowest online personal loan interest rates
- SoFi: Best for Lowest online personal loan interest rates
- LightStream: Best for Lowest online personal loan interest rates
- Best Egg: Best for Lowest online personal loan interest rates
- Discover® Personal Loans: Best for Lowest personal loan interest rates at banks
- Wells Fargo Personal Loan: Best for Lowest personal loan interest rates at banks
- TD Bank Personal Loan: Best for Lowest personal loan interest rates at banks
- HSBC Personal Loan: Best for Lowest personal loan interest rates at banks
- PenFed Credit Union Personal Loan: Best for Lowest personal loan interest rates at credit unions
Frequently asked questions
A good interest rate on a personal loan is one that makes your monthly payments manageable over the loan's term. The lowest rates are usually around 6%, and the highest go up to 36%. The best interest rates go to good- or excellent-credit borrowers (690 or higher FICO score) with debt-to-income ratios below 40% and steady income.
In some cases, the bank you use can offer you the lowest interest rate on a personal loan. That’s because it has a history with you and may view lending to you as less risky. Personal loan rates at national banks can be between 6% and 25%. Compare bank loans to see which pairs the lowest rates with the best features.
Lenders use information like your credit profile, income and existing debt to determine the interest rate you'll get. The loan amount and repayment term also affect your rate.
It’s worth your time to compare multiple personal loans with one another and with other credit products, like credit cards and home equity loans, depending on what you need the funds for. Deciding if you should get a personal loan comes down to figuring out whether there’s a cheaper product that meets your needs.