Banking
Personal Loan Rates Today: Average APR and What You'll Pay
The Federal Reserve publishes an average 24-month personal loan rate from commercial banks. Online lenders price around it in a wide band — high single digits for excellent credit, the mid-30s at the subprime end — so the average is a benchmark, not a quote.
| Series | Latest | Prior | Year over year | As of |
|---|---|---|---|---|
| Personal loan, 24-month bank rate | 11.86% | 11.36% | +0.29 pts | 2026-05-01 |
Source: Federal Reserve Board (G.19), via FRED.
Where personal loan pricing has gone
24-month personal loan rates at commercial banks, from Federal Reserve G.19 data.
Source: Federal Reserve Board (G.19), via FRED. Latest observation 2026-05-01.
Run your own numbers
Averages tell you whether an offer is competitive. The calculator tells you what it costs you.
Open the personal loan calculatorCompare APR, not the interest rate
Most personal lenders charge an origination fee of 1% to 8%, deducted from the amount deposited. Borrow $15,000 with a 5% fee and you receive $14,250 while repaying interest on the full $15,000.
The APR is legally required to fold that fee in, which is why two loans quoting the same interest rate can carry very different APRs. Always compare on APR and on the total repaid.
When a personal loan is the right tool
Consolidating credit card balances at a materially lower fixed rate, with a payoff date that forces the debt to end. Emergency costs that would otherwise go on a card at 20%+. One-off expenses you can genuinely clear inside the term.
It is the wrong tool for home improvements a HELOC could fund more cheaply, for cars a secured auto loan would price better, and for discretionary spending repaid over years at double-digit rates.
How to get a better offer
Prequalify with three or four lenders — prequalification uses a soft credit pull, so it costs you nothing in score terms — then compare APRs on the same amount and term.
Credit unions often undercut online lenders and cap rates for members. Shorter terms price lower and cut total interest sharply, so take the shortest term you can comfortably afford.
Borrowing to clear other debt?
Talk to a debt specialist first. Consolidation only works if the rate genuinely drops and the balances stay cleared.
Get debt help optionsMethodology
Personal loan rates come from the Federal Reserve Board's G.19 Consumer Credit release via FRED, refreshed on a schedule. The series covers 24-month unsecured loans at commercial banks and is not seasonally adjusted.
Online lender pricing is not included in the Federal Reserve series and commonly sits both above and below the bank average depending on credit tier.
Averages are not offers. Your APR depends on your credit profile, income, loan amount and term.
Frequently asked questions
What is the average personal loan interest rate?
The Federal Reserve publishes an average 24-month personal loan rate from commercial banks, shown above. Online lenders price across a much wider band, from the high single digits for excellent credit to the mid-30s for subprime borrowers.
Is a personal loan cheaper than a credit card?
Usually, for borrowers with good credit. Personal loans are fixed rate with a set payoff date, while card APRs are variable and typically sit above 20%. The saving disappears if you reload the cards afterwards.
What is an origination fee?
A one-off charge of roughly 1% to 8% deducted from the amount deposited. It is included in the quoted APR, which is why you should compare APRs rather than interest rates.
How fast can I get a personal loan?
Online lenders commonly fund within one to three business days after approval. Banks and credit unions can take longer, though existing customers are sometimes funded same-day.
Does applying for a personal loan hurt my credit?
Prequalification uses a soft pull with no impact. A full application triggers a hard inquiry worth a few points, which fades within a year.
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