Is 12% a good rate for personal loan (2024)

FAQs

Is 12% a good rate for personal loan? ›

In most circ*mstances, a 12% interest rate on a personal loan definitely qualifies as a good rate unless the borrower has nearly perfect credit. To guarantee that you will be able to qualify for an interest rate near 12%, you will need to have a good to excellent credit score of over 700 points.

Average personal loan interest rates by credit score

Individuals with excellent credit, which is defined as any FICO credit score between 720 and 850, should expect to find personal loan interest rates at about 9% to 13%, and many of these individuals may even qualify for lower rates.

Yes, 12% is a good personal loan rate because it is below the market average. Applicants with a credit score of 660 to 850 could qualify for a personal loan with a 12% APR if they choose the right lender and have enough income to afford the loan.

National average: As of February 28, 2024, the average APR for a personal loan in India stands at approximately 12.10%. While this serves as a useful benchmark, your creditworthiness may qualify you for a more favourable rate. Credit score: Your credit score has the most significant impact on your APR.

How do you know if the interest rate you're offered is good for you? A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit)

The majority of lenders state that their maximum personal loan amount is $50,000, though some will go as high as $100,000. Some borrowers—such as those who are wealthy and with high credit scores—might be able to borrow more.

Yes, an APR of 12% is a good credit card interest rate. However, you should still pay off your balance in full each month to avoid paying interest. If you are carrying a balance, consider a debt consolidation loan or a balance transfer offer.

Most personal loan lenders allow borrowers to pay off their loans early, without prepayment penalties. But before you dip into savings or use an influx of cash to pay off a loan, make sure all your financial bases are covered.

"12% interest" means that the interest rate is 12% per year, compounded annually. "12% interest compounded monthly" means that the interest rate is 12% per year (not 12% per month), compounded monthly. Thus, the interest rate is 1% (12% / 12) per month.

Key takeaways. Your credit card APR can go up if the prime rate changes, you paid your credit card bill late, your intro APR offer ended or your credit score dropped. If your APR increases, you can work on paying down your balance or transfer your balance to a card with a low or 0 percent intro APR offer.

Which bank is best for a personal loan? ›

The best personal loan rates start around 7%. Shop with multiple lenders to find the lowest rate. Many or all of the products featured here are from our partners who compensate us.

Yes, 13.00% is a good personal loan rate for people with good credit. Applicants with a credit score of 660+ could qualify for a personal loan with a 13.00% APR if they choose the right lender and have enough income to afford the loan.

Standard rates: In India, personal loan interest rates generally fall within the range of 10.50% to 24.00% per annum. Rate determinants: The interest rate you're offered is influenced by factors such as your credit score, income level, employer status, and various other considerations.