Personal Loan Interest Rates - Latest Interest Rate in 2024 (2024)

FAQs

What will personal loan rates be in 2024? ›

This reflects an upward revision in Fannie's analysis: Two months ago, the mortgage giant expected rates would dip below 6% at the end of this year. All told, Fannie Mae predicts mortgage rates will average 6.6% in 2024 and 6.1% in 2025.

Average personal loan rates started at 10.37 percent in January 2023. Rates continued to climb all year and peaked at the end of December at 11.60 percent. Personal loan rates may drop if the Fed starts cutting rates in the second half of 2024.

When will interest rates go down? The Federal Reserve has indicated that there's a good chance it would cut rates later in 2024.

“The early 2024 expectations for sharp Fed rate cuts are now highly unlikely to happen,” says Selma Hepp, chief economist at CoreLogic. “As the economy continues to grow, we expect the Fed to keep rates higher for longer.

Fed Blames 'Lack of Progress' on Inflation. You'll likely pay more to borrow until at least 2025, but now may be the time to lock in higher savings rates.

Even if the Fed cuts rates later in the year, expect credit card interest and mortgage rates to remain high through the end of 2024. With APYs already on the decline for longer term CDs and some high-yield savings accounts, now is the time to lock in higher savings rates.

Consumers will be stuck staring at higher interest rates for longer, very likely well into the summer, now that the Fed took yet another pass on cutting interest rates in 2024.

Erinn Dimond, WalletHub Author Profile. Personal loan rates are so high because the Federal Reserve has increased its target interest rate 11 times since early 2022 in response to high inflation.

Which bank's personal loan interest rate is low? ›

Top 5 banks charge the lowest interest rates:

ICICI Bank: ICICI Bank charges anywhere between 10.65 to 16 percent per annum on loans. The loan processing charges of loan are up to 2.50 percent of loan amount plus applicable taxes. State Bank of India (SBI): SBI charges interest rate that starts from 11.15 percent.

Loan amount: The more you borrow, the more risk the lender takes in the event that you default. As a result, higher loan amounts may have higher interest rates. Repayment term: Longer loan repayment terms typically come with higher interest rates because of interest rate risk.

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) 580 to 669: Around 18% (look for loans for fair credit)

The high cost of borrowing is due to the Federal Reserve raising interest rates 11 times from March 2022 through July 2023. When the Fed started its tightening campaign, money was free. Its key short-term borrowing rate was 0%. Today, it's in a range of 5.25% to 5.5%, the highest level since 2001.