Which bank personal loan interest rate is low?
The best personal loan rates are currently from 6.99% to 35.99%. Compare personal loan interest rates from online lenders, banks and credit unions. The lowest rates go to borrowers with strong credit histories, high incomes and low existing debt.
| PERSONAL LOAN - RATES AND CHARGES | ||
|---|---|---|
| Name of Lender | Interest rate (p.a %) | Processing fee (% of loan amount) |
| HDFC Bank | 10.50 onwards | Up to Rs 4,999 |
| Tata Capital | 10.99 onwards | Up to 5.5% |
| State Bank of India | 11.15-15.30 | NIL |
| Company | Forbes Advisor Rating | Current APR range |
|---|---|---|
| TD Bank | 3.5 | 8.99% to 23.99% |
| Discover | 3.5 | 7.99% to 24.99% |
| Wells Fargo | 3.5 | 7.49% to 23.24% |
| PNC Bank | 3.0 | Rates vary by zip code |
| INTEREST RATES | LOAN AMOUNTS | |
|---|---|---|
| PenFed | 7.99% to 17.99% | $600 to $50,000 |
| Prosper | 6.99% to 35.99% | $2,000 to $50,000 |
| LightStream | 7.49% to 25.99% | $5,000 to $100,000 |
| U.S. Bank | 8.74% to 24.99% | $1,000 to $50,000 ($25,000 maximum for non-U.S. Bank customers) |
The best personal loan rates are currently from 6.99% to 35.99%. Compare personal loan interest rates from online lenders, banks and credit unions. The lowest rates go to borrowers with strong credit histories, high incomes and low existing debt.
The bottom line. An excellent credit score, consistent income and low debt-to-income ratio are key to securing a low-interest personal loan.
You can negotiate a lower interest rate with your lender if you strategically pay off some of your current debt. Prepare a list of your debts and sort them in order of the interest rate they charge. Start by paying off the loan with the highest interest rate.
Based on the OneMain personal loan calculator, a $5,000 loan with a 25% APR and a 60-month term length would be $147 per month. The loan terms you receive will depend on your credit profile, including credit history, income, debts and if you secure it with collateral like a car or truck.
Personal loan rates range from around 7% to 36%, with the average hovering around 12-15% for a 3-year loan. A good interest rate on a personal loan is one that is lower than the national average. However, borrowers with excellent credit scores may qualify for even lower rates.
HDFC Bank offers pre-approved loans to customers in 10 seconds flat*. Non – HDFC Bank customers can get loans in 4 hours.
Are there 0% personal loans?
Zero-interest loans are typically facilitated through third-party lenders, not by the stores themselves. These lenders may have specific eligibility criteria that borrowers must meet to qualify for 0%-interest personal loans, such as a certain minimum credit score, income level, and employment history.
| Company | Forbes Advisor Rating | LEARN MORE |
|---|---|---|
| SoFi® | 4.0 | Compare Rates Via Credible.com's Website |
| LightStream | 4.0 | Compare Rates Via Credible.com's Website |
| LendingPoint | 4.0 | Compare Rates Via Fiona.com's Website |
| Upgrade | 3.5 | Compare Rates Via Credible.com's Website |
Unlike many banks, Bank of America does not offer personal loans. It has quite a few credit card options — and a small loan for unexpected expenses — but you will need to look elsewhere if you want to borrow a large personal loan.
Secured loans typically offer some of the lowest interest rates due to the collateral provided by the property. The loan is secured by the home, gold, or any vehicle, which reduces the risk for the lender.
How hard is it to get a personal loan from Chase Bank? Chase Bank does not offer personal loans. However, for other loan types like mortgages, auto loans or HELOCs, approval depends on several factors, including credit score, income, debt-to-income ratio and loan amount.
- Upgrade. : Best for poor credit.
- Prosper. : Best for peer-to-peer lending.
- LendingPoint. : Best for long repayment terms.
- Upstart. : Best for thin credit.
- Avant. : Best for fair credit.
- Oportun. : Best for small loans.
- LendingClub. : Best for co-borrowers.
- SoFi. : Best for discounts.
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)
Avoid loans with APRs higher than 10% (if possible)
“That is, effectively, borrowing money at a lower rate than you're able to make on that money.”
| FICO Score | National average mortgage APR |
|---|---|
| 640 to 659 | 8.019% |
| 660 to 679 | 7.589% |
| 680 to 699 | 7.375% |
| 700 to 759 | 7.198% |
People with higher credit scores tend to qualify for lower interest rates because they have a record of consistently paying back debts on time. Their proven history with credit is more desired by lenders, who are always looking to minimize risk.
How much is a $20000 loan for 5 years?
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
| Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
|---|---|---|
| $10,000 | 5 | $207.54 |
| $15,000 | 3 | $463.09 |
| $15,000 | 5 | $313.13 |
| $20,000 | 3 | $617.45 |
The monthly payment on a $6,000 loan ranges from $82 to $603, depending on the APR and how long the loan lasts. For example, if you take out a $6,000 loan for one year with an APR of 36%, your monthly payment will be $603.
LendingTree customer reviews are generally positive. As of the time of writing, the company has a rating of 4.6 out of 5 stars based on nearly 12,000 reviews on Trustpilot. Among these reviews, over 9,700 customers give it a five-star rating and another 12,260 give it four stars.
Generally, what's considered a bad interest rate is anything higher than 10%. Ideally, you want to get an interest rate that's below 5% — but with little or bad credit, that can be harder to achieve.
