By tracking your average personal loan fees, you can know how much you pay for your personal loan for debt settlement, home improvements, emergencies, or other financial goals that require quick funds with fixed monthly payments. In many cases, they are often well below the average credit card fee, and as long as you qualify for these average rates, personal loans are the best choice for credit card debt consolidation.
The current average personal loan interest rate is 12.58%.
– Bankrate monitor data for May 28, 2025
If you are very price conscious, it is also important to track how the lowest available rates are trending. If you have great credit and know which lenders offer the best rates, you can qualify for a lower rate than your current home equity or HELOC rate. Knowing the average and lowest fees gives you the information you need to make the best borrowing decision for your finances.
Average personal loan rate for May 2025
According to Bankrate Monitor data, as of May 28, 2025, the average personal loan rate for customers with a 700 FICO score, $5,000 loan amount and three-year repayment period is 12.58%. Rates vary based on your credit score, loan duration, loan amount, and the type of lender you choose.
Bankrate Monitor’s research collects fees from the 10 largest banks and rifs in the 10 largest markets in the US.
Typically, the average rates at banks and credit unions are lower compared to online lenders and market lending sites like Bank Rates. However, some online lenders offer very low rates to borrowers with excellent credit who are eligible for short-term (usually three years).
If you are unsure of your qualifications, consider getting a qualifying offer in advance on personal loan market sites like Bankrate. With some basic information about your loan amount, credit score, and loan duration, you may be able to match a few different lenders. You can line up and see which offers are best for you.
Average personal loan interest rates by lender type
Typically, the average rates at banks and credit unions are lower compared to online lenders and market lending sites like Bank Rates. However, some online lenders offer very low rates to borrowers with excellent credit who are eligible for short-term (usually three years).
If you are unsure of your qualifications, consider getting a qualifying offer in advance on personal loan market sites like Bankrate. With some basic information about your loan amount, credit score, and loan duration, you may be able to match a few different lenders. You can line up and see which offers are best for you.
Average personal loan interest rates from online lenders
Bankrate Reviewed lenders have the lowest available rates just below 6.5%, with a highest of nearly 36%.
One thing to note when it comes to online lenders is the fee. They will also be 12% of your loan amount and will be deducted from your loan income before you receive your money.
Therefore, it is important to check your annual rate (APR) with the personal loan offers you received. This reflects the total cost of the loan, including fees. If you are eligible, try choosing an online lender who won’t charge the original fee.
APR is the scope of bank rate reviewed online lenders
Average personal loan interest rates from banks
Recent data from the National Credit Union Agency shows that the average financial ratio for personal loans offered by commercial banks is 12.03% over a three-year term.
Typically, you need a high credit score and a solid work history to get approval for a personal loan from a bank. However, banks may offer competitive fees for loans protected by a portion of their savings deposits.
Funding Bank APR Scope
Average personal loan interest rates from credit unions
According to NCUA data, the national average rate for three-year personal loans at credit unions was just 10.75% in the first quarter of 2025. The average maximum fee is significantly lower than that of banks and online lenders (in fact, federal credit unions legally close at 18%), and it’s worth researching if you’re eligible for membership.
A recent personal loan shopping report by bank rate experts found that credit unions tend to offer slightly lower rates over the long term. Also, you don’t usually pay. This means maintaining your APR, keeping the estimate rate the same, and bringing home all the money you borrow.
Funding Credit Union APR Scope
Lowest personal loan rate
If you have good credits, you may qualify for a rate that is significantly lower than the overall average of the Bank Rate Monitor. The median provided by lenders we track has increased a small percentage point since January, but the lowest available rates have fallen.
| date | Median minimum speed* | Lowest available rates* |
| 5/7/25 | 8.99% | 6.49% |
| 4/30/25 | 8.99% | 6.49% |
| 3/26/25 | 8.99% | 6.49% |
| 2/26/25 | 8.99% | 6.70% |
| 1/29/25 | 8.99% | 6.94% |
| 1/1/25 | 8.83% | 6.94% |
How to get the lowest available personal loan fees
The average fee for personal loans provides an idea of ​​the interest rates paid by the average consumer. However, if you are in a good credit category and require the lowest possible rate, be aware of changing the minimum fee instead.
There are several steps to get the lowest personal loan fees so you can be in the right place at the right time.
- Please check the rate page periodically. We have a team of experts tracking the rates of dozens of lenders each day, making sure you see the latest rates they have.
- Keep your credit score in the shape of a tip top. To minimize credit card usage, avoid temporary, but large scores and chase travel and cashback rewards.
- Don’t wait if the required rate is displayed. Lenders will frequently change rates based on factors beyond your control. If you see personal loan fees that will help you achieve your financial goals, apply them earlier than later.
Is the average personal loan fee high?
Based on your personal loan rate forecast for 2025, good credit borrowers may be rewarded with lower interest rates this year.
The rate is slightly lower, everything else equals, and there is good credit for borrowers.
– Greg McBride, CFA, Bankrate Chief Financial Analyst
But McBride warns that current rates could be driven more by lenders provided by lenders than any action the Federal Reserve has taken. In other words, individual loan fees may vary significantly based on whether you choose a bank, credit union, online lender, or a market lender, such as a bank rate.
How to use the average personal loan fee to determine which personal loan is best
When deciding whether a personal loan is the best funding choice for you, there are several different ways to see the ups and downs of the average personal loan rate.
- Determine if credit card integration makes sense. Compare the average personal loan rates and average rates on your credit card to see if your debt consolidation loan is worth it.
- To the person the lender lends. If the average is falling, it may be a sign that lenders may prefer borrowers with higher credit scores than they currently have. If they are rising, lenders may open more options for fair or bad credit borrowers.
- To see signs that good credit interest rates are falling. If you shop at a certain rate, a decrease in the average can mean that your lender is giving more loans to a good credit borrower. That’s a good time to check the minimum fees and see if they’ve dropped.
Conclusion
If you like what you’re looking, it may come time to see what kind of loan offers you can get. Follow standard financial principles such as paying bills on time, minimizing credit card usage, and avoiding lenders who charge high fees.
If your finances are in good condition, you have a better shot at qualifying for a low-interest personal loan. Please note the lowest rates available for the occasion. With a little care, your personal loan rate may be lower than your neighbor has entered his home equity renovation loan.