What Is a Good Interest Rate on a Personal Loan in 2025?

Personal loan rates in 2025 range from around 7% to over 35% APR depending on your credit and the lender.

Average Personal Loan Rates by Credit Score

- Excellent (720+): 7%–14% APR

- Good (680–719): 14%–21% APR

- Fair (620–679): 21%–28% APR

- Poor (below 620): 28%–36% APR

APR vs. Interest Rate

The interest rate is what the lender charges to borrow money. The APR includes fees on top of the rate. Always compare APR, not just the interest rate.

Watch Out for Origination Fees

Some lenders charge 1%–8% of the loan amount as an origination fee. This comes out of your loan proceeds — meaning if you borrow $10,000 with a 5% origination fee, you only receive $9,500 but owe $10,000.

When to Walk Away

If you're offered a rate above 30% APR, consider alternatives: credit unions, secured loans, or building your credit score first.

Read Real Borrower Reviews

Rates are only part of the story. Some lenders advertise low rates but hit borrowers with hidden fees. Read what real borrowers say before you commit.