Yusra3
VIP Contributor
As we head into 2024, the personal loan interest rate landscape continues evolving based on economic conditions and lending policies. Here are some key facts and statistics regarding current and projected personal loan rates:
• According to TransUnion data, the average personal loan interest rate in early 2024 is 11.22% for borrowers across all credit tiers.
• For those with excellent credit scores of 760+, benchmark rates on 24-month loans average around 8.19% from major lenders.
• Subprime borrowers with poor credit can expect to see personal loan APRs of 25% or higher from certain alternative lenders willing to work with riskier credit profiles.
• Fintechs and online-only personal loan providers tend to offer slightly lower average rates compared to traditional banks, thanks to modernized underwriting and lower overhead costs.
• Rate projections from the Federal Reserve indicate continued moderate increases of 50-100 basis points through 2024 as part of their efforts to tame persistent inflation.
While rates are elevated compared to recent years, the rise of fintech competition and data-driven lending models has helped expand affordable personal loan access for more borrowers. Diligent comparison shopping remains key to landing optimal rates aligned with one's creditworthiness.
• According to TransUnion data, the average personal loan interest rate in early 2024 is 11.22% for borrowers across all credit tiers.
• For those with excellent credit scores of 760+, benchmark rates on 24-month loans average around 8.19% from major lenders.
• Subprime borrowers with poor credit can expect to see personal loan APRs of 25% or higher from certain alternative lenders willing to work with riskier credit profiles.
• Fintechs and online-only personal loan providers tend to offer slightly lower average rates compared to traditional banks, thanks to modernized underwriting and lower overhead costs.
• Rate projections from the Federal Reserve indicate continued moderate increases of 50-100 basis points through 2024 as part of their efforts to tame persistent inflation.
While rates are elevated compared to recent years, the rise of fintech competition and data-driven lending models has helped expand affordable personal loan access for more borrowers. Diligent comparison shopping remains key to landing optimal rates aligned with one's creditworthiness.
