Average Personal Loan Rates, and How Far to Trust Them

The Federal Reserve's bank average

The G.19 Consumer Credit release reports how much consumer credit is outstanding and what commercial banks charge for it. Its personal loan figure is the average APR on a 24-month loan, stated under Regulation Z, so it includes required fees as well as interest.

Notice that the average rose by about three-quarters of a point over the year while prime fell by three quarters of a point. The Fed's rate is only the bottom layer of a personal loan APR; lenders' views of risk and their own costs moved the average more. In the same release, consumer credit grew at a seasonally adjusted annual rate of 4.2% in the third quarter of 2026.

How the G.19 number is measured, and its limits

The G.19 personal loan rate is a simple, unweighted average of each surveyed bank's most common rate on a 24-month loan during the first calendar week of the middle month of each quarter. The third-quarter 2026 figure therefore reflects early August 2026, before the Fed's September increase. The release comes out around the fifth business day of each month, with new rate data each quarter.

• Banks only. Credit unions, online lenders and finance companies are not in this average.
• One term. A 36- or 60-month loan is often priced differently from a 24-month one.
• Most common rate, not every rate. Borrowers with weaker credit pay more than the typical rate; the survey does not show the range.
• Unweighted. A small bank counts as much as a large one, whatever its volume.
• A lag. A rate surveyed in August is published in November.

Credit union and bank rates from NCUA

The National Credit Union Administration publishes a quarterly comparison of average rates at credit unions and banks, drawn from S&P Global Market Intelligence data on rates reported by active institutions for the last Friday of the quarter. The latest table on NCUA's site is for December 26, 2025.

On that date, credit unions averaged about 1.4 points less than banks for a three-year unsecured loan. Credit unions are nonprofit cooperatives, and federal credit unions face a loan rate ceiling set by the NCUA board. To borrow from one, you first need to be eligible for membership.

Why online lenders and finance companies often price higher

Many personal loans are made by online lenders and consumer finance companies, which the two official series above do not cover. Their APRs often run higher than the bank and credit union averages, for three reasons.

• A wider range of applicants. They approve more borrowers with fair or thin credit, and price each group for its expected losses.
• Market funding. Many fund loans by selling them to investors or partner banks or through asset-backed securities, which costs more than deposits when markets are cautious.
• Origination fees. A fee of several percent taken from the loan raises the APR above the interest rate.

A higher APR from an online lender is not a sign of a bad offer by itself. It may be the price of a faster decision or of approval at all. It is a reason to compare. More on the layers in how personal loan rates are set.

Reading a change in the average

Each new G.19 release adds one quarter. A move of a few hundredths, like the rise from 11.86% to 11.90% between the second and third quarters of 2026, is within the noise of a survey of the most common rate at a sample of banks. On a $10,000, 36-month loan it is worth about 20 cents a month.

Larger moves over several quarters say more. The rise from 11.14% to 11.90% over the year to the third quarter of 2026 is worth about $3.60 a month on the same loan, and it happened while the prime rate fell. That pattern points to lenders charging more for risk, not to the Fed. The Federal Reserve's survey of bank loan officers and the bank lending standards page show whether banks are also tightening who they approve.

The next quarterly reading, for the fourth quarter of 2026, will reflect early November, after the September increase and the October hold. Over the past year, Fed moves did not show up one for one in the average, and the gaps between lenders and between borrowers were far larger than any quarter's change.

How to use an average when you compare offers

1. 1 Line up APRs, not interest rates. The averages are APRs, and only an APR includes the fee.
2. 2 Match the term. Compare a 24-month offer with the G.19 figure and a 36-month offer with the NCUA figure, knowing each covers a different group of lenders.
3. 3 Read the gap. An offer within a point or two of the averages is in line with what banks and credit unions charge borrowers with strong credit. An offer far above it usually reflects your credit file, the fee or the lender's model.
4. 4 Price the difference in dollars. On $10,000 over 36 months, 12% costs about $332 a month; each point is roughly $4.80 a month or $170 over the term.
5. 5 Check the alternative. If you are paying off a card at 22.36%, even an offer well above the loan average may save money. See personal loan vs. credit card and the loan vs. card calculator.

Reader questions