Compare personal loan rates across major countries including the US, UK, Canada, and Australia. Learn how APR works, where to find the lowest rates, and how to choose the best personal loan in 2026.
Money makes the world go round but borrowing it wisely matters even more. Whether you need funds for debt consolidation, emergencies, education, home improvement, or business needs, the interest rate you pay on a personal loan can make or break your financial plan.
Across countries like the United States, United Kingdom, Canada, Australia, and regions in Europe, personal loan rates vary widely based on credit score, lender type, loan amount, and economic conditions. In 2026, comparing rates has never been more important because even a small difference in APR can save borrowers thousands of dollars over the life of a loan.
This guide will help you compare personal loan rates globally, understand how APR works, evaluate the best lenders, and apply strategies to secure the lowest possible interest rate.
Check Also:Â Best Personal Loans in the UK: Compare Top Lenders, Interest Rates & How to Get Approved (2026)
Understanding Personal Loan Rates (APR Explained)
A personal loan rate is expressed as an APR (Annual Percentage Rate)—a standardized way to compare costs across lenders. APR includes:
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Interest charges
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Origination fees
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Other lender costs
APR gives you the true cost of borrowing, making it essential for rate comparison.
How APR Differs from Simple Interest
| Feature | APR | Simple Interest |
|---|---|---|
| Includes Fees | Yes | No |
| True Cost | Higher | Lower |
| Best for Comparison | Yes | No |
| Standardized | Yes | No |
Always compare APR, not just the nominal interest rate.
Global Personal Loan Rate Comparison (2026)
Below are average APR ranges for unsecured personal loans by region. These are estimates based on current market conditions and lender data.
| Country / Region | Typical APR Range |
|---|---|
| United States | 6% – 36% |
| United Kingdom | 3% – 29.9% |
| Canada | 6% – 35% |
| Australia | 5% – 25% |
| Germany & EU | 3% – 20% |
| Africa | 15% – 60% |
A loan is considered low interest if the APR is in the bottom third of the range for that region.
Personal Loan Rates by Credit Score
United States
| Credit Score | Estimated APR |
|---|---|
| Excellent (720+) | 6% – 12% |
| Good (680–719) | 10% – 18% |
| Fair (620–679) | 18% – 30% |
| Poor (<620) | 25% – 36% |
UK Personal Loan APR Bands
| Credit Tier | Typical APR |
|---|---|
| Excellent | 3% – 7% |
| Good | 7% – 15% |
| Fair | 15% – 25% |
| Poor | 25% – 49%+ |
Best Personal Loan Rates (Top Lenders by Country)
United States – Best APR Options
| Lender | APR Range | Loan Amount |
|---|---|---|
| SoFi | 8% – 25% | $5,000 – $100,000 |
| Discover | 6.99% – 24.99% | $2,500 – $40,000 |
| Marcus | 6.99% – 24.99% | $3,500 – $40,000 |
United Kingdom – Competitive Loan APRs
| Lender | APR Range | Loan Amount |
|---|---|---|
| Zopa | 2.9% – 34.9% | £1,000 – £25,000 |
| Barclays | 3.1% – 29.9% | £1,000 – £50,000 |
| HSBC UK | 3.2% – 29.9% | £1,000 – £25,000 |
Canada – Low APR Personal Loans
| Lender | APR Range | Loan Amount |
|---|---|---|
| RBC | 6% – 28% | CAD 2,000 – 50,000 |
| TD Bank | 7% – 30% | CAD 2,000 – 50,000 |
| Scotiabank | 6% – 28% | CAD 5,000 – 75,000 |
Australia – Best Personal Loan Rates
| Lender | APR Range | Loan Amount |
|---|---|---|
| Commonwealth Bank | 6% – 19% | AUD 2,000 – 50,000 |
| ANZ | 6.5% – 20% | AUD 5,000 – 75,000 |
| NAB | 7% – 22% | AUD 5,000 – 55,000 |
Online Loan Platforms (Global Rate Comparison)
| Platform | Countries | APR Range | Key Advantage |
|---|---|---|---|
| Upstart | US | 7% – 36% | AI underwriting |
| LendingClub | US | 8% – 35% | Peer-to-peer |
| RateSetter | UK | 3.5% – 29.9% | Flexible |
| PayPal Credit | Global | 10% – 29% | Fast access |
| Tala | Emerging | 15% – 60% | Quick mobile loans |
Why Loan Rates Differ (Key Factors)
1. Credit Score
Higher scores almost always equal lower APR.
2. Income and Stability
Steady income signals repayment ability.
3. Debt-to-Income Ratio
Lower ratios improve lender confidence.
4. Loan Amount & Term
Short-term loans are often cheaper.
5. Lender Type
Credit unions and peer-to-peer lenders often offer better rates than banks.
Low APR Loans: Who Qualifies?
Borrowers most likely to receive low rates typically have:
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Credit scores above 700
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Stable employment
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Low existing debt
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Good banking relationships
Borrowers with fair or poor credit may still qualify, but with higher APRs.
Secured vs Unsecured Loan Rates
| Feature | Secured Loan | Unsecured Loan |
|---|---|---|
| Collateral | Required | Not required |
| APR | Lower | Higher |
| Risk | High (assets at risk) | Lower |
| Best For | Large amounts | Flexible use |
Secured loans can have rates several points lower than unsecured ones, but carry asset risk.
Loan Fees That Affect APR Comparison
Some lenders charge:
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Origination fees
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Processing charges
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Early repayment penalties
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Late payment fees
Always compare total cost of credit, not just APR.
How to Compare Loan Rates Like a Pro
1. Use Loan Comparison Sites
Trusted sites include:
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NerdWallet (US)
-
MoneySavingExpert (UK)
-
RateSupermarket (Canada)
2. Pre-Qualify First
Soft inquiries won’t hurt credit.
3. Consider Loan Purpose
Debt consolidation loans often have lower APRs—
4. Read the Fine Print
Fees and repayment terms matter as much as APR.
Case Study: How APR Affects Total Cost
Borrower A:
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Loan: $10,000
-
APR: 8%
-
Term: 5 years
Total Interest: ~$2,165
Borrower B:
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Loan: $10,000
-
APR: 18%
-
Term: 5 years
Total Interest: ~$4,940
Difference: ~$2,775
Clearly, lower APR saves real money.
Frequently Asked Questions (FAQs)
What is a good personal loan rate?
For US borrowers, a rate below 12% APR is considered excellent; in the UK, below 7% is strong.
Why do interest rates vary so much?
Different lender policies, borrower risk profiles, and economic conditions.
Can I negotiate with lenders?
Some lenders review offers if you demonstrate better credit or income.
Do online lenders offer lower APRs than banks?
Often yes—especially for strong credit profiles.
Is APR the only cost to consider?
No; fees and loan terms also affect total cost.
Conclusion
Comparing personal loan rates is one of the most powerful financial decisions you can make. With countries like the US, UK, Canada, and Australia offering diverse loan products, knowing how APR works and where the lowest rates are available gives borrowers a real advantage.