If you need to borrow $10,000 for a big purchase or to accomplish an important financial goal, a personal loan can be one way to get the money you need. Personal loans usually have more affordable interest rates than credit cards and it may be easier to borrow $10,000 using a personal loan rather than a card, since your credit limit may not be that high.
Before you move forward with a $10,000 loan, though, you need to make sure you understand how much it will cost you.
Here's how much you'd pay each month for a $10,000 personal loan
The amount you will end up paying for a $10,000 personal loan is determined by your interest rate and the loan repayment timeline you choose when you borrow. The table below shows how much your loan might cost you at different rates (including the national average personal loan rate of 12.35%).
| 8.00% | 10.00% | 12.35% | 15.00% |
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Two-Year Repayment | $452.27/month,$854.55 in interest over time | $461.45/month,$1,074.78 in interest over time | $472.37/month,$1,336.90 in interest over time | $484.87/month,$1,636.80 in interest over time |
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Five-Year Repayment | $202.76/month,$2,165.84 in interest over time | $212.47/month,$2,748.23 in interest over time | $224.22/month,$3,453.03 in interest over time | $237.90/month,$4,273.96 in interest over time |
---|
Seven-Year Repayment | $155.86/month,$3,092.42 in interest over time | $166.01/month,$3,944.99 in interest over time | $178.40/month,$4,985.98 in interest over time | $192.97/month,$6,209.27 in interest over time |
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Data source: Author's calculations.
The longer the loan term, the higher the total interest costs -- but the lower the individual payments are. While it may be tempting to choose a loan with a long payoff period so it seems more affordable each month, this only increases the amount you're paying for your purchases over time.
How to make sure your loan is affordable for you
To make sure you are getting an affordable loan, take a look at both total costs and monthly payments. If the monthly payments don't fit into your budget, you shouldn't borrow. And if you aren't comfortable with the total costs -- after seeing interest tacked on -- you should also avoid borrowing.
Be sure to shop around carefully to get the best rate possible. The difference between a loan at 15% and a loan at 8% is huge, but even just jumping from 8% to 10% can add up -- especially if you're choosing a loan with a longer repayment timeline. Since your rate can vary from one personal loan lender to the next, you should try to get at least three or four different quotes before deciding which financial institution to borrow from.
Of course, you also want to make sure you're borrowing for a good reason that will improve your life in the long run, rather than for something that will be gone and forgotten before you have even finished paying for it!
Our picks for the best personal loans
Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.
FAQs
Here is an example, if you have a $10,000 personal loan with an interest rate of 6% and a repayment period of 24 months, and plug that into a loan calculator, you would get a monthly payment of $443.
How much would a $10,000 personal loan cost per month? ›
Here's how much you'd pay each month for a $10,000 personal loan
| 8.00% |
---|
Two-Year Repayment | $452.27/month, $854.55 in interest over time |
Five-Year Repayment | $202.76/month, $2,165.84 in interest over time |
Seven-Year Repayment | $155.86/month, $3,092.42 in interest over time |
Jan 17, 2024
How much is a 10 000 loan over 5 years? ›
Representative 6.1% APR, based on a loan amount of £10,000, over 5 years, at a Fixed Annual Interest Rate of 5.9358%, (nominal). This would give you a monthly repayment of £193.02 and a total amount repayable of £11,581.20.
What credit score do I need for a $10,000 loan? ›
To increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.
How hard is it to get a $10 K personal loan? ›
The main factor in determining if you qualify for a $10,000 personal loan is your credit history. You'll need a credit score of at least 670 before you apply. Lenders look at your debt-to-income ratio when deciding approval. A DTI ratio of 36% or lower is ideal.
Which bank has the lowest interest rate for a personal loan? ›
Starting at 9.47 percent, Bandhan Bank offers the cheapest interest rate on personal loans of Rs 1 lakh that come with a repayment tenure of four years. The equated monthly installment (EMI) will be Rs 2,592. Private sector lender IndusInd Bank offers an interest rate starting from 10.49 percent on personal loans.
What is the most common personal loan amount? ›
In general, personal loan amounts range from $1,000 up to $50,000, though some lenders may offer loans up to $200,000. The average personal loan amount was about $11,500 as of Q2 2023, according to data from TransUnion. Below, we look at how average personal loan balances vary by generation and state.
Can I borrow 10k from the bank? ›
Traditional banks, credit unions and online lenders are all likely to offer personal loans of $10,000. In fact, most personal loan lenders offer loans up to $50,000. You can typically apply online, even with traditional banks, which can make the process quick and convenient.
How much would a $8000 loan cost per month? ›
Example Monthly Payments on an $8,000 Personal Loan
Payoff period | APR | Monthly payment |
---|
12 months | 15% | $722 |
24 months | 15% | $388 |
36 months | 15% | $277 |
48 months | 15% | $223 |
3 more rowsAug 31, 2021
How much would a $5000 personal loan cost a month? ›
Advertising Disclosures
Loan Amount | Loan Term (Years) | Estimated Fixed Monthly Payment* |
---|
$5,000 | 3 | $153.54 |
$5,000 | 5 | $104.98 |
$10,000 | 3 | $313.32 |
$10,000 | 5 | $207.54 |
13 more rows
Easiest-to-get personal loans compared 2024
Title | APR | Min. credit score |
---|
BadCreditLoans.com | 5.99% to 35.99% | Undisclosed |
Upstart | 5.2% to 35.99% | 300 |
Avant | 9.95% to 35.99% | 580 |
LendingClub | 8.98% to 35.99% | 600 |
6 more rowsMay 7, 2024
Is $10000 considered a small loan? ›
Key takeaways:
And small loans generally range from $1,000 to $10,000 and can generally be obtained with lower interest rates than credit cards. Borrowers should shop around for lenders that offer loans in the size they need and understand the fees associated with taking out a loan.
What banks give personal loans? ›
Summary: Best Personal Loans From Banks
Company | Forbes Advisor Rating | Current APR range |
---|
U.S. Bank | 3.5 | 8.74% to 24.99% |
TD Bank | 3.5 | 8.99% to 23.99% |
Discover | 3.5 | 7.99% to 24.99% |
Wells Fargo | 3.5 | 7.49% to 23.24% |
2 more rowsMay 1, 2024
How to get 10k immediately? ›
Types of instant money loans
- Payday loans: Short-term loans typically repaid by your next payday.
- Personal loans: Unsecured loans with quick approval and disbursal, often used for various purposes.
- Emergency loans: Specifically designed for unexpected financial needs, with quick approval and funding.
What is a bad rate for a personal loan? ›
Average online personal loan rates
Borrower credit rating | Score range | Estimated APR |
---|
Excellent | 720-850. | 12.37%. |
Good | 690-719. | 14.87%. |
Fair | 630-689. | 18.40%. |
Bad | 300-629. | 21.93%. |
May 14, 2024
How to get a loan when no one will approve you? ›
If you need money fast, here are some alternatives to consider when you can't get a loan.
- Research peer-to-peer lending.
- Explore loans from friends and family.
- Look at pawnshop loan options.
- Compare credit card cash loans.
- Seek information about government assistance programs.
What is the average monthly payment on a $20000 personal loan? ›
Example Monthly Payments on a $20,000 Personal Loan
Payoff period | APR | Monthly payment |
---|
12 months | 15% | $1,805 |
24 months | 15% | $970 |
36 months | 15% | $693 |
48 months | 15% | $557 |
3 more rowsAug 31, 2021
How much is a monthly payment on a $8000 loan? ›
The monthly payment on an $8,000 loan ranges from $109 to $804, depending on the APR and how long the loan lasts. For example, if you take out an $8,000 loan for one year with an APR of 36%, your monthly payment will be $804.
What is the average monthly payment on a $5000 personal loan? ›
What is the monthly payment on a $5,000 personal loan?
Payoff period | APR | Monthly payment |
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1 year | 15% | $451 |
2 years | 15% | $242 |
3 years | 15% | $173 |
4 years | 15% | $139 |
3 more rows