Personal loans are by far the easiest type of loan to get on the planet. Why? Because the interest rates that companies are charging on most of these loans is out of this world. It’s easy to lend money when you know that you can charge insane interest rates.

Would you loan me $5000 today If I would pay you $7000 in a few months? The crazy thing is that interest rates can be that high on some of the personal loans that are out there. A very common question that I see people ask is whether there’s such a thing as a low interest personal loan.

Honestly, there aren’t that many options out there unless you have some collateral. One of my close friends went into a bank not too long ago because she wanted to have some plastic surgery done. She thought that she would need a personal loan for that but figured out that taking out a loan on her car was a lot cheaper. The unsecured personal loan would have cost about 11% and she only ended up paying 7%.

While most personal loans carry interest that’s quite high, there are still some reasonable options out there. Most signature loans from banks will cost between 12% and 19%, depending on the loan market. They are going to run five or six percentage points higher than home loans (which are considered to be the most affordable loan-type that most people can get).

Low interest rate personal loans are going to usually run at about 15%. That doesn’t look that great when you compare it to an auto loan or a home loan, but looks REALLY good if you compare to a payday loan. Payday loans typically cost more than 1000% APR – ridiculous and should most definitely be illegal in my opinion.

Your best option is definitely to walk into a bank with collateral. If you have that option, you should. If you don’t, take a look at signature loans. I personally would highly encourage you to stay away from payday loans. The interest is ridiculous and will only hurt your chances at having a stable and secure financial future.