How to Get a $25,000 Personal Loan

Debt consolidation, home renovations, weddings, major medical procedures — these are all expenses that could cost $25,000 or more. In fact, the average debt consolidation loan approved through Credible was almost $25,000 in February 2025. But most Americans don’t have that kind of money just lying around. 

If you need $25,000, one option is to get a personal loan. Below, we’ll cover where and how to get a $25,000 personal loan, plus some alternative funding sources to consider.

Where to get a $25,000 personal loan

The easiest, most accessible way to get a $25,0000 personal loan is often through an online lender — but you can also try a bank or credit union, which may offer advantages for existing customers or members.

Compare lenders offering $25K personal loans

Online lenders

Online personal loan lenders tend to have lower overhead costs than banks, and may pass along the savings to borrowers through lower interest rates and fees. Plus, some online lenders are willing to work with borrowers who have fair credit, poor credit, or no credit history, although good-credit and excellent-credit borrowers typically get the best interest rates.

“The process of finding and getting approved for a loan online is easier because of the automated underwriting process,” says R.J. Weiss, certified financial planner and founder of The Ways to Wealth. “A lot of smaller banks and credit unions will flat-out deny those with certain risk characteristics. However, an online lender often has softer criteria for getting approved — although they likely charge a higher interest rate for these riskier loans, as the negative impacts of losing one loan isn’t as impactful on their bottom line than at a small credit union.”

You can use an online personal loan marketplace like Credible to compare multiple lenders and prequalify to get an idea of interest rates and terms they might offer. These one-stop-shopping marketplaces can speed up the process. Just keep in mind that the rates and terms of a loan offer may vary from the results you see in prequalification, which isn’t an offer of credit.

Check Out: How to Get a Personal Loan Using Credible’s Marketplace

Banks

Some banks have online lending options, but you can also visit a branch office in person to apply for a personal loan. You might not need to be an existing customer to get a personal loan, but funding may take longer if you bank elsewhere.

Some banks, such as Chase, don't offer personal loans at all. Wells Fargo offers personal loans only to existing customers who've had an open account for 12 months or more.

Learn More: Best Banks for Personal Loans

Credit unions

Another way to get a personal loan is through a credit union. The caveat here is that you typically need to be a member of a credit union to be approved for a loan.

At both banks and credit unions, you typically need stronger credit to qualify.

“Banks and credit unions are also under more strict compliance requirements than online lenders, so there are simply risks they can't take based on certain risk profiles,” says Weiss.

Read more: Best Credit Unions for Personal Loans

How to compare $25K personal loans

The easiest way to compare $25K personal loans is to use an online loan marketplace, which can show you multiple loans in one place. But what factors should you consider when looking at lenders side by side?

1. APR

A primary consideration when selecting a personal loan is the total cost of borrowing, expressed as annual percentage rate (APR). APR includes a loan's interest rate and any upfront fees, like an origination fee.

Personal loan rates usually range from around 7% to 36%. Borrowers with better credit scores tend to qualify for lower rates. Choosing a personal loan with a lower APR could save you a lot of money on interest over the course of the loan term.

2. Fees

While you can find personal loans without origination fees, some lenders charge this fee to cover the cost of processing and funding the loan. An origination fee is typically a percentage of the amount borrowed — up to 12%, depending on the lender — and is usually deducted upfront from your loan.

For instance, a 5% origination fee on a $25K loan would equal $1,250. Deducted upfront, the fee would reduce the amount you receive to $23,750.

Other fees to consider include late fees and prepayment penalties. Fortunately, prepayment penalties on personal loans are rare, and you can save money on interest by paying off a loan early.

Still, review your loan agreement carefully before signing to determine which fees, if any, your lender may charge.

Explore: Best Personal Loans With No Origination Fee

3. Eligibility requirements

Eligibility requirements for personal loans vary by lender. For instance, some lenders have credit score requirements. Look for a lender's minimum credit score on its website or contact customer service. If your credit score is lower than the lender's minimum, you should probably move on to the next lender on your list.

To find out what your credit score is before you start comparing lenders, you can use Credible's fee credit monitoring tool. Also, check to see if your bank or credit card issuer offers access to your credit score.

Other eligibility requirements may include:

• Income and employment: Some lenders may require employment or a minimum income.
• Debt-to-income ratio: Lenders may also look at your total monthly debts compared to your monthly income, called your debt-to-income ratio (DTI). If you have too much debt for your income already, you may not qualify. For personal loans, lenders typically prefer a DTI below 36%.
• Location: Some lenders may operate only in certain states.
• Age and citizenship or residency: Lenders typically restrict loans to borrowers of legal age, which is 18 in most cases. Although U.S. citizenship is a common requirement, some lenders offer personal loans for non-citizens.

4. Repayment terms

Repayment terms for personal loans vary by lender, but they typically range from one to seven years.

The repayment term you choose has a big impact on the size of your monthly payment and the total amount you'll save on interest. By narrowing your list down to lenders with more flexible terms, you'll have more options to customize the loan to your liking.

5. Monthly payment

When you prequalify with certain lenders, you'll be given an estimated APR. Knowing that you want to borrow $25K, you can input those data points into a personal loan calculator and see how various loan terms will affect your monthly payment.

If the APR and loan terms offered by a lender aren't flexible enough to keep your monthly payment at a price you can afford, remove that lender from consideration.

6. Total repayment costs

A great way to compare two or more personal loans is to calculate the total repayment costs. For instance, one loan may look better because it has a slightly lower APR than another. However, if that loan's repayment term is a year or two longer than the other loan, you may wind up paying more in interest.

For each lender you're considering, use the APR, repayment term, and loan amount ($25K) to calculate how much you'll pay in interest over the life of the loan.

What is the cost to repay a $25,000 loan?

How much it costs to repay a $25,000 personal loan depends on the APR and the repayment term. A lower APR means you'll spend less on interest. A longer repayment term means lower monthly payments, but you'll pay more in interest over the life of the loan.

The table below shows how various interest rates and term lengths impact the total interest cost of a $25,000 loan:

How to get a $25,000 loan

Getting a $25,000 personal loan is a fairly easy process, assuming you meet all the eligibility requirements. Here are the steps to get a $25K loan:

Check your credit score and credit report

Before searching for lenders for a $25,000 personal loan, review your credit score and credit report. Because many lenders have minimum credit score requirements, you don't want to waste time researching lenders you won't qualify with. You can check your credit report for free at AnnualCreditReport.com and look for errors that could be bringing your credit score down.

Calculate estimated monthly payments

You can use online personal loan calculators to input your borrowing amount ($25K), ideal number of years to repay the loan, and estimated APR to calculate a potential monthly payment. During this exercise, adjust the repayment term and APR up and down to see how these factors affect your monthly payment cost. Find a combination of APR and repayment term that would leave you with a monthly payment you can comfortably afford.

Research and compare options

Don't just go with the first lender you see. Use an online loan marketplace to compare multiple loan options. It doesn't take long to review a handful of lenders' APR ranges, credit score requirements, origination fees, and term lengths to see which might be the best choice for you.

If you're not in a major rush, you can also check local banks and your credit union if you belong to one.

Prequalify with several lenders

Many lenders let you prequalify online with only a soft credit check, which has no impact on your credit score. Getting prequalified with a few of your top choices will allow you to better compare the lenders. You'll have hard numbers to look at and see which option will give you the lowest interest costs over the life of the loan or the most manageable monthly payment.

Prepare documentation

For your formal personal loan application, you'll need to provide some documentation that proves your financial situation. You'll generally need the following:

• Proof of identity, like a photo ID or passport
• Proof of income, like tax returns, bank statements, and recent pay stubs
• Proof of employment, like your employer's contact info
• Proof of address, like a recent utility bill
• The information for the bank account in which the funds will be deposited

Pick a lender and apply

Once you've chosen the best personal loan for your needs and gathered the documentation, you can formally apply using the online application form. If you're working with a brick-and-mortar institution, you can fill out a form at the physical branch.

Learn More: How To Apply for a Personal Loan

Review the loan agreement

If you're approved for the loan, take time to review the APR, fees, and repayment terms in the loan agreement. Remember that the terms of the loan offer may differ from your prequalification estimates.

Sign loan agreement and start repayment

If everything looks good to you, sign the loan agreement digitally (physically if working with a local branch) and wait to receive the loan proceeds. As soon as you get the $25,000, log in to your personal loan account and set up automatic payments (or set reminders to ensure you make your payment on time each month).

Learn More: How To Compare Personal Loans

Alternatives to a $25,000 loan

Taking out a $25,000 personal loan can serve several purposes, from debt consolidation and home renovations to funding vacations and covering emergency expenses. However, there are several personal loan alternatives to consider before applying:

Home equity loan or HELOC

If you're a homeowner, you can potentially borrow against your equity with a home equity loan or home equity line of credit (HELOC). Of course, you'll need to have built up enough equity to qualify; lenders commonly require at least 15% to 20% equity.

• Home equity loans are typically fixed-rate loans that provide a lump sum upfront. Home equity loan interest rates are usually lower than personal loan interest rates, and repayment terms can stretch longer than personal loans, sometimes up to 30 years.
• Home equity lines of credit have a draw period during which you can borrow money as needed, up to your limit. If you know you just need $25K right now and won't need more down the line, you can stick with a home equity loan. But if you may need more than the initial $25K, it may be worth checking out a HELOC instead.

While a common reason to tap into your home equity is to perform home renovations, these loans can be used for almost anything, much like personal loans.

That said, just because you're doing home renovations doesn't mean you have to fund them with your home's equity. Home equity loans and HELOCs have closing costs and typically take longer to fund than personal loans.

“A personal loan can be a better option for small home improvement projects,” says Annette Harris, Accredited Financial Counselor and founder of Harris Financial Coaching. “I used a personal loan for a bathroom renovation that cost less than $20,000, and I was able to pay it back within two years since I didn't use the full loan amount. This was a great decision because I wanted to avoid borrowing against the equity in my home or dealing with the hassle of closing costs and other fees.”

Medical payment plan

If you're looking for a $25K loan to cover serious medical debt for you, a family member, or even a pet, an alternative is to ask the healthcare provider if they can set up a payment plan.

Sometimes, medical payment plans are interest-free; other times, they may be interest deferred — as long as you pay off your debt in the allotted timeframe, you won't have to pay that interest.

Savings account

If you are taking out a $25K loan to cover a big discretionary expense, such as a wedding or vacation, you could instead save aggressively in a high-yield savings account, then use the money when you've saved up enough.

For instance, if you open a savings account earning 3% APY with an opening deposit of $1,000 and continue to contribute $1,000 a month, you could save $25K in two years.

If you need $25,000 immediately, however, this is not a viable option unless you've already built up an emergency fund large enough to cover the cost. That said, if you have some money in savings, you could use that to cover as much of your expense as possible, and then take out a smaller personal loan to cover what's left.

Credit card

If you have good or excellent credit and a top-tier credit card, it's possible your credit limit may be (or exceed) $25,000. In that case, you could pay with a credit card, assuming the merchant accepts card payments.

However, your credit card interest rate may be significantly higher than a personal loan rate. According to the Federal Reserve, the average credit card interest rate is 21.47%, compared with an average 12.32% interest rate on two-year personal loans. Unlike personal loans, many credit cards have variable interest rates.

Learn More: Personal Loan vs. Credit Card: Which Is Better?

Family loan

If you have poor credit and are having trouble getting approved for a $25K loan, consider asking a family member or friend for a loan.

Borrowing money from loved ones can be challenging. Here are some tips for requesting and managing a family loan:

• Compose a written loan agreement that outlines the loan amount, interest rate (if any), and repayment terms.
• Since a $25,000 personal loan exceeds the IRS threshold for so-called gift loans, the family member loaning you the money may have to charge interest based on applicable federal rates and report the interest as taxable income.
• If the family member decides to simply give you $25,000 instead of loaning it to you, they should report the gift to the IRS. The annual gift exclusion for 2025 is $19,000.

Learn More: 9 Personal Loan Alternatives