Credible takeaways
- Loans of $45,000 are available through personal loans, home equity loans, 401(k) loans, and more.
- You can find them at banks, credit unions, and online lenders.
- Shopping around and comparing quotes can help you find the best deal and save money on borrowing costs.
If you’re in need of a $45,000 loan, you likely have options. Personal loans tend to range from $600 to $50,000 (sometimes more), depending on the lender, while some types of secured loans can range even higher, depending on the asset securing them.
That said, lenders won’t extend a $45,000 loan without reasonable assurance that the amount will be repaid. Read on to learn the ins and outs of $45,000 loans and how to get one.
Types of $45,000 loans
If you're in the market for a $45,000 loan, a personal loan or home equity loan are the most likely candidates. But they're not necessarily your only options.
Personal loans
Personal loans are term loans that offer a lump sum upfront that you repay through a series of fixed payments over a set period of time.
They’re often unsecured — meaning you don’t have to pledge an asset as collateral — so approval hinges on your credit and income.
You can apply online and typically have the funds in your account within one to three business days after approval. Along with the loan amount, you’ll be required to pay interest and possibly fees.
Personal loan annual percentage rates (APRs) range from around 6% to 36%, depending on your credit history and financial profile.
Compare: APR vs. Interest Rate on Personal Loans
Home equity-secured loans
If you’re a homeowner and have enough equity, you may be able to borrow against it through a home equity loan, home equity line of credit (HELOC), or a cash-out refinance.
If you do so, the loan is secured by your property, which can result in lower interest rates and more flexible eligibility requirements relative to most personal loans.
On the other hand, home equity loan products may have expensive closing costs (up to 2% to 5%, in some cases), and can take more than a month to close. If you default, you risk losing your home.
Note
You’re typically limited to borrowing no more than 80% of your home’s equity. So if your home is worth $500,000, and your mortgage is $250,000, the maximum you could borrow would be $150,000 (80% of $500,000 is $400,000, the total of the two loans).
Borrow against your 401(k)
If you have a 401(k) account, you may be able to borrow up to 50% of your vested account balance or $50,000, whichever is less, typically for up to five years (an exception to this term limit is if the loan is used to purchase a primary residence).
Rules can vary between plan providers, however. The interest rate on these loans is usually the prime rate (currently 8.50% as of January 2024) plus 1% to 2%, with the interest paid back into your account.
A 401(k) loan doesn’t require a credit check or impact your credit reports, so if you’re struggling to qualify for a traditional loan, this could be a good alternative. On the downside, leaving or losing your job could cause the loan to become due in full immediately.
And if you default, the unpaid amount will become a taxable plan distribution. Further, if you weren't at least 59 ½ when you received the loan and don’t qualify for an exemption, you’ll owe an additional 10% early withdrawal penalty.
Compare: 401(k) Loan vs Personal Loan
Tip
The IRS and some plans allow for the following exception: If 50% of your vested balance is less than $10,000, you can borrow up to $10,000.
Borrow against your life insurance policy
Another option is to borrow against a permanent life insurance policy — if you have one.
You may be able to do so if your cash value is high enough to secure the loan you want. In some cases, there’s a waiting period of a few years before the loan option becomes available.
If you take out a life insurance loan, you’ll be charged interest according to the rate in your contract.
But if you don’t repay the full amount before passing away or surrendering the policy, the outstanding amount could be deducted from the death benefit or cash value, respectively.
Warning
If you don’t make sufficient payments on a life insurance loan, the interest could diminish your cash value such that the policy not only loses value, but could lapse. In this case, the loan would be treated as a withdrawal and subject to income tax.
Where to get a $45,000 loan
You can find a $45,000 loan from a variety of financial institutions, including banks, online lenders, and credit unions.
Banks
Banks are institutions licensed to accept deposits and make loans. They range from small community operations to nationwide behemoths like Chase and Bank of America, and typically offer personal loans as well as home-equity based loans.
While large banks often have stricter requirements and automated processes that allow them to operate at scale, smaller banks tend to form more personal connections with bank members and may have more flexible loan approval processes.
Compare: Best Banks for Personal Loans
Credit unions
Credit unions are member-owned financial institutions. Instead of operating for profit, the profits are paid out to members as dividends. As a result, these institutions often offer very competitive interest rates on loans.
You’ll have to join a credit union to take out a loan with it, however. And some have more exclusive membership requirements than others, such as requiring members to be part of certain organizations or live in certain areas.
Compare: Best Credit Unions for Personal Loans
Online lenders
Online lenders are financial organizations that offer loan products online — they don’t have brick-and-mortar locations and may partner with banks to make loans.
Many have cropped up over the past decade or so, resulting in a wide range of offerings that vary in terms of loan amounts, eligibility requirements, rates, and terms.
Borrowers with good to excellent credit (a FICO score of 670 or higher) can often find competitive loan offers.
On the other hand, those with fair to poor credit will be more limited. If your score is low, you still may be able to get approved for a bad credit loan, but you’ll likely pay a higher rate.
Learn More: Best Online Loans
You can often prequalify with a personal loan lender to get an idea of what rates, terms, and amounts you may be eligible for, without hurting your credit.
Prequalification is not an offer of credit, however, and your final rate may differ. When you proceed to formally apply for a loan, the lender will conduct a hard credit pull, which will temporarily lower your score by a few points.
How to get a $45,000 personal loan
If you’re interested in getting a $45,000 personal loan but aren’t sure where to start, follow these steps.
1. Check your credit
To ensure your credit is in good shape and nothing erroneous is bringing it down, check your credit report before looking for a loan.
If you find any errors, contact the credit bureaus to get them fixed. Additionally, look for opportunities to quickly boost your score, such as paying down a maxed-out credit card balance.
2. Shop around and collect quotes
The next step is to shop around. Most lenders allow you to fill out a short form to check if you prequalify.
If you do, you’ll get quotes that include estimates of the loan amounts, terms, borrowing costs, and monthly payment amounts you may be eligible for.
Collect quotes from various lenders — prequalify if lenders offer it — and compare them to find the best deal.
3. Choose a lender
When comparing quotes, you’ll want to consider various factors, including:
- Loan amount: The amount each lender may offer you. Is it enough?
- APR: The annual percentage rate (APR) represents the cost of each loan per year, based on its interest rate and upfront fees. The lower, the better.
- Fees: The fees associated with the loans. Lenders frequently charge upfront fees, like origination fees, but may also charge late fees. Which lender offers the lowest costs?
- Loan term: The amount of time you’ll have to repay each loan. Does the repayment term fit well with your timeline and budget?
- Monthly payment: The amount you’ll have to pay per month throughout the loan term. Does it fit into your budget?
- Overall cost: The total cost of the loan, including interest and fees. Which loan is the most affordable?
- Reviews: Read feedback from past borrowers. Does the lender fare well? Are past borrowers satisfied?
Good to know
When comparing loan options, be sure to compare APRs. This includes both the interest rate and any upfront fees, such as origination fees, that could add to your cost of borrowing.
Learn More: How To Compare Personal Loans
4. Complete the application
Once you’ve compared the quotes and found the best deal, fill out the full loan application. You’ll often need to allow a hard credit check and verify the information you shared during the prequalification process.
For example, a lender may request pay stubs to verify your income. If you are approved, the lender will provide you with your official loan offer. If all looks good, sign the contract.
5. Get the loan
After you’ve signed the contract, the lender will send the loan funds to your account. The amount of time it takes to get to you will depend on the processing times of your lender and bank.
$45,000 loan payment
How much can you expect to pay per month on a $45,000 personal loan? It will depend on the loan's repayment term and the interest rate. Longer terms and lower interest rates can both result in lower monthly payments, though in the case of a longer term, you’ll likely pay more in interest over time.
For example, if you have a 640 credit score and are approved for a three-year personal loan at an average interest rate for that term and score, the APR would be 27.23%.
At this rate, your monthly payment would be around $1,843. On the other hand, if your credit score is 700, the average rate is 21.84% which would result in a monthly payment amount of $1,715.
Below, find additional examples of how credit scores and loan lengths can impact the monthly payment amounts on a $45,000 loan. You can also use a personal loan calculator to see both the monthly payment amount and total interest costs of the loans you’re considering.
Three-year loan repayment
Five-year loan repayment
Personal Loans Calculator
If you decide to take out a personal loan, use a personal loan calculator to determine interest charges over time.
FAQ
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