It is relatively simple to find personal loans of $10,000, $25,000 or even $50,000 with reasonable interest rates. However, it’s not as easy if you need a loan of $100,000, as higher loan amounts are riskier for lenders. Personal loans are not secured by any collateral, so the amount you can borrow is usually limited.
The upside is that some lenders may be willing to approve you for a $100,000 personal loan, assuming you meet their requirements. You’ll likely pay high interest on a personal loan this size, so make sure you need the money and don’t have better options to get it.
How to determine if you need a $100,000 loan
Even with inflation, $100,000 is still a lot of money. There are few situations where taking out a personal loan and paying the high interest rate on a loan of this size is really necessary.
First, ask yourself if what you need money for can wait. Saving in advance can reduce the amount you need to borrow as well as the interest rate and fees you’ll need to pay. As you save, you may find that you don’t need to spend the money you originally planned.
If you really need $100,000 right now, look for alternatives. If you have $100,000 of equity in your home, a home equity loan may be a good alternative as long as you are comfortable with the risks of using your home equity as collateral. If you need money to start a business, a business loan can give you better interest rates and payment term options.
Conditions to benefit from a personal loan
Borrowers with excellent credit scores (720 or higher) have the best chance of being approved for a $100,000 personal loan. You will also likely get the lowest interest rate offered by the lender. If you don’t have great credit, you may not be approved for a $100,000 personal loan.
Although lenders do not publish their income requirements for loans of this size, it is safe to assume that they will want you to have a high income to borrow $100,000 without providing collateral.
They’ll probably want a debt-to-equity ratio below 36%, although some lenders will go higher. If you want to take out a $100,000 personal loan at 12% interest for five years, your monthly payment will be $2,224. If you have no other monthly debt, you must be earning $6,200 per month or more for a debt-to-income ratio of 36% to be approved.
If, for example, you have a combined monthly mortgage and car payment of $3,000, you will need a monthly income of $14,500 or more to be approved for a $100,000 personal loan with a term of payment of five years and an interest rate of 12%. .
In addition to proof of income and employment, be prepared to provide proof of identity so the lender can confirm that you are who you say you are. In most cases, your driver’s license, state-issued ID, military ID, passport, birth certificate, or social security card will suffice. Most lenders require you to present two pieces of identification.
You will also need to provide proof of address through a utility bill, insurance statement, mortgage statement, rental agreement, bank statement, or a voter’s card.
Personal lenders who offer $100,000 loans
You can get a $100,000 personal loan from a traditional bank or credit union and have a better chance of being approved for a loan of that size if you already have a relationship with a bank. Online lenders are also a viable option. They often feature more flexible loan criteria and loan options, a simple application process, and fast funding times.
|APR range||Loan amount range||Minimum credit score requirement|
|LightStream||7.99% – 22.49% (with automatic payment)||$5,000 – $100,000||Not disclosed|
|SoFi||7.99% – 23.43% (with automatic payment)||$5,000 – $100,000||680|
LightStream is ideal for borrowers who prefer longer repayment terms. You’ll have up to 7 years to repay the loan, and the interest rates are among the lowest you’ll find among lenders offering $100,000 personal loans. Autopay discounts are also available and you can get funds the same day your loan is approved. LightStream also gives you the option to choose a date in the future that coincides with the date you will incur the expense to receive the loan proceeds.
SoFi is another no-fee loan option to secure a $100,000 personal loan. Borrowers can choose from several loan terms and access various educational resources to help improve their overall financial health. You can also add a co-signer to your loan application to boost your chances of approval. Unemployment protection is available to cover you if you lose your job and cannot repay your loan on time.
Costs of a $100,000 long-term personal loan
Your borrowing costs are determined by the term of the loan and the interest rate you receive. As of November 21, 2022, the average personal loan interest rate was 11.62% for credit scores 720-850, 14.50% for credit scores 690-719, 18.85% for credit scores credit 630-689 and 30.25% for credit scores 300-629. . Although institutions do not publish their interest rates for $100,000 personal loans, it is safe to assume that they will charge an even higher rate than average for such a large unsecured loan.
Here are some examples from our personal loan calculator of what your borrowing costs might look like on a $100,000 5-year loan by credit score:
- Excellent credit (Interest rate of 11.62%): $2,205 monthly payment and $32,317.39 total interest paid
- Average credit (interest rate of 18.85%): $2,586 monthly payment and $55,148.51 total interest paid
- bad credit (30.25% interest rate): $3,251 monthly payment and $95,042.74 total interest paid
You can request a longer loan term if you prefer a more affordable monthly payment. However, lenders generally charge higher interest rates for extended repayment periods. Here are some illustrative examples using a loan term of 7 years:
- Excellent credit (Interest rate of 11.62%): $1,745 monthly payment and $46,581.36 total interest paid
- Average credit (Interest rate of 18.85%): $2,152 monthly payment and $80,759.42 total interest paid
- bad credit (30.25% interest rate): $2,876 monthly payment and $141,594.81 total interest paid
At the end of the line
Although it can be difficult to obtain a $100,000 personal loan, some lenders offer loans for this amount. Consider getting a quote of at least three and compare interest rates, loan terms, and borrowing costs to find the best fit. Most importantly, review your budget to determine if you can comfortably afford the monthly loan payments or if you need to apply for a smaller loan.