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It’s relatively simple to find personal loans $10,000, $25,000 or even $50,000 with reasonable interest rates. However, it’s not as easy if you need a $100,000 loan, as higher loan amounts are riskier for lenders. Personal loans aren’t secured by any collateral, so the amount you can borrow is generally limited.
The upside is that some lenders may be willing to approve you for a personal loan of $100,000, assuming you meet their requirements. You will likely pay a high interest rate on a personal loan of this size, so make sure you need the money and don’t have any better options to get it.
How to determine if you need a $100,000 loan
Even with inflation, $100,000 is still a large sum of money. There are few situations where taking out a personal loan and paying the high interest rate for a loan of this size is truly necessary.
First, consider if whatever you need the money for can wait. Saving up in advance can reduce the amount you need to borrow and the interest rate and fees you’ll have to pay. You may find over time as you save that you don’t need to spend the money you’d originally planned to.
If you truly need $100,000 right now, look into 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’s equity as collateral. If you need the money to start a business, a business loan may give you better interest rates and payment term options.
Requirements to receive a personal loan
Borrowers with excellent credit scores (720 or higher) have the best chance of getting approved for a $100,000 personal loan. You’ll also likely get the lowest interest rate the lender offers. If you don’t have excellent credit, it may not be possible to be approved for a $100,000 personal loan.
While lenders don’t publish their income requirements for loans of this size, it’s safe to assume that they’ll want you to have a high income to borrow $100,000 without putting up any collateral.
They’ll likely want a debt-to-income ratio below 36%, although some lenders will go higher. If you want to take out a $100,000 personal loan at 12 percent interest for five years, your monthly payment will be $2,224. If you have zero other monthly debts, you’d need to make $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 a car payment of $3,000, you’ll need a monthly income of $14,500 or more to be approved for a $100,000 personal loan with a five-year payment term and a 12% interest rate.
Beyond 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 forms of identification.
You’ll also need to provide proof of address through a utility bill, insurance statement, mortgage statement, lease agreement, bank statement or voter registration card.
Personal loan lenders that offer $100,000 loans
You can secure a $100,000 personal loan from a traditional bank or credit union and may have a better chance of being approved for a loan of this size if you already have a relationship with a bank. Online lenders are also a viable option. They often feature more flexible lending 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 autopay)||$5,000 – $100,000||Not disclosed|
|SoFi||7.99% – 23.43% (with autopay)||$5,000 – $100,000||680|
LightStream is a good fit for borrowers who prefer longer repayment terms. You’ll get up to 7 years to repay the loan, and the interest rates are some of the lowest you’ll find amongst 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 when you’ll incur the expense(s) to receive the loan proceeds.
SoFi is another fee-free lending 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 also can add a cosigner to your loan application to strengthen your approval odds. Unemployment protection is available to cover you if you lose your job and cannot make timely loan payments.
Costs of a $100,000 personal loan in the long term
Your borrowing costs are determined by the loan term and 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 630-689, and 30.25% for credit scores 300-629. While institutions don’t publish their interest rates for $100,000 personal loans it’s safe to assume they’ll 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 could look like on a 5-year $100,000 loan by credit rating:
- Excellent credit (11.62 percent interest rate): $2,205 monthly payment and $32,317.39 in total interest paid
- Average credit (18.85 percent interest rate): $2,586 monthly payment and $55,148.51 in total interest paid
- Bad credit (30.25 percent interest rate): $3,251 monthly payment and $95,042.74 in total interest paid
You can request a longer loan term if you’d prefer a more affordable monthly payment. However, lenders typically charge higher interest rates for extended repayment periods. Below are a few illustrative examples using a 7-year loan term:
- Excellent credit (11.62 percent interest rate): $1,745 monthly payment and $46,581.36 in total interest paid
- Average credit (18.85 percent interest rate): $2,152 monthly payment and $80,759.42 in total interest paid
- Bad credit (30.25 percent interest rate): $2,876 monthly payment and $141,594.81 in total interest paid
Although getting a $100,000 personal loan can be challenging, some lenders offer loans for this amount. Consider getting a quote from at least three, and compare the interest rates, loan terms and borrowing costs to find the best fit. Most importantly, look at your budget to determine if you can comfortably afford to make the monthly loan payments or if you should apply for a smaller loan.