How Much Does a $5,000 Personal Loan Really Cost?
Summary
Learn how much a $5,000 personal loan might cost — including what affects your interest rate — to help you choose what works best for your financial goals.
In this article:
Personal loans can be a useful way to consolidate debt, handle both planned and surprise expenses or make larger purchases. When you take out a personal loan, the cost of the loan depends on its interest rate, fees and loan terms. Your regular monthly payments will cover the borrowed amount (the principal) plus interest (the cost of borrowing money) and any fees. That means you’ll pay more than the amount you borrowed — so if you take out a $5,000 loan, you’ll end up paying more than $5,000.
What is the interest rate on a $5,000 loan?
Loans of all sizes have different interest rates and annual percentage rates (APRs). Your APR is the yearly cost of borrowing money, including interest and any additional fees. While your loan amount could play a role in determining your interest rate, it’s not the only factor.
Here are some factors that can determine your interest rate:
Your credit score: Lenders generally look at your credit score, which is a number that helps lenders gauge how likely you are to repay the loan based on your financial history. Interest rates may be higher for people with less-than-perfect credit scores because the lender wants to compensate for the risk they take when they lend them money.
Your debt-to-income ratio (DTI): Your total monthly debt payments divided by your gross monthly income determine your DTI, which is another factor that signals your creditworthiness to lenders.
Secured vs unsecured loans: A secured loan requires you to use something valuable, like a car, as collateral. If you don’t repay the loan, the lender may reserve the right to take the collateral. Providing collateral can boost your borrowing power, potentially improving your approval odds or helping you qualify for a higher loan amount or a lower interest rate.
An unsecured loan, on the other hand, doesn’t require any collateral. Instead, the lender reviews your credit history, income, and other financial details to decide if you qualify. The interest rate on an unsecured loan may be higher than a secured loan.
The Federal Funds rate: You’ve probably heard of “The Fed” and the interest rate. It’s a complicated relationship, but the Federal Reserve’s interest rate sets a benchmark for banks lending to one another, and influences the rates banks and other lenders then charge consumers.
Is $5,000 a low amount for a loan?
In February 2025, the average amount of a newly issued, unsecured personal loan in the U.S. was $7,444.1 So, $5,000 may be considered average, if not below average, for a new personal loan. For example, OneMain offers personal loans from $1,500 to $20,000.
What is the monthly payment on a $5,000 loan?
Your monthly payment on a $5,000 personal loan depends on the loan term and your APR.
You can use OneMain’s personal loan calculator to see what you might expect to pay. For example, a $5,000 loan with a 20% APR and a 60-month term would have an estimated monthly payment of $132.
Is it hard to get a $5,000 loan?
Many of the factors that determine your interest rate and payments on a $5,000 loan will also determine your likelihood of getting approved for a loan. Your credit score, DTI, income, and the size and type of loan could all play into a lender’s decision. If you show lenders that you have the means to repay your loan and a responsible history of paying what you owe, you may find it easier to get approved for a $5,000 loan.
How to get a $5,000 personal loan
The first step to getting a personal loan is to see if you prequalify. Prequalification gives you an estimate of how much you can borrow without filling out a loan application. At OneMain, it only takes a few minutes to check for prequalified offers, and checking won’t impact your credit score.
When you’re ready, you can officially apply for the loan. Requirements vary from lender to lender, but to get a OneMain personal loan, you’ll need to provide:
- Proof of identity (such as a driver’s license, state-issued ID card, passport or available third-party verification service)
- Proof of residence (such as a driver’s license with current address, utility bill or signed lease)
- Proof of income (such as pay stubs or tax returns)
An official application will trigger a hard inquiry on your credit report, which can temporarily lower your credit score by a few points.
OneMain looks at your entire financial picture when you apply, not just your credit score. If you have less-than-perfect credit, OneMain may present you with options like using collateral for a secured loan or including a co-borrower to find a loan that works for your needs.
Is a personal loan right for you?
When you’re approved for a loan, you’ll see the total cost, including APR. At this point, you can decide if the personal loan works within your budget and goals.
Understanding what a $5,000 loan costs and how to get approved for one may help you make the choice that works best for your finances.
Sources
1 https://www.fool.com/money/research/personal-loan-statistics/
This article has been updated since 2022. Andrea Hoyt and Kim Gallagher contributed to this post.
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
