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.
The upside is that some lenders may be willing to approve you for a $100,000 personal loan, assuming you meet their requirements. But first, understand what lenders are looking for in applicants and what to expect when you apply to avoid any surprises.
How to determine if you need a $100,000 loan
Most personal loan products have no restrictions on how funds can be used. The lender may ask you how you plan to use the loan proceeds to help determine how much to lend you or if the amount you are asking for is reasonable.
You should also ask yourself the same questions. Do you really need a $100,000 loan or will a lower amount work? Also, can you afford the payment of a $100,000 loan? If you answer no to one or both questions, it is better to apply for a smaller personal loan. But if you anticipate needing more soon because you’re renovating your home or planning a big event and haven’t confirmed all the costs, a $100,000 personal loan might be ideal.
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 have bad credit, you can still get loan approval. However, it will probably be for a lower amount and you will pay an excessive amount of interest.
Lenders also want to know if your income is enough to comfortably cover loan repayments and other outstanding debts. So, lenders usually contact your employer to verify your employment. It is also essential that you have a steady job that is unlikely to end soon.
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. 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||3.99% – 19.99% (with automatic payment)||$5,000 – $100,000||660|
|SoFi||6.99% – 22.28% (with automatic payment)||$5,000 – $100,000||680|
LightStream is ideal for borrowers who prefer longer repayment terms. You’ll have up to 12 years to pay off the loan, and the interest rates are among the lowest you’ll find among lenders offering $100,000 personal loans. Auto-payment 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. Additionally, 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 May 24, 2022, the average personal loan interest rate for borrowers with excellent credit was between 10.3% and 12.5%, and between 17.8% and 19.9% for borrowers with average credit. The cost of borrowing for consumers with bad credit was much higher, with rates ranging between 28.5% and 32%.
Here are some examples from our personal loan calculator of what your borrowing costs might look like on a $50,000 5-year loan by credit score:
- Excellent credit (11% interest rate): Monthly payment of $1,087 and $15,227.27 in total interest paid
- Average credit (18% interest rate): Monthly payment of $1,270 and total interest paid of $26,180.28
- Bad credit (30% interest rate): Monthly payment of $1,618 and $47,060.19 in total interest paid
If you prefer a more affordable monthly payment, you can apply for a longer loan term. 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 (12% interest rate): Monthly payment of $883 and total interest paid of $24,141.48
- Average credit (19% interest rate): Monthly payment of $1,080 and $40,753.68 in total interest paid
- Bad credit (31% interest rate): Monthly payment of $1,463 and $72,927.73 in 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.