How To Get a $95K Personal Loan

Your savings may not be enough to cover a $95,000 expense, like major home repairs or a legal bill. A personal loan could be an option, but few lenders offer personal loans of that size. A $95,000 loan can also lead to substantial interest charges over time, especially if you don't have excellent credit.

Before you borrow, weigh the long-term costs. We explore everything you need to know about a $95,000 personal loan, including what to expect, where to find one, how to qualify, and how much you could pay in interest.

Where can I get a $95,000 personal loan?

Although it's more common for financial institutions to offer personal loans of $50,000 or less, a small number of online lenders, banks, and credit unions allow you to borrow $95,000 or more. Lenders that offer $95,000 include Credible lending partners LightStream, SoFi, and BHG Financial, along with Alliant Credit Union, Navy Federal, USAA, and Wells Fargo.

Online lenders

Online lenders conduct the entire loan process online rather than through brick-and-mortar locations. If you want a quick application and funding process, this is usually the best way to go. Approval and funding times vary by lender, but many online lenders offer funds the same day or the next business day after approving your loan.

The downside is that you may not have much — or any — personal assistance through the application process. Online lenders tend to have limited customer support compared to a bank or credit union with physical branches, which can make it difficult to ask questions if you have any concerns or issues when applying.

Few online lenders offer $95,000 loans, and those that do typically require good to excellent credit, a large annual income, or both.

According to Credible data from the past 12 months, average incomes of borrowers who qualified for $100,000 personal loans ranged from just under $150,000 to more than $200,000.

Banks

Except for entirely online lenders, banks have physical branches. Many large banking companies also have online services, like personal loan applications. You may need to have an active account with a bank to apply, but this isn't always the case.

Banks tend to have stricter requirements for borrowers, such as a higher minimum credit score or income, than online lenders.

Wells Fargo and USAA offer $95,000 personal loans.

Credit unions

Credit unions are member-owned, so they often conduct business in a way that meets the interests of their members. As a result, when applying for a $95,000 personal loan, a credit union may be more willing to consider your full financial picture, especially if you have a strong relationship with the institution.

“The human element comes into play during those loan applications that are right on the border of approval or rejection,” says Ericka Wright, assistant vice president and branch manager at Addition Financial, a Florida-based credit union. “A longtime member we know and interact with regularly might get extra consideration even if, by the numbers, the application falls just short of the approval threshold.”

Keep in mind you'll typically need to be a credit union member to apply for a loan. Some credit unions offer more membership pathways than others, but others may require you to live in a certain area, work for a specific employer, or be part of an affiliated group.

Navy Federal Credit Union offers personal loans of up to $150,000 for home improvement, but you must apply with a co-applicant. Alliant Credit Union offers personal loans of up to $100,000.

How to compare $95K personal loans

Borrowing $95,000 is a decision with several considerations. Loans can have widely different interest rates, fees, and monthly payments. Here's how to compare your options from different lenders.

1. Interest rates

A personal loan's annual percentage rate, or APR, accounts for both the interest rate and any upfront lender fees. APR provides the most comprehensive way to measure the cost of borrowing money on an annualized basis.

Lenders typically charge between 6.49% and 35.99% APR for personal loans. However, your rate depends on several factors, like your credit score and debt-to-income ratio.

For example, Wells Fargo estimates that borrowers with credit scores of 760 or higher (very good credit, according to the FICO score range) may be eligible for an APR of 11.50% to 16.00% on a seven-year, $95,000 loan. Meanwhile, borrowers with credit scores in the 700 to 759 (good credit, according to FICO) may qualify for APRs of 17.25% to 19.00% on the same loan.

2. Fees

Not all lenders charge fees to borrow $95,000. For lenders that do, these fees can increase your total repayment costs.

Late fees are among the most common, but they only occur if you're late making a payment. Lenders usually give a grace period for missed payments before assessing a late fee, which is typically a flat fee or a percentage of your missed payment amount.

Your lender may also impose an upfront fee, also called an origination fee, to offset their administrative fees or reduce their risk. Origination fees typically range from less than 1% to as much as 15% of the loan amount, and lenders generally deduct the fee from your loan upfront. So, if you borrow $95,000 with a 2% origination fee, you would receive $93,100.

Less common for personal loans is a prepayment penalty, which is a lender's charge for paying off your loan early.

3. Repayment terms

Your repayment term is the length of time you have to pay off your loan. Lenders typically offer two- to seven-year terms, although BHG Financial offers repayment terms of three to 10 years. You can sometimes get longer repayment terms for specific loan purposes, like home repairs. For example, LightStream allows up to 20 years to pay off home improvement loans.

A longer loan term can lower your monthly payment by spreading the amount you owe over more months. But a longer repayment term typically means higher interest costs over the life of the loan, so you'll need to weigh whether lower monthly payments or paying less interest overall best fits your financial goals.

4. Monthly payment

You'll pay a $95,000 personal loan in equal installments each month that include your principal and interest. Your monthly payment should fit comfortably into your monthly budget, but keep in mind that a loan for $95,000 could cost around $2,000 per month or more, unless you get an extended repayment term or a very low interest rate.

When comparing loan quotes, look at how different repayment terms and APRs affect your monthly payment. Many online lenders offer calculators for loan estimates or let you prequalify for a loan to see what you may qualify for and get an idea of your potential monthly payment.

5. Total repayment costs

One way to gauge whether a $95,000 personal loan fits into your financial picture is to consider your total repayment costs, including the total interest charged and fees. For example, if you borrow $95,000 with a 23% APR for seven years, you'll end up paying about $96,000 in interest alone, more than the amount you borrowed. Use a personal loan calculator to break down these costs ahead of time.

What is the cost to repay a $95,000 loan?

A $95,000 personal loan repaid over at least five years would likely have a monthly payment of $2,000 or more, which equates to over $40,000 in total interest paid over the loan term. Here's a look at how much a five-year and seven-year $95,000 loan could cost you.

Five-year repayment

Seven-year repayment

How to get a $95K personal loan

Review your credit profile

Check your credit score with Credible's free credit-monitoring tool and order a free copy of your credit report from AnnualCreditReport.com. Review your credit report for incorrect or outdated information that might be hurting your credit score, and dispute it with the reporting bureau if necessary. These steps can help you understand where you stand as a borrower and potentially improve your rate.

Research lenders

Look for lenders that work with borrowers with credit profiles similar to yours and that offer the repayment term you need. Also, check that they'll let you use the money for the purpose you intend. For instance, BHG Financial offers personal loans up to $250,000 but only for debt consolidation.

Read reviews to learn firsthand experiences, and shortlist lenders that you're interested in working with.

Prequalify with multiple lenders

Compare loans by prequalifying, which lets you see your potential rates and terms. Prequalified quotes aren't offers of credit, though, and your results may differ from the rates and terms included in a loan offer.

Estimate your monthly payment and interest costs

Review prequalification quotes or use a personal loan calculator to estimate your monthly payment and total interest costs. These estimates can help you strike a balance between a monthly payment you can comfortably afford and how much interest you want to pay over the life of the loan.

Apply

Choose the lender offering the rate, terms, and services you prefer. Submit an official application and include all documents requested by the lender, such as income verification.

Review and sign the loan agreement

Once approved, you'll need to review the loan agreement from your lender. It details all the fine print about your loan, including your interest rate, monthly payment, fees, and prohibited loan uses. If you agree to all terms, sign the document and send it back to your lender.

Get funded

Lenders usually fund loans within a few business days of signing the agreement, but check with your lender about its funding times. Your lender will also let you know when your first payment is due.

Alternatives to a $95,000 loan

Home equity and secured funding options may offer lower interest rates than a personal loan, but still give you access to $95,000.

Use your home equity

Home equity is the amount of your home and property you own outright. For example, if your home is worth $400,000 and you owe $150,000 on your mortgage, you have $250,000 in home equity. Some banks and credit unions offer home equity borrowing options to tap into this equity. These include:

• Home equity loan: A home equity loan is a lump sum payment with a fixed interest rate and repayment term, similar to a personal loan. It's a good option if you know exactly how much you need to borrow.
• Home equity line of credit (HELOC): You'll get flexible access to funds as needed with a HELOC, up to a set credit limit. Unlike a personal loan, a HELOC usually has a variable interest rate, and you only pay interest on what you borrow. So, if you're not sure you need as much as $95,000, you could save some money with a HELOC.
• Cash-out refinance: A cash-out refinance replaces your existing mortgage with a larger one, allowing you to borrow the extra money to use for virtually any purpose. You may also get a better interest rate than your current mortgage by refinancing.

While beneficial in some cases, home equity options should be used with caution. If you fail to pay any home equity loans or lines of credit, you'll put your home at risk. Gary Hemming, owner and finance director of ABC Finance, also warns of a risk known as equity lock. “If neighborhood property values dip, even slightly, lenders can freeze your HELOC or deny a refinance, regardless of your credit score or payment history,” says Hemming. “You're left with large monthly payments, but no access to additional capital.”

Read More: HELOC vs. Home Equity Loan: How To Decide

Opt for other secured loans or lines of credit

A secured loan uses an asset as collateral. Because your asset is tied to the loan, the lender's risk lowers, which usually gives you a better interest rate and higher borrowing limits than an unsecured loan.

Similar to home equity financing, lenders may offer a loan or line of credit secured by your savings account or investments like stocks, bonds, and ETFs (exchange-traded funds).

Secured financing also comes with the risk of losing your asset if you don't pay. You may also not be able to borrow the full amount of your asset. And if you use an investment portfolio as collateral, market downturns can impact your borrowing power. Eric Mangold, certified wealth strategist and founder of Argosy Wealth Management, says: “If the portfolio declines significantly due to a market downturn, and the portfolio value falls below what was borrowed, the borrower may be required to deposit additional funds or sell some of the portfolio.”