Take your next financial step and pay it off with a competitive fixed-rate loan.
Whether it be money to refurnish your home, buy a used car or just some extra cash to fund a big vacation, you could consider a three-year term loan. Find out how these loans work, how much they cost and how to compare them.
Top personal loans with three-year repayment terms
| Provider | Loan Term | Starting APR | Requirements | |
|---|---|---|---|---|
 LendingClub Personal Loan |
3 to 5 years | 6.95% to 35.89% | US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+. | Go to site More |
 Prosper Personal Loans |
3 or 5 years | 6.95% to 35.99% | Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score. | Go to site More |
 SoFi Personal Loan Fixed Rate (with Autopay) |
2 to 7 years | 5.99% to 16.49% | Ages 18+, US citizen or permanent resident | Go to site More |
 Even Financial Personal Loans |
2 to 7 years | 3.84% to 35.99% | Credit score of 550+, American citizen or permanent resident and ages 21+ | Go to site More |
How do three-year personal loans work?
A three-year personal loan is one you repay with regular monthly payments over 36 months. When you apply for a fixed-rate personal loan, the rate applied to your loan when you sign the contract remains the same throughout the entire loan term. Many lenders offer personal loans with a fixed rate term of three years. Another common repayment term is five years.
These loans can be secured or unsecured and fees and restrictions differ depending on the lender. You may be subject to early repayment fees or fees for making additional repayments.
What types of loans can I get with a three-year term?
Three-year fixed rate loans can be used for various purposes and there are a few different types available including:
- Secured personal loans. If you’re considering a secured personal loan, think about using the equity in your home, money in a savings account or any other valued asset — fine art or jewelry — as security for the loan.
- Unsecured personal loans. This type of loan requires no secured asset and can be used for nearly anything from consolidating debt to making a large purchase.
- Car loans. When buying a new or used car you’ll find various options for three-year fixed loans. For example, if the loan is secured you should be able to lock in a more competitive rate.
How can I compare my three-year fixed rate options?
If you’re certain that a three-year fixed rate loan is right for you, the next step is to compare all of your options to get the best deal possible. Here are some features to look out for when comparing:
- Interest rate. You’ll be locked into this interest rate for three years, so be sure it’s competitive. Also, secured loans tend to have better rates than unsecured loans — keep in mind that you’re risking an asset if you fail to make payments on a secured loan.
- Upfront and ongoing fees. Are there any application or origination fees? Will you be charged monthly or annual fees? Always calculate the true cost of the loan by incorporating interest rates and fees.
- Other fees. Find out before you apply if your loan will attract fees for making additional payments or repaying the loan ahead of time.
- Eligibility. Factors vary by lender, but a few things that may be taken into consideration are your credit history, debt-to-income ratio, annual income and employment.
How much will I pay with a three-year fixed rate loan?
In order to budget properly, you’ll have to examine how much your loan will cost you depending on different interest rates and the amount you plan on borrowing. Here’s how much your estimated monthly payment could be on a three-year loan with different loan amounts and interest rates:
| Loan amount | 5% APR | 10% APR | 15% APR | 20% APR |
|---|---|---|---|---|
| $5,000 | $149.85 | $161.34 | $173.33 | $185.82 |
| $10,000 | $299.71 | $322.67 | $346.65 | $371.64 |
| $15,000 | $449.56 | $484.01 | $519.98 | $557.45 |
| $20,000 | $599.42 | $645.34 | $693.31 | $743.27 |
Pros and cons to consider before applying
Pros
- You can lock in a competitive rate.
- Shorter loan terms can help keep your repayments low depending on how much you borrow.
- A wide range of lenders offer three-year fixed rate personal loans, so you have many loans to compare.
Cons
- If market conditions improve, you won’t benefit from lowered repayments like you would with a variable rate loan.
- You may pay a fee to pay back your loan early or make additional repayments.
- If your situation changes and you need to switch to a loan with a longer loan term, you’ll typically pay a fee.
