Is It Possible to Get a $100,000 Personal Loan?

It is possible to get a $100,000 personal loan, but it’s difficult. Even the best personal loan providers don’t typically offer loans of more than $50,000, and they require a high credit score. They also can have fairly high interest rates.

Personal loans are a type of unsecured debt. Since they are riskier for lenders because they are not backed by an asset, lenders may be hesitant to lend you a large amount of money, especially if you don’t have an existing relationship with them.

However, if you are looking for a large personal loan, you can find options. Learn more about your choices for personal loans for $100,000 and about some common qualification criteria.

How to Qualify for a $100,000 Personal Loan

Every loan provider has its own set of requirements to qualify for a personal loan. To qualify for a large loan, however, you’ll generally need:

• A high credit score: You’ll often need a credit score of at least 670 to 739 be approved for a personal loan. Loans above $50,000 may require a higher credit score, but requirements will vary by lender.
• A high income: Your lender will want to see that you can repay the loan with your income. For a $100,000 loan over a two-year term, you’ll have to have more than $4,000 in extra income that you can put toward the loan.
• A relatively low debt-to-income (DTI) ratio: Most lenders look for borrowers who have a debt-to-income (DTI) ratio of less than 36%.
• Documentation: You should be ready to prove your income by providing a pay stub or bank statement. Your lender will likely ask you for a photo ID and a proof of address.

Where to Get a $100,000 Personal Loan

Not many personal loan providers offer $100,000 loans, but here are banks that do:

Though all of these lenders will provide personal loans to borrowers with a “good” credit score, which is one from 670 to 739, you’ll likely need a significantly higher credit score to be approved for the largest loans. Similarly, the interest rates on large loans are likely to be much higher than on smaller loans, even if you have a good credit score.

How to Get a $100,000 Personal Loan

Getting a personal loan for $100,000 is similar to getting any personal loan. The difference is that you’ll typically need a high credit score, a high income, and perhaps an existing relationship with your lender to be approved.

Here are the main steps for getting a large personal loan:

1. Determine how much money you need: If you can apply for a loan for less than $100,000 by finding money from other sources, you are more likely to be approved.
2. Review your finances: A large loan will have high monthly repayments over a long period, so make sure you can easily afford them.
3. Research and compare lenders: Your options for a loan of $100,000 are fairly limited, but make sure you compare your offers. Even a small difference in the interest rate could be substantial in terms of the total interest cost.
4. Pre-qualify: Most lenders will allow you to pre-qualify for a loan via a soft credit check. 
5. Apply: You can generally apply online for personal loans, but for large loans, you may need to speak to your lender or provide extra documentation.
   

How Much Does a $100,000 Personal Loan Cost Over Time?

The cost of any personal loan over time mainly depends on two factors: the interest rate and the loan term (length of the loan). Loans with a high interest rate and a long term cost more, and vice versa.

Let’s take two examples and calculate the cost of the loans.

Scenario 1: $100,000 Over 2 Years at 15%

A loan for $100,000, paid back over just two years, would have a high monthly repayment of $4,848.66 per month, so you would need a high income to afford these repayments. However, paying back this loan over such a short period means that you’ll lower the total cost you’ll pay in interest, which will be $16,367.96.

Scenario 2: $100,000 Over 4 Years at 10%

If you take out the same loan, but pay it back more slowly, your monthly repayments will be lower at $2,536.26 per month. However, even if you get a better interest rate of 10%, you’ll pay more interest over the lifetime of the loan, with a total cost of $21,740.40.

How Do People Use Personal Loans?

Investopedia commissioned a national survey of 962 U.S. adults between Aug. 14, 2023, to Sept. 15, 2023, who had taken out a personal loan to learn how they used their loan proceeds and how they might use future personal loans. Debt consolidation was the most common reason people borrowed money, followed by home improvement and other large expenditures.

Alternatives to a $100,000 Personal Loan

If you need to borrow a large amount of money, you can consider other sources of funding in addition to a personal loan. If you can get a secured loan, you will likely have better rates.

For example, home equity loans and home equity lines of credit (HELOCs) use your home equity to back a large-size loan or line of credit. If you have a substantial amount of money saved in a tax-advantaged retirement account like a 401(k) or an individual retirement account (IRA), you can potentially borrow money from it. You could also borrow money from any cash value you accrued with a permanent life insurance policy.

The Bottom Line

Loans larger than $100,000 are not common. When you need to make a large purchase, other loan products such as a mortgage may be more suitable than a personal loan. If you do need $100,000 or more in financing, and you don’t qualify for a personal loan, you can consider alternatives like home equity loans or home equity lines of credit (HELOCs), or borrowing from your retirement account.