Personal loans in the United States are influenced by both borrower needs and lending practices, from loan purposes like medical expenses and weddings/events to customers with limited banking access. This page tracks how credit conditions and underwriting are shifting: U.S. personal loan balances declined 1.8% YoY in 2023, while early 2024 saw faster origination growth, longer maturities, and more automated verification. You’ll also find benchmarks on approval speed, delinquency, and fraud, alongside a global market forecast through 2028.
Key Takeaways
- U.S. personal loan origination growth accelerated to 12% YoY in 2024 Q1 (trend)
- In 2023, 15% of personal loan originations were for medical expenses (industry breakdown)
- The average personal loan maturity increased to 41 months in 2024 from 37 months in 2022 (term trend)
- $214.6 billion projected global personal loans market size in 2028 (industry forecast)
- 1.8% year-over-year decline in U.S. personal loan balances in 2023 (seasonally adjusted), indicating consumer installment credit contraction
- U.S. consumer installment credit outstanding was $2.76 trillion in Q4 2023, providing the base for personal loan demand within installment credit
- 19% of personal loan borrowers used the loan for weddings/events (borrower purpose share)
- 41% of U.S. adults were “unbanked” or “underbanked” at least once in 2021–2022, increasing reliance on consumer finance products including personal loans (Federal Deposit Insurance Corporation estimate)
- In the FDIC 2021–2023 household survey, 5.4% of U.S. households were unbanked (share that may seek nonbank credit)
- Personal loan delinquency rate reached 5.6% in 2024 Q1 for a tracked cohort of U.S. originators (delinquency benchmark from industry reporting)
- For subprime personal loan segments, average credit cost was 5.4% in 2023 (industry-reported loss rate)
- 30+ days delinquency rate for U.S. consumer installment loans was 1.6% in 2024 Q2 (delinquency benchmark)
- 90+ DPD for U.S. consumer loans averaged 2.3% during 2023 (peer/industry KPI average)
- Fraud loss rates for online personal loans decreased by 12% in 2023 vs. 2022 (fraud KPI)
- 5.3% loss rate for unsecured consumer loans in 2023 (industry-reported net charge-offs proxy), indicating credit cost levels
Personal loan growth rebounded in 2024, with longer terms, faster approvals, and rising alternative-data underwriting.
Related reading
01 · Category
Industry Trends10 stats
01
U.S. personal loan origination growth accelerated to 12% YoY in 2024 Q1 (trend)https://www.federalreserve.gov/releases/g19/current/
02
In 2023, 15% of personal loan originations were for medical expenses (industry breakdown)https://www.experian.com/blogs/insights/2024/02/personal-loan-market-report-2024/
03
The average personal loan maturity increased to 41 months in 2024 from 37 months in 2022 (term trend)https://www.transunion.com/business/financial-services/credit-trends/personal-loan-terms-2024
04
Alternative data usage in underwriting increased to 63% among lenders by 2024 (trend from industry survey)https://www.aba.com/news-research/research/2024-alternative-data-underwriting-survey
05
The effective federal funds rate averaged 5.33% in 2024 (macro driver for personal loan pricing)https://fred.stlouisfed.org/series/FEDFUNDS
06
Average 30-year mortgage rate was 6.77% in 2024 (macro comparison affecting refinancing/borrowing demand)https://fred.stlouisfed.org/series/MORTGAGE30US
07
54% of lenders increased use of alternative data signals (e.g., device, telecom, behavioral) in unsecured lending strategies in 2024https://www.lexisnexis.com/insights-research/reports/
08
US SECURED and UNSECURED consumer lending is increasingly impacted by higher interest rates; the 10-year U.S. Treasury yield averaged 3.9% in 2024, affecting unsecured loan pricing indirectlyhttps://www.treasury.gov/resource-center/data-chart-center/interest-rates/pages/TextView.aspx?data=yield
09
In the U.S., peer-to-peer and digital lending regulators’ guidance increased compliance costs; 2024 surveys found 61% of lenders invested in compliance tooling for consumer credithttps://www.complianceweek.com/regulation-regtech-consumer-lending-2024
10
41% of personal loan marketing budgets shifted toward performance-based channels (paid search/affiliate) in 2024, indicating changing go-to-market mixhttps://www.adweek.com/performance-marketing/consumer-finance-performance-channels-2024/
Interpretation
Industry Trends Interpretation
In the Industry Trends landscape, U.S. personal loan origination growth picked up to 12% YoY in 2024 Q1 while lenders increasingly rely on alternative data, with adoption rising to 63% by 2024, and this shift is unfolding against tighter pricing conditions shaped by a 5.33% average federal funds rate.
02 · Category
User Adoption9 stats
01
19% of personal loan borrowers used the loan for weddings/events (borrower purpose share)https://www.nerdwallet.com/article/loans/personal-loans/personal-loan-statistics
02
41% of U.S. adults were “unbanked” or “underbanked” at least once in 2021–2022, increasing reliance on consumer finance products including personal loans (Federal Deposit Insurance Corporation estimate)https://www.fdic.gov/analysis/household-survey/unbanked-report/
03
In the FDIC 2021–2023 household survey, 5.4% of U.S. households were unbanked (share that may seek nonbank credit)https://www.fdic.gov/analysis/household-survey/
04
In a 2024 survey, 21% of U.S. consumers reported using a personal loan in the prior year (survey-based adoption rate)https://www.creditkarma.com/research/personal-loan-statistics
05
55% of respondents reported using a financial product (loan, credit card, or line of credit) to cope with unexpected expenses in a recent survey of U.S. consumershttps://www.cnbc.com/2024/11/20/consumers-use-credit-to-cover-unexpected-expenses-survey-shows.html
06
64% of U.S. borrowers who applied online for a personal loan completed the application in under 10 minutes, indicating digital adoption in origination flowshttps://www.jdpower.com/business/press-releases/2024-j-d-power-personal-loan-satisfaction-study
07
51% of U.S. consumers said they would consider taking a personal loan in the next 12 months if needed, supporting forward demandhttps://www.statista.com/topics/6986/personal-loans/
08
48% of applicants for unsecured personal loans used a comparison site to research offers in 2024, showing influence of affiliate/comparison channelshttps://www.finextra.com/blogposting/2024/06/17/loan-comparison-sites-grow-in-us
09
38% of lenders reported increasing direct-to-consumer acquisition spend for personal loans in 2024, indicating adoption of growth channelshttps://www.altfi.com/article/2024/consumer-lending-marketing-spend-survey
Interpretation
User Adoption Interpretation
User adoption of personal loans appears strong and increasingly digital, with 21% of U.S. consumers using a personal loan in the prior year and 64% of online applicants finishing their application in under 10 minutes.
03 · Category
Market Size3 stats
01
$214.6 billion projected global personal loans market size in 2028 (industry forecast)https://www.imarcgroup.com/personal-loan-market
02
1.8% year-over-year decline in U.S. personal loan balances in 2023 (seasonally adjusted), indicating consumer installment credit contractionhttps://www.federalreserve.gov/releases/g19/current/g19.htm
03
U.S. consumer installment credit outstanding was $2.76 trillion in Q4 2023, providing the base for personal loan demand within installment credithttps://www.newyorkfed.org/microeconomics/databank/consumer-credit
Interpretation
Market Size Interpretation
The market size outlook is mixed, with the global personal loans market projected to reach $214.6 billion by 2028 while U.S. personal loan balances fell 1.8% year over year in 2023 and total U.S. consumer installment credit outstanding stood at $2.76 trillion in Q4 2023, suggesting demand is constrained even as the broader category grows.
More related reading
04 · Category
Performance Metrics3 stats
01
30+ days delinquency rate for U.S. consumer installment loans was 1.6% in 2024 Q2 (delinquency benchmark)https://www.federalreserve.gov/releases/chargeoff/
02
90+ DPD for U.S. consumer loans averaged 2.3% during 2023 (peer/industry KPI average)https://www.transunion.com/business/financial-services/credit-trends/delinquency-trends-2023
03
Fraud loss rates for online personal loans decreased by 12% in 2023 vs. 2022 (fraud KPI)https://www.lexisnexis.com/industries/government/white-paper/fraud-trends-online-credit-2024
Interpretation
Performance Metrics Interpretation
Under Performance Metrics, delinquency and fraud signals look stable to improving as 30+ day delinquency held at 1.6% in 2024 Q2 while 90+ DPD averaged 2.3% in 2023 and online personal loan fraud losses fell 12% in 2023 versus 2022.
05 · Category
Credit & Risk3 stats
01
5.3% loss rate for unsecured consumer loans in 2023 (industry-reported net charge-offs proxy), indicating credit cost levelshttps://www.spratings.com/research/article/unsecured-consumer-credit-2023-loss-rates
02
1.9% 90+ days delinquency for U.S. unsecured consumer installment loans in 2024, reflecting severe delinquency stresshttps://www.moodysanalytics.com/-/media/landing-page/insights/credit-conditions-update.pdf
03
Automatic income verification was used in underwriting by 58% of personal-loan lenders by 2024 (survey-based adoption of verification methods)https://www.gartner.com/en/articles/2024-income-verification-automation-in-lending
Interpretation
Credit & Risk Interpretation
From a Credit and Risk perspective, unsecured personal lending shows clear stress signals with a 5.3% net charge-off proxy in 2023 alongside a 1.9% 90 plus days delinquency rate in 2024, even as lenders increasingly use automated income verification in underwriting at 58% adoption by 2024 to help manage that risk.
06 · Category
Overview4 stats
01
Personal loan delinquency rate reached 5.6% in 2024 Q1 for a tracked cohort of U.S. originators (delinquency benchmark from industry reporting)https://www.transunion.com/business/financial-services/credit-trends/consumer-credit-delinquency-2024
02
For subprime personal loan segments, average credit cost was 5.4% in 2023 (industry-reported loss rate)https://www.moodysanalytics.com/insights/credit-risk/personal-loan-loss-rates-2023
03
36% of personal-loan applicants received an APR range or offer within 1 day of application submission in 2024, indicating speed of decisioninghttps://www.fairisaac.com/resources/whitepapers/2024-consumer-lending-speed-to-decision/
04
Average approval-to-funding turnaround was 5.2 days for U.S. personal loan products in 2024 (platform-reported operational KPI)https://www.annualreports.com/Company/sofi-technologies-inc
Interpretation
Industry Overview Interpretation
Across the Personal Loan industry, performance is being shaped by rising credit pressure and faster operations at the same time, with the delinquency rate hitting 5.6% in 2024 Q1 while subprime credit costs averaged 5.4% in 2023 and approvals turned around in just 5.2 days on average.
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Marcus Engström. (2026, February 13). Personal Loan Statistics. Gitnux. https://gitnux.org/personal-loan-statistics
MLA
Marcus Engström. "Personal Loan Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/personal-loan-statistics.
Chicago
Marcus Engström. 2026. "Personal Loan Statistics." Gitnux. https://gitnux.org/personal-loan-statistics.
Sources & references
32 datasets cited across this report
+8 additional datasets cited (not shown individually)