Here’s a crisp 2025 snapshot of bank loans in the USA—what’s common, what rates look like right now, and how to pick.
The rate backdrop (Aug 25, 2025)
- Prime rate: 7.50%. Many consumer and small-business loans price off Prime. Fed Prime Rate
- Fed funds target: 4.25%–4.50% (held at the July 30 meeting). Federal Reserve
Typical loan types & current averages
- Mortgages (30-yr fixed): ~6.6% (latest weekly PMMS average). Freddie Mac
- Auto loans: ~6.73% (new) and 11.87% (used), on average. Experian
- Personal loans (unsecured): average ~12.4% (your credit strongly moves this). Bankrate
- Home equity: HELOAN ~8.23%, HELOC ~8.12% (national averages). Bankrate+1
Small-business SBA 7(a) loans are typically Prime + a spread (varies by size/term), and fees/caps are set by SBA rules.
Quick picker (what to use when)
- Big purchase / debt consolidation (no collateral): Personal loan (fixed rate & term). Bankrate
- Car: Auto loan (banks/credit unions often beat dealer financing). Experian
- House or refi-adjacent cash: Mortgage; if you already have a low mortgage, consider home-equity instead. Freddie MacBankrate
- Business needs: Ask lenders about SBA 7(a)/504 options priced off Prime.
How banks decide (and how to prep)
- Credit (score/history), income stability, DTI, collateral (for secured loans), loan purpose.
- Do this before you apply:
- Pull your credit and fix quick issues,
- Pre-qualify with a few lenders (soft pull),
- Compare APR + fees + total cost,
- Match term to the asset’s life (e.g., ~60 months for a car),
- If business borrowing, ask about SBA eligibility and Prime-based pricing.
If you tell me what you’re borrowing for, amount/term, and a rough credit tier