Can a $35,000 Personal Loan Be Used for Anything?

You can use a $35,000 personal loan for many different purposes

A $35,000 personal loan can be used for nearly any purpose. Common uses of personal loans include:

  • Debt consolidation
  • Medical bills
  • Home improvement and repair
  • Wedding expenses
  • Adoption costs
  • Business startup costs
  • Tax bills
  • Large purchases
  • Unexpected expenses
  • Moving expenses

While you have ample flexibility with how to use a personal loan, there are some restrictions. For example, lenders typically do not allow you to use a personal loan for college tuition or to repay existing student loans. Lenders also may not permit a personal loan to fund the purchase of a home.

If you have an established business, you will likely need to apply for a business loan or business line of credit, rather than a personal loan, to cover business expenses.

Key Takeaways

  • You can use a $35,000 personal loan to cover a variety of expenses.
  • Many lenders do not allow you to use a personal loan to cover college tuition, a home purchase, or business expenses.
  • You can apply for a personal loan with banks, credit unions, and online lenders, but you need to meet the lender’s criteria to qualify.
  • The total cost of a $35,000 personal loan will depend on your interest rate and lender fees.

Requirements to Get a $35,000 Personal Loan

Lenders will consider various criteria before extending you a personal loan offer.

  • Credit score: Your credit score helps lenders to determine your creditworthiness. Lenders consider personal loan applicants with higher credit scores more likely to repay what they borrow. Personal loan applicants with a credit score of 640 or higher are more likely to be offered favorable terms.
  • Income: Some lenders have minimum income requirements. Others will determine if you have enough income to repay loans on a case-by-case basis.
  • Debt-to-income ratio: Lenders are interested in how much you earn and how much you owe. Your debt-to-income (DTI) ratio measures the percentage of your monthly income that you use to make your monthly debt payments.
  • Collateral: Personal loans are typically unsecured, which means you will not be asked to provide collateral to back the loan. To get a $35,000 personal loan with bad credit, you may need to get a secured loan and provide collateral or a cash deposit.

Documents You Need to Apply for a $35,000 Personal Loan

The personal loan application process can vary depending on the lender, but you will usually be asked to provide documents such as:

  • Government-issued ID
  • Proof of residence
  • Tax return
  • W-2 or pay stub

How to Apply for a $35,000 Personal Loan

  1. Choose a lender: Find a lender that works for your needs.
  2. Gather all of the necessary documents: Once you know what will be required for the application, you can find all of the necessary documents.
  3. Submit an application: You may be able to submit your application online with an online lender. For a bank or credit union, you may need to apply in person.
  4. Review your loan offer: If your application is approved, the lender will extend a loan offer. Be sure to go over the fees and terms. Ask any questions you have before signing the agreement.

Comparing Lenders for a $35,000 Personal Loan

Getting loan estimates from multiple lenders can help you make an informed decision. Important factors when comparing lenders include:

  • Interest rate: The lower the interest rate, the lower the total cost of the loan. Many lenders will pre-qualify you for a loan without conducting a hard credit check. Pre-qualification is not a guarantee that you will get the loan.
  • Term: The term is the length of the loan, which can affect how much you pay each month and how much you pay overall. The longer your loan term, the lower your monthly payments but the more you will pay in overall interest.
  • Fees: Lenders can charge various fees when extending a personal loan, such as origination fees and potential prepayment penalties. Make sure you fully understand a lender’s fee policies before you accept a loan.

Costs of a $35,000 Personal Loan

The total cost of a personal loan will depend on your interest rate and the fees (such as an origination fee, late fee, and prepayment penalty) that your lender charges.

You can use a personal loan calculator to get an idea of how much your monthly payments will be for a $35,000 personal loan with different terms. For example, your $35,000 loan monthly payment could be $1,697.03 if you have a two-year term and a 15% interest rate. Over the lifetime of the loan, you would pay $5,728.78 in interest. The total cost of the loan would be $40,728.78.

A longer term for a $35,000 personal loan with the same interest rate will result in a higher total cost. For example, a three-year term with a 15% interest rate could result in you paying $1,213.29 monthly and $8,678.31 in total interest. The total loan would be $43,678.31.

The shorter the term and the lower the interest rate, the less expensive the total cost of the loan.

Where to Get a $35,000 Personal Loan

You can get a personal loan from a financial institution like a bank, a credit union, or an online lender.


If you already have checking and savings accounts with a particular bank, it may be convenient for you to use them as your personal loan lender. Given their often-large size, banks may be able to offer you a larger personal loan if you qualify.

Traditional banks may have stricter lending criteria, making it more difficult for someone with poor credit to qualify for a personal loan.

Credit Unions

Credit unions may offer lower interest rates compared to banks. In June 2023, the national average interest rate for an unsecured fixed-rate loan with a 36-month term offered through credit unions was 10.32%, while the national average rate for the same type of loan offered via banks was 11.04%, according to the National Credit Union Administration.

You need to be a member of a credit union to apply for a personal loan. If you plan to apply in person, keep in mind that a credit union may not have as many physical locations as a bank.

Online Lenders

Many online lenders offer personal loans. With the entire process online, it can be easy to compare loan offers from multiple lenders. You might be able to access better rates and terms with an online lender than with a bank or credit union, particularly if you have bad credit.

An online lender will not have physical locations if you prefer to use your banking services in person.

Personal Loan Lenders That Offer $35,000 Personal Loans

Many lenders offer personal loans of $35,000. Remember to compare your interest rate, loan term, and any lender fees. Here are some examples of lenders offering loans of $35,000 and their interest rates as of August 2023.


  • Loan amount: $5,000 to $100,000
  • APR: 8.99% to 25.81%

U.S. Bank

  • Loan amount: $1,000 to $50,000
  • APR: 8.24% to 21.99%


  • Loan amount: $2,000 to $50,000
  • APR: 9.24% to 29.99%

PenFed Credit Union

  • Loan amount: $600 to $50,000
  • APR: 7.99% to 17.99%


  • Loan amount: $2,500 to $40,000
  • APR: 7.99% to 24.99%

What Credit Score Do I Need for a $35,000 Loan?

Lenders will typically offer better terms to personal loan applicants who have a credit score of 640 or higher. You may still be able to get a $35,000 personal loan with a lower credit score, but you will likely have to pay a higher interest rate.

What Is the Interest Rate on a $35,000 Loan?

Your interest rate for a $35,000 loan will depend on different factors, including your creditworthiness, the length of the loan, and the cost of borrowing.

Can I Get a $35,000 Personal Loan with Bad Credit?

It may be possible to get a $35,000 loan with bad credit, but lenders are unlikely to offer you their most favorable terms. The interest rate could be higher than average, and the repayment term may be short. Be sure you are able to afford the payments before signing the loan agreement.

Can I Repay My $35,000 Personal Loan Off Early?

Yes, but remember, some lenders charge a prepayment penalty. This fee helps lenders to recoup the money they will lose in interest payments when a loan is paid off early. However, not all lenders charge this type of fee. Check your loan agreement or ask your lender.

What Is the Maximum Amount I Can Get with a Personal Loan?

How much you can borrow with a personal loan will depend on your creditworthiness. In most cases, $100,000 is the most lenders will offer for a personal loan.

The Bottom Line

You can use a $35,000 personal loan for almost any purpose. If you decide that a personal loan is right for you, shop around and compare lenders to find an option with the best interest rate and terms for you. Remember, make sure you will be able to afford the monthly payments before signing a loan agreement.

Article Sources
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  2. Consumer Financial Protection Bureau. “What Is a Personal Installment Loan?

  3. Consumer Financial Protection Bureau. “What Is a Debt-to-Income Ratio?

  4. Consumer Financial Protection Bureau. “Do Personal Installment Loans Have Fees?

  5. National Credit Union Administration. “Credit Union and Bank Rates 2023 Q2.”

  6., National Credit Union Administration. “What Is a Credit Union?

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  8. U.S. Bank. “Personal Loan.”

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  10. PenFed Credit Union. “Personal Loans Page.”

  11. Discover. “Discover? Personal Loans.”

  12. Experian. “Do Personal Loans Have Prepayment Penalties?

  13. Experian. “What’s the Largest Personal Loan I Can Get?

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