WASHINGTON, D.C. — The Federal Reserve kept its benchmark interest rate unchanged at its mid-March meeting, leaving the average personal loan rate on a 24-month loan at 11.65%, according to the Federal Reserve. At that rate, a borrower taking out a $30,000 personal loan repaid over two years would face monthly payments of $1,407.31.

Monthly payments on a $30,000, two-year personal loan range between approximately $1,400 and $1,415, depending on the rate a borrower secures. At an annual interest rate of 11.15%, the monthly payment comes to $1,400.33. At the current average of 11.65%, the payment rises to $1,407.31. And at 12.15%, the monthly obligation reaches $1,414.31. Over the full 24-month repayment period, the difference between the lowest and highest of those three rates amounts to roughly $335 in total additional interest paid.

Personal loans do not require collateral, a feature that distinguishes them from secured forms of borrowing. Personal loan interest rates are lower than credit card interest rates.

One alternative to a personal loan is a home equity line of credit, which carries an average interest rate of approximately 7%. However, a home equity line of credit uses a borrower's home as collateral. If a borrower fails to repay the line of credit, the lender could foreclose on the borrower's home. Home equity lines of credit also carry variable interest rates, a structure that can make long-term budgeting difficult.

A report released by the Bureau of Labor Statistics on March 6 showed the U.S. lost 92,000 jobs in February. A separate BLS report showed the inflation rate was 2.4% in February, unchanged from the previous month.

A borrower who takes out a $30,000 personal loan at the current average rate of 11.65% and repays it over 24 months would pay a total of approximately $33,775 over the life of the loan, with roughly $3,775 of that amount going toward interest. Borrowers who qualify for rates closer to 11.15% would pay less in total interest, while those offered rates near 12.15% would pay more.