North Dakota and South Dakota residents get the best deal on personal loans in America, an August 2026 report finds. With nearly 40% of Americans now using a personal loan to reach their financial goals, a new study by Achieve reveals the top 10 states offering the most favorable terms on quick financing.
- Personal loans help cover more bills and groceries in North Dakota, where everyday costs are 11% lower than the rest of America.
- Georgia has one of the lowest cash loan interest rates, with local lenders charging just 26% on average.
- Illinois is among the easiest states to pay back a personal loan, where families earn enough that a typical loan takes up just 14% of their income.
The research examined all 50 states to find where personal loans have the most buying power. It used the national average loan of $11,699 as a starting point and looked at how far that money goes after accounting for everyday prices in each state. The study also considered the interest rates lenders charge locally and how large these loans are compared to what residents earn. The report finally combined all the listed factors into a single score ranging from 1 to 100, with higher scores indicating bigger purchasing power.
Here's a look at the top 10 states where a personal loan goes the furthest:
| State | Regional Price Parity for All Items | Real Value of Avg. Loan ($11,699) | Average Offered APR | Average Loan as % of Annual Income | Buying Power Score |
| North Dakota | 89 | $13,261 | 24% | 15% | 98.03 |
| South Dakota | 89 | $13,186 | 24% | 16% | 96.14 |
| Iowa | 88 | $13,083 | 19% | 16% | 95.89 |
| Arkansas | 87 | $13,691 | 36% | 19% | 89.71 |
| Kansas | 91 | $13,256 | 43% | 16% | 87.70 |
| Illinois | 100 | $12,982 | 24% | 14% | 87.32 |
| Nebraska | 91 | $13,096 | 39% | 16% | 87.07 |
| Oklahoma | 88 | $13,364 | 41% | 18% | 85.18 |
| Georgia | 97 | $12,816 | 26% | 15% | 84.29 |
| Minnesota | 99 | $12,882 | 35% | 14% | 84.04 |
You can access the complete research findings here.
- North Dakota
- Buying Power Score: 98/100
- What $11,699 actually covers locally: equivalent to $13,261
- Cost of living: 11% below the US average
- Average APR: 24.08%
- Median household income: $77,871
- Loan as a share of annual income: 15%
North Dakota is the best state in America to take out a personal loan. Everyday costs here are about 11% cheaper compared to the rest of the US, so a typical loan simply pays for more things. Interest rates are friendly too, averaging under 25%, among the lowest in the country. And paying it back is easy on the wallet, with the typical loan taking up just 15% of what locals earn.
- South Dakota
South Dakota ranks second with the same favorable conditions for personal loans as its northern neighbor. Things cost about 11% less here compared to the other states, which means locals can buy more goods with their cash loans. Interest rates are even better, averaging 24%, and with the typical loans taking up just 15% of what families earn each year, repayments are easy to manage.
- Iowa
Iowa takes third with one of the lowest interest rates in America. Lenders here charge an average of 19.23% APR, offering locals pretty favorable terms for quick financing. Prices are also about 12% below the national average, so these loans actually buy more things, too. Another advantage is that salaries here average around $75.5K a year, so a typical loan only represents 15.5% of what a household earns.
- Arkansas
Arkansas is another state where residents get favorable deals on cash loans. Every day costs here run 13% below the US average, and with that, locals can buy more groceries and other goods with their personal loans. Interest rates stay reasonable too, averaging 36%, and borrowers have to put aside only around 18% of their income to cover their loan payments.
- Kansas
Kansas rounds out the top five states offering the best deal on personal loans. Prices here are about 10% below the national average, which means residents can afford more things with their small loans. The lenders in Kansas charge around a 42.78% interest rate, but with local salaries at $75.5K, repayments also stay easy on the wallet, taking up just 15.5% of yearly earnings.
A spokesperson from Achieve noted:
"More Americans are turning to personal loans these days, and for good reason. They often come with lower rates than credit cards, fixed monthly payments, and a clear payoff date, which makes budgeting easier. Consumers should research their options carefully and consider factors like their credit profile, income, and overall financial situation before applying."