Rates are not necessarily higher or lower for online loans versus a loan from a traditional bank. There are some market generalities that all financial institutions use for certain types of loans. For unsecured personal loans, rates can be influenced by the competition between lenders. Both traditional banks and online lenders are competing for the same market share of borrowers, and if one is proven to be charging incredibly higher interest rates, they will lose business fast. The unsecured personal loan market generally charges higher interest rates no matter where you look simply because there is no collateral to secure the loan and that they are usually much more short term.