The interest rate on a loan depends on several factors: Credit Score and History: A higher credit score usually qualifies for lower interest rates. Income and Employment Stability: Lenders consider stable employment and income as indicators of your ability to repay the loan. Loan Amount and Term: The amount borrowed and the length of time you take to repay it can affect the interest rate. Type of Loan: Secured loans typically have lower interest rates than unsecured loans. Market Conditions: Economic factors and central bank policies can influence interest rates.