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Personal loans are a type of installment loan that let people borrow a lump sum of money, then pay it back with fixed monthly payments over a period time with interest. These loans can offer interest rates that are potentially much lower than for a credit card, and you can often apply for a loan and receive the money the same day.
You can use a personal loan to help consolidate debt, cover an unexpected expense or even finance a dream vacation or pay for a wedding.
Let’s take a closer look at our picks for top low interest personal loans.
Considering a personal loan?Check Approval Odds
- Best for large loan amounts: SoFi
- Best for rate shoppers: LightStream
- Best for small loan amounts: PenFed Federal Credit Union
- Best for Wells Fargo checking account holders: Wells Fargo
- Best for debt consolidation: Happy Money
- Best for bad credit: Upstart
- Best for a variety of uses: Discover
- What is a good APR on a personal loan?
- How can I get a low rate on a personal loan?
- How we picked these loans
Best for large loan amounts: SoFi
Why SoFi stands out: If you need a large personal loan, SoFi may be a good option. You can borrow as much as $100,000 if you have excellent credit and qualify. And you may be able to get loan terms as long as seven years. This could help you keep your monthly payment affordable since you’ll be able to stretch your payments out over time. Here are some of the key features of a SoFi personal loan.
- If you’re eligible, same-day funding is possible, once you’re approved.
- Loans range from $5,000 to $100,000.
- You can use a SoFi loan for a variety of needs, including home improvements, IVF payments, debt consolidation, weddings and more.
Read more about SoFi personal loans.
Best for rate shoppers: LightStream
Why LightStream stands out: LightStream makes it easy to see potential interest rates using its online loan calculation tool — without needing to enter any of your personal information. You can see how the APRs and monthly payments of a LightStream loan can vary for different term lengths (24 to 240 months), based on loan amount and purpose. Just note that the rates LightStream shows are based on a borrower with excellent credit.
- If eligible, same-day funding is possible, once approved.
- Loan amounts range from $5,000 to $100,000.
- Note that most applicants don’t qualify for the lowest rate.
Read more about LightStream personal loans.
Best for small loan amounts: PenFed Federal Credit Union
Why PenFed stands out: You can borrow as little as $600 using a PenFed personal loan — a small amount compared to many other lender minimums. But you’ll need to become a member of the credit union to apply.
- There are no origination fees or prepayment penalties.
- Loan amounts range from $600 to $50,000.
- Loans are funded within one to two business days of finalizing.
Read more about PenFed personal loans.
Best for Wells Fargo checking account holders: Wells Fargo
Why Wells Fargo stands out: If you already have a checking account with Wells Fargo that’s been open for at least a year, it may be a good idea to consider a personal loan from the same lender if you want to save on interest rates. If you qualify, Wells Fargo offers a “relationship discount” of 0.25% off your interest rate.
- Wells Fargo doesn’t charge origination fees or prepayment penalties.
- Loans from $3,000 to $100,000.
- Repayment terms range from one to seven years.
- Note: The majority of applicants don’t qualify for the lowest rate.
Read more about Wells Fargo personal loans.
Best for debt consolidation: Happy Money
Why Happy Money stands out: Happy Money markets its Payoff Loan personal loans as a tool to help you out of credit card debt. Once you’re approved for a personal loan, the company can use your loan proceeds to pay off your current debts directly — so you won’t have to manage it all yourself.
- You may be charged an origination fee of up to 5.5%.
- Loan amounts range from $5,000 to $40,000.
- Funding can take three to six business days.
Read more about Happy Money personal loans.
Considering a personal loan?Check Approval Odds
Best for bad credit: Upstart
Why Upstart stands out:It’s hard to find low-rate personal loans if your credit isn’t great. Upstart considers candidates with bad credit — and caps its loan rates at 35.99%. While that’s not the lowest rate around, unfortunately personal loans for bad credit often come with a higher cost.
- Loan amounts range from $1,000 to $50,000.
- Upstart charges an origination fee of up to 12% of the loan amount, but there are no prepayment penalties.
- You may receive your loan by the next business day.
Learn more about Upstart personal loans.
Best for a variety of uses: Discover
Why Discover stands out: You can use a Discover personal loan to pay for weddings, vacations, medical expenses, car repairs, pet emergencies and more. Discover lets you choose your repayment term, so you’ll be able to repay the loan over a period of time you’re comfortable with.
- Loan amounts range from $2,500 to $40,000.
- Discover doesn’t charge origination or prepayment fees.
- You can receive your funds as early as the next business day.
Learn more about Discover personal loans.
What is a good APR on a personal loan?
The average interest rate on a two-year personal loan was about 12.49% in February 2024, according to the Federal Reserve’s most recent data. But people with excellent credit may be able to find rates lower than that.
Some lenders that target consumers with strong credit offer interest rates that start around 8% to 11% for people with the best credit. Rates top out around 20% to 36% for borrowers whose credit isn’t quite as solid.
However, interest rates can change rapidly depending on the state of financial markets. When the Federal Reserve raises interest rates, the APRs on personal loans are likely to increase as well.
How can I get a low rate on a personal loan?
Typically, only borrowers with really good credit scores will be offered the lowest interest rates. For some lenders, this amounts to a fraction of people who apply. You’ll likely need good-to-excellent credit scores of at least 750 to be eligible for the best rates.
If your credit isn’t perfect, lenders may quote you higher interest rates and be more restrictive about the amount you can borrow — or you may not get approved. If this happens, applying for loans with no credit check might be an option. Or you could look into a 0% interest credit card. If your credit is in particularly rough shape and you’re shopping for a loan, you may want to look into personal loans for bad credit.
Saving up cash or focusing on building your credit before applying for a loan is the ideal way to go if you can take the time you need to set yourself up.
How we picked these loans
To help pick the best low interest personal loans, we compared more than two dozen lenders. We made our top picks based on interest rates and a range of loan features, including eligibility requirements, fees, loan amounts and loan terms.
When selecting a personal loan, it’s a good idea to shop around for an option that best fits your financial situation. If you’re not sure how much you can afford to borrow, try using our personal loan calculator to help determine your estimated payments for different loan amounts, interest rates and terms.
FAQs
What is a personal loan, and what are its benefits?
When you take out a personal loan, you receive a specific amount of money and pay it back over an agreed period of time, at a set interest rate. Personal loans can be unsecured or secured by collateral, which is typically an asset that you own. Getting a personal loan could help you pay for different expenses, including consolidating debt or paying for a wedding, vacation or home repair.
How do I apply for a personal loan?
To apply for a personal loan, start by deciding how much you want to borrow and what loan payments you can afford. Then, you can start applying for prequalification and checking your terms with different lenders. If you’re happy with your prequalification terms, you can then submit a formal application for a personal loan.
Can you get a zero-interest personal loan?
It’s rare to find a zero-interest personal loan from a lender like a bank or credit union. Certain cash advance apps offer loans without interest or fees, but they may have restrictions on who qualifies for a loan.
Considering a personal loan?Check Approval Odds
About the author: Andrew Dunn is a veteran journalist with more than a decade of experience as a reporter and editor at North Carolina news organizations, including the Charlotte Observer and the StarNews in Wilmington. In those roles,… Read more.
