Low-interest personal loans can be a useful financial tool. A personal loan is an installment loan that allows a person to borrow a fixed amount and pay interest in fixed monthly installments over a period of time.
These loans can offer much lower interest rates than credit cards, and you can usually apply for a loan and receive your money the same day. In this way, you can use a personal loan to consolidate your debts, cover unexpected expenses, or even pay for that dream vacation or wedding.
With this in mind, we have separated for you the best personal loans with low interest rates:
7 best personal loans with low rates
Personal loans are available from traditional banks, credit unions, and online lending platforms. They typically range from $1,000 to $50,000, with some lenders offering loan amounts of up to $100,000. In addition, many personal loans can be funded within a few business days, so you don’t have to wait to get the money you need.
With a personal loan, you can borrow money from a lender for almost any purpose, usually with a fixed term, fixed interest rate, and regular monthly payments.
Collateral is usually not required and the interest rates on personal loans tend to be lower than most credit cards.
Because the personal loan interest rate and loan terms are fixed, you can choose the loan amount and payment amount that suits your budget – which is great for debt consolidation.
In addition, you know the exact date when your loan will be paid in full. Using a personal loan to consolidate high-interest credit card debt can even help improve your credit score.
Interest Rates
Personal loan interest rates largely determine your credit score. Your annual income, debt, amount borrowed and the purpose of the loan are also important.
It is good to compare the interest rates of different lenders to find the best offer. If you don’t see the interest rate you want, try to reduce your loan or improve your credit score.
1. Best for large loans: SoFi Personal Loans
Why SoFi stands out: If you need a large personal loan, SoFi may be a good choice. If you have good, qualified credit, you can borrow up to $100,000.
You can get a loan term of up to seven years. This helps keep your monthly payments affordable, because you can extend your payments over time. Other important features of SoFi loans include:
- No origination fees or upfront fines.
- If you qualify, financing is available the same day after approval.
- If you lose your job, SoFi’s unemployment benefit can help you temporarily adjust your loan, ranging from $5,000 to $100,000.
2. Best Interest Buy: LightStream Personal Loans
Why LightStream stands out: LightStream makes it easy to view possible interest rates with an online loan calculator without having to enter your personal information.
You can see how the actual annual interest rate and monthly payments for a LightStream loan can vary in different terms (24 to 144 months), depending on the loan amount and loan purpose.
Note that LightStream displays interest rates based on borrowers with excellent credit.
- No prepayments or penalties.
- Eligible, same day financing possible upon approval.
- The loan ranges from US $5,000 to US $100,000.
- Note that most applicants do not qualify for the lowest rate.
3. Best for small loan amounts: PenFed Federal Credit Union Personal Loans
Why PenFed stands out: You can borrow up to $600 with a PenFed personal loan – a small amount compared to many other lenders’ minimums. But you must join a credit union to apply.
- No origination fees or prepayment penalties.
- Loans of up to $50,000.
- Loans are funded within 1 to 2 business days of approval.
4. Best for Wells Fargo account holders: Wells Fargo Personal Loans
Why Wells Fargo stands out: If you already have a checking account at Wells Fargo, it may be a good idea to consider taking out a personal loan from the same lender to save on interest.
If you qualify, Wells Fargo offers a “pro-rated discount” of 0.25% of your interest rate.
- No origination fees or prepayment penalties
- Loans from $3,000 to $100,000
- Payback periods range from one to seven years
5. Best for returning funds from loans: Discover Personal Loans
Why Discover stands out: If you’re not sure you need a loan, but still want the money, a personal loan from Discover may be a good option.
With this loan, you have 30 days to decide if you want to pay back the loan – with no interest.
- No origination fees or down payments
- Loan amounts range from $2,500 to $35,000
- Discover can pay your creditors directly when you use the debt consolidation loan
6. Best for some refund flexibility: Marcus by Goldman Sachs Personal Loans
Why Marcus excels: If you have made 12 consecutive payments on time, you can defer them, making more room in your budget for that month.
Remember that even if you don’t incur a late payment that month, that month will be added to the end of your loan and interest will apply.
And if you want to use this option, you must notify your lender 16 days before the normal maturity of the loan.
- No prepayments or penalties.
- Loans from $3,500 to $40,000.
- Loan terms range from three to six years.
7. Best for debt consolidation: Happy Money Personal Loans
Why Happy Money stands out: Happy Money markets its Payoff Loan personal loans as a tool to help you get out of credit card debt.
If you have obtained a personal loan, the company can use the loan proceeds to pay off your current debts directly – so you don’t have to worry about everything yourself.
- An origination fee of up to 5% may be charged,
- The loan amounts range from $5,000 to $5,000 USD.
- 40.000
- Financing can take from three to six working days
- A credit score of at least 640 is required to be approved
- You cannot be approved if your credit status says that you are delinquent.
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