Couple applying for low rate loan

How to get a low-interest personal loan

Need a personal loan? A low interest rate can help you save a lot of money over time.

One of the key differentiating factors for personal loans is the interest they charge, since this feature plays a crucial role in the cost of any loan.

Lenders normally offer low-interest personal loans to people with good and excellent credit rating. If you have poor or bad creditworthiness, your chances of getting a low-interest personal loan remain slim unless you can provide some type of collateral. If you’re considering applying for a low-interest personal loan online or in-store, going through this guide will help you make an informed decision.

Laurel Road Personal Loans

Laurel Road Personal Loans

Get a personalized rate offer through a quick online application. Recommended for people with annual income of $60K+ and debt of less than 40% of their income.

  • Min. Credit Score Required: 680
  • Min. Loan Amount: $1,000
  • Max. Loan Amount: 45000
  • Starting APR: 5.5%
  • Loan Term: 3, 4 or 5 years
  • Rate discounts for autopay
  • No prepayment fees

    How do low-interest personal loans work?

    A low-interest personal loan works like other personal loans: It’s money you borrow to cover an expense, which you pay back plus interest and fees. The main difference is that they tend to cost less than your average personal loan, thanks to the low interest rate.

    While they sound great, low-interest loans are generally hard to qualify for unless you have an excellent credit history. If you do find one you’re eligible for, you can either apply online, in person or over the phone, depending on your lender.

    After you apply, the lender reviews your application. If you’re approved for an online personal loan and the lender approves your application the money is transferred into your bank account electronically. You then have to make repayments towards the loan per a predetermined repayment plan until it’s completely paid off.

    Top three providers for low-interest personal loans

    Provider Name Starting APR Min Loan Amount Max Loan Amount
    Even Financial Personal Loans 4.99% $1,000 $100,000 Go to site More
    Laurel Road Personal Loans 5.5% $1,000 $45,000 Go to site More
    Prosper Personal Loan 5.99% $2,000 $35,000 Go to site More

    5 tips for geting a low interest rate on your personal loan

    Top personal loans you can apply for today

    Rates last updated October 22nd, 2017

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR Requirements
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    680
    $45,000
    From 5.5% (fixed)
    Must be a US citizen or permanent resident with a valid I-551 card
    Even Financial Personal Loans
    Get matched to the best loan offer instantly from top online consumer lenders.
    580
    $100,000
    From 4.99% (fixed)
    Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    640
    $35,000
    From 5.99% (fixed)
    Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    Good to excellent credit
    $100,000
    From 5.49% (fixed)
    You must be a U.S. citizen or permanent resident, and 18 years or older.
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    600
    $25,000
    From 15.49% (fixed)
    Must have a fair credit score of 600 or better and verifiable income. Must live in a state where LendingPoint services.
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    From 34 - 155% (fixed)
    Varies depending on your state of residence.
    LendingClub Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    660
    $40,000
    From 5.99% (fixed)
    You must be over 18 years of age, a permanent resident of the US or an American citizen and have a steady source of income.

    Compare up to 4 providers

    How to compare low-interest personal loans

    When comparing low-interest personal loans, paying attention to these aspects is important:

    • Interest. Low-interest personal loans for excellent credit offer the most competitive annual percentage rates (APRs). If you’re borrowing a significant sum that you wish to repay over a prolonged period, this aspect can have a noticeable effect on the cost of the loan.
    • Secured or unsecured. If you cannot provide any collateral, your options limit to low-interest unsecured personal loans. By providing some kind of security you can get a lower APR.
    • Loan amount. Different lenders offer low-interest unsecured personal loans for amounts from $500 to $50,000. The maximum you can borrow depends on your creditworthiness, your existing financial situation and your ability to make repayments.
    • Loan term. Getting a loan term that matches your requirement may be easier than you think. You can normally find low-interest personal loans with terms from two to seven years.
    • Processing time. If you need money in a hurry this aspect requires particular attention. Certain lenders can give you access to funds on the day you apply, or by the next business day. For others, you may have to wait for as long as seven to 10 business days.

    What types of low-interest personal loans are available?

    In your search for low-interest personal loans you’ll come across these options:

    What are the pros and cons of low-interest personal loans?

    • Savings. If you take a low-interest personal loan that you wish to repay in a few years, you can end up saving a tidy sum in interest.
    • Easy process. With widespread usage of the Internet, getting a personal loan has become considerably simpler. You can now apply using any Internet enabled device, and some lenders provide apps for mobile devices as well. Many lenders let you complete the identification process online.
    • Repayment flexibility. You can find lenders that let you make payments as per your pay schedule, be it weekly, fortnightly or monthly. Some let you repay your loan early without charging any extra fees or penalties.
    • Prepayment penalties. Find out if you may have to pay prepayment penalties because these can put a dent in your plans if you plan to repay your loan ahead of time.
    • Scams. The online world is not devoid of unscrupulous characters. Before you apply for a low-interest personal loan online find out if the lender you choose is legitimate by contacting the Federal Trade Commission and the Better Business Bureau.
    • Bad credit is a problem. Finding low-interest personal loans for bad credit is near impossible, unless you consider getting a secured loan.

    Frequently asked questions

    You’ll have to meet your state’s minimum age requirement. For most states that age is 18 years. You should also be an American citizen or a permanent resident of the US, and have a regular source of income.

    If you have all the required information close at hand the process should take around five to 10 minutes.

    You’ll have to provide personal information such as your full name, date of birth and contact details. Identification details can come from your driver’s license, passport, Social Security card or state ID. Lenders also require your employment and income related details.

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    2 Responses

    1. Default Gravatar
      NirbhaiSeptember 26, 2017

      Hello. Please suggest on how can I get full amount of loan that I need. Please help me.

      • Staff
        JhezelynSeptember 29, 2017Staff

        Hi Nirbhai,

        Thank you for your comment.

        The amount of funding that you can borrow will depend on several factors that include your credit score and the purpose of the loan. The maximum you can borrow depends on your creditworthiness, your existing financial situation and your ability to make repayments. You should check with the lender on how much is the maximum amount they can lend you.

        Regards,
        Jhezelyn

    US Personal Loans Offers

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    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    LendingClub Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.