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Best low-interest personal loans

Compare low-cost options with rates as low as 5.49%.

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Bethany Hickey
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Personal loan rates usually range from 4% to 36%, with 10.16% being the average, according to the Federal Reserve. But the lowest rate you can qualify for depends on your personal finances, especially your credit score, income and debts. With rising inflation and the prime rate on the rise, it’s now more important than ever to compare personal loan options. Here are our 12 top picks for low-interest personal loans with rates starting as low as 5.49%.

Best for excellent credit: SoFi

SoFi personal loans

Finder Rating: 4.45 / 5 ★★★★★

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This online lender offers some of the lowest interest rates out there and charges absolutely no fees — not even late fees. It's also one of the few providers that offers both fixed interest rates and variable rates, which allow you to take advantage of the low fed rate on shorter loan terms. Aside from rates, this lender offers perks like free financial planning and career coaching. But it can take as long as 30 days to get your funds — and it doesn't disburse money to creditors for debt consolidation.
  • Not available in: Mississippi
Partner terms and conditions
Fixed rates from 7.99% APR to 22.73% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 6/15/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Best for fair credit: Upgrade personal loans

Upgrade personal loans

Finder Rating: 4 / 5 ★★★★★

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We picked Upstart as the best overall for fair credit because of its more-forgiving credit score cutoff, however, Upgrade offers a better deal if you're looking at rates. This lender emphasizes your monthly cashflow over your credit scores, making it a good choice if your credit report isn't spotless. But its origination fees can run as high as 8.99% — most lenders stop at 5%.
  • Not available in: Colorado, Iowa, Maryland, Vermont, West Virginia
Partner terms and conditions

Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.

Best for low interest rates overall: LightStream

LightStream personal loans

Finder Rating: 4.83 / 5 ★★★★★

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We may not be able to tell you the exact rate, but if you check its website, you'll see why LightStream tops our list. Aside from having some of the most competitive rates, its Rate Beat program may beat some competitor offers. It also has a generous 0.5% autopay discount and offers a $100 satisfaction guarantee. But you could struggle to qualify if you don't have good credit. You also can't check your rate without affecting your credit.

Best for comparing lenders: Monevo personal loans

Monevo personal loans

Finder Rating: 4.4 / 5 ★★★★★

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Monevo is an online marketplace that can help you find a personal loan if you don't know where to start. You can compare personalized offers from its partners by filling out a quick online form. Its partners offer some of the lowest interest rates out there and it has options for all credit scores. But by using its service, you're agreeing to share your information with its partner lenders. Many people complain about getting high volume of phone calls and emails from lenders after using similar services.
  • Available in all states

Best for bank loans: Wells Fargo personal loans

Wells Fargo personal loans

Finder Rating: 3.65 / 5 ★★★★★

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When it comes to big national banks, Wells Fargo offers some of the lowest interest rates that are available to new and current customers. There's also no origination fee and you can receive an APR discount as high as 0.5% if you sign up for autopay with a Wells Fargo account. But consider applying with your bank before you choose Wells Fargo. Most offer relationship discounts and it can take significantly less time to receive your funds if you already have an account.
  • Available in all states

Best for credit union loans: PenFed Credit Union personal loans

PenFed Credit Union personal loans

Finder Rating: 3.6 / 5 ★★★★★

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PenFed Credit Union has some of the lowest maximum interest rates out there — and it accepts some borrowers with fair credit. You can also borrow as little as $600 through this lender. But its maximum loan amount also runs low compared to other providers on this list. Like other banks and credit unions, you have to be eligible for membership to get approved. And it can take a couple of weeks to receive your funds — which it disburses by check.
  • Available in all states
Partner terms and conditions
Insured by NCUA.

Best for good credit: Marcus by Goldman Sachs

Marcus by Goldman Sachs personal loans

Finder Rating: 3.8 / 5 ★★★★★

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Marcus By Goldmans Sachs is the online lending arm of Goldman Sachs Bank. While it doesn't have the lowest starting annual percentage rates (APRs) out there, its low maximum rate makes it a good option for borrowers with excellent credit. Service members can also qualify for rates as low as 4%. But its range of loan amounts is limited compared to other similar providers. And while it doesn't charge a late fee, you'll pay extra interest if you miss a payment.
  • Available in all states
Partner terms and conditions

Marcus By Goldman Sachs® Offer Terms and Conditions


Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

Best for bad credit: OneMain Financial personal loans

OneMain Financial personal loans

Finder Rating: 3.4 / 5 ★★★★★

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OneMain's interest rates start higher than some of its competitors stop. But for bad credit borrowers, it's not a bad deal. This lender is one of the few personal loan providers that doesn't have a minimum credit score. And it allows you to secure your loan with collateral for a lower interest rate. But it's still expensive. If it's not an emergency, consider taking steps to improve your credit to help you get a lower rate.
  • Not available in: Alaska, Arkansas, California, Connecticut, Massachusetts, Michigan, Rhode Island, Vermont
Partner terms and conditions
* OneMain Disclosures:
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Best for no credit: Stilt personal loans

Stilt personal loans

Finder Rating: 4 / 5 ★★★★★

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Stilt specializes in personal loans for nonresidents and recent immigrants. But anyone with strong personal finances but no credit history can benefit from this lender. Instead of looking at your credit score, it considers factors like your income, spending habits, education and career. But it's only available in a handful of states and its loan terms are short compared to other lenders. This can lead to high monthly payments.
  • Only available in: Arizona, California, Florida, Georgia, Illinois, Michigan, New Jersey, New York, Pennsylvania, Texas, Utah, Washington, Wisconsin

Best for debt consolidation: Discover personal loans

Discover personal loans

Finder Rating: 4 / 5 ★★★★★

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This online lender will send your loan directly to your creditors, making it easy to pay off high-interest debts. It also doesn't charge origination fees and can disburse your loan as soon as the next business day. But the maximum loan amount is low compared to other options on this list. And it charges a relatively high late fee of $39 as soon as you miss a payment. Most lenders have a 15-day grace period.
  • Available in all states

Best for credit card debt consolidation: Happy Money personal loans

Happy Money

Finder Rating: 3.8 / 5 ★★★★★

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If you only have credit card debt, Happy Money could be a better choice — especially if you have good or excellent credit. While it charges some borrowers an origination fee of up to 5%, you can save on late and annual fees. This lender only offers loans for credit card debt consolidation and claims that borrowers boosted their credit scores by as much as 40 points by paying off $5,000 in credit card debt. It also allows you to change your monthly due date once a year, which can be useful if you switch jobs.
  • Not available in: Massachusetts, Nevada

Best for peer-funded loans: Prosper

Prosper personal loans

Finder Rating: 3.42 / 5 ★★★★★

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Prosper is a pioneering peer-to-peer lender that offers loans funded by investors, instead of a bank. You can qualify with a credit score of 600 and a relatively high debt-to-income ratio, making it a solid choice if you already have loans or credit cards. You'll have to pay an origination fee of up to 5%, however. And it can take as long as five business days to receive your loan.
  • Not available in: Iowa, North Dakota, West Virginia

Methodology: How we picked the best providers

We spend hundreds of hours comparing 120+ personal loan providers to choose and update our top picks for low-interest personal loans. Each lender is weighed across 11 key metrics: lowest APR, maximum APR, income requirements, lender reputation, application ease, loan amounts, state availability, existence of additional fees, available discounts, turnaround time and customer reviews. For the best low-interest personal loans, we place the most weight on a lender’s lowest APR and maximum APR offered.

Who has the lowest interest rates on a personal loan?

Here are our best picks, organized from the lowest to highest starting rates on personal loans.

  1. LightStream offers 5.73% to 5.99% depending on loan amount, and may match competitors.
  2. Wells Fargo sits at 6.99% for customers who qualify, including the relationship discount.
  3. Discover’s personal loans start at 5.99%.
  4. Marcus by Goldman Sachs offers 6.99%, and as low as 4% for service members.
  5. Prosper rates start at 6.99%, but with a high maximum rate of 35.99%.
  6. PenFed comes in sixth with rates at 7.74%.
  7. Upgrade starts at 7.96%, including an autopay discount.
  8. Stilt’s starting rate is 7.99% for personal loans.
  9. SoFi also offers low rates starting at 7.99%.
  10. Happy Money comes in 10th at 8.99%.
  11. OneMain Financial comes in with starting rates at 18%.
  12. Monevo advertises rates as low as 1.99%, but it’s not a direct lender.

What’s the difference between my interest rate and APR?

APR includes the interest and fees you’d pay over one year. It gives you a more accurate idea of how much your loan is going to cost. Many personal loans don’t come with application or origination fees, so in those cases the APR and interest rate are the same. Otherwise, a loan’s APR will be higher than its interest rate.

Factors that determine your interest rate

Look into these factors before you start the application process — there are various factors that play into what interest rate you can get on a personal loan.

  • Credit score. Check your credit score online to get an estimate of the number your lender will see, and your credit score range. This can help you understand the types of rates you’re eligible for. If your score is below 670, consider taking steps to improve your credit first.
  • Your other debts and income. A lender will ask about your other debts that you’re currently paying on, such as car loans, credit cards and other accounts. If you have enough income leftover after accounting for all other debts, you should be set.
  • Exact loan amount. Go in knowing how much you need to borrow so you can rule out lenders who don’t offer financing in that range. If you’re not sure how much you’ll need, consider more flexible financing options like a credit card or line of credit instead.
  • Loan term. Typically, lenders tend to offer lower interest rates to longer loan terms.
  • Secured or unsecured. Securing your loan with an asset makes it less risky to the lender and gets you lower rates.
  • Loan amount. Often, the lowest available rates are only available on the highest loan amounts.
  • Use. How you plan to use a personal loan can affect your rate. For example, if you use a loan for debt consolidation, your lender might offer a lower rate than if you wanted funds to pay for a vacation.

How to prequalify for a personal loan

A prequalification typically involves a soft credit check — the one that doesn’t hurt your credit score. As a general rule, expect to need a decent credit score to prequalify, often at or above 670. This isn’t always the case though, since some lenders work with no credit or bad credit borrowers, but it’s a good baseline to keep in mind. If you’re preapproved, the lender moves forward with a hard credit pull and asks you to provide more documents to become officially approved for a loan.

What fees do top lenders charge?

LenderPrepaymentLate paymentOriginationCheck processingNonsufficient funds
ProsperNone$15 or 5% of monthly payment amount, whichever is greater, if you haven’t paid the full amount of your monthly payment within 15 calendar days after your due date.Varies between 1% to 5% of loan amount. Deducted from the amount of money you receive.This fee is the lesser of 5% of your payment or $5.$15 for each returned or failed payment.Learn more
UpgradeNone$10 per payment if you don’t pay the full amount of your payment within 15 calendar days.This fee may vary between 1% to 6%, which is deducted from the loan proceeds.None$10 for each returned or failed payment.Learn more
LendingClubNone$15 or 5% of monthly payment amount, whichever is greater, if you haven’t paid the full amount of your monthly payment within 15 calendar days after your due date. Charged for each late payment.The fee may vary between 1% to 6% but is charges with your loan. This means that you will receive the amount you applied minus the origination fee.$7 dollars per each payment made by check.$10. This is taken as a late fee.Learn more
Best EggNone$15 if you’re late by 3 calendar days.0.99% to 5.99% deducted from loan proceeds.None$15 for each returned or failed payment.Learn more
Achieve (formerly FreedomPlus)None$15 or 5% of monthly payment amount, whichever is greater, if you’re late within 10 calendar days. Charged for every late payment.0% to 5%, typically deducted from loan amount before borrower receives it.$15 dollars per each payment made by check.$15 for each returned or failed payment.Learn more
LaurelRoadNoneNoneNoneNoneNoneLearn more
LendingPointNoneNot listed6%, added onto loan amount. You have the option of having it deducted prior to deposit.NoneNot listedLearn more
NetCreditNoneNo fee unless your state law requires it.No fee unless your state law requires it.No fee unless your state law requires it.NoneLearn more
SoFiNoneNoneNoneNoneNoneLearn more
LightStreamNoneNoneNoneNoneNoneLearn more

Average personal loan rates by credit score

Your credit score is one of the most important factors that lenders use to determine what interest rates you qualify for. The two credit scoring models are FICO and VantageScore 4.0. It’s not a perfect science, and FICO and VantageScore have some differences, but your credit scores can help you predict what interest rates you may receive when borrowing credit and help you choose a lender that can accommodate your credit rating.

VantageScore 4.0 credit rangeAverage estimated interest rate (%)*
781 to 8506.39%
661 to 78010.54%
601 to 66015.63%
500 to 60017.27%
300 to 49917.35%

*Estimated average interest rates sourced from Forbes as of November 2022.

Where to get a low-interest personal loan

Big banks aren’t your only personal lending options.

Lender typeDetails
BanksBanks tend to offer some of the lowest rates out there, but you generally need a credit or FICO score of at least 670 to qualify — and some might only offer loans to current customers.
Credit unionsCredit unions often offer low rates to a wide range of credit types compared to other lenders, since they’re owned by their customers. And federal credit unions legally can’t charge rates over 18%.
Online lendersThese lenders have higher rates on average, but typically put less weight on credit score than a bank or credit union.
Connection servicesA connection service can help you quickly prequalify with multiple lenders to help you quickly find the lowest rate you qualify for with its partner lenders.

How to increase your chances of getting a low rate

You may be able to combine some of these tactics to ensure a low interest rate on a personal loan.

  • Try for prequalification first. If a lender offers prequalification with a soft credit check, try it out. It won’t harm your credit score, and it gives you a better idea of what rates you may qualify for.
  • Look into relationship discounts. Your bank might offer rate discounts as high as 0.5% if you have a current checking account or savings account — and you can get your loan funds faster.
  • Sign up for autopay. Some lenders offer a 0.25% rate discount if you sign up to have payments automatically debited from your account.
  • Take advantage of low-rate guarantees. Some lenders like LightStream will offer you a lower rate than the competition, as long as the offer meets certain requirements.
  • Consider a cosigner. A cosigner with good credit can help you land a lower interest rate than if you were to apply alone. Lenders that accept cosigners on personal loans are rare, though.
  • Shop around. Don’t just go with the first loan offer you find. Comparing lenders can sometimes lead you to an even better deal. And if you have bad credit, consider lenders that specialize in bad credit personal loans.

What is forbearance?

Forbearance is a loan repayment assistance program that lets you pause repayments when you have a temporary financial hardship that makes it difficult to make repayments. It’s meant to help you avoid defaulting on your loan in short-term situations, like if you lose your job or are in an accident.

How long does it last?

In most situations, a forbearance lasts around three months, but it can go as long a few years. This depends on the lender, the type of loan you have and your financial situation.

Does it affect the cost of my loan?

Yes, forbearance typically makes your loan more expensive. During forbearance, interest continues to add up on your loan. That interest is added to your loan balance in a process called interest capitalization. Unlike with deferment, most lenders don’t extend your loan term when you go into forbearance. This all means that you’ll have a higher balance and higher monthly repayments when you come out of forbearance. That’s why it’s not a good solution for long-term or indefinite financial hardship.

Other lending options

Compare other personal loan options. To get more details of a specific lender, select Learn more to go to its site. Or select More info to read a review.

1 - 6 of 6
Updated regularly
Name Product Filter Values APR Minimum credit score Loan amount
Best Egg personal loans
Best Egg personal loans
8.99% to 35.99%
600
$2,000 to $50,000
A prime online lending platform with multiple repayment methods.
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More Info
Upstart personal loans
Upstart personal loans
6.5% to 35.99%
300
$1,000 to $50,000
This service looks beyond your credit score to get you a competitive-rate personal loan.
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More Info
Bankrate
Bankrate
4.98% to 35.99%
Poor to excellent credit
$1,500 to $100,000
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Achieve personal loans
Achieve personal loans
7.99% to 29.99%
600
$1,000 to $50,000
Consolidate debt and more with these low-interest loans. Cosigners welcome.
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More Info
Upgrade personal loans
Upgrade personal loans
7.96% to 35.97%
620
$1,000 to $50,000
Affordable loans with two simple repayment terms and no prepayment penalties.
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More Info
LightStream personal loans
LightStream personal loans
5.99% to 23.99%
Good to excellent credit
$5,000 to $100,000
Borrow up to $100,000 with low rates and no fees.
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More Info
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Recap: Best low-interest personal loans

  1. Consumer Credit, Federal Reserve
  2. 2022
  3. Forbes

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