In a NutshellGetting a low interest personal loan typically requires excellent credit. But with so many loan options to choose from, it’s important to not only compare interest rates but to also look things like fees, loan amounts and repayment term length. We’ve rounded up our top picks for the best low interest personal loans.
Low-interest personal loans can be a useful financial tool.
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.
Let’s take a closer look at our picks for top low interest personal loans.
- 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
- 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. Other key features of a SoFi personal loan include:
- If eligible, same-day funding possible, once approved.
- If you lose your job, SoFi’s “unemployment protection” can help you temporarily modify your loan.
- Loans range from $5,000 to $100,000.
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 144 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 possible, once approved.
- Loan amounts from $5,000 to $100,000.
- Note that most applicants don’t qualify for the lowest rate.
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.
- No origination fees or prepayment penalties.
- Loans capped at $50,000.
- Loans funded within one to two business days of finalizing.
Best for Wells Fargo checking account holders: Wells Fargo
Why Wells Fargo stands out: If you already have a checking account with Wells Fargo, 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.
- No 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
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 6.25%
- Loan amounts range from $5,000 to $40,000
- Funding can take three to six business days
- At least three years of “established credit” for approval
- You can’t be approved with delinquent accounts on your credit reports
What is a good APR on a personal loan?
The average interest rate on a two-year personal loan was about 12.2% in August 2023, 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 check 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.