Best Low Interest Personal Loans

When searching for the best Low Interest personal loans, the details matter. Each lender offers something different, from interest rates to repayment terms. Here’s a breakdown of some of the top personal loans available, catering to various credit scores and financial needs.

SoFi: Best Overall

SoFi stands out with its competitive interest rates ranging from 8.99% to 29.49% and substantial loan amounts from $5,000 to $100,000. Ideal for borrowers with a minimum credit score of 680, SoFi offers flexible repayment terms from 2 to 7 years. What makes SoFi even more appealing are the fee waivers, no fees whatsoever, and the discounts for autopay, existing account holders, and direct creditor payments for debt consolidation. Borrowers can access funds the same day after approval.

LendingPoint: Best for Fair Credit

LendingPoint caters to those with fair credit, offering loans from $2,000 to $36,500 with interest rates from 7.99% to 35.99%. Although they require a minimum credit score 590, they compensate with relatively flexible repayment options (2 to 6 years) and funding as soon as the next business day post-approval. Applicants should be mindful of the origination fees, which can be as high as 8%.

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Upgrade: Best for Poor Credit

Upgrade provides a viable option for those with poor credit, with a minimum score requirement of 580. They offer loans ranging from $1,000 to $50,000 with interest rates between 8.49% and 35.99%. Despite the potentially high rates, the broad repayment terms (2 to 7 years) and relatively quick funding (within one business day after verifications) make Upgrade an accessible choice. Be aware of the origination and late fees, which add to the cost of borrowing.

Prosper: Best Peer-to-Peer Lender

Prosper operates on a peer-to-peer lending platform, offering loans from $2,000 to $50,000 with rates from 6.99% to 35.99%. Suitable for borrowers with a minimum credit score 560, Prosper’s loans have repayment terms from 2 to 5 years. Fees include an origination charge, late fees, and penalties for insufficient funds, with funding possible within one business day.

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Axos Bank: Best for Excellent Credit

For those with excellent credit (minimum score of 700), Axos Bank offers competitive terms with loans ranging from $5,000 to $50,000 and interest rates from 11.79% to 20.84%. They provide 3 to 6-year repayment plans but include origination fees. Funding can occur as quickly as the same day, making it a fast and efficient option for qualified borrowers.

Discover: Best for Good Credit

Discover targets those with good credit, offering loans from $2,500 to $40,000 with rates from 7.99% to 24.99%. The repayment terms extend from 3 to 7 years, and although the credit score requirements are undisclosed, the lender is known for requiring good to excellent credit. A potential drawback is the high late fee of $39, but funding can be rapid, within one business day post-approval.

Avant: Best for Customer Support

Avant is noted for its strong customer support, catering to those with minimum credit scores 580. It offers loans from $2,000 to $35,000 with interest rates ranging from 9.95% to 35.99%. The loan terms are shorter, from 1 to 5 years, and include an origination fee and potential late fees. Funding is also fast and available as soon as the next business day after approval.

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LightStream: Best for Fast Funding

LightStream stands out for its quick funding capabilities, often disbursing funds on the same day as approval. Interest rates range from 7.49% to 25.99%, with potential borrowers able to request loan amounts from $5,000 to $100,000. The repayment terms are flexible, spanning 2 to 7 years and extending up to 12 years for certain loans. Although LightStream does not disclose a minimum credit score, they offer a 0.50% discount for autopay and an additional 0.10% off if a competitor’s rate is lower, and they charge no fees.

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Discover: Best for Good Credit

For individuals with good credit, Discover offers competitive terms with interest rates from 7.99% to 24.99% and loan amounts between $2,500 and $40,000. Repayment can be spread over 3 to 7 years. Discover does not reveal a minimum credit score requirement but does charge a late fee of $39. Funds can be available as soon as one business day following approval.

U.S. Bank: Best for Repayment Term Variety

U.S. Bank offers a range of repayment terms and is particularly appealing to its existing customers. Non-customers can borrow up to $25,000, while customers may be eligible for loans up to $50,000, with interest rates from 8.74% to 24.99%. Terms range from 1 to 7 years, though non-customers are limited to 5 years. A minimum credit score 660 is required, and borrowers benefit from a 0.50% discount for autopay. 

Oportun: Best for Building Credit

Oportun provides loans aimed at helping borrowers build or repair their credit, with high-interest rates ranging from 34.95% to 35.99%. They offer smaller, secured, and unsecured loan amounts, from $300 to $18,500. The repayment period can extend up to 5.33 years, and while the minimum credit score is not disclosed, they charge origination and late fees. Funding can be as fast as the same day.

Upstart: Best for Thin Credit

Upstart caters to those with a limited credit history, offering interest rates from 7.8% to 35.99% on loans ranging from $1,000 to $50,000. The repayment options are 3 or 5 years, with a minimum credit score of 300 considered. They charge an origination fee based on the loan amount and have additional fees for late and returned payments, but funds can be available within one business day.

Citibank: Best for Rate Discounts

Citibank is an excellent option for those looking for rate discounts, offering interest rates from 10.49% to 19.49%. Loans range from $2,000 to $30,000, with 1 to 5-year repayment periods. They provide a 0.50% rate discount for autopay and an additional 0.25% off for Citigold and Citi Priority customers. No origination fee exists, and existing Citi account holders can receive funds on the same day.

 

Final Thought On Right Low Interest Personal Loans:

Choosing the right low interest personal loans requires careful consideration of various factors, including interest rates, fees, repayment terms, and eligibility requirements. Understanding your financial situation and credit score is crucial in selecting a lender with the best terms for your needs. Research and compare options to ensure you find a personal loan that aligns with your financial goals and capabilities.

FAQs:

Q1: What is a low-interest personal loan?
A1: A low-interest personal loan is a type of unsecured loan that offers borrowers a lower annual percentage rate (APR) compared to standard personal loans. These loans are typically used for debt consolidation, home improvements, or other large expenses.

Q2: How can I qualify for a low-interest personal loan?
A2: To qualify for a low-interest personal loan, you generally need a good to excellent credit score (usually 670 or higher), a low debt-to-income ratio, stable income, and a positive credit history. 

Q3: What is the difference between a fixed and variable interest rate on personal loans?
A3: A fixed interest rate remains the same throughout the loan term, providing predictable monthly payments. A variable interest rate can change over time based on market conditions, which means your payments could increase or decrease.