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Best Low-Interest Personal Loans April 2024

A low-interest personal loan is a type of loan that has an interest rate that is lower than the average interest rate for personal loans. Getting a low-interest rate on a personal loan can save you money on interest charges over the life of the loan. However, you’ll typically need good credit, a low debt-to-income (DTI) ratio, and sufficient income to qualify.

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Key Facts

  • Free-to-use marketplace with a choice of vetted lending partners.
  • Borrowers are in control and can compare competitive loan options.
  • No prepayment fees and origination fees as low as 0%
  • Max Loan Amount: $100K

Pros

pros iconGreat for Comparing Lenders

pros icon Fast and Easy

pros iconSecure 256-bit encryption

Cons

cons iconFees Vary

cons iconOther Variable Info

cons iconTerms are Limited

Personal Loans Rate and Terms Disclosure: Rates for personal loans provided by lenders on the Credible platform range between 4.60% – 35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 3, 2022, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties..

Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Lenders will conduct a hard credit pull when you submit your application. Hard credit pulls will have an impact on your credit score. Lowest rate advertised is not available for all loan sizes, types, or purposes, and assumes a very well qualified borrower with an excellent credit profile. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680.

Bonus disclosure:
“All bonus payments are by gift card.”

*Not all available financial products and offers from all financial institutions have been reviewed by this website

  • $600-$100K Loan Amount
  • 550 Min Credit
  • 6.40-35.99% APR
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Key Facts

  • Competitive rates available for good credit scores and income source
  • Access to financial advisors, private networking events, & unemployment protection
  • Flexible terms & payment options with no fees whatsoever
  • Max Loan Amount: $100K

Pros

pros iconPersonal loan application process is easy and only takes a few minutes to complete

pros iconSoft credit check that doesn’t affect your credit score and gives you personalized rates

pros iconFixed and variable rate loans available ranging from $5,000 to $100,000

pros iconNo late or origination fees required

pros iconExcellent customer support team

pros iconOnline autopay comes with a discount on interest

pros iconExclusive benefits for members (ex. networking events and access to financial advisors)

pros iconUnemployment Protection feature comes with a temporary payment pause (up to 12 months)

pros iconNo prepayment penalties

Cons

cons iconMay take up to 4 days to receive funds after approval (longer than other online lenders)

cons iconHigh eligibility requirements (ex. good credit and sufficient income)

“SoFi” is a registered trademark of Social Finance, Inc. SoFi is not affiliated with colleges and universities listed on SoFi.com. Colleges and universities listed on SoFi.com do not endorse, promote or recommend SoFi loan products.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp. or an affiliate, NMLS # 1121636. (www.nmlsconsumeraccess.org)

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

✝︎ To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

©2022 Social Finance, Inc. All rights reserved.”

Fixed rates from 3.99% APR to 9.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 01/16/24 and are subject to change without notice. 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 and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive.Autopay: 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. Autopay is not required to receive a loan from SoFi.Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • $5K-$100K Loan Amount
  • 680 Min Credit
  • 8.99-29.99% APR
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Key Facts

  • Flexible repayment options
  • Great for customers with bad credit score
  • Safe and secure

Pros

pros iconEasy, fast application process

pros iconFunds are disbursed quickly

pros iconBuilds personal credit

Cons

cons iconHigh fees and interest charges

cons iconNo co-signed, joint, or secured loan option

cons iconNo rate discount for automatic payments

Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • $2K-$35K Loan Amount
  • 580 Min Credit
  • 9.95-35.99% APR
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Key Facts

  • Wide range of loan term lengths.
  • No prepayment penalties.
  • Enjoy additional services Axos offer.

Pros

pros iconNo prepayment penalties

pros icon1-year loan terms available

pros iconFast, 2-day funding

pros iconWide range of loan terms

Cons

cons iconHigh credit score requirements

cons iconOrigination fee

cons iconShorter loan terms

Axos Bank® offers bank products and services. All deposit accounts through Axos Bank brands are FDIC insured through Axos Bank. All deposit accounts of the same ownership and vesting held at Axos Bank are combined and insured under the same FDIC Certificate 35546. All deposit accounts through Axos Bank brands are not separately insured by the FDIC from other deposit accounts held with the same ownership and vesting at Axos Bank. For more information, read our FDIC Notice. Axos Bank NMLS# 524995. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month for a total amount of $18,432.

 

  • $5K-$50K Loan Amount
  • 690 Min Credit
Powered by Credible
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Key Facts

  • Useful mobile app to manage your loan
  • Accepts co-signer and joint applications
  • Wide range of term lengths and amounts

Pros

pros iconFast funding time

pros iconGreat reputation

pros iconLow-fee loans

pros iconWide range of term lengths

Cons

cons iconYou need to be a PenFed Credit Union member to get a loan

cons iconDoesn’t disclose all eligibility requirements

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will suit their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also assess brands we are not engaged with).

These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewers’ findings and subjective experience, and product popularity, impact the placement and position of the brands within the comparison table. In the event that we assign ratings or scoring, they are based on the standing in the comparison table or according to the other formula in the event detailed explicitly by us. See our How we Rate page and Terms of Use for information.

The reviews, ratings, and scoring are provided “as is” without guarantees or warranties regarding the information contained on our website, which shall not be considered as endorsement. We do our best to keep the information up-to-date. However, an offer’s terms might change at any time. We do not compare or include all service providers, brands, and offers available in the market. Loan Payment Example: A $35,000 personal loan financed at 4.99% APR would amount to 60 monthly payments of approximately $676.49 each.

  • $600-$50K Loan Amount
  • 690 Min Credit
  • 8.49-17.99% APR
Powered by Credible
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Key Facts

  • Good credit gets low rates and zero fees
  • Fast and easy online process
  • $100 Loan Experience Guarantee¹
  • Max Loan Amount: $100K
  • Powered by Credible

Pros

pros iconGet a loan for practically anything

pros iconAutopay discount available

pros iconDedicated app to manage your loan

pros iconLightStream doesn’t charge any fees

Cons

cons iconPersonal loan up to $100K

cons iconRequires steady income

cons icon1-3 Days till funding

LightStream is a part of Truist Bank. While most correspondence will come from LightStream, you might notice the name Truist on certain communications from us. We continue to serve customers across all 50 states, and you do not need to be an existing customer to qualify for a LightStream loan.

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and credit profile. The lowest rates require excellent credit. At least 22% of approved applicants applying for the lowest rate qualified for the lowest rate available based on data from 07/01/2022 to 09/30/2022.

Rate is quoted with an AutoPay discount. AutoPay discount is only available before loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

  • $5K-$100K Loan Amount
  • 660 Min Credit
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Key Facts

  • Borrowers can find a personal loan option that fits their exact needs
  • Offers a comprehensive knowledge hub
  • Simple to use online loan comparison tool
  • Max Loan Amount: $100K

Pros

pros iconDeals with trustworthy lenders

pros iconWide range of personal loans to check out

pros iconEasy to use comparison tool

pros iconMore than four decades of experience

Cons

cons iconNot a direct lender

cons iconNo live chat

Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products. Loan Example: A $10,000 loan with a 5-year term at 13% Annual Percentage Rate (APR) would be repayable in 60 monthly installments of $228 each. The actual payment amount and year-end balance will vary based on the APR, loan amount, and term selected. In this case the total amount expected to pay by the borrower will be $13,680

  • $600-$100K Loan Amount
  • 300 Min Credit
  • 7.99-29.99% APR

Best Personal Loans With Low Interest

 

660

Min Credit Score

7.99-25.49%

APR. Fixed Rate

$5K-$100K

Loan Amount

2-7 years

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Get a loan for practically anything
  • con-icon Autopay discount available
  • con-icon Dedicated app to manage your loan
  • con-icon LightStream doesn’t charge any fees
  • con-icon Personal loan up to $100K
  • con-icon Requires steady income
  • con-icon 1-3 Days till funding

Loan Purpose

drop-down-btn
  • Car
  • Major Purchase
  • Household Expenses
  • Vacation
  • Wedding
  • Other

Loan Type

drop-down-btn
  • Secured Personal Loans
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
Credible

Get Personalized Prequalified Rates

550

Min Credit Score

7.49-35.99%

APR. Fixed Rate

6.40-35.99%

APR. Variable Rate

$600-$100K

Loan Amount

1-7 years

Repayment terms

Yes

Soft Credit Pull

Marketplace

Lender Type

Yes

Other Fees

Varies

Origination Fee

Varies

Prepayment Fee

Within 5 working days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Great for Comparing Lenders
  • con-icon Fast and Easy
  • con-icon Secure 256-bit encryption
  • con-icon Fees Vary
  • con-icon Other Variable Info
  • con-icon Terms are Limited

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
  • Variable-Rate Personal Loans
  • Co-singer / Joint loans
sofi logo
SoFi

Low Rates. No Fees are Required.

680

Min Credit Score

8.99-29.99%

APR. Fixed Rate

8.99-29.99%

APR. Variable Rate

$5K-$100K

Loan Amount

24 to 84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

Same-day funding if approved before 7:00 PM ET days

Funding Time

Pros & Cons

drop-down-btn
  • con-icon Personal loan application process is easy and only takes a few minutes to complete
  • con-icon Soft credit check that doesn’t affect your credit score and gives you personalized rates
  • con-icon Fixed and variable rate loans available ranging from $5,000 to $100,000
  • con-icon No late or origination fees required
  • con-icon Excellent customer support team
  • con-icon Online autopay comes with a discount on interest
  • con-icon Exclusive benefits for members (ex. networking events and access to financial advisors)
  • con-icon Unemployment Protection feature comes with a temporary payment pause (up to 12 months)
  • con-icon No prepayment penalties
  • con-icon May take up to 4 days to receive funds after approval (longer than other online lenders)
  • con-icon High eligibility requirements (ex. good credit and sufficient income)

Loan Purpose

drop-down-btn
  • Credit Card Refinance
  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding

Loan Type

drop-down-btn
  • Unsecured Personal Loans
 

What Are Low-Interest Personal Loans?

A low-interest personal loan is an installment loan with a fixed interest rate and repayment term, typically ranging from months to a few years. These loans often have an APR of 10% or less, making them different from standard personal loans that can have up to a 36% interest rate.

While some low-interest personal loans may have lender fees like origination or late fees, they are versatile and can be used for various purposes. You can obtain them from banks, credit unions, or online lenders, with some offering quick funding within 24 to 72 hours of approval. The best personal loans have competitive rates, favorable terms, and minimal fees, resulting in potential savings of hundreds or even thousands of dollars.

Low-Interest Personal Loan Example

Shopping around for low-interest personal loans can go a long way to getting you the best rate and term available. By taking the time to compare loan options, you could end up saving a lot of money.

Here’s an example of what the same personal loan might look like with different interest rates:

Loan Amount

Annual percentage rate (APR)

Repayment Term

Monthly Payment

Total interest

Total loan cost

$15,000

15%

48 months

$417

$5,038.14

$20,038.14

$15,000

10%

48 months

$380

$3,261.06

$18,261.06

$15,000

5%

48 months

$345

$1,581.09

$16,581.09

Use a personal loan calculator to determine how much you’ll end up paying each month and in total interest charges over the life of the loan. This can also help you figure out whether you can afford the loan payment.

How to Get a Low-Interest Personal Loan

Here’s what you’ll typically need to do to get a low-interest personal loan:

  1. Make sure you qualify: Low-interest loans are typically only available to borrowers with very good credit — that is 740 FICO or above. If you have a low credit score or spotty credit history, you might end up with a higher interest rate. You may also need to meet a stricter DTI ratio and income requirements.
  2. Determine your needs: Along with making sure you qualify, figure out exactly how much you need to borrow and why.
  3. Compare different lenders: Check out several lenders to see which one offers the best rates and terms, as well as the lowest fees. Check their eligibility requirements, online reviews, and licensing status, too.
  4. Get prequalified: Some lenders have a prequalification option that lets you check your rates without affecting your credit score. This can be a great way to see what you might qualify for without committing to anything. It can also help you narrow down lenders.
  5. Formally apply: Once you’ve chosen a lender and personal loan with the lowest interest rate, submit the application. This can typically be done online, but some lenders require in-person or phone applications. Be prepared to submit any required documents — e.g., income, employment, or identity verification documents.

Getting a Low-Interest Personal Loan With Bad Credit

Even if you have bad credit, it may be possible to get a low-interest loan. If your credit score isn’t high enough, consider getting a cosigner. Having a cosigner could help improve your approval odds and lower your interest rate.

Alternatively, take some time to improve your credit score. Here are some ways to do that:

  • Make on-time payments on any debts you currently owe: Payment history accounts for 35% of your FICO credit score.
  • Try to pay down your existing debts: Approximately 30% of your credit score is based on how much you owe across all open accounts.
  • Keep older accounts open: The average age of history across all of your accounts makes up 15% of your FICO score. Even if you don’t currently owe anything on a credit card, for example, keeping it open can help your credit score.
  • Avoid applying for new forms of credit: When you apply for a new loan or credit card, the lender will usually perform a hard credit inquiry. This can bring down your credit score by a few points. Try not to apply for or open any new accounts while building your credit.

Low-Interest Personal Loans: Major Factors to Consider

If you’re trying to get the best rate on a personal loan, here are the biggest factors that could be affecting your rate:

  • Credit score: You’ll usually need a 740+ credit score to get the best rates.
  • Income: The better your income, the better your rates tend to be. You may also have to provide proof of employment — ideally stable employment. This can give lenders a better idea of how likely you are to repay the loan.
  • DTI ratio: This is a percentage of how much you pay each month versus how much you bring home. For example, if your monthly income is $4,000 and your total debt payments amount to $3,000, then your DTI ratio is 75%. Most lenders prefer a DTI of 40% or less (excluding mortgages).
  • Loan amount: Generally, a larger loan will come with a higher interest rate than a smaller loan.
  • Repayment term: A longer repayment term usually means you’ll pay more in interest charges over the life of the loan. A shorter-term loan could reduce your total interest charges, but it will typically result in a higher monthly payment. 
  • Lender’s base rate: Some lenders have a base interest rate, meaning your loan’s rate will never drop below whatever their base is.
  • Other fees: Interest rate refers to how much a lender charges in interest — this is generally represented as a percentage. APR is a combination of the interest rate plus any lender fees that get added to the loan. It’s also represented as a percentage.

Pros and Cons of Low-Interest Personal Loans

If you’re ready to take out a loan, getting one with a low-interest rate can be highly beneficial. Here are the biggest benefits and drawbacks of taking out such a loan.

Pros  Cons
Smaller monthly payments (depending on repayment term) Making monthly payments means fewer available funds each month
Fewer total interest charges Taking on new debt could temporarily hurt your credit score
Potentially quick approval and funding times Stricter requirements than personal loans with higher interest rates
Can give your credit score a boost with on-time payments Could delay other financial goals — like building an emergency fund or saving up for a down payment

Should You Get a Low-Interest Personal Loan?

You might want to get a low-interest personal loan if you:

  • Have an excellent credit score, low DTI ratio, and reliable income
  • Can easily budget the monthly payments and pay back the loan on time
  • Don’t have the cash on hand and need financing to pay for something
  • Are prepared for any additional lender fees
  • Need funds quickly and don’t have time to save up
  • Want to consolidate high-interest debt into a lower overall interest rate

Low-Interest Personal Loan Alternatives

While useful, a low-interest personal loan may not be right for everyone. In that case, here are two alternatives to consider:

  • Home equity loan or home equity line of credit (HELOC): If you own your home and have substantial equity in it, you could take out a HELOC or home equity loan. These options usually have lower interest rates than credit cards or other loans. They are secured by your home, however, meaning you could lose your home if you fail to pay back what you owe.
  • 0% APR credit card: If you have good credit, you might qualify for a 0% APR introductory credit card. As long as you pay back what you owe before the introductory period is over, you won’t be charged interest on the card.

Average Low-interest Personal Loan Rates

Here are the best lenders offering low-interest rate personal loans and their typical rates. Keep in mind that rates, terms, and requirements may change over time:

Lender

 APR Range (Fixed)

Loan Term

Loan Amount

Origination Fee

Recommended Minimum Credit Score

Best Egg

8.99% to 35.99%

36 to 60 months

$2,000 to $50,000 (in most states)

0.99% to 8.99%

700

Upgrade

8.49% to 35.99%

24 to 84 months

$1,000 to $50,000

1.85% to 9.99%

720

LightStream

7.49% to 24.49%

24 to 144 months

$5,000 to $100,000

No fees

670

LendingClub

9.57% to 36.00%

24 to 60 months

$1,000 to $40,000

3.00% to 6.00%

740

SoFi

8.99% to 25.81%

24 to 84 months

$5,000 to $100,000

0% to 6% origination fee

670