Best Low-Interest Personal Loans
Getting a Low Interest Loan
Low-interest personal loans can get you up to $100,000 with APR rates as low as 3.49%. Eligibility and your exact rate will depend on your creditworthiness.
Low-interest personal loans provide easy access to cash and funding when you need it most. One of the most important parts of shopping for the right personal loan provider is getting the best rate. Low-interest loans ensure that you don’t overpay for the money you need to borrow. If you’ve got good to great credit, you should receive a low APR rate on your loan.
5 best low interest personal loans of 2020
- LightStream – Best for low interest rates
- SoFi – Best for unemployment protection
- UpStart – Best for approval criteria
- Avant – Best for online app
- Marcus by Goldman Sachs – Best for low fees
LightStream – Best for low interest rates
As a division of SunTrust Bank, LightStream has the backing and expertise of one of the most established banks in the country. Personal loans are available with rates starting as low as 3.49% APR and going up to 19.99%. Loans are available up to $100,000 and with same-day funding.
A unique characteristic of personal loans through LightStream is that rates vary based on the loan’s intended use. Some other providers keep rates relatively similar across the board. Depending on the particular use of your loan, this could be positive or negative. LightStream looks at your credit history, assets, income, and payment history for approval.
SoFi – Best for unemployment protection
Low-APR personal loans are available through SoFi, with rates starting at 5.99% and going up to 17.53%. Repayment terms range from as short as two years out to as long as seven years. There are no fees or origination costs with a personal loan from SoFi, which is a very welcomed sign. The maximum you can receive through SoFi is $100,000.
What’s unique about SoFi is that the company offers unemployment protection on its personal loan products. This means that if you lose your job, you can temporarily pause your payments for up to 12 months. Additionally, the company will even give you the resources to find a new job. In an uncertain economy, this is a big positive to take notice of. For eligibility, SoFi looks at “your financial history, credit score, and monthly income vs. expenses.”
UpStart – Best for approval criteria
Personal loans through UpStart are available from $5,000 to $30,000, with APR rates spanning from 7.0% to 35.99%. Repayment terms are somewhat limited, as your only options are three or five years. What is nice, though, is that there are no prepayment penalties on loans through UpStart. This means that if you’re done with your money early, you can pay it all back and save on interest costs.
What’s also nice about a low-interest personal loan through UpStart is the company looks at more than just your credit score when gauging approval and rates. UpStart also looks at your education, area of study, and your job history. For many, this can help paint a clearer picture of your financial responsibility than just a look at your credit score.
Avant – Best for app usability
Borrowers looking for smaller personal loans will be please to see that Avant offers loans starting at $2,000, several thousand dollars less than the minimum at many other lenders. Rates are a bit higher, starting at 9.95% and going up to 35.99% APR. Loans are available from two years out to five years.
To date, the company has helped over 800,000 people with their personal funding needs. Additionally, Avant can get you your funds as soon as the next business day, as long as you fill out the necessary paperwork on time. On top of all this, the company provides blogs, customer support, and an app to help you learn and get better control of your finances
Marcus by Goldman Sachs – Best for low fees
While some major banks shy away from personal loans, Marcus by Goldman Sachs delivers great options up to $40,000. All loans through the bank come with no sign-up fee, no prepayment fees, and no late fees. Rates are from 6.99% to 19.99%, and you can get a prequalification rate within as little as five minutes. A look at your creditworthiness determines your eligibility.
Personal loans through Marcus can be used for a wide array of uses. The recommended uses on the bank’s website are debt consolidation, home improvement, weddings, moving and relocation, and vacations. While using a personal loan for a wedding or vacation may not be fiscally responsible, Marcus will cover it if you so choose. Additionally, Marcus does allow customers to take out more than one personal loan at a time.
How to find personal loans lenders with low rates
When shopping for low-APR personal loans, there are several tips to help you succeed. First, remember that the rates listed are generally the best possible rates that only apply to those with perfect credit. You may be able to get a better rate at a provider advertising a higher best rate, but that offers that rate to a wider array of people.
It’s imperative that during your search, you don’t get tunnel vision and only look at the rates. While finding a low rate is extremely important, you need to look at the whole picture. Make sure you are also looking at repayment terms and assistance programs if you come on hard times, fees, and eligibility requirements. Look for personal loan providers that meet your criteria here and then compare them on rates.
Additionally, take advantage of the prequalification programs. You can find out pretty close to what you will receive approval for without any commitments or hits to your credit. Most top personal loan companies will give you this information within a few minutes and with only limited information about your situation needed.
The final word
Low-interest personal loans can provide the cash you need to catch up on expenses or make an upcoming purchase. Many of the top lenders can get you upwards of $100,000 without the need for any collateral and at an affordable rate. Just make sure that when you’re picking out a provider that you take the time to look at the whole picture and don’t just compare rate vs. rate. By doing so, you stand to have a favorable lending and repayment experience.