What are low income limits for personal loans?

Low income limits refer to the income requirement for personal loan borrowers. Certain lenders offer personal loans that have little-to-no gross minimum income requirements, which means most individuals with a qualifying credit score can apply.

Should I get a personal loan with no income?

While some lenders have no minimum income requirement, they typically need proof of employment. Even if it is not required, it’s not a wise decision, which puts you at risk financially.

How can I get a loan for low income limits?

To get a low-income-limit personal loan, look for private lenders, government programs or credit unions that offer personal loans with low or no income requirements.

Will a personal loan hurt my credit score?

A personal loan only hurts your credit score if you miss a payment or have too many loans or lines of credit already.

What is the average APR of a personal loan with low income limits?

The average APR for a personal loan with low income limits depends on the borrower, as rates vary depending on many criteria. However, APRs for low-income-limit personal loans can reach up to 35.99%.

What’s a fair interest rate for a personal loan with low income limits?

While interest rate offers can vary based on a number of factors, you will want to stay below or around the national average interest rate for personal loans of 9.41%.

Best Low Income Personal Loans in March 2023

Personal loans can be a valuable financial tool for low-income individuals, but they are not always the best option. It can be challenging to qualify for a personal loan if you have a low income. Taking out a loan can put an additional strain on your monthly budget or even make your financial situation worse if you are not careful. However, if managed wisely, personal loans can help with emergencies, debt consolidation, or other activities that require additional funds.

While many banks have minimum income requirements that can be difficult to meet, some lenders offer personal loans specifically designed for low-income borrowers. These loans may have more relaxed eligibility requirements and lower interest rates, making them more affordable for those with limited income. MoneyGeek is a resource that ranks the top lenders that offer personal loans to those with low incomes. Using this resource, you can compare different loan options and find the one that best meets your needs and financial situation. It's essential to carefully consider the terms and conditions of any loan, including the interest rate, fees, and repayment terms, to ensure that it is a good fit for your budget.

WHAT WE’RE GEEKING OUT ON

Best Low-Income Loan Lender
Second Best Low-Income Lender
Best Low-Income Loan Lender for Debt Consolidation
Best Low-Income Loan Lender With Low Rates
Best Low-Income Loan Lender With Same Day Funding
How to Choose the Right Low-Income Loan for You
Calculate Your Monthly Payment
Frequently Asked Questions About Low Income Loans

Best Low Income Loans for 2023

Private lenders who offer personal loans to those with low incomes often have strict eligibility requirements. In addition to falling below a certain income level, lenders may also consider your debt-to-income (DTI) ratio, which measures your other debts compared to your income. Many lenders will not lend to borrowers with a DTI ratio higher than 40%.

To help you find the best personal loans for low-income limits, MoneyGeek has evaluated more than 30 lenders based on various factors, including affordability, accessibility, consumer friendliness, customer service, flexibility, and transparency. MoneyGeek's analysis considers a range of data points, including APR ranges, loan amounts available, credit score requirements, minimum income requirements, application fees, and disbursement times. Using this resource, you can compare different loan options and find the one that best meets your needs and financial situation. It's essential to carefully consider the terms and conditions of any loan, including the interest rate, fees, and repayment terms, to ensure that it is a good fit for your budget.

Overall Winner: Upgrade

Upgrade
- 5.94% to 35.47%APR Range
- 560Minimum Credit Score
- $1,000 to $50,000Loan Amount Range
- 36 to 60 monthsRepayment Terms
- Same DayTime to Receive Funds
Upgrade offers one of the best personal loans for low income limits, supporting a wide range of credit scores and incomes. The company only requires a minimum credit score of 560, making their loans a great way to build credit even if you have a low income. However, Upgrade’s APR range gets very high for borrowers who are not well-qualified.
Upgrade only conducts soft credit checks during the application process, which do not affect your score. If it gets difficult to meet the minimum payments, low-income individuals can also apply for a temporary reduction of their monthly minimum or a permanent modification of their loan to suit their circumstances.
Despite this, Upgrade’s personal loans may not be suitable for those with good or excellent credit scores, as other lenders offer lower APR rates, higher loan amounts and little-to-no origination fees.
Pros
Pays creditors directly for debt consolidation
1% autopayment discount rate
No prepayment penalty
No minimum income requirement
Reasonable minimum credit score requirement

Cons
$50,000 loan limit
Up to 35.47% interest rate
Up to 8% origination fees
Has late fees
Many restrictions on fund usage
APR range: 5.94%–35.47%
Minimum/maximum loan amount: $1,000–$50,000
Minimum credit requirements: 560
Repayment terms: 36 to 60 months
Time to receive funds: Same Day
on Upgrade Website

Runner-up: Lending Club

Lending Club
- 7.04% to 35.89%APR Range
- 600Minimum Credit Score
- $1,000 to $40,000Loan Amount Range
- 36 to 60 monthsRepayment Terms
- Next DayTime to Receive Funds
Lending Club is a fully digital marketplace bank offering personal loans with reasonable requirements. With a minimum credit score of 600 and no minimum gross income requirement, qualified borrowers can easily get the funds they need.
Personal loans from Lending Club are best for those who need a small loan amount, as they offer loan amounts from $1,000–$40,000. Because joint applications are allowed, co-borrowers can enjoy higher loan amounts and more competitive rates.
Loans from Lending Club also come with a one-time origination fee, which ranges between 3% and 6% and is considered expensive compared to other lenders. This is calculated based on your loan amount and credit rating at the time of applying.
However, not all borrowers will benefit from Lending Club, as their rates may not suit those with good or excellent credit.
Pros
Moderate credit score requirement of 600
Joint loans are available
No debt-to-income limits
No minimum gross income requirement
Conducts soft credit checks

Cons
High APR range
Relatively high origination fees
Limited loan term options
Limits use of funds
Has an employment requirement
APR range: 7.04%–35.89%
Minimum/maximum loan amount: $1,000–$40,000
Minimum credit requirements: 600
Repayment terms: 36–60 months
Time to receive funds: Next Day
on Lending Club Website

Best For Debt Consolidation: Upgrade

Upgrade
- 5.94% to 35.47%APR Range
- 560Minimum Credit Score
- $1,000 to $50,000Loan Amount Range
- 36 to 60 monthsRepayment Terms
- Same DayTime to Receive Funds
Upgrade is the second-best option for individuals with bad credit. The company offers loans in amounts as low as $1,000 and as high as $50,000. If qualified, you may get an interest rate as low as 5.94%. Getting funds also does not take long as Upgrade releases money on the same business day that your loan application is approved. For convenience, the company accepts online applications. Borrowers can access their loan information through its mobile app.
However, Upgrade may not be a great option for some individuals. For example, the company does not allow borrowers to use the money to fund their post-secondary education. Upgrade also has a 2.9%–8% origination fee. Finally, if you have a credit score below 560, an Upgrade personal loan is not for you.
Pros
1% auto payment discount
No prepayment penalty
No minimum gross income requirement
Same-day funding

Cons
2.9%–8% origination fee
Charges late fees ($10)
Does not accept those with new or no credit
Cannot be used for post-secondary education
on Upgrade Website

Best for Low Rates: LendingPoint

LendingPoint
- 9.99% to 35.99%APR Range
- 590Minimum Credit Score
- $2,000 to $36,500Loan Amount Range
- 24 to 60 monthsRepayment Terms
- Next DayTime to Receive Funds
LendingPoint, a financial technology platform founded in 2014, reviews loan applications and approves loans using proprietary algorithms and artificial intelligence. You can apply for loans ranging from $2,000 to $36,500 if you have a minimum credit score of 590 and an annual salary of at least $20,000.
Apart from its A+ rating with the Better Business Bureau and low eligibility criteria, the company's noteworthy qualities include the absence of a prepayment penalty and speedy loan processing. Depending on your creditworthiness, you will be offered a loan with a fixed annual percentage rate (APR) of between 9.99% and 35.99%.
Additionally, the company does not place restrictions on loan usage. As long as the intended use is legitimate, you are good to go. However, LendingPoint may not be for you if you wish to apply for a joint loan or want a co-signer. Additionally, West Virginia and Nevada residents are not eligible to apply.
Pros
No restrictions on usage of funds
Next-day funding
Moderate credit score requirement
Soft credit inquiry
No prepayment penalty
Low minimum income requirement

Cons
Charges origination fee of up to 6%
Higher than average APR
Maximum loan amount of $36,500
No autopay discount
Charges $30 late fees
No co-signed or joint loans
on LendingPoint Website

Best for Same-Day Funding: Ally

Ally
- 0% to 26.99%APR Range
- Not DisclosedMinimum Credit Score
- $500 to $65,000Loan Amount Range
- Not DisclosedRepayment Terms
- Same DayTime to Receive Funds
Ally Lending is the lending division of Ally Financial, who offers personal loans to consumers through certain service providers in the healthcare, home improvement, automotive and retail industries. Their unique business model allows service providers to offer zero-interest financing at their discretion, which can be beneficial for consumers with fair or strong credit scores.
It’s worth noting that Ally Lending’s services are not available in all 50 states.
Pros
They do not have any application fees
Their pre-qualification doesn’t impact your credit
They have no prepayment penalties
They offer interest-free loans through some providers
You can easily set up your account and manage your loans online

Cons
You can only apply through a provider and not directly from Ally Lending
Their repayment terms and credit score requirements are undisclosed
You do not get a discount for automatic payments
on Ally Website

How To Choose The Best Low Income Loan

Choosing the right personal loan is critical, as the wrong choice could hinder your financial circumstances. Given how there are a fair number of lenders who offer low-income personal loans, it’s best not to limit yourself to just one or two offers.

Beyond the eligibility criteria, borrowers should also consider the APR, documentation requirements, repayment terms and additional fees and charges of an offered loan. These can help determine if you can afford the monthly payments and if a personal loan is the best course of action for your needs.

Make sure to evaluate your options properly to find the best personal loan for low income limits that suits your situation.

Ask Yourself the Important Questions

To ensure you’re prepared to take out a loan, it’s important to evaluate your situation. Here are a few critical questions to ask yourself:

How much money do I need? Keep in mind that most lenders offer loans starting at $1,000 — if you need less than this, you may be better off saving up or borrowing money. Likewise, different lenders have differing top-level limits.
What is your credit score? Most lenders have a minimum credit requirement. If you have new or no credit at all, it may be better to consider other options.
Can I afford the monthly payment? Establish the maximum amount you can afford to spend monthly on repaying your debt, as most lenders have a minimum monthly requirement.
How much debt do I already have? Lenders look at your debt-to-income ratio to determine whether you can pay back a loan or not. The higher it is, the less likely they will accept your application.

Do Your Research

To find the best personal loan for your situation, it’s crucial to evaluate your options and conduct thorough research, especially if you’ll be saddled with repayments for more than a year.

While MoneyGeek is committed to providing all the necessary information to guide you through the process, it’s still in your best interests to explore other alternatives to ensure you have an overview of all your options.

If you’re looking at companies not included in MoneyGeek’s evaluation, make sure to research the company’s financial stability and compare rates from different providers. Beyond that, look at their eligibility requirements and application process, such as if they conduct a hard credit check or require certain documents.

Wait

Even after conducting thorough research, don’t jump the gun and apply right away. Wait a day or two to let your options sink in and give a lot of thought to your decision. After all, a personal loan is a big commitment with several risks. Your budget may be heavily affected, and you may think of an alternative while waiting.

Read the Fine Print

If you’ve narrowed down your choices or have a company in mind, make sure to read the fine print before applying. There are a lot of little fees that you can easily miss, which can add up and affect your payment capabilities in the long run.

Look for fees like prepayment penalties, origination fees and late fees. A prepayment penalty, otherwise known as an early payoff fee, is an extra charge given if you decide to pay off the full amount of your loan before the term ends, which is something to consider in advance.

Apply

Once you’ve thoroughly evaluated all your choices and found the best option for you, prepare the necessary documents, such as your identification, address verification and proof of income to present during your application. When you’re ready, apply for your loan.

Applying for a loan can be done online or in person, depending on your provider of choice. While it’s often easier to do it online, there is no harm in calling or visiting the lender if you prefer.

Key Takeaways

Ask Yourself the Important Questions: Evaluate your financial situation by determining if you qualify for and can repay the loan.

Do Your Research: Take time to peruse your options by comparing different providers' rates, features, and reviews.

Wait: Avoid applying immediately and assess if you can really afford a loan.

Read the Fine Print: Avoid hidden fees by reading the fine print.

Apply: Prepare your documents and apply for your loan online or in person.

Calculate Your Monthly Payment

Calculating your monthly payment ahead of time can help you determine if your budget can handle it. After all, you don’t want to end up with a minimum payment that leaves you struggling from paycheck-to-paycheck.

To easily calculate your potential monthly payment, take a look at MoneyGeek’s personal loan calculator below.

Month	Payment	Principal	Interest	Balance

Frequently Asked Questions About Low Income Loans

The best personal loan for low income limits depends on your needs and eligibility factors. To help you determine if a low-income-limit personal loan is best for you, MoneyGeek answered the most commonly asked questions below.

Methodology

To find the best personal loans with low income limits, MoneyGeek reviewed more than 30 personal loan lenders using 35+ individual data points across six key categories, including loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

We considered several individual data points that we feel carry the most weight when choosing a personal loan lender within each ranking criteria category. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

After careful consideration and calculation, our picks are determined with your best interest in mind. Our personal loan recommendations and expert tips can help you make the best decision when choosing a lender that meets your needs.