Personal loans can be a great way to finance various expenses, such as home repairs, medical bills, consolidating high-interest credit card debt, or even paying for a wedding or vacation. However, it's important to remember that these loans come with interest on the borrowed funds, and that interest can add up quickly if you don't secure a low-interest rate.

Our research shows that a low-interest personal loan can help you save money on interest charges and make your loan payments more manageable. By securing a lower interest rate, you may be able to pay off your loan faster or have more money to put towards other financial goals. For example, a loan with a lower interest rate may allow you to pay off high-interest credit card debt, and help you improve your credit score.

Furthermore, a low-interest personal loan can also be beneficial if you're borrowing a large amount of money. The lower the interest rate, the less you'll have to pay in interest over the life of the loan, which can save you thousands of dollars in the long run.

What Are Low Interest Rates in 2023?

When looking for a personal loan, borrowers often focus on finding the lowest interest rate possible. In 2023, the national average for personal loan interest rates is around 9.41% APR for a 24-month loan, according to data from the Federal Reserve System. However, it's important to note that interest rates can vary depending on a borrower's credit score, income, and other factors.

That's why at MoneyGeek, we've conducted extensive research to identify the best lenders for low-interest-rate personal loans. We compared more than 30 data points for each lender, including loan affordability and accessibility, APR ranges, disbursement time, loan amounts, credit score and income requirements, terms, fees, customer service, and Better Business Bureau (BBB) ratings.

Based on our research, we've determined that LightStream is the best lender for low-interest-rate personal loans in 2023. They offer rates as low as 2.5% and have flexible loan amounts and terms, making it an affordable option for borrowers with a wide range of credit scores and income levels.

It's important to note that while finding a low-interest-rate personal loan is essential, it's not the only factor to consider when choosing a lender. Other factors, such as fees, disbursement time, and customer service, should also be considered. By using our comprehensive guide, you can compare various lenders and loan offers to find the best personal loan for your specific financial needs.

MoneyGeek’s Top Pick: LightStream

  • LightStream

    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime to Receive Funds


Runner-up: Upstart

  • Upstart

    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds


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


Best for Small Loans: BBVA

  • BBVA

    • 4.99% to 29.99%APR Range
    • Not DisclosedMinimum Credit Score
    • $2,000 to $100,000Loan Amount Range
    • 12 to 72 monthsRepayment Terms
    • Same DayTime to Receive Funds


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


How To Choose The Best Personal Loan Lender For You

Expenses like home improvements, debt consolidation, vehicle financing, moving expenses, medical bills and college tuition are just some reasons people take out personal loans.

The income, employment history, debt-to-income ratio and credit score of the applicant are all crucial factors for the lender to consider when determining your eligibility for a personal loan. To choose the best personal loan with low interest rates, you must first go through the processes outlined below:


Ask Yourself the Important Questions

Before continuing with the application, you must first evaluate your current financial situation and future funding needs. Before you choose a lender and apply for a personal loan, you must ask yourself the following questions:

  • How much funds do I need?
  • How much debt do I currently have?
  • What is my credit score?
  • How much can I afford to pay each month?
  • What must the term of my loan be?
  • When will I require the loan?
  • What type of loan should I get?

Do Your Research

In the next step, you'll need to find a lender who can meet your needs for funds. Comparing multiple lenders and understanding their rates and other features will help you determine which one is the best for you. You must also think about how long the loan will last and affect your overall financial wellbeing.

Long-term loans might cost more in the long run but may benefit individuals who require smaller monthly payments. However, the length of your loan should not put your long-term financial goals at risk.

Hard credit inquiries might harm your credit score. If you can't afford a credit score decrease, opt for a lender who uses soft checks. Always do your own research to determine the best lender for your needs.



Finding the right loan may be challenging for many people, especially when comparing the various options available from different lenders. When choosing a lender, give yourself a few days to consider your options and make a decision. Your money is at stake, and you want to make the best possible decision when taking out a personal loan, which is a major financial commitment.


Read the Fine Print

When it comes to personal loans and finding the best lender, every detail can be significant. As a result, you must pay attention to every little thing, no matter how trivial it might seem. This may expose any additional or hidden costs that some lenders may charge. Evaluate all of the charges involved with the lender's loan, such as interest rate, penalties and fees.

Any collateral requirements or limits on the loan's use are further considerations. Remember to read the lender's fine print, which will include all of the lender's disclosures, terms and conditions. These seemingly insignificant details can add up to significant savings.



Submitting your application is the final step in the process. You must be prepared to submit your application and have all of the necessary information available. As part of the loan application process, you will need to provide documentation of your identity and address, as well as information about your income and debts. If the lender can be easily reached, you may also phone or visit them in person to better understand the loan and clear up any questions you may have.

Key Takeaways

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Ask Yourself the Important Questions: Begin by understanding your financial situation and selecting a loan based on funding needs, affordability and urgency.

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Do Your Research: Finding a lender meeting your requirements takes a lot of research. Compare multiple lenders to choose the best one.

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Wait: Finding a personal loan can be challenging, so wait a day or two before making a decision.

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Read the Fine Print: You need to know all the details regarding your loan and lender. The fine print can reveal a lot about both.

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Apply: Apply with all the necessary information. If possible, make an appointment with the lender to discuss the loan.

Calculate Your Monthly Payment

When applying for a personal loan, you should consider how much you will pay towards its monthly costs. This way, you will know if you can easily afford the new loan, along with your living expenses and any existing debts.



+ $114.98


+ $8.33

Origination Fee Percentage


Origination Fee Fixed amount


Total monthly payment


Frequently Asked Questions: Personal Loans With Low Interest Rates

Your personal needs, as well as different credit and income considerations, will determine which lender is appropriate for you. The following answers to frequently asked questions about personal loans might help you in your search.


We reviewed over 30 personal loan lenders using 35+ individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

In addition to finding the personal loans with the overall lowest potential interest rates, we considered several additional data points that we feel carry the most weight when choosing a personal loan lender. These factors include the available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible, like prequalification, payment options and mobile apps. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs.


The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.