What are low interest rates for personal loans?

A low-interest personal loan has the lowest interest rate available to a borrower depending on their financial situation. Each lender has a different interest rate, so you need to compare multiple lenders to find the one offering you a loan with the best possible interest rate.

How can I get a loan with low interest rates?

Maintaining a solid credit history and having a consistent income is the best approach to receiving a low-interest personal loan. Other choices, such as having a co-signer on your loan application or asking for a secured loan (one with collateral), can lower interest rates. Negotiations can also be effective in some situations, especially if you have been with the lender for a long time and have proven to be a responsible customer.

Will a personal loan hurt my credit score?

Taking out a personal loan can hurt your credit score. When a lender performs a hard query on your credit report, your credit score drops, but a soft inquiry does not affect your score. A personal loan might potentially harm your credit if you fail to make even one monthly payment. On the other hand, making on-time payments can help you boost your credit score and develop an excellent credit history.

What is the average APR of a personal loan with low interest rates?

According to the most current Federal Reserve System data, the average interest rate for personal loans in the United States is 9.41%. However, this is an average rate, not the lowest in the country. You may be eligible for loans with interest rates as low as 2.49%, but only if you have a good credit score.

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

Personal loans with interest rates that are lower than the national average are preferable. However, your credit score and other factors determine the interest rate you are eligible for. A fair interest rate is the lowest feasible rate that a lender can provide you, depending on the variables that influence it.

Best Low-Interest Rate Personal Loans in December 2023

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 WE’RE GEEKING OUT ON

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

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
One of Truist Financial Corporation's divisions, LightStream is a completely online lender offering personal loans for any purpose. Additionally, LightStream's A+ rating from the BBB makes it an excellent choice. The lender does not levy additional fees and does not require a minimum income to qualify for its loans.
The overwhelming majority of its approved applications are processed the same day, with an annual percentage rate (APR) ranging from 2.49% to 20.49%. This is lower than most other lenders' rates, further establishing Truist as the best lender for low-interest loans.
On the flip side, the lender only disburses its loans to those with a minimum credit score of 660. Its loans also cannot be used to pay down an existing LightStream loan, college tuition or other higher education fees or make investments or business acquisitions.
Pros
No origination fees, late fees or prepayment penalties
No minimum income requirement
Loans of up to $100,000 offered
Same-day loan processing
Auto-pay discount of 0.5%

Cons
Minimum credit score of 660
Conducts hard credit checks
Imposes restrictions on usage of funds
Debt consolidation loans will not be paid directly to the third-party lender
APR range: 4.49%–20.49%
Minimum/maximum loan amount: $5,000–$100,000
Minimum credit requirements: 660
Repayment terms: 24–84 months
Time to receive funds: Same-day

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
The BBB has given an A+ rating for Upstart, a 2012-founded lending platform leveraging artificial intelligence for its services. It has one of the lowest credit score criteria in the industry, encouraging those with poor credit to obtain a personal loan. Upstart is also widely accessible due to its low minimum income requirement.
To avoid further damage to your credit score, the lender executes soft credit inquiries. Upstart's loans have a minimum interest rate of 3.5%, which is highly competitive for well-qualified borrowers. Individuals with very good to excellent credit may benefit the most from this rate.
In any event, you should avoid this lender if you require a loan amount of more than $50,000. Those seeking a loan with a co-signer will also be discouraged.
Pros
Low minimum credit score requirement
Low minimum income requirement
Conducts soft credit inquiry
Funding in 1–2 days
No prepayment penalty

Cons
Debt-to-income limit of 45%
Up to 8% origination fee
Up to 35.99% interest rate
Charges late fees
APR range: 3.22%–35.99%
Minimum/maximum loan amount: $1,000–$50,000
Minimum credit requirements: 300
Repayment terms: 36–60 months
Time to receive funds: Next Day

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 one of MoneyGeek’s top picks for low-income borrowers looking for a personal loan. This lender does not have minimum income requirements, and they accept applicants with a FICO score of at least 560. They offer loans of up to $50,000, and their repayment terms are flexible at 60 months maximum.
Upgrade doesn’t charge penalties for individuals who choose to pay off their loans early. They also provide a discount if you sign up for autopay.
However, since Upgrade caters to borrowers with low and fair credit, their interest rates are relatively high. Their loans also carry an origination fee and late payment penalty. While they only conduct a soft inquiry during pre-qualification, they don’t allow co-signers. Nonetheless, this lender accepts joint applications, giving borrowers with poor credit a better chance of loan approval.
Pros
A+ BBB rating
1% discount for autopay
Doesn’t charge prepayment fee
Conducts soft credit inquiries
Joint loans available

Cons
$10 late fee
Has origination fee
Doesn’t allow co-signers
Won’t accept people with new or no credit
Restrictions on fund usage

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
BBVA Compass was the U.S. subsidiary of Banco Bilbao Vizcaya Argentaria before it was acquired by PNC Financial Services in 2021.
BBVA offers personal loans as one of its many consumer lending products. Depending on their eligibility and creditworthiness, borrowers can choose from a wide range of borrowing limits – from $2,000 to $100,000 for those who apply in-person or by phone, and from $2,000 to $35,000 for those who prefer to apply online. BBVA customers who already have a checking account can get same-day funding plus a 1% interest rate discount for automatic payments. We also recommend BBVA’s highly accessible website and mobile apps which make financial transactions easier for people with disabilities.
That said, BBVA’s personal loans are by invitation only, which means you need to have an offer code to qualify.
Pros
No collateral required
Wide range of borrowing limits, from $2,000 to $100,000
Loan applications available online and in-person at a BBVA branch
Discount of 1% for automatic payments
Online website and mobile apps are are accessible to people with physical or mental disabilities

Cons
Lower borrowing limits of $2,000 to $35,000 available for pre-qualified online applicants
An interest surcharge based on loan amount is withheld from loan proceeds
BBVA account required to receive same-day funding and autopay discount
Online invitation required

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

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.

Wait

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.

Apply

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

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

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

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

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.

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.

Month	Payment	Principal	Interest	Balance

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.

Methodology

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.