If you need $5,000 to pay for medical expenses, home improvements, an emergency or to consolidate high-interest debt, taking out a personal loan is one potential solution. Most lenders offer quick funding — in some cases, funds can be deposited into your bank account as soon as the same business day.

However, understand what you may need to qualify, where to get one and how to estimate your borrowing costs before you apply.

Personal loan lenders that offer $5,000 loans

You can get a personal loan from a bank, credit union or online lender. There are a wide variety of options for small personal loans, so it pays to compare rates from multiple lenders like these.

Lender APR range Loan amount range Minimum credit score requirement
Best Egg 8.99%-35.99% $2,000-$50,000 600
Happy Money 10.50%-29.99% (with autopay) $5,000-$40,000 640
LightStream 9.99% – 25.99%* with AutoPay $5,000-$100,000 Not disclosed
Upstart 6.70%-35.99% $1,000-$50,000 No requirement

Best Egg

Best Egg offers personal loans ranging from $2,000 to $50,000 with either a three- or four-year repayment term. If you need funds fast, this could be a good option since funds can be deposited in your account the next business day. But Best Egg charges origination fees that range from 0.99 percent to 8.99 percent, which can significantly impact the total cost of your loan. Depending on how high yours is, you may have to borrow more than $5,000 in order to receive the amount you need after fees are deducted.

Happy Money

If you want to consolidate high-interest debt, Happy Money may be worth considering. It offers personal loans with competitive interest rates through its partner lenders that range from $5,000 to $40,000, and repayment terms range from two to five years.However, its loans can only be used for debt consolidation.

LightStream

LightStream offers personal loans with competitive interest rates, zero fees and a wide range of repayment terms. Depending on the type of loan you choose, you can borrow money for up to seven years. If you’re approved, funds can be deposited in your bank account the same day you apply — if you submit your application earlier enough on a business day. Its biggest downside is that you need several years of positive credit history to qualify.

Upstart

If you have bad credit, Upstart could be a good fit since there’s no minimum credit score needed to qualify. Upstart offers a low minimum interest rate of 6.70 percent to well-qualified applicants — although borrowers with bad credit may only qualify for rates on the higher end of this scale. But like many other lenders Upstart charges origination fees that range from 0 to 10 percent.

Requirements to receive a personal loan

Most lenders will require you to have good credit, minimal debts and consistent income in order to qualify for a loan.

  • Credit score and history: Lenders review your credit score and credit history to assess how likely you are to repay the loan. To qualify for a lender’s lowest rates, you need good to excellent credit. If you have bad credit, a lender may charge you a high interest rate or reject your application.
  • Debt-to-income (DTI) ratio: Your DTI ratio is a percentage of how much of your gross monthly income goes toward debt each month. A high DTI can indicate to a lender that you’re overextended financially and can’t afford to take on additional debt.
  • Income: You’ll also have to prove to a lender you have enough steady income to repay the loan by providing financial information, such as your bank statements, W-2s and tax returns.

When you submit an application, you will also need to provide proof of identity and documents that confirm your address.

Costs of a $5,000 personal loan in the long term

How much you pay for a $5,000 loan depends mostly on your interest rate and repayment term. You can use a personal loan calculator to estimate the total cost.

Here are some examples of what your borrowing costs could look like for a three-year loan:

  • Three-year loan at 5%: $150 monthly payment and $394.76 in interest.
  • Three-year loan at 10%: $161 monthly payment and $808.09 in interest.
  • Three-year loan at 15%: $173 monthly payment and $1,239.76 in interest.

If you choose a longer loan term, it could lower your monthly payments but increase the amount of interest you pay over the life of the loan.

For instance, here’s what your \costs might look like for a five-year loan:

  • Five-year loan at 5 percent: $94 monthly payment and $661.37 in interest.
  • Five-year loan at 10 percent: $106 monthly payment and $1,374.11 in interest.
  • Five-year loan at 15 percent: $119 monthly payment and $2,136.98 in interest.

How to determine if you need a $5,000 loan

Consider if you need to take on debt or if you could save up for the expense. If you decide you do need to borrow, review your budget to determine if you can afford monthly loan payments.

Borrowing only what you need can keep your borrowing costs down. Plus, it can help you avoid potential late fees and damage to your credit score.

That said, there are times when it might be beneficial to borrow more than you need. For instance, if you’re borrowing money for a home improvement project and don’t know the exact costs, taking out a larger amount could make sense.