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Best low-interest personal loans for March 2023

Mar 24, 2023
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Personal loans are installment loans that allow you to borrow a lump sum of money and then pay it back in monthly installments. Low-interest personal loans allow you to save money on monthly payments by cutting down on interest costs.  

To get approved for the most competitive low-interest loans, you’ll likely need excellent credit and a high income and to shop around. You’ll want to consider the loan amount each lender offers and repayment terms, as a low interest rate is not the only factor you should focus on when determining the best personal loan for your needs.

Bankrate’s choices for the best low-interest personal loans considers the interest rates, terms, discounts and other features offered by each lender. We also outline other information borrowers should know before taking out a low-interest loan.

 
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4.6

Bankrate Score
APR from

9.99- 25.99%*

with Autopay
Loan Amount

$5k–$100K*

Term: 2-7 yr*
Min. Credit

Not disclosed

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4.7

Bankrate Score
APR from

8.49- 35.97%

with AutoPay
Loan Amount

$1k–$50K

Term: 2-7 yr
Min. Credit

560

Check rate with Bankrate

4.7

Bankrate Score
APR from

8.99- 35.99%

Loan Amount

$2k–$50K

Term: 3-5 yr
Min. Credit

600

Check rate with Bankrate

4.6

Bankrate Score
APR from

7.99- 35.99%

Loan Amount

$5k–$50K

Term: 2-5 yr
Min. Credit

620

Check rate with Bankrate

4.6

Bankrate Score
APR from

10.50- 29.99%

Loan Amount

$5k–$40K

Term: 2-5 yr
Min. Credit

640

Check rate with Bankrate

4.1

Bankrate Score
APR from

8.05- 36.00%

Loan Amount

$1k–$40K

Term: 2-5 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.1

Bankrate Score
APR from

18.00- 35.99%

Loan Amount

$1.5k–$20K

Term: 2-5 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.5

Bankrate Score
APR from

9.95- 35.95%

Loan Amount

$2k–$35K

Term: 1-5 yr
Min. Credit

Not disclosed

Check rate with Bankrate

DEBT RELIEF

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The Bankrate guide to personal loans with low interest

Why trust Bankrate?

At Bankrate, our mission is to empower you to make smarter financial decisions. We’ve been comparing and surveying financial institutions for more than 40 years to help you find the right products for your situation. Our award-winning editorial team follows strict guidelines to ensure the content is not influenced by advertisers. Additionally, our content is thoroughly reported and vigorously edited to ensure accuracy.

The loan details presented in the table below are current as of the publication date. Check the lenders’ websites for more current information. The lenders listed were selected based on factors such as credit requirements, APR, loan amounts and fees.

Best low-interest personal loans in March 2023

LENDER BEST FOR APR RANGE LOAN TERM LOAN AMOUNTS
LightStream Generous repayment terms 9.99%-25.99%* (with AutoPay) 2-7 years $5,000-$100,000
Happy Money Paying credit card debt 10.50%-29.99% 2-5 years $5,000-$40,000
Best Egg Low APRs 8.99%-35.99% 3-5 years $2,000-$50,000
SoFi Unemployment protection 7.99%-23.43% (with autopay) 2-7 years $5,000-$100,000
Achieve Quick approval 7.99%-29.99% 2-5 years $5,000-$50,000
PenFed Small loan amounts 7.74%-17.99% 1-5 years $600-$50,000
Upstart Little or no credit history 6.70%-35.99% 3-5 years $1,000-$50,000
LendingClub Using a co-borrower 8.05%-36.00% 2-5 years $1,000-$40,000
Prosper No prepayment penalty 6.99%-35.99% 2-5 years $2,000-$50,000
Upgrade Fast funding 8.49%-35.97% (with autopay) 2-7 years $1,000-$50,000
TD Bank Few fees 6.99%-21.99% 1-5 years $2,000-$50,000

Best for generous repayment terms

Min. credit score:
Not disclosed
Fixed APR From:
9.99% –25.99%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
$50,000
Overview:  LightStream is the online consumer lending division of Truist (formerly SunTrust Bank). Its personal loans are aimed at applicants with a strong credit history.
Why LightStream is the best for generous repayment terms: While most of the lenders profiled on this page offer terms of up to five years, Lightstream offers terms of up to seven years on most of its loans and up to 12 years for home improvement loans.

Best for paying credit card debt

Happy Money

Happy Money

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Check rate with Bankrate

Min. credit score:
640
Fixed APR From:
10.50% –29.99%
Loan amount:
$5,000– $40,000
Term lengths:
2 to 5 years
Min. annual income:
$30,000
Overview: Happy Money’s loans range from $5,000 to $40,000 with terms of up to five years and minimal fees.
Why Happy Money is the best for paying credit card debt: Happy Money’s loans are specifically designed for consolidating and paying off credit card debt. The company’s consolidation loans feature competitive APRs starting at just 10.50 percent, in addition to minimal fees to help borrowers get out of debt faster.

Best for low APRs

Best Egg

Best Egg

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Check rate with Bankrate

Min. credit score:
600
Fixed APR From:
8.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
3 to 5 years
Min. annual income:
Not disclosed
Overview: Best Egg promises a seamless and hassle-free application and approval process. Loan amounts range from $2,000 to $50,000. Loan terms vary from three to five years.
Why Best Egg is the best for low APRs: Best Egg requires a minimum credit score of 600, so even those with fair credit can qualify for a competitive interest rate.

Best for unemployment protection

Min. credit score:
Not disclosed
Fixed APR From:
7.99% –23.43%
Loan amount:
$5,000– $100,000
Term lengths:
2 to 7 years
Min. annual income:
Not disclosed
Overview: Because SoFi does business entirely online, it’s able to minimize expenses and aims to pass those savings on to customers. SoFi APRs start at 7.99 percent and increase to as much as 23.43 percent.
Why SoFi is the best for unemployment protection: SoFi offers an Unemployment Protection Plan that temporarily pauses your payments for 12 months in the event of a job loss. The lender also offers career coaching and other tools to help you get back on track.

Best for quick approval

Achieve

Achieve

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Check rate with Bankrate

Min. credit score:
620
Fixed APR From:
7.99% –35.99%
Loan amount:
$5,000– $50,000
Term lengths:
2 to 5 years
Min. annual income:
$40,000
Overview: Achieve loans are available for consolidating debt, making large purchases, making home improvements and more. Achieve APRs start at 7.99 percent and go up to 29.99 percent.
Why Achieve is the best for quick approval: Achieve’s loan process is rather quick and smooth, with same-day approval and funds in your account in just 24 hours.

Best for small loan amounts

Min. credit score:
700
Fixed APR From:
7.74% –17.99%
Loan amount:
$500– $150,000
Term lengths:
1 to 5 years
Min. annual income:
Not disclosed
Overview: PenFed’s APRs for personal loans start at 7.74 percent, and terms are one to five years. The lender’s loans are geared toward those with strong credit, which is why it keeps its APR rate cap relatively low.
Why PenFed is the best for small loan amounts: Since PenFed’s low-interest personal loans start at just $600, you can borrow only what you need for smaller expenses such as vehicle repairs.

Best for little or no credit history

Min. credit score:
Not disclosed
Fixed APR From:
6.70% –35.99%
Loan amount:
$1,000– $50,000
Term lengths:
3 to 5 years
Min. annual income:
$12,000
Overview: Upstart aims to offer fast, fair personal loans. APRs for Upstart loans range from 6.70 percent to 35.99 percent, and loan amounts range from $1,000 to as much as $50,000.
Why Upstart is the best for little or no credit history: While many loan applications are based on credit score and years of credit, Upstart applications also factor in an individual’s education, job history and area of study. This alone makes it easier for those with little to no credit to qualify.

Best for using a co-borrower

LendingClub

LendingClub

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Check rate with Bankrate

Min. credit score:
Not disclosed
Fixed APR From:
8.05% –36.00%
Loan amount:
$1,000– $40,000
Term lengths:
2 to 5 years
Min. annual income:
Not disclosed
Overview: LendingClub is a peer-to-peer lender that offers personal loans with flexible loan amounts ranging from $1,000 to $40,000 and terms of up to five years.
Why LendingClub is the best for using a co-borrower: LendingClub’s personal loans are available to cover a variety of purposes and allow joint applications. The lender also offers relatively quick funding and you can check your rate without hurting your credit.

Best for no prepayment penalty

Min. credit score:
600
Fixed APR From:
6.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
2 to 5 years
Min. annual income:
Not disclosed
Overview: Prosper is a peer-to-peer lender with loans available to those with fair to excellent credit. APRs on Prosper loans start at 6.99 percent and go as high as 35.99 percent.
Why Prosper is the best for no prepayment penalty: Prosper doesn’t charge prepayment penalties and offers competitive starting APRs that further reduce the cost of borrowing. The lender’s loan application process is quick and funds are available as soon as the next business day.

Best for fast funding

Min. credit score:
560
Fixed APR From:
8.49% –35.97%
Loan amount:
$1,000– $50,000
Term lengths:
2 to 7 years
Min. annual income:
$30,000
Overview: Upgrade offers personal loans for those with fair credit or better. The funds can be used for debt consolidation, credit card refinancing, home improvements or major purchases.
Why Upgrade is the best for fast funding: Upgrade offers a quick application process and provides loan decisions within a few minutes. Additionally, money is available within as little as one day of completing the verification process and applicants with lower credit scores can apply.

Best for few fees

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –21.99%
Loan amount:
$1,000– $35,000
Term lengths:
1 to 5 years
Min. annual income:
Not disclosed
Overview: TD Bank offers unsecured loans with options from $2,000 to $50,000, with terms of one to five years and APRs ranging from 6.99 percent to 21.99 percent.
Why TD Bank is the best for low fees: Borrowers looking for low interest rates can also save on fees with TD Bank — it doesn't charge origination, application, prepayment or non-sufficient funds fees. It does, however, charge a late fee of 5 percent of the payment due or $10, whichever is less.

What is a low-interest-rate personal loan?

Low-interest-rate personal loans typically have an annual percentage rate (APR) below 12 percent. Personal loans are generally short-term loans provided by banks, peer-to-peer lending platforms and credit unions.

Depending on who the money is borrowed from, the proceeds can be used for consolidating credit card debt, home improvement projects, financing a major purchase, a wedding or even a vacation.

Loan terms vary by lender, but there’s always a predetermined payment period, often ranging from one to seven years. These are installment loans, and the money is repaid via monthly payments.

Before applying for a loan, it’s a good idea to calculate your debt-to-income ratio, or DTI ratio, which is your total monthly debt payments divided by your total gross monthly income. Lenders view applicants who have low DTI ratios as more reliable borrowers.

How do lenders determine interest rates?

Every lender uses its own algorithm to determine the interest rate you'll receive. Three of the most important factors lenders evaluate are credit score, debt-to-income ratio and annual income. The lower your DTI and the higher your income and credit score, the more likely you are to qualify for low rates and large loan amounts.

Outside of these factors, some lenders also take into account things like your area of study, length of time with your most recent employer, job history and education. This is why it's so important to shop around and compare rates with multiple lenders.

Average personal loan interest rates

The average personal loan currently has an interest rate of 10.82 percent. However, rates vary significantly from lender to lender. Depending on your credit score and borrowing history, interest rates for personal loans can be as high as 36 percent.

Average personal loan rates by credit score

CREDIT RATING / SCORE RANGE AVERAGE PERSONAL LOAN INTEREST RATE
Excellent (720 - 850) 10.73% - 12.5%
Good (690 to 719) 13.5% - 15.5%
Average (630 to 689) 17.8% - 19.9%
Bad (300 to 629) 28.5% - 32.0%
Source: Bankrate

Why it's important to compare low-interest loans

Comparing loan rates and lenders can be a daunting task, but it's necessary if you want to find the lowest interest rate possible. Because lenders use their own algorithms to determine interest rates, the same financial profile could get you a much lower rate at one lender than another. Here are some other factors to be aware of when comparing loan rates and lenders:

  • Loan term: The number of years that you will repay the loan. Most commonly, personal loan terms are one to seven years.
  • Interest rate: Interest rates vary by lender and are determined primarily by your credit score, income and overall financial health.
  • Origination fee: The origination fee is charged by a lender to process a new application. It can range from 1 percent to 10 percent, depending on the loan amount, your credit score and the length of the loan.
  • Other fees: Some fees may be included in the APR calculation, but you should also be aware of others that are not, such as late fees and prepayment penalties.

Check out our loan comparison calculator to compare loan rates and calculate costs.

No-interest loans: What to know

No-interest loans include financing from auto dealerships and retailers. “No interest” doesn’t necessarily mean you won’t pay anything to borrow money. Here are some costs that may come with a no-interest loan:

  • Origination fee
  • Prepayment penalties
  • Late payment fees
  • Interest charged as a penalty for late payments

The interest rate isn’t all that determines how much a loan could cost you. As you compare lenders, take note of origination fees, which are typically taken out of the loan amount, as well as charges such as late fees. A balance transfer credit card with a 0 percent introductory APR could be a less costly option than a no-interest loan — as long as you pay the card off before the intro period ends.

How to qualify for low-interest personal loans

There’s a variety of ways to improve your chances of scoring the best low-interest loan.

    1. Research all of your options. Shop around and check rate offers from multiple lenders to ensure that you are getting the best deal for your situation.
    2. Look for discounts. Many lenders offer rate discounts when you enroll in their autopay programs. Some lenders also offer discounts if you’re an existing customer or open checking or savings accounts with them.
    3. Consider credit unions. Because they are nonprofit organizations, credit unions typically offer lower-cost loans than standard banks or lenders.
    4. Apply for preapproval: Preapproval, offered by many lenders, is a way to check whether you qualify for a personal loan before you formally apply. This is a valuable tool if you're just shopping around, and it saves you from a hard pull on your credit.
    5. Only apply for the amount you need: Aim to apply for the lowest amount you think you'll need to cover your expenses. Choosing a low loan amount will reduce your monthly payments and the total amount you'll pay in interest over the life of the loan.
    6. Pay down debt: When determining your eligibility for a loan, most lenders look at your debt-to-income ratio, or DTI ratio — your monthly debt payments relative to your monthly gross income. By reducing the amount of debt you owe, you decrease your DTI ratio and make yourself eligible for more loans and lower APRs.
    7. Know your credit score: Many lenders have minimum credit score requirements in the mid-600s, but most give their best rates to borrowers with credit scores of at least 700. If you don't need the cash immediately, work on improving your credit score before applying for a personal loan.

Where to get low-interest loans

You can get a personal loan with a low interest rate from a variety of lenders. These include banks, credit unions and peer-to-peer lenders. But, regardless of the lender you choose, you’ll need a strong credit profile, a stable source of income and a low DTI ratio to secure the lowest rate.

Besides that, make sure to compare offers from different lenders before deciding on one, as this will allow you to get the best offer available for your financial situation.

Alternatives to low-interest personal loans

In addition to personal loans, there are a few other options you can explore to get the funds you need, without paying a lot in interest. These are a few of them.

Cash-out refinance

A cash-out refinance essentially replaces your mortgage with a bigger one, with different terms and interest rates. With this loan, you get to keep the difference between your old mortgage and your new one. On the downside, your mortgage payment will be higher, the loan can take up to 60 days to be completed and it requires a decent amount of paperwork. That said, a cash-out refi could be a good option if you need a considerable amount of money for home renovations or a big investment as APRs can be as low as 5 percent.

0% interest credit card

Some credit cards offer 0% introductory offers in which you get to make purchases, without accruing interest for a set number of months. To qualify for these, you’ll typically need excellent credit and a stable source of income. This option is better suited for those who only need to borrow a small amount (usually no more than $3,000).

Buy now, pay later (BPNL)

BPNLs are a type of installment loan that allows you to split your purchase into a series of interest-free payments (between four and six, depending on the company). Although these services are often offered through online retailers, some stores are beginning to accept them as a form of payment. BPNLs are better suited for big purchases, such as furniture and equipment.

Frequently asked questions about low-interest personal loans

Methodology

To select the top low-interest personal loan lenders, Bankrate considered factors that help consumers decide whether a lender is a good fit for them, such as credit requirements and APR ranges. We sought lenders with low fees and a range of loan amounts for borrowers with varying budgets and credit profiles. We also looked for conveniences like online applications and fast funding.

The lenders featured here also were evaluated for notable features like customer discounts, flexible repayment options, access to financial tools and more.