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Best low-interest personal loans for November 2022

As of November 26, 2022
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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.
 
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. However, you can still find loans with low interest rates if you shop around. You’ll also want to consider the loan amount each lender offers and other 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.
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4.6

Bankrate Score
APR from

7.99- 22.49%*

with Autopay
Loan Amount

$5k- $100k*

Term: 2-7 yr*
Min. Credit

Not disclosed

Apply on partner site

4.8

Bankrate Score
APR from

7.96- 35.97%

with AutoPay
Loan Amount

$1k- $50k

Term: 2-7 yr
Min. Credit

560

Check rate with Bankrate

4.6

Bankrate Score
APR from

8.99- 35.99%

Loan Amount

$2k- $50k

Term: 3-4 yr
Min. Credit

600

Check rate with Bankrate

4.6

Bankrate Score
APR from

8.99- 29.99%

Loan Amount

$5k- $40k

Term: 2-5 yr
Min. Credit

640

Check rate with Bankrate

4.8

Bankrate Score
APR from

6.99- 24.99%

Loan Amount

$3.5k- $40k

Term: 3-6 yr
Min. Credit

Not disclosed

Check rate with Bankrate

4.4

Bankrate Score
APR from

7.99- 35.99%

Loan Amount

$2k- $37k

Term: 2-6 yr
Min. Credit

600

Check rate with Bankrate

4.3

Bankrate Score
APR from

8.30- 36.00%

Loan Amount

$1k- $40k

Term: 3-5 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

580

Check rate with Bankrate

3.8

Bankrate Score
APR from

18.00- 35.99%

Loan Amount

$1.5k- $20k

Term: 2-5 yr
Min. Credit

None

Check rate with Bankrate

4.6

Bankrate Score
APR from

7.99- 29.99%

Loan Amount

$12k- $50k

Term: 2-5 yr
Min. Credit

620

Check rate with Bankrate

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.

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, making a major purchase or even taking a vacation.

Loan terms vary by lender, but there’s always a predetermined payment period, often ranging from three to five 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.

 

Best low-interest personal loans in November 2022

LENDER BEST FOR APR RANGE LOAN TERM LOAN AMOUNTS
LightStream Generous repayment terms 7.99% – 22.49% (with autopay) 2 to 12 years $5,000 - $100,000
Happy Money Paying credit card debt 8.99% - 29.99% 2 to 5 years $5,000 - $40,000
Best Egg Low APRs 8.99% - 35.99% 3 to 4 years $2,000 - $50,000
SoFi Unemployment protection 7.99%-23.43% (with autopay) 2 to 7 years $5,000 - $100,000
FreedomPlus Quick approval 7.99% - 29.99% 2 to 5 years $5,000 - $50,000
PenFed Small loan amounts 7.74%–17.99% 1 to 5 years $600 - $50,000
Upstart Little or no credit history 5.60% - 35.99% 3 or 5 years $1,000 - $50,000
LendingClub Using a co-borrower 8.30% - 36.00% 3 or 5 years $1,000 - $40,000
Prosper No prepayment penalty 6.99% - 35.99% 3 or 5 years Up to $40,000
Upgrade Fast funding 7.96% - 35.97% (with autopay) 2 to 7 years $1,000 - $50,000
Marcus by Goldman Sachs Debt consolidation 6.99% - 24.99% (with autopay) 3 to 6 years $3,500 - $40,000
TD Bank Few fees 6.99% - 21.99% 1 to 5 years $2,000 - $50,000

Best for generous repayment terms

Min. credit score:
Not disclosed
Fixed APR From:
7.99% –22.49%
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. While personal loans can typically be used for most any purpose, LightStream advertises unique uses such as adoptions, IVF financing and horse ownership. The APRs on LightStream loans range from 7.99 percent to 22.49% with autopay. Loan amounts start at $5,000 and go as high as $100,000. Terms vary from 2 to 7 years.
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 for most of it loans and up to 7 years for loans for home improvement or the installation of a swimming pool or a solar energy system.

Best for paying credit card debt

Min. credit score:
640
Fixed APR From:
8.99% –29.99%
Loan amount:
$5,000– $40,000
Term lengths:
2 to 5 years
Min. annual income:
$30,000
Overview: Happy Money offers personal loans specifically designed for consolidating and paying off credit card debt. Loans from Payoff range from $5,000 to $40,000 with terms from 2 to 5 years. APRs for Happy Money loans range from 5.99 percent to 24.99 percent.
Why Happy Money is the best for paying credit card debt: Credit cards often come with double-digit APRs, which is why Payoff’s low rates could make it attractive for people looking to consolidate credit card debt.

Best for low APRs

Min. credit score:
600
Fixed APR From:
8.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
3 to 4 years
Min. annual income:
$0
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: APRs on Best Egg loans start at 8.99 percent, lower than that of several lenders on this page.

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:
$30,000
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. Loan amounts range from $5,000 to $100,000, and loan terms vary from two to seven years.
Why SoFi is the best for unemployment protection: If you lose your job, SoFi’s Unemployment Protection Program lets you put your loans into forbearance for three months at a time, up to 12 months total. Interest will still accrue, but you won’t have to make payments during that period.

Best for quick approval

Min. credit score:
620
Fixed APR From:
7.99% –29.99%
Loan amount:
$12,000– $50,000
Term lengths:
2 to 5 years
Min. annual income:
$40,000
Overview: FreedomPlus loans are available for consolidating debt, making large purchases, making home improvements and more. FreedomPlus APRs start at 7.99 percent and go up to 29.99 percent. Loan amounts range from $5,000 to $50,000, while terms vary from two to five years.
Why FreedomPlus is the best for quick approval: The FreedomPlus loan process can be very quick, with same-day approval and funds in your account in as little as 48 hours.

Best for small loan amounts

Min. credit score:
Not disclosed
Fixed APR From:
7.74% –17.99%
Loan amount:
$500– $50,000
Term lengths:
1 to 5 years
Min. annual income:
$0
Overview: Personal loans are available from PenFed to cover expenses such as home renovations, debt consolidation and medical and dental bills. PenFed’s APRs start at 7.74 percent, and terms are one to five years. Borrowers can qualify for loan amounts of $600 to $50,000.
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:
5.6% –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 5.60 percent to 35.99 percent, and loan amounts range from $1,000 to as much as $50,000. You can choose a loan term of either three or five years.
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.

Best for using a co-borrower

Min. credit score:
Not disclosed
Fixed APR From:
8.3% –36%
Loan amount:
$1,000– $40,000
Term lengths:
3 to 5 years
Min. annual income:
$0
Overview: LendingClub is a peer-to-peer lending platform that serves as a broker for matching investors with borrowers. Its personal loans are available to cover a variety of purposes, such as consolidating debt, making home improvements and refinancing an automobile purchase. Loans are available for $1,000 to $40,000. The APRs on LendingClub loans range from 8.30 percent to 36.00 percent, and you can choose a loan term of three or five years.
Why LendingClub is the best for using a co-borrower: LendingClub allows joint applications, which could improve your chances of being approved for a low-interest personal loan.

Best for no prepayment penalty

Min. credit score:
560
Fixed APR From:
7.99% –35.99%
Loan amount:
$2,000– $50,000
Term lengths:
3 to 5 years
Min. annual income:
$0
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. Loans are available for $2,000 to $50,000, and repayment terms are two, three, four, or five years.
Why Prosper is the best for no prepayment penalty: Prosper 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.

Best for fast funding

Min. credit score:
560
Fixed APR From:
7.96% –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. APRs available from Upgrade range from 7.96 percent to 35.97 percent. Loan amounts range from $1,000 to $50,000, and terms are two to seven years.
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.

Best for debt consolidation

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –24.99%
Loan amount:
$3,500– $40,000
Term lengths:
3 to 6 years
Min. annual income:
$35,000
Overview: Marcus by Goldman Sachs loans are available to those with good to excellent credit and can be used to fund major purchases or pay off credit card debt. APRs range from 6.99 percent to 24.99 percent, and loans are available for $3,500 to $40,000. Repayment terms are three to six years.
Why Marcus by Goldman Sachs is the best for debt consolidation: With a low rate cap and repayment terms that stretch to six years, Marcus could be an affordable way to pay off existing credit card or loan debt.

Best for few fees

Min. credit score:
Not disclosed
Fixed APR From:
6.99% –21.99%
Loan amount:
$2,000– $50,000
Term lengths:
1 to 5 years
Min. annual income:
$0
Overview: TD Bank offers personal loans to those with good credit and those trying to establish credit. Funds can be used for debt consolidation, vacations, renovations and more. TD Bank offers unsecured loans with options from $2,000 to $50,000, with terms of three 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 (NSF) fees.  It does, however, charge a late fee of 5 percent of the payment due or $10, whichever is less.

Average personal loan interest rates

According to the most recent data from the Federal Reserve, the average interest rate on a two-year personal loan is 10.73 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%

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 three to five 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 8 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.

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 minimum APRs. 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.

In addition, the lenders featured here were evaluated for notable features like customer discounts and flexible repayment options.