Skip to Main Content

Best low-interest personal loans for June 2024

Updated Jun 13, 2024

What to know first: The best low-interest personal loans typically offer starting rates below 10 percent to borrowers with excellent credit and solid finances. Most low-interest rate lenders offer their lowest rates for shorter terms as long as you qualify for the higher payment.

Check your personalized rates

  • Checkmark Compare rates in less than 2 minutes
  • Checkmark Checking will not impact your credit score
In 2023 we secured personal loans or alternative offers for 99% of our users

Filter results

Close X

PERSONAL LOANS

LIGHTSTREAM: BEST FOR LOW APRS AND LARGE LOAN AMOUNTS

4.7

Est. APR
8.89- 24.29%
* with AutoPay
Loan term
3-7 yrs*
Loan amount
$5k- $100K
Min credit score
695
See offersArrow Right

Apply on partner site

PERSONAL LOANS

Upstart: BEST FOR LITTLE OR NO CREDIT HISTORY

4.8

Est. APR
7.80- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Achieve: BEST FOR QUICK APPROVAL

4.7

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

UPGRADE: BEST FOR SMALL LOAN AMOUNTS

4.7

Est. APR
8.49- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

PROSPER: BEST FOR PEER-TO-PEER LENDING

4.6

Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $50K
Min credit score
640

PERSONAL LOANS

TD Bank: BEST FOR FEW FEES

4.7

Est. APR
8.99- 23.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
700

PERSONAL LOANS

SOFI: BEST ONLINE LENDER FOR LARGE LOAN AMOUNTS

4.7

Est. APR
8.99- 29.49%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
680

PERSONAL LOANS

DISCOVER: BEST FOR GOOD CREDIT AND LOW FEES

4.8

Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k- $35K
Min credit score
660

Compare Bankrate’s top picks for the best personal loans with the lowest interest rates 

Check out this table for a quick side-by-side look comparing the features of Bankrate’s top picks for low-interest personal loans. Our team keeps track of the rates, terms and loan amounts each lender offers to help you decide which is the best fit for you.

LENDER BEST FOR APR RANGE LOAN TERM LOAN AMOUNTS MIN CREDIT SCORE
LightStream Low APRs and large loan amounts 7.49%-25.49%* with AutoPay 2-7 years $5,000-$100,000 695
Upstart Little or no credit history 7.80%-35.99% 3 or 5 years $1,000-$50,000 No requirement
Achieve Quick approval 8.99%-35.99% 2-5 years $5,000-$50,000 620
Upgrade Small loan amounts 8.49%-35.99% with Autopay 2-7 years $1,000-$50,000 600
Prosper Peer-to-peer lending 8.99%-35.99% 2-5 years $2,000-$50,000 640
SoFi Online lender for large loan amounts 8.99%-29.49% with Autopay 2-7 years $5,000-$100,000 680
Discover Good credit and low fees 7.99%-24.99% 3-7 years $2,500-$40,000 660

A closer look at our top picks that offer the lowest interest rates

Here's a deep-dive into each lender, why they're the best in each category and specifically who would benefit most from borrowing from the lender.

LightStream: Best for low APRs and large loan amounts

LightStream
Rating: 4.7 stars out of 5
4.7

Overview: LightStream is one of the most competitive online lenders in the personal loan space, offering a quick application process and fast funding. They also offer a maximum loan amount of $100,000 — much higher than many other lenders. 

Est. APR
8.89%–24.29%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for little or no credit history

Upstart
Rating: 4.8 stars out of 5
4.8

Overview: Founded in 2012 by ex-Googlers, Upstart is headquartered in San Mateo, California and has originated more than $34 billion in personal loans. If you’re looking to consolidate debt to boost your score for a low-interest rate loan in the future, make a large purchase or cover some personal expenses, an Upstart personal loan may be able to help you do it.

Est. APR
7.80%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best for quick approvals with co-signers or co-borrowers

Achieve
Rating: 4.7 stars out of 5
4.7

Overview: Whether you need money to consolidate credit card debt, make some home improvements or make a large purchase, an Achieve (formerly known as FreedomPlus) personal loan can help you do it. And if you need a little help from a friend to get a lower rate or higher loan amount, Achieve is one of the few lenders that allows both co-signers and co-borrowers. 

Est. APR
8.99%–35.99%
Loan amount
$5k– $50k
Min credit score
620

Upgrade: Best for small loan amounts

Upgrade
Rating: 4.7 stars out of 5
4.7

Overview: Upgrade personal loans are a good fit for smaller loan amounts or longer repayment terms of up to seven years. The low minimum loan limit comes in handy for an emergency expense, but can also be used to refinance credit cards, consolidate debt, take on home improvement projects or finance major purchases.

Est. APR
8.49%–35.99%
Loan amount
$1k– $50k
Min credit score
600

Prosper: Best for peer-to-peer lender options

Prosper
Rating: 4.6 stars out of 5
4.6

Overview: Prosper is a personal loan pioneer — the company became the first firm to enter the peer-to-peer lending arena when it launched in 2005. Prosper offers competitive rates on unsecured personal loans through WebBank to customers with a variety of credit profiles. 

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
640

SoFi: Best online lender for large loan amounts

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: A SoFi personal loan is a good choice for borrowers who need a large sum of money but have slightly lower scores than most high-loan amount personal loan lenders allow. SoFi offers a wide range of repayment terms and accepts joint applications. Referral bonus programs and automatic payment discounts could also get you a lower rate.

Est. APR
8.99%–29.49%
Loan amount
$5k– $100k
Min credit score
680

Discover: Best for good credit and low fees

Discover
Rating: 4.8 stars out of 5
4.8

Overview: Discover charges no origination fee and its starting APR is one of the lowest among lenders we reviewed. These factors make it a good match for good credit borrowers. The lender is also one of very few that offer customer service every day of the week.

Est. APR
7.99%–24.99%
Loan amount
$2.5k– $35k
Min credit score
660

What makes a personal loan a low-interest loan?

A low-interest personal loan has a rate under the national average. As of June 5, 2024, the average personal loan rate is 12.22 percent. That’s much higher than the lowest single-digit rates advertised on many lenders’ websites.

Another way to define a low-interest personal loan is one that’s at the low end of a lender’s rate range. That usually means an APR below 10 percent, although the minimum varies among lenders.

To qualify for a low-interest loan, borrowers must have a steady income, an excellent credit score and a low debt-to-income (DTI) ratio. You may also be offered a lower interest rate for a shorter term or a higher loan amount. 

Although the lowest rates go to excellent borrowers, you should still shop for the lowest rate even if you have bad, fair or good credit. Bad credit lenders may offer special discounts as you make payments on time or set up automatic payments.

Should you consolidate credit card debt with a low interest personal loan?


Nationally recognized student financial aid expert

Credit card debt bases the monthly payment on a percentage of the outstanding debt. This means the payments start off high and get smaller over time. Consolidating credit card debt into a personal loan yields level monthly payments that do not change, which may be initially lower than the payment on the credit card debt and easier to manage. Personal loans often involve lower interest rates than credit card debt and a shorter repayment term, and can save you money. But, beware of consolidating your credit card debt if you will just get new credit cards and run up the balance all over again. But, before consolidating your credit card debt, call the credit card issuer to ask about hardship programs. They may be able to reduce the interest rate or provide you with a more manageable monthly payment. It is also a good idea to undergo credit counseling with a nonprofit credit counselor first.

Senior Loans Writer

The low-interest personal loan is an under-used tool for debt consolidation. First, it converts multiple debts into one debt with one manageable monthly payment. Second, you don’t need an asset to borrow against. You leave the equity in your home or the value of your car alone with a personal loan. Finally, you get the cash faster with less documentation than you’d need with a home equity loan or cash-out refinance. That puts you on the path to a better financial foundation faster. A personal loan also creates payment discipline because you receive the funds in a lump sum with a fixed monthly payment. You can’t max out a personal loan like you can with a credit card because you can’t re-use any of the funds as you repay it. And clearing out revolving debt with installment debt is a very quick way to boost your credit score.

Pros and cons of low-interest personal loans

Green circle with a checkmark inside

Pros

  • Fixed fees and interest rates give you a predictable payment.
  • Typically have lower rates than credit cards.
  • No collateral is required, making them a good alternative to home equity or car loans.
Red circle with an X inside

Cons

  • You won’t qualify for the lowest rates with low credit scores or thin credit history.
  • The lowest APRs are typically offered for shorter repayment terms with higher monthly payments.
  • Some lenders charge origination fees as high as 12 percent.

Where to get a personal loan with a low interest rate

You can get a low interest rate loan from banks, online lenders and credit unions. However, online lenders are the most likely to offer the lowest rates, especially for borrowers with strong credit. Alternatively, your local bank may offer you a rate discount if you already have deposit accounts and agree to set your payments up on autopay.

How to secure the lowest interest rate on a personal loan

Because personal loan rates vary so widely, we’ve outlined some steps you can take to qualify for low-interest loans that suit your needs. 

  1. Check your credit score: An 800 or higher credit score is usually the ticket to the best rates a lender offers. To avoid any surprises, review your credit score before you start applying. 
  2. Pay off revolving debt: Besides payment history, your credit utilization ratio has the biggest impact on your score. The less available credit you use, the higher your score will be. If you can’t pay off your balances, get them as low as possible. 
  3. Learn lender requirements: Check to see what the lender requires for the lowest rates. You might need a certain income or choose a secured loan option to get the best rates. Rate discounts for automatic payments are common but not offered by all lenders. 
  4. Ask about discounts: If you don’t see any advertised rate discounts on a lender’s website, ask them when you apply, especially if you’re working with someone at your local bank or credit union. 
  5. Borrow less: Lenders compare how much monthly debt you pay to how much you earn. This is called your debt-to-income (DTI) ratio. If it's too high, the lender might charge you a higher APR. You may get a lower rate if your DTI ratio is below 36 percent. 
  6. Consider credit unions: If you qualify for membership with a credit union, you may find lower rates on personal loans than you would with a traditional bank.
  7. Apply for prequalification: This lets you check your rates in advance without hurting your credit. Compare offers with at least three lenders before deciding.
Bankrate's image file
See related

How to qualify for competitive rates on low-interest personal loans

Learn what steps you need to take to qualify for a low-interest personal loan.

Arrow Right

Alternatives to low-interest personal loans

In addition to personal loans, you can explore a few other options to get the funds you need at reasonable interest rates.

Caret Down

A cash-out refinance replaces your current mortgage with a bigger one, with different terms and interest rates. With this loan, you keep the difference between your old mortgage and your new one. Mortgage rates are often lower than personal loan rates with terms as long as 30 years.

On the downside, the refinance process can take up to 60 days to complete and it requires significant paperwork. You also risk losing your home if you can’t repay your loan.

Some credit cards offer 0 percent introductory offers that allow you to use the credit without accruing interest for a set number of months. To qualify, you’ll typically need excellent credit and a stable source of income. This option makes the most sense if you only need to borrow a small amount and can pay off the balance before the promotional period ends.

Buy-now, pay later loans are installment loans that allow you to split your purchase into four to six interest-free payments. Many online retailers and some physical stores offer these services, and some physical stores. They may be a better option for small purchases you don’t have the cash to pay for and don’t want to finance with a personal loan. 

Frequently asked questions about low-interest personal loans

How we made our picks for best low-interest loans

Bankrate's trusted personal loans industry expertise

57

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best low-interest personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

// inline Read me // build form url prequal/finley