Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.
When shopping for a personal loan, most borrowers make the interest rate their top priority. The lower the interest rate, the less the total cost of the loan will be. While other factors like fees and term lengths also are important when when selecting a lender, interest rates are critical in making your final choice.
Secure the Best Low-Interest Personal Loans
Why Interest Rates Matter
Interest rates are a critical component to consider when taking out a loan because, in combination with the term length, they determine the amount you will pay to borrow money over time.
A higher interest rate will mean higher monthly payments and more money out of your pocket over the life of the loan. Conversely, a lower interest rate means lower monthly payments and less total interest paid, making the loan more affordable. Longer loan terms usually come with higher interest rates than shorter-term loans because they're riskier for the lender.
Where to Find the Best Low-Interest Options
You can find the best personal loans with low interest through a variety of institutions:
Online Lenders
Online lenders, because they don't have the same amount of overhead costs as their brick-and-mortar counterparts, can often offer very competitive interest rates. They also can be more flexible when it comes to working with borrowers who don't have the best credit.
Credit Unions
Credit unions, which are member-owned financial institutions, frequently have better personal loan interest compared with banks for members in good standing. Interest rates for all types of credit union loans are capped at 18% by the National Credit Union Administration.
Banks
Banks, while they have established reputations and familiarity, often do not have the lowest interest rates you can find for personal loans unless you have an excellent credit. However, banks sometimes offer perks including interest-rate discounts for existing customers.
Best Low-Interest Personal Loans
- Best for high loan amounts: LightStream Personal Loan
- Best for money-back guarantee: Discover Personal Loans
- Best for low minimum APR: American Express Personal Loan
- Best for low credit scores: Upstart Personal Loan
- Best from a brick-and-mortar lender: Wells Fargo Personal Loan
- Best for debt consolidation: Reach Financial Personal Loan
- Best for co-signed loan: Prosper Personal Loan
Compare the Top Low-Interest Personal Loans
The best low-interest personal loans get you the funds you need, minus exorbitant interest rates for paying back the loan. We looked at lenders' interest rates to come up with our list of the best choices, with a variety of credit scores in mind. (The higher the credit score, the lower your loan interest rate will generally be).
Best for High Loan Amounts: LightStream Personal Loan
6.99% to 25.49% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
LightStream lends amounts of as much as $100,000 for borrowers looking to find large expenses with a loan that has low interest rates. The company offers same-day funding if the application is approved, verified, and signed before 2:30 p.m. ET.
LightStream also has a wide range of repayment term lengths, from two to 12 years. This is great if you're looking to spread out the cost of your loan over a long period.
Watch out for: Lightstream doesn't have preapproval. Borrowers looking for low-interest loans like to shop around to compare rates. Usually, this involves getting preapproved by several different companies and comparing the offers before settling on one. LightStream doesn't offer preapprovals for its personal loans. You'll have to go through the full approval process. That includes a hard pull of your credit report, which can temporarily lower your credit score.
Lightstream Personal Loan Review
Best for Money-Back Guarantee: Discover Personal Loan
6.99% to 24.99%
$2,500 to $40,000
660
- 30-day money back guarantee
- Low minimum APR
- No origination fees
- Low maximum loan amount
- Late fees
- No co-borrowers allowed
Discover is a strong option for borrowers with good credit, and offers a 30-day money-back guarantee if you're dissatisfied with your loan or find a better rate. However, if you're late on making a payment, you may be charged a hefty $39 late fee.
Discover Personal Loans- Loan term lengths range between 36 to 84 months
Discover personal loans come with a 30-day money-back guarantee, differentiating them from competitors. If you decide within 30 days of getting your loan that you don't want it anymore, you may return the funds via check and won't be charged any interest. This may be helpful if you find a lender with a lower interest rate or if you end up not needing the loan amount you initially requested.
Discover also has repayment terms ranging from three to seven years, so you have options if you want to spread out the cost of your loan. You're also able to pay off your loan early at any time without a fee.
Watch out for: Hefty late fee. Discover charges up to $39 in late fees. If you fall behind on your payments, those fees will increase the overall cost of your loan. Some other lenders on our list don't charge any fees.
Best for Low Minimum APR: American Express Personal Loan
5.91% to 17.97%
$3,500 to $40,000
Undisclosed
- No prepayment penalties or origination fees
- Low starting APR
- Funds available quickly
- Ability to prequalify for a loan
- Limited repayment term lengths
- High minimum loan amount
- Must be a card member to apply
- Hefty late fee
- Loan term lengths range from 1 to 3 years
- Receive your funds as soon as the next day
American Express has some of the lowest minimum APRs available. If you have an excellent credit score and can qualify for the lowest interest rate, this could be a great lender for you.
The company also gets you funds quickly. Borrowers will usually get their money within one to two business days after loan approval.
Watch out for: Eligibility requirements. To get a personal loan with American Express, you need to be a card member. You need a relationship with the company outside of your personal loan, which may be an added step you prefer to avoid.
American Express Personal Loan Review
Best for Low Credit Scores: Upstart Personal Loan
6.40% - 35.99% fixed
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
300
- Small minimum loan amounts
- No prepayment penalty
- Quick loan fund disbursement
- Only three and five year terms
- Potential for high origination fees
Upstart could be the right lender if you have a strong work and education history, but you have a low credit score or limited credit history. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Upstart- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
Upstart has low interest rates and can get you your money faster than many other lenders. You may be able to get your loan proceeds as soon as the day after you apply.
Upstart's minimum credit score is 300. If you have a poor credit history, it may be easier to qualify for a loan with low rates from this lender than with some of the others on our list. Keep in mind that you'll usually be charged a higher interest rate with a lower credit score.
Watch out for: High origination fees. Upstart's personal loans can have origination fees up to 8%. On a $5,000 loan, for example, that would work out to an origination fee of $400.
Best from a Brick-and-Mortar Lender: Wells Fargo Personal Loan
8.49% to 24.49% (with relationship discount)
$3,000 to $100,000
Undisclosed
- Large maximum loan amounts
- Discounts for current customers
- Established brick-and-mortar lender
- No origination fee or prepayment penalty
- Significant late fees
- History of mismanaging customer information
- No online applications for non-customers
Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.
Wells Fargo personal loan- Loan amounts range from $3,000 to $100,000
- Term lengths range from 1 to 7 years
- Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
- Non-customers must apply by visiting a branch and talking with a banker
- Loans made by Wells Fargo, member FDIC
Wells Fargo is one of the largest banks in the country, with roughly 4,700 locations in 36 states. Borrowers looking for a low-interest personal loan who prefer face-to-face interactions will find ample opportunities to connect with a Wells Fargo representative. States where branches aren't available are Ohio, Michigan, Kentucky, West Virginia, Missouri, Oklahoma, Louisiana, Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, and Hawaii.
Wells Fargo also has a high maximum loan limit of $100,000, which is perfect for borrowers who need to finance a large purchase.
Watch out for: History of controversies. Wells Fargo's recent past has been mired in scandals, including a December 2022 ruling from the Consumer Financial Protection Bureau ordering the bank to pay a $3.7 billion penalty as a result of widespread legal violations, including in the auto and mortgage loan space. Other lenders on our list don't come with the same baggage.
Wells Fargo Personal Loan Review
Best for Debt Consolidation: Reach Financial Personal Loan
5.99% to 35.99%
$3,500 to $40,000
600
- Low minimum interest rate
- Relatively fast funding speed
- Can only use loan to consolidate debt or refinance credit cards
- Origination fee
- Late fee
- Not available in all states
- Loan term lengths between 24 to 60 months
- Loans unavailable in Colorado, Connecticut, Hawaii, Louisiana, Maine, Nevada, Oregon, Tennessee, Vermont, West Virginia
- Your creditors are paid directly about 48 hours after your loan is approved
- Make payments either biweekly or monthly
- Reach will only consolidate unsecured debt
Reach Financial could be a good choice for borrowers looking for a low-interest personal loan for debt consolidation. It has very fast funding speed. The company pays off your creditors directly — you won't have any money go into your account — and will do so within roughly 48 hours after your loan is approved.
The company's loan minimum is relatively low — you're able to take out a loan as small as $3,500. See our guide to the best debt consolidation loans for options with higher limits.
Watch out for: Limited loan purpose. You're only able to use your loan funds to consolidate or refinance debt. The other lenders on our list allow borrowers to use a personal loan for pretty much any purpose. Borrowers looking to cover other expenses will have to choose a different lender.
Reach Financial Personal Loan Review
Best for Co-Signed Loan:Prosper Personal Loan
8.99% to 35.99%
$2,000 to $50,000
560
- Able to add coborrower
- Offers loans for a variety of uses
- Many requirements to qualify
- Prosper may not find an investor for your loan
- Origination and late fee
- Loan amounts range from $2,000 to $50,000
- Loan term lengths are either three or five years
- Origination fee between 1% to 5%, depending on your financial situation
- Late fees are 5% of the payment amount or $15, whichever is greater
- Loans made from Prosper’s banking partner WebBank
Prosper allows you to add a co-borrower to your account, a feature not all lenders offer. Enlisting a co-signer can help you get a lower interest rate on your personal loan than you would've otherwise received, or qualify for a loan that was out of reach on your own.
The company also has a low loan minimum of $2,000 and may be a good option for borrowers who only need a little bit of cash.
Watch out for: Many eligibility requirements. You may have trouble meeting all of Prosper's qualifications for a personal loan, particularly if your finances aren't in great shape. These include a debt-to-income ratio below 50%, and fewer than nine credit bureau inquiries (excluding duplicate inquiries) within the last six months.
What Makes a Personal Loan 'Low Interest?'
Three main factors determine whether you'll be able to get a low-interest personal loan:
1. Your Creditworthiness
Your creditworthiness is perhaps the most important factor that influences the interest rate offered to you. Lenders assess your credit score and payment history to determine the risk of lending to you. Those with the highest credit scores usually qualify for lowest interest rates due to the lower risk you pose to the lender.
2. Loan Term and Amount
The loan term and amount you borrow also are important factors. Shorter loan terms and smaller loan amounts tend to have lower interest rates because they carry less risk for the lender.
3. Market Conditions
The general conditions in the credit market also play a large role in determining whether you can get a low-interest personal loan. When interest rates set by Federal Reserve are low, lenders can offer loans at lower rates to borrowers.
Low-Interest Loan Company Trustworthiness
Whether you're interested in taking out a $5,000 loan or a $50,000 loan, finding the right provider can help with your loan approval experience. We've looked at each institution's Better Business Bureau score to offer you another piece of information to pick a company that provides low-interest personal loans. The BBB measures businesses based on factors like their responsiveness to customer complaints, truthfulness in advertising, and openness about business practices. Here is each company's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A+ |
| American Express Personal Loan | A+ |
| Reach Financial Personal Loan | A+ |
| Upstart Personal Loan | A+ |
| Discover Personal Loan | A+ |
| Prosper Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
Our top picks are rated A+ or higher by the BBB, with the exception of Wells Fargo, which has a history of problematic behavior.
Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If these and other legal issues with Wells Fargo in recent years make you uncomfortable, you may consider getting a personal loan from a different lender.
Know that a high BBB score does not ensure a positive relationship with a credit card consolidation loan provider, and you should keep researching and talk to others who have used the company to get the most complete information possible.
Low-Interest Loan FAQs
The lowest rates on personal loans in May were just under 6%. However, only borrowers with top-tier credit can expect rates that low. The average personal loan rate was around 21%.
Yes, the requirements for getting a low-interest personal loan are very strict. They are reserved only for borrowers with excellent credit histories who are financially stable.
You should shop around extensively if you want a low-interest loan. It's important to compare offers from multiple lenders whenever you're looking for any kind of loan. Even a small difference in the APR can save a lot in interest over the life of the loan.
There are several things you can do to boost your odds of getting a low interest rate on your loan. They include working on improving your credit score, reducing your debt-to-income ratio, and asking someone with stronger credit co-sign the loan with you.
While most personal loans are unsecured, meaning they are approved based solely on your creditworthiness, it is sometimes possible to get one backed by collateral. However, with a secured loan, it's important to weigh the risk of losing your collateral against the potential for saving money on interest.
Why You Should Trust Us: Our Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
See our broader ratings methodology for personal loans »
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
