What Loans Apps Have The Lowest Interest Rate

Compare Personal Loan Rates

Best Low-interest Personal Loans

FEATURED PARTNER OFFER

Best Overall Low-interest Personal Loan

LightStream

Minimum credit score

APR range

2.49% to 19.99%

with autopay

Loan amounts

Minimum credit score

APR range

2.49% to 19.99%

with autopay

Loan amounts

Why We Picked It

LightStream is a consumer lending division of Truist—which formed following the merger of SunTrust Bank and BB&T. The platform offers unsecured personal loans from as little as $5,000 to $100,000. Although a number of lenders offer smaller loans than the LightStream minimum, few lenders offer a higher maximum loan. Repayment terms are available from two to seven years, making it an excellent option for those who want to pay off big expenses over time.

In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. Well-qualified borrowers who enroll in autopay also will have an opportunity to receive a loan with interest rates as low as 2.49%, the lowest on our list. It also offers a 30-day loan experience guarantee to ensure borrower satisfaction, Covid-19/hardship assistance and a rate-beat program. LightStream will beat a competitor's interest rate by 0.1% for applicants who meet certain criteria.

LightStream offers loans in all 50 states plus Washington, D.C. and Puerto Rico, and applicants can contact the lender's customer support team seven days a week; current borrowers have access to customer support from Monday through Saturday. And, while LightStream doesn't offer a mobile app for loan management, customers can access their account through LightStream.com.

Pros & Cons

No origination, prepayment or late fees
Low, competitive rates
Fast approval and funding

No prequalification process
No due date flexibility
Limitations on use of loan proceeds

Extra Details

Eligibility: LightStream requires a minimum FICO credit score of at least 660 to qualify for a personal loan. To increase their chances of approval, applicants also should have several years of credit history, including multiple account types, as well as an income that is stable enough to service current debts and a new LightStream loan.

LightStream doesn't give prospective borrowers the ability to prequalify for a loan. This fact—combined with the minimum credit score requirement—makes the platform a better fit for those with a strong credit profile. Applicants with excellent credit also are more likely to get favorable terms. LightStream does not allow co-signers, but prospective borrowers can submit a joint application.

Loan uses: LightStream's personal loans can be used for a wide range of purposes, from purchasing a new car, RV or jewelry to paying for home improvements. LightStream really stands out because loans can be used to finance land, timeshares and so-called tiny homes.

As with other top lenders, LightStream prohibits use of its personal loans for post-secondary education costs, business purposes and illegal activities. Borrowers also are prohibited from using LightStream loan funds to refinance an existing LightStream loan.

Turnaround time: LightStream borrowers can receive funds as soon as the same day if the loan is approved before 2:30 p.m. Eastern time on a banking business day. To receive same-day funding, the applicant also must review and electronically sign the loan agreement; provide LightStream with funding preferences and relevant banking information; and complete the final verification process—all before 2:30 p.m. on the day the loan is approved.

FEATURED PARTNER OFFER

Best For Large Loan Limits

SoFi

Minimum credit score

APR range

4.99% to 19.43%

with autopay

Loan amounts

Minimum credit score

APR range

4.99% to 19.43%

with autopay

Loan amounts

Why We Picked It

SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state except Mississippi. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and extended loan terms.

Loans are available between $5,000 and $100,000, making SoFi a great option for those who need to borrow a large amount of money. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 680 FICO score) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.

Approved borrowers are rewarded with relatively low APRs ranging from 5.99% to 25.05% with autopay. What's more, SoFi doesn't charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees.

And, while SoFi does not provide direct loan payment for debt consolidation, the platform does offer customers a number of other perks and discounts, including unemployment protection and the ability to change their payment due date once a year.

Pros & Cons

Prequalification with soft credit check
Funding in as little as one to two days
High loan amounts and lengthy terms

Does not offer direct payment to third-party creditors for debt consolidation
Some applicants report difficult qualification standards
Co-signers are not permitted

Extra Details

Eligibility: Personal loan applicants must have a minimum credit score of 680 to qualify for a SoFi personal loan. However, most successful applicants have a score of 700 or higher. Applicants also must have an annual income of at least $45,000, although the average income of a SoFi borrower is over $100,000.

Loan uses: In general, SoFi personal loans are limited to use for personal, family and household purposes. This means a borrower can use loan funds to cover things like medical costs, credit card consolidation, home improvements and relocation costs. SoFi loans cannot be used to fund a new business venture, the purchase of real estate, investments and securities, post-secondary education or short-term bridge financing.

Turnaround time: Borrowers typically receive funds within a few days—or as soon as the next business day after approval and acceptance of terms. However, funding times may be longer than a few days—especially for loans over $20,000.

FEATURED PARTNER OFFER

Best For Terms Up to 72 Months

Marcus

Minimum credit score

Marcus does not disclose this information

APR range

6.74% to 19.74%

with autopay

Loan amounts

Minimum credit score

Marcus does not disclose this information

APR range

6.74% to 19.74%

with autopay

Loan amounts

Why We Picked It

Marcus by Goldman Sachs is a subsidiary of the investment bank Goldman Sachs and offers personal loans between $3,500 and $40,000. While Marcus may not be the ideal choice for those who need access to a large loan, the platform still offers rather flexible nationwide loans that are available for three- to six-year terms.

Borrowers can access APRs between 6.74% to 19.74%, which includes a 0.25% discount for autopay enrollees. And, like some other top lenders, Marcus doesn't charge any fees, including for sign-up, late payment and prepayment. Plus, borrowers can benefit from the platform's on-time payment reward and flexible payment dates.

As with many other top lenders, Marcus lets applicants prequalify with a soft credit pull, so it's easy to see your loan options without hurting your credit. While Marcus customers don't have access to a mobile app for managing their loans, the lender makes up for the lost convenience with robust customer support options. Borrowers can contact customer support seven days a week from 9 a.m. to 7 p.m. Eastern time and have access to extensive online resources.

Pros & Cons

No origination, late payment, insufficient fund or prepayment fees
Offers direct consolidation payments to third-party lenders
Borrowers can change their payment date up to three times over the life of the loan

Does not allow co-signers or co-applicants
Cannot be used to refinance an existing student loan
Funding can take up to four days after loan approval

Extra Details

Eligibility: Marcus won't disclose the minimum required credit score, but applicants should have a minimum score of 660. Those with higher scores are eligible for lower rates and more favorable terms. And, while Marcus doesn't disclose an income requirement, the platform does require applicants to have an income sufficient to cover loan repayment. In contrast to some personal loan providers, Marcus does not permit co-signers or co-applicants.

Loan uses: Marcus' personal loans can be used for debt consolidation, home improvement, moving and relocation, special events and travel and vacations. Borrowers cannot use Marcus personal loans to refinance existing student loans, but the platform supports other forms of debt consolidation with a consolidation calculator and direct payment to third-party lenders.

Turnaround time: An applicant's loan may be approved in under 24 hours—quicker than some lenders, but not the fastest approval process we encountered. Once a loan is approved, funds take between one and four days after bank account verification to land in the borrower's account. However, funding time varies depending on the financial institution and when the loan was processed.

FEATURED PARTNER OFFER

Best For Small Loans

PenFed

Minimum credit score

APR range

Loan amounts

PenFed

Minimum credit score

APR range

Loan amounts

Why We Picked It

Anyone can join PenFed, although it originally was established to serve U.S. military members and veterans, in addition to federal employees and retirees. It offers fixed-rate, low-interest loans that start at $500 and top out at $20,000. If you're looking for a mix of low interest rates and high loan limits, PenFed may not be the choice for you.

PenFed personal loans carry rates between 5.99% and 17.99%, based on your application and credit information. Applicants with higher credit scores can typically snag the lowest rates. What's more, PenFed also boasts no early payoff penalty and no origination or hidden fees. Although located on the East Coast, borrowers will have around-the-clock access to their accounts through the PenFed mobile app.

Anyone can apply for a loan through PenFed; however, if you're approved and choose to move forward with your loan, you'll need to become a member of the credit union. Becoming a member is easy, and it typically only takes a few minutes. While the membership is free, you'll need to make a deposit of at least $5 into a new PenFed savings account.

Pros & Cons

No origination or hidden fees
Funds could be available the next day
Few qualification requirements

Loan amounts up to $20,000
Branches only located on the East Coast
Must open a PenFed savings account to become a member

Extra Details

Eligibility: PenFed requires borrowers to have a minimum credit score of 650 to qualify. However, favorable rates and terms are awarded to those with higher scores. Applying with a co-borrower may help you qualify for a lower interest rate if you have a low credit score.

PenFed does not require you to be a member to apply, but it does require you to become a member to fund your loan.

Loan uses: You can use PenFed's personal loans for debt consolidation, home improvement, transportation, medical and dental costs, emergency expenses and even to pay off credit card debt. Other uses, such as refinancing student loans, may require a specific loan for that use.

Turnaround time: PenFed offers same-day and next day direct deposit into PenFed checking accounts. If you want to receive your money sooner, you'll need to visit a local PenFed branch to pick up your check.

FEATURED PARTNER OFFER

Best For Existing U.S. Bank Customers

U.S. Bank

Minimum credit score

APR range

5.49% to 17.99%

with autopay

Loan amounts

U.S. Bank

Minimum credit score

APR range

5.49% to 17.99%

with autopay

Loan amounts

Why We Picked It

With a U.S. Bank personal loan you can gain quick access to funds for your one-time financing needs, whether that is consolidating your debt or covering a large expense. U.S Bank offers unsecured personal loans ranging from $1,000 to $25,000 to existing U.S. Bank customers. Loan terms run between 12 and 60 months.

U.S. Bank's loans carry low interest rates that range from 5.99% to 16.49%, depending on your creditworthiness, which includes a 0.50% autopay discount. Borrowers with higher credit scores are more likely to qualify for interest rates on the low end of the spectrum. Similar to other top providers, U.S. Bank charges no origination fees, and there is no prepayment penalty, meaning you can always make loan payments before they are due.

Applying for a U.S. Bank loan is easy and can be done online; however, you must be a current U.S. Bank customer. Some customers may need to visit a U.S. Bank branch if additional information or documentation is required.

Pros & Cons

Funding only takes one business day
Autopay enrollees can receive a 0.50% discount on interest
No origination fees or prepayment penalty

Only available in 26 states
Some applicants may need to visit a branch to close their loan
Only offers small loan limits up to $25,000

Extra Details

Eligibility: U.S. Bank requires applicants to be existing U.S. Bank customers. If you're a current customer, you can qualify for a personal loan with a minimum credit score of 680. However, those with scores of 680 won't benefit from the lowest interest rates available.

Because you may need to visit a branch to close your loan, you must live near a physical location. U.S Bank has branches in 26 states: Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming.

Loan uses: U.S. Bank's personal loans can be used for any purchase or product besides a home or education expenses. For example, they can cover vacation costs, home improvements, medical bills or help consolidate any debt obligations, like credit cards.

Turnaround time: An applicant typically will learn their loan approval status in less than a minute. If you qualify for the personal loan, you may fund your loan online; however, you may need to visit a branch if a U.S. Bank representative needs more information. After your loan closes, funds are available within one business day.

FEATURED PARTNER OFFER

Best For Current Wells Fargo Account Holders

Wells Fargo

Minimum credit score

APR range

5.74% to 19.99%

with autopay

Loan amounts

Wells Fargo

Minimum credit score

APR range

5.74% to 19.99%

with autopay

Loan amounts

Why We Picked It

Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. While longer term lengths, such as 84 months, will decrease your fixed monthly payment, you will pay more interest over the life of your loan compared to a loan with terms of, let's say, 12 months.

Wells Fargo personal loans boast interest rates between 5.74% and 24.24% for customers who qualify for the 0.25% relationship discount. To qualify, you need to have a Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account. If you don't enroll in autopay, interest rates range from 5.99% to 24.49%.

Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online. New customers will need to visit a branch location. Wells Fargo does not have branch locations in Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Vermont or West Virginia.

Pros & Cons

Receive funds the next business day, if approved
0.25% discount when you enroll in autopay
No origination fees or prepayment penalty

Must have a Wells Fargo checking account to receive 0.25% discount
New Wells Fargo customers will need to visit a branch to apply
No option to prequalify

Extra Details

Eligibility: Wells Fargo personal loans are available for both existing and new Wells Fargo customers. Existing customers can apply online, while new customers must visit a branch location. Although Wells Fargo doesn't have a minimum credit score requirement, it's a good rule of thumb to maintain a score of at least 670 to increase your chances of receiving a low personal loan rate.

Loan uses: You can use Wells Fargo personal loans for any type of purchase besides a home and education expenses. For example, you can consolidate your debt, finance purchases like new appliances or furniture, fund renovations and cover expenses, such as medical bills and auto repairs.

Turnaround time: Wells Fargo offers a simple and quick application process for existing customers. If you submit an application online, you'll receive an instant approval response. Once approved, you can typically receive your funds by the next business day.

Tips for Comparing Low-interest Personal Loans

Consider these tips when comparing low-interest personal loans:

Look for autopay discounts. Not all providers offer interest rate discounts when you set up automatic payments, but most top providers do. When looking at different low-interest personal loans, take into consideration which ones offer an additional rate discount to help you receive the lowest rate possible.
If possible, prequalify with a provider. Several providers offer the opportunity to prequalify you for a personal loan. This means you can submit details like your income, desired loan use, housing situation and other information to learn about potential loan limits, rates and repayment options. Prequalifying also only requires a soft credit check, which doesn't hurt your credit score, so you can safely find the best rates.
Check for additional fees. Some personal loan providers charge no origination fees, late payment fees or prepayment penalties. However, there are some that may charge all or a few of these fees. When comparing low-interest personal loans, be sure to look at the fee structure beyond the potential interest rate you can receive.
Evaluate the lender's customer support options. If you've found a lender, there's one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender's customer service resources and read reviews to make sure it's a good fit.

Methodology

We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the six best lenders based on the weighting assigned to each category:

Loan cost: 35%
Loan details: 20%
Eligibility and accessibility: 20%
Customer experience: 15%
Application process: 10%

Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider's customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

Best Low-interest Personal Loans Ratings

Frequently Asked Questions (FAQs)

What is a good interest rate on a personal loan?

Personal loan interest rates vary depending on your lender and credit score. If you have a high credit score, you could see interest rates as low as 2.49%, depending on where you get your loan. However, if you have poor credit scores, you may only qualify for loans that charge interest rates of 20% or more. Before you apply, improve your credit as much as possible to increase your odds of landing the best interest rate possible.

Which bank has the lowest interest rate on a personal loan?

If you have a strong credit score, you can receive the lowest interest rate through LightStream. LightStream has rates as low as 2.49% if you enroll in autopay. Other lenders, like SoFi, PenFed, Wells Fargo, Marcus and U.S. Bank, offer rates as low as 5.99%. Although not as low as LightStream, rates that low still beat out other methods of financing, including credit cards.

How can I get a low-interest personal loan?

Before applying for a low-interest personal loan, check your credit score. If your score is low, look to improve it first. Some lenders let you prequalify with a soft credit check, which lets you see what type of loan terms you could receive with your current score. Once you find a loan that offers favorable terms for your financing needs, apply with the provider. If you qualify, be sure to set up autopay to earn potential discounts and avoid any late payment fees.

Next Up in Personal Loans

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