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Top 10 Personal Loans with Low Interest Rates in 2025: Your Complete Guide to Smart Borrowing
Personal loans are an essential financial tool for many individuals, offering an opportunity to borrow money for various reasons—whether it’s to consolidate debt, cover unexpected expenses, or finance a major life event. In 2025, interest rates on personal loans continue to evolve, with several lenders providing competitive rates that can save you money in the long run. If you’re considering taking out a personal loan, it’s crucial to choose one with a low interest rate to minimize costs.
In this guide, we’ll explore the top 10 personal loans with low interest rates in 2025, helping you make an informed decision for smarter borrowing. We’ll also provide valuable tips on how to select the best loan for your needs, ensuring a financially sound future.
1. SoFi Personal Loans
Interest Rates: 5.99% – 22.23% (APR)
SoFi stands out as one of the most reputable lenders, offering competitive rates for borrowers with excellent credit. Known for its flexible loan terms and no fees, SoFi is ideal for borrowers who want low-interest loans without hidden costs. SoFi’s offerings include personal loans for debt consolidation, home improvements, and more, making it a versatile option for various financial needs.
Key Benefits:
- No fees (origination, late payment, or prepayment fees)
- Loans ranging from $5,000 to $100,000
- Fast funding—often within 1-3 business days
- Unemployment protection for members
Best For: Borrowers with good to excellent credit who need fast access to funds and value flexibility.
2. LightStream Personal Loans
Interest Rates: 5.99% – 20.49% (APR)
LightStream, a division of SunTrust Bank, is renowned for offering some of the lowest interest rates in the industry. With no fees and flexible repayment terms, LightStream is an excellent choice for borrowers with solid credit histories. Whether you’re consolidating debt or funding a home renovation project, LightStream’s competitive rates can save you a significant amount of money.
Key Benefits:
- Low starting APR for qualified borrowers
- No fees or prepayment penalties
- Same-day funding in some cases
- Loan amounts ranging from $5,000 to $100,000
Best For: Borrowers with excellent credit looking for low rates and no fees.
3. Marcus by Goldman Sachs
Interest Rates: 6.99% – 19.99% (APR)
Marcus by Goldman Sachs offers no-fee personal loans with competitive interest rates, especially for those with good credit. The lender provides a range of loan amounts and flexible repayment options, making it an excellent option for those seeking a straightforward, affordable loan. Marcus also offers personalized tools to help manage your loan and improve your financial health.
Key Benefits:
- No fees (origination, late payment, or prepayment fees)
- Loans from $3,500 to $40,000
- Flexible repayment terms (36-72 months)
- Option to defer one payment per year without penalty
Best For: Borrowers who value simplicity and flexibility with a solid credit score.
4. Discover Personal Loans
Interest Rates: 6.99% – 24.99% (APR)
Discover offers highly competitive personal loan rates with no fees. Known for its transparency and reliable customer service, Discover is a top choice for individuals looking to consolidate debt or finance large purchases. Discover’s 30-day guarantee lets you change your mind within 30 days without penalties, ensuring peace of mind when making your decision.
Key Benefits:
- No fees (origination, late payment, or prepayment fees)
- Loans from $2,500 to $35,000
- Flexible repayment terms (36-84 months)
- 30-day guarantee to cancel the loan without penalties
Best For: Borrowers who want a transparent, fee-free process and flexible loan terms.
5. Payoff Personal Loans
Interest Rates: 5.99% – 24.99% (APR)
Payoff specializes in personal loans for credit card debt consolidation, offering lower interest rates than typical credit cards. This makes it a valuable option for individuals looking to simplify and reduce high-interest credit card balances. Payoff also provides financial tools and resources to help you stay on top of your finances and improve your credit health.
Key Benefits:
- No fees (origination, late payment, or prepayment fees)
- Loans from $5,000 to $40,000
- Designed specifically for credit card consolidation
- Educational resources for financial health
Best For: Borrowers looking to consolidate credit card debt at a lower interest rate.
6. Upstart Personal Loans
Interest Rates: 5.22% – 35.99% (APR)
Upstart uses AI and machine learning to assess borrowers, making it a great option for those with limited credit history. While the interest rate range is wide, individuals with strong credit profiles can benefit from competitive rates. Upstart’s quick approval process and funding can help you meet urgent financial needs, such as medical expenses or home repairs.
Key Benefits:
- Fast approval and funding (as soon as the next business day)
- Loan amounts ranging from $1,000 to $50,000
- Use of AI for assessing creditworthiness
Best For: Borrowers with less traditional credit histories or those in need of fast funding.
7. Best Egg Personal Loans
Interest Rates: 5.99% – 29.99% (APR)
Best Egg is an online lender known for offering personal loans with fast approval and competitive interest rates. While its interest rates may not be the lowest for all borrowers, it’s a solid choice for those with good to excellent credit. Best Egg’s quick application process ensures you get the funds you need promptly.
Key Benefits:
- Loan amounts ranging from $2,000 to $50,000
- Fast approval and funding (within one business day)
- Competitive rates for those with good credit
Best For: Borrowers with good credit looking for fast access to personal loan funds.
8. LendingClub Personal Loans
Interest Rates: 7.04% – 35.89% (APR)
LendingClub is a peer-to-peer lending platform that offers personal loans for various purposes, including debt consolidation, home improvement, and medical expenses. While the interest rates can go as high as 35.89%, individuals with good credit can access lower rates. LendingClub’s flexibility and transparent platform make it a popular choice among borrowers.
Key Benefits:
- Loans from $1,000 to $40,000
- Peer-to-peer lending platform for more competitive rates
- Flexible repayment terms (36-60 months)
Best For: Borrowers interested in peer-to-peer lending and flexible loan options.
9. OneMain Financial Personal Loans
Interest Rates: 18.00% – 35.99% (APR)
OneMain Financial is a lender known for working with borrowers who have less-than-perfect credit. While the interest rates can be higher, OneMain offers personalized service and flexible repayment options. You can also meet with a local representative to discuss your loan and get help managing your finances.
Key Benefits:
- Loan amounts from $1,500 to $20,000
- Flexible terms (24-60 months)
- In-person assistance available at local branches
Best For: Borrowers with less-than-perfect credit who want personalized service and local branch access.
10. Avant Personal Loans
Interest Rates: 9.95% – 35.99% (APR)
Avant offers personal loans to borrowers with average credit scores. While the interest rates are higher than some competitors, Avant provides a fast and straightforward application process. This makes Avant a reliable option for individuals who need a quick loan for personal or emergency expenses.
Key Benefits:
- Loan amounts from $2,000 to $35,000
- Fast approval and funding
- Flexible repayment terms
Best For: Borrowers with fair credit looking for quick and simple personal loans.
How to Choose the Right Personal Loan for You
When selecting the best personal loan for your needs, consider the following:
- Your Credit Score: The higher your credit score, the more likely you are to qualify for low-interest rates. Most lenders offer better terms for those with excellent credit.
- Loan Purpose: Know how you’ll use the loan (e.g., debt consolidation, home improvement, medical expenses). Certain loans may offer lower rates depending on the purpose.
- Repayment Terms: Ensure the loan repayment schedule aligns with your financial capabilities. Shorter terms often come with lower rates but higher monthly payments.
- Fees and Penalties: Look for loans with no hidden fees or penalties. Some loans may have origination fees or prepayment penalties that can increase your borrowing cost.
- Customer Service: A lender’s customer support can play a significant role in your experience, especially if you encounter issues during repayment or need help managing your loan.
Conclusion
Choosing a personal loan with a low interest rate can be a smart financial move in 2025. By carefully comparing your options, considering your credit score, and assessing your borrowing needs, you can secure a loan that fits your goals while minimizing long-term costs. Whether you’re consolidating debt, improving your home, or funding an emergency, the right personal loan can help you achieve your financial objectives without breaking the bank.
Before committing, take the time to read the fine print, explore available loan terms, and pick a lender with a reputation for transparency and customer service
