Personal loans can provide a financial cushion when you need extra cash for emergencies, debt consolidation, or large purchases. However, interest rates on personal loans can vary significantly between lenders. Choosing a lender that offers competitive rates can save you hundreds or even thousands of dollars over the life of your loan. In 2025, several banks are offering some of the lowest personal loan interest rates in the market. Below, we highlight the top five banks that provide affordable personal loans with the best rates.
1. LightStream
LightStream, the online lending division of SunTrust Bank, is consistently recognized for offering some of the most competitive interest rates on personal loans. Borrowers can access loan amounts ranging from $5,000 to $100,000, with terms spanning from 24 to 144 months. What sets LightStream apart is its fixed APR starting as low as 5.49% for borrowers with excellent credit. Additionally, LightStream has no fees, including no origination fees, late payment fees, or prepayment penalties, making it an excellent choice for borrowers looking to minimize costs.
2. SoFi
SoFi is a prominent online lender that offers personal loans with interest rates that start as low as 5.99% (for autopay options). They offer loans for amounts between $5,000 and $100,000, with flexible repayment terms ranging from 24 to 84 months. SoFi is known for its transparent fees, with no application fees, origination fees, or prepayment penalties. Moreover, SoFi provides additional perks like unemployment protection, where they allow you to pause payments if you lose your job. This feature makes SoFi a solid option for borrowers who want both competitive rates and extra financial security.
3. Marcus by Goldman Sachs
Marcus by Goldman Sachs is a leading player in the personal loan market. With an interest rate range from 6.99% to 24.99%, borrowers with good credit scores can access affordable rates. Marcus offers loan amounts between $3,500 and $40,000, with repayment terms of 36 to 72 months. One of the key advantages of Marcus loans is the lack of fees. They charge no application fees, origination fees, or late payment penalties. Additionally, Marcus provides a clear online loan application process, with fast approval decisions and funds often disbursed within a few business days.
4. Discover Personal Loans
Discover is another great choice for borrowers looking for low-interest personal loans. The bank offers loans with interest rates starting at 6.99%, and you can borrow amounts between $2,500 and $35,000. The repayment terms vary from 36 to 84 months. What makes Discover stand out is its transparency and strong customer service. There are no origination fees, application fees, or prepayment penalties. Discover also offers the ability to check your rate without impacting your credit score, making it easier to shop around for the best deal.
5. Upstart
Upstart is an online lender that provides personal loans with rates starting as low as 5.29% (with autopay). The loans are available for amounts ranging from $1,000 to $50,000, and repayment terms can vary from 36 to 60 months. Upstart takes a unique approach to loan approvals, using artificial intelligence and machine learning to evaluate borrowers' creditworthiness. This allows the lender to offer competitive rates, especially to younger borrowers with limited credit histories. While Upstart charges an origination fee, it remains a solid option for those seeking low-interest personal loans.
How to Choose the Best Bank for a Personal Loan
When choosing a lender for a personal loan, it’s essential to compare interest rates, fees, and terms. Here are some factors to consider:
- Interest Rates: Ensure that the lender’s rates align with your budget. The lower the rate, the less you’ll pay in interest over the life of the loan.
- Loan Terms: Consider the loan’s repayment period. A longer term can lower your monthly payments, but it may increase the total amount of interest you pay.
- Fees: Look for a lender with no hidden fees, such as application, origination, or prepayment fees.
- Customer Support: Good customer service can make a big difference, especially if you have questions during the application process or later on.
Conclusion
When it comes to personal loans, finding the right lender can save you a significant amount of money in the long run. LightStream, SoFi, Marcus by Goldman Sachs, Discover, and Upstart all offer some of the lowest interest rates available in 2025. Be sure to evaluate each bank's rates, fees, and repayment terms carefully to determine the best fit for your financial needs. With the right personal loan, you can achieve your financial goals without breaking the bank.