When you're in need of a personal loan, whether it's for debt consolidation, home improvement, or an emergency expense, securing a low-interest rate can save you hundreds or even thousands of dollars over the life of the loan. Personal loans with lower interest rates often come with favorable repayment terms and make borrowing more affordable. In this guide, we'll introduce you to the top 5 low-interest personal loans of 2025, helping you make an informed decision before applying for a loan.
Why Choose a Low-Interest Personal Loan?
Personal loans come in many shapes and sizes, with interest rates that vary depending on your credit score, income, and the lender's terms. A low-interest rate means you'll pay less in interest over time, reducing the overall cost of the loan. By securing a low-interest rate, you can save more money each month, which can be redirected into your savings, investments, or paying off your loan faster.
When searching for a low-interest loan, it's important to compare different lenders and consider factors such as fees, repayment flexibility, and the loan term. Now, let's dive into the top 5 low-interest personal loans available today.
1. SoFi Personal Loans
SoFi offers one of the most competitive personal loan options available, with rates starting as low as 6.99% APR for qualified borrowers. Known for its easy online application process and flexible terms, SoFi provides personal loans ranging from $5,000 to $100,000. The best part? SoFi charges no fees for loan origination, prepayment, or late payments, which is uncommon in the industry.
SoFi's personal loans come with terms ranging from 24 to 84 months, allowing you to choose a repayment schedule that fits your financial situation. Borrowers can also take advantage of other perks, such as unemployment protection, which provides financial assistance if you lose your job during the loan term. SoFi is ideal for borrowers with good to excellent credit who want a loan with minimal fees and competitive interest rates.
2. LightStream Personal Loans
LightStream, a division of SunTrust Bank, is known for offering some of the lowest interest rates in the personal loan market. Rates start as low as 5.73% APR for borrowers with excellent credit. LightStream offers personal loans for a wide range of purposes, including home improvement, debt consolidation, and major purchases. Loan amounts range from $5,000 to $100,000, and terms are available from 24 to 144 months.
LightStream's low rates come with a few notable perks. Borrowers can receive same-day funding if they apply before 2:30 pm (ET), making it an excellent option for those in urgent need of funds. Additionally, LightStream does not charge any fees, including origination or prepayment fees. However, LightStream is best suited for those with excellent credit, as it typically requires a strong credit history for approval.
3. Marcus by Goldman Sachs
Marcus by Goldman Sachs offers personal loans with rates as low as 6.99% APR, making it a solid choice for borrowers who want an affordable loan with no fees. Marcus is known for its transparency and simplicity, with no origination fees, prepayment penalties, or late fees. The company offers loans ranging from $3,500 to $40,000, with terms ranging from 36 to 72 months.
One of the standout features of Marcus is its flexible repayment options, allowing borrowers to change their payment due date after the loan is approved. Marcus also offers a 10-day grace period for missed payments, which provides added peace of mind. This makes Marcus a great option for those who want an easy-to-manage loan without worrying about hidden fees or rigid repayment terms.
4. Discover Personal Loans
Discover is another reputable lender offering low-interest personal loans, with rates starting at 6.99% APR for qualified borrowers. Discover’s personal loans are available for amounts ranging from $2,500 to $35,000, with repayment terms ranging from 36 to 84 months. Discover’s loans can be used for a variety of purposes, including debt consolidation, home renovations, and medical expenses.
What sets Discover apart is its 30-day money-back guarantee, allowing borrowers to change their mind about the loan within 30 days of receiving funds with no penalty. Additionally, Discover offers a range of financial education resources to help borrowers understand their loans and make informed decisions. Discover also charges no fees, such as origination, late, or prepayment fees, making it a straightforward and affordable borrowing option.
5. Avant Personal Loans
Avant is an excellent option for those who may not have perfect credit but still want to secure a low-interest personal loan. Avant offers rates starting at 9.95% APR for borrowers with fair to good credit. While not as low as other lenders on this list, Avant is still a competitive choice for individuals with less-than-perfect credit histories who are seeking reasonable loan terms.
Loan amounts range from $2,000 to $35,000, and terms range from 24 to 60 months. Avant charges an origination fee of up to 4.75%, but it does not charge prepayment penalties. Avant’s application process is quick and easy, and funds are often deposited as soon as the next business day, which is ideal for borrowers who need fast access to funds.
How to Choose the Right Low-Interest Personal Loan
When selecting a low-interest personal loan, consider these key factors:
- Interest Rate: The lower the APR, the less you’ll pay in interest over the life of the loan. Make sure to compare rates from different lenders.
- Fees: Look for lenders that charge no fees, or minimal fees, to reduce the total cost of the loan.
- Repayment Terms: Choose a loan with terms that fit your budget, allowing for manageable monthly payments.
- Credit Requirements: Make sure you meet the lender’s credit requirements to secure the best interest rates.
Conclusion
Securing a low-interest personal loan can help you save money and reach your financial goals more effectively. Lenders like SoFi, LightStream, and Marcus by Goldman Sachs provide competitive rates with minimal fees, while Avant offers a solid option for those with fair credit. By carefully comparing loan options and considering your financial needs, you can find a loan that works for you. Remember, the right loan can help you achieve your financial objectives while keeping costs manageable.