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Best low-interest personal loans for March 2025

Updated Mar 12, 2025

What to know first: Borrowers with excellent credit may qualify for rates below 7 percent. The lowest rates are typically offered for shorter terms if you can afford the higher monthly payment.

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LightStream: Bankrate 2025 Award Winner For Best Home Improvement Loan

4.5
Est. APR
6.99- 25.29%
* with AutoPay
Loan term
2-7 yrs*
Loan amount
$5k- $100K
Min credit score
695

PERSONAL LOANS

Upstart: BEST FOR LITTLE OR NO CREDIT HISTORY

4.7
Est. APR
6.70- 35.99%
Loan term
3-5 yrs
Loan amount
$1k- $50K
Min credit score
300

PERSONAL LOANS

Achieve: BEST FOR GOOD CREDIT BORROWERS

4.5
Est. APR
8.99- 29.99%
Loan term
2-5 yrs
Loan amount
$5k- $50K
Min credit score
620

Upgrade: Bankrate 2025 award winner for borrowers with bad credit

4.6
Est. APR
7.99- 35.99%
with AutoPay
Loan term
2-7 yrs
Loan amount
$1k- $50K
Min credit score
580

PERSONAL LOANS

PROSPER: BEST FOR PEER-TO-PEER LENDING

4.5
Est. APR
8.99- 35.99%
Loan term
2-5 yrs
Loan amount
$2k- $50K
Min credit score
600

SoFi: Bankrate 2025 Award winner for best online lender

4.7
Est. APR
8.99- 29.49%
with all discounts
Loan term
2-7 yrs
Loan amount
$5k- $100K
Min credit score
300

Discover: Bankrate 2025 award winner for debt consolidation

4.8
Est. APR
7.99- 24.99%
Loan term
3-7 yrs
Loan amount
$2.5k- $40K
Min credit score
660

PERSONAL LOANS

Best Egg: Best for midsize or secured personal loans

4.6
Est. APR
6.99- 35.99%
Loan term
3-5 yrs
Loan amount
$2k- $50K
Min credit score
600
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A closer look at our top low-interest loans

Here's a deep dive into each lender, why they're the best in each category and specifically who would benefit most from borrowing from the lender.

Best Egg: Best for low rates on midsize loans

Best Egg
Rating: 4.6 stars out of 5
4.6

Overview: Since 2014, Best Egg has funded over 1 million loans, provided financial tools to consumers and supported local charities. It’s also one of the few lenders to offer secured loans, which may help borrowers qualify and save.

Est. APR
6.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

LightStream: Best for low APRs and large loan amounts

LightStream
Rating: 4.5 stars out of 5
4.5

Overview: LightStream is one of the most competitive online lenders in the personal loan space, offering a quick application process and fast funding. They also offer a maximum loan amount of $100,000 — much higher than many other lenders. 

Est. APR
6.99%–25.29%
Loan amount
$5k– $100k
Min credit score
695

Upstart: Best for little or no credit history

Upstart
Rating: 4.7 stars out of 5
4.7

Overview: Founded in 2012 by ex-Googlers, Upstart is headquartered in San Mateo, California and has originated more than $34 billion in personal loans. If you’re looking to consolidate debt to boost your score for a low-interest rate loan in the future, make a large purchase or cover some personal expenses, an Upstart personal loan may be able to help you do it.

Est. APR
6.70%–35.99%
Loan amount
$1k– $50k
Min credit score
300

Achieve: Best for fast funds with a co-borrower

Achieve
Rating: 4.5 stars out of 5
4.5

Overview: Whether you need money to consolidate credit card debt, make some home improvements or make a large purchase, an Achieve (formerly known as FreedomPlus) personal loan can help you do it. And if you need a little help from a friend to get a lower rate or higher loan amount, Achieve is one of the few lenders that allows both co-signers and co-borrowers.

Est. APR
8.99%–29.99%
Loan amount
$5k– $50k
Min credit score
620

Upgrade: Best for small loan amounts

Upgrade
Rating: 4.6 stars out of 5
4.6

Overview: Upgrade personal loans are a good fit for smaller loan amounts or longer repayment terms of up to seven years. The low minimum loan limit comes in handy for an emergency expense, but can also be used to refinance credit cards, consolidate debt, take on home improvement projects or finance major purchases.

Est. APR
7.99%–35.99%
Loan amount
$1k– $50k
Min credit score
580

Prosper: Best for peer-to-peer lender options

Prosper
Rating: 4.5 stars out of 5
4.5

Overview: On top of being Bankrate's 2024 award winner for best personal loan for fair credit, the company is a marketplace pioneer. When it launched in 2005, Prosper became the first peer-to-peer firm to enter the personal loan lending space. 

Est. APR
8.99%–35.99%
Loan amount
$2k– $50k
Min credit score
600

SoFi: Best for larger loan amounts for lower credit scores

SoFi
Rating: 4.7 stars out of 5
4.7

Overview: A SoFi personal loan is a good choice for borrowers who need a large sum of money but have slightly lower scores than most high-loan amount personal loan lenders allow. SoFi offers a wide range of repayment terms and accepts joint applications. Referral bonus programs and automatic payment discounts could also get you a lower rate.

Est. APR
8.99%–29.49%
Loan amount
$5k– $100k
Min credit score
300

Discover: Best for low maximum rates with no fees

Discover
Rating: 4.8 stars out of 5
4.8

Overview: Discover charges no origination fee and its starting APR is one of the lowest among lenders we reviewed. These factors make it a good match for good credit borrowers. The lender is also one of very few that offer customer service every day of the week.

Est. APR
7.99%–24.99%
Loan amount
$2.5k– $40k
Min credit score
660

What makes a personal loan a low-interest loan?

Personal loans have a wide range of rates, and the APR you qualify for depends on your credit score. A low interest rate for an excellent credit borrower may be as low as 6.70 percent, while a low rate for a bad credit loan might start at 28.5 percent.

Generally, a low-interest personal loan has a rate far below the national average. As of March 12, 2025, the average personal loan rate was 12.37 percent. That’s much higher than the lowest single-digit rates advertised on many lenders’ websites.

To qualify for a low-interest loan, you need a steady income, an excellent credit score and a low debt-to-income (DTI) ratio. You may also be offered a lower interest rate for a shorter repayment term or a higher loan amount.

Although the lowest rates go to excellent borrowers, you should still shop for the lowest rate even if you have bad, fair or good credit. Bad credit lenders may offer special discounts if you make payments on time or set up automatic payments.

Pros and cons of low-interest personal loans

Green circle with a checkmark inside

Pros

  • A lower monthly payment gives you more room in your budget.
  • You'll save more money on interest than you'd pay with other types of debt, such as credit cards.
  • No risk of losing an asset like a home or car, since most low-interest personal loans are unsecured.
Red circle with an X inside

Cons

  • Harder to qualify for if you have an unstable income or credit issues.
  • The lowest APRs are typically offered for shorter repayment terms with higher monthly payments.
  • May require more paperwork to prove creditworthiness.
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See related

How to qualify for competitive rates on low-interest personal loans

Learn what steps you need to take to qualify for a low-interest personal loan.

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How much could you save with a low-interest personal loan? 

You could be saving thousands of dollars in interest accrual with a low-interest personal loan. Let's look at how much you could save on a $15,000 loan with a low interest rate compared to the same loan with a rate that is close to average and one with a higher rate.

Interest rate Loan term Monthly payment Interest paid Total amount paid
5% 24 months $658.07 $793.70 $15,793.70
10% 24 months $692.17 $1,612.17 $16,612.17
13% 24 months $713.13 $2,115.06 $17,115.06
25% 24 months $800.57 $4,213.75 $19,213.75

Financial wellness check: How a low-interest loan can help your budget

If you took out a bad credit loan to consolidate credit card debt, your rate could be close to 36 percent — and that could be eating into your monthly budget. But if your credit score has climbed above 670, you might qualify for a rate 10 percent or more lower for a good credit loan. You could use the monthly payment savings to beef up your emergency account or save more money for retirement or college expenses.

Check out Bankrate's personal loan calculator

To simplify the process, see how much you could save with a loan calculator. All you'll need to do is provide the interest rate, loan term and loan amount.

Learn more

Best uses for a low-interest loan

A low-interest loan can benefit borrowers in a variety of circumstances. Some of the most common reasons why one might use a low-interest loan include:

  • Debt consolidation. When you consolidate your debt with a low-interest loan, you typically replace existing variable-rate debts with one loan with a fixed, monthly payment. Having a single low-interest payment may make it easier to manage your loan, and could save you hundreds, if not thousands of dollars in interest.
  • Home improvements. Rates on personal loans may be lower than home equity loans or home equity lines of credit. Some lenders offer loan amounts as high as $100,000. You can borrow the money without tying up your home's equity, or putting your home at risk of foreclosure.
  • Large purchases or expenses. You can finance a new car, RV or boat with less paperwork hassle than a secured vehicle loan. You can also finance some or all of the cost of a wedding, adoption or other major life event with one predictable monthly payment with a definite payoff date.

How to qualify for the lowest personal loan interest rate

Even though personal loan rates and eligibility criteria vary widely from lender to lender, certain steps can increase your chances of scoring the lowest rate offered. 

  • Spruce up your credit score: Lenders use your credit score to predict how likely you are to repay your debt as agreed. A high credit score indicates that you're creditworthy and can unlock access to the lowest rates. Consider paying off your credit card balances and avoid applying for new credit to keep your scores in the best shape. If you've been late on any payments, you may need to wait several months for your score to recover.
  • Pay off revolving debt: Besides payment history, your credit utilization ratio has the biggest impact on your score. The less available credit you use, the higher your score will be. If you can’t pay off your balances, get them as low as possible. 
  • Learn lender requirements: Check to see what the lender requires for the lowest rates. You might need a certain income or choose a secured loan option to get the best rates. 
  • Ask about discounts: Rate discounts for automatic payments could knock 0.25 to 0.50 percent off your APR. They are common but not offered by all lenders. If you don’t see any advertised rate discounts on a lender’s website, ask them when you apply.
  • Borrow less: Lenders compare how much monthly debt you pay to how much you earn. This is called your debt-to-income (DTI) ratio. If it's too high, the lender is more likely to offer you a higher APR. Typically, the sweet spot for the best rates is below 36 percent.
  • Consider credit unions: If you qualify for membership with a credit union, you may find lower rates than you would with a traditional bank.

Alternatives to low-interest personal loans

If you don't qualify for a competitive rate and don't have the time to improve your credit, you have borrowing alternatives. If you own a home and rates have fallen since you initially borrowed, a cash-out refinance may be worth considering. 0% interest balance transfer cards could help you clear out small balances. If you just need extra time to pay off a large purchase without depleting your savings, a buy now, pay later payment plan could help your budget.

Before deciding, pay attention to each product’s details. Note the approval requirements, repayment terms and potential long-term financial consequences.

Frequently asked questions about low-interest personal loans

How we made our picks for the best low-interest loans

Bankrate's trusted personal loans industry expertise

48

years in business

30

lenders reviewed

20

loan features weighed

665

data points collected

To select the best low-interest personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories: