If you are considering individual loans, interest rates are one of the most important factors to evaluate. Interest rates can save money during the loan period, which promotes monthly payment management. In the United States, several banks and financial institutions offer personal loans at competitive interest rates. In this article, we will review the best banks offering low-interest personal loans, including their features, benefits, and ratings based on various criteria.
1. LightStream
Overview
LightStream, a division of SunTrust Bank, is known for its competitive interest rates and flexible loan options. It primarily caters to borrowers with excellent credit.
Key Features
- APR Range: 3.99% – 19.99%
- Loan Amounts: $5,000 to $100,000
- No Fees: No origination fees or prepayment penalties.
- Same-Day Funding: In many cases, funds can be available on the same day as approval.
Rating: 4.8/5
LightStream is rated highly for its low rates and excellent customer service, making it a top choice for borrowers who need significant amounts quickly.
2. SoFi
Overview
SoFi (Social Finance) has become a popular online lender known for offering competitive rates on personal loans. It provides a holistic financial experience, including career coaching and financial planning.
Key Features
- APR Range: 5.99% – 21.00%
- Loan Amounts: $5,000 to $100,000
- No Fees: No origination fees or late fees.
- Flexible Terms: Repayment terms range from 2 to 7 years.
Rating: 4.7/5
SoFi is highly rated for its borrower-friendly policies and additional benefits, making it an ideal choice for those seeking financial support beyond just loans.
3. Marcus by Goldman Sachs
Overview
Marcus by Goldman Sachs offers a user-friendly experience with competitive personal loan rates. It is part of a reputable investment bank, known for transparency and reliability.
Key Features
- APR Range: 6.99% – 24.99%
- Loan Amounts: $3,500 to $40,000
- No Fees: No origination fees or prepayment penalties.
- Fixed Rates: Provides fixed interest rates for predictable monthly payments.
Rating: 4.5/5
Marcus is well-rated for its clear terms and customer service, making it a solid option for borrowers seeking straightforward loans.
4. Discover Personal Loans
Overview
Discover is best known for its credit card offerings but also provides personal loans with competitive rates and flexible terms.
Key Features
- APR Range: 6.99% – 24.99%
- Loan Amounts: $2,500 to $35,000
- No Fees: No origination fees or hidden costs.
- Quick Access to Funds: Funds can be available as soon as the next business day.
Rating: 4.4/5
Discover is highly rated for its efficient service and no hidden fees, making it a reliable choice for borrowers.
5. Avant
Overview
Avant targets borrowers with fair to good credit, providing personal loans with competitive rates tailored to those who may not qualify for traditional loans.
Key Features
- APR Range: 9.95% – 35.99%
- Loan Amounts: $2,000 to $35,000
- No Fees: No origination fees.
- Quick Approval: The application process is fast, with funding often available shortly after approval.
Rating: 4.2/5
Avant is rated well for its accessibility to borrowers with less-than-perfect credit and a straightforward application process.
6. Payoff
Overview
Payoff specializes in personal loans designed to help borrowers consolidate credit card debt, focusing on financial wellness.
Key Features
- APR Range: 5.99% – 24.99%
- Loan Amounts: $5,000 to $40,000
- No Hidden Fees: Transparent pricing with no late fees or prepayment penalties.
- Debt Consolidation Focus: Loans are specifically for paying off credit card balances.
Rating: 4.3/5
Payoff is well-rated for its clear focus on debt consolidation and competitive rates, making it an excellent choice for those looking to manage credit card debt.
7. Best Egg
Overview
Best Egg offers personal loans primarily for debt consolidation and major purchases. It is known for its quick funding and competitive rates.
Key Features
- APR Range: 5.99% – 29.99%
- Loan Amounts: $2,000 to $50,000
- No Prepayment Penalties: Borrowers can pay off their loans early without incurring fees.
- Fast Funding: Funds can be available as soon as the next business day after approval.
Rating: 4.1/5
Best Egg is rated well for its quick funding and no prepayment penalties, making it a good choice for urgent financial needs.
8. LendingClub
Overview
LendingClub is a pioneer in the peer-to-peer lending space, connecting borrowers with individual investors. It offers personal loans for various purposes, including debt consolidation.
Key Features
- APR Range: 7.04% – 35.89%
- Loan Amounts: $1,000 to $40,000
- Fees: Origination fees may apply, varying by loan.
- Flexible Uses: Loans can be used for various purposes.
Rating: 4.0/5
LendingClub is well-rated for its innovative approach to lending, though fees can vary, so borrowers should carefully review terms.
9. Upstart
Overview
Upstart uses artificial intelligence and machine learning to assess creditworthiness, often providing loans to borrowers with limited credit histories.
Key Features
- APR Range: 6.76% – 35.99%
- Loan Amounts: $1,000 to $50,000
- No Prepayment Penalties: Allows borrowers to pay off their loans early without extra charges.
- Quick Funding: Funds are often available within one business day.
Rating: 4.2/5
Upstart is rated highly for its unique lending model, which can benefit younger borrowers or those new to credit.
10. Earnest
Overview
Earnest stands out for its customizable loans, allowing borrowers to choose their repayment terms and monthly payment amounts.
Key Features
- APR Range: 5.99% – 18.24%
- Loan Amounts: $5,000 to $75,000
- No Fees: No origination fees or prepayment penalties.
- Flexible Terms: Borrowers can adjust payment plans based on their financial situation.
Rating: 4.6/5
Earnest is well-rated for its flexibility and customer-centric approach, making it an appealing option for many borrowers.
Conclusion
Choosing the right personal loan bank with low interest rates can make a significant difference in your overall borrowing costs. The ten banks featured above offer a range of features, loan amounts, and competitive rates to suit different borrower needs. It’s important to evaluate your financial situation, credit score, and specific needs before making a decision. Comparing interest rates and terms from multiple lenders will help you choose the personal loan option that’s best for your situation, ultimately leading to a successful and manageable borrowing experience.