Best Low-Interest Personal Loans in April 2025

LightStream is our pick for the best low-interest loans due to industry-leading rates, loan amounts up to $100,000, same-day funding, and a wide array of allowable loan purposes. Best Egg is another top choice with starting APRs below 7%.

To get a low-rate personal loan, you should have excellent credit and a strong income. Borrowers with good credit are also eligible for low rates but are less likely to be approved at an APR below 10%. We’ll cover which lenders are best for low-rate loans, how to get approved for a low rate, and the interest rate you might get based on your credit score.

Best low-interest personal loans

The lenders above are partnered with Credible. But we also recommend Discover personal loans for low rates and no origination fees, as well as PenFed for low-rate and no-fee credit union loans. 

Methodology

Credible evaluated 899 data points across 31 lenders to identify personal loan lenders with the lowest interest rates. Our analysis was based primarily on interest rates, but we also considered available loan purposes, funding times, available loan amounts and repayment terms, customer experiences, origination fees, discounts, the availability of secured loans, whether cosigners are accepted, and more. 

Credible's team of experts gathered information from each lender's website and directly from our partners. Each data point was verified by a senior editor to make sure it was accurate and up to date.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How to compare low-interest loans

In addition to comparing available interest rates from different lenders, consider these features to narrow down your best options:

• APR: APR, or annual percentage rate, considers both the interest rate and any upfront fees to give a true measure of your overall borrowing costs per year for any particular loan. Personal loan lenders are required to advertise APR ranges, so this comparison is relatively easy.
• Available repayment terms: Most lenders offer repayment terms between 2 and 5 years, with some offering 7-year repayment terms and longer. A longer repayment term can help you afford a large loan amount, while a shorter term can save you money on interest.
• Available loan amounts: Many lenders offer loans up to $50,000, but some, like LightStream and SoFi, offer $100,000 loans. 
• Time to fund: Personal loans typically take no more than a few business days to fund, but some lenders offer same-day funding if you apply and are approved by that lender’s same-day funding cutoff time.
• Discounts: Some lenders offer rate discounts for autopay, direct-pay-to-creditors for debt consolidation loans, and more. 
• Origination fees: Many lenders charge an origination fee, or an upfront fee that is deducted from the loan proceeds. The better your credit, the less likely you are to be charged such a fee. However, if you want to avoid an origination fee entirely, choose a lender that doesn’t charge them, ever — like LightStream, Discover, or Citi.
• Credit score minimums: Some lenders share their minimum eligibility requirements in their FAQ, and you can see some lender minimums in the cards and table above. Find low-rate lenders that have a credit score minimum below yours. 
• Available loan purposes: Some lenders approve a wide range of loan purposes, such as LightStream, which approves personal loans for home improvement, debt consolidation, boat or RV purchases, adoption expenses, medical bills, and more. However, other lenders may only consider a handful of loan purposes, such as debt consolidation and credit card refinancing.

Related: How To Compare Personal Loans: A Step-by-Step Guide

Prequalification can give you an idea of the rate you might get with a number of different lenders and whether you’re likely to be charged an origination fee. It won’t hurt your credit score, but keep in mind it’s not an offer of credit — just an estimation. When you apply, most lenders run a hard credit check that can temporarily ding your score. 

What is considered a low interest rate in 2025?

A very low interest rate on a personal loan is anything below 10% APR. You’re more likely to qualify for the lowest interest rates if you have excellent credit (a FICO score above 800), low existing debt, and a strong income. 

However, what makes an interest rate low often depends on what you’re using the loan for. For instance, if you need a loan to consolidate high-interest credit card debt, a rate below 20% APR is probably much lower than the rate you’re paying on your credit cards — making it “low” by comparison. 

Average personal loan interest rates

Your interest rate will vary depending primarily on your credit score but also on your income and other factors. We looked at average interest rates for borrowers using the Credible marketplace to get a personal loan from April 2024 through March 2025. Here are the rates they prequalified for broken down by the FICO score tier (good, bad, very good, fair, excellent) that their credit score was in. 

Check Out: Current Personal Loan Interest Rates

Factors that determine your personal loan rate

• Credit score: Your credit score is one of the most important determining factors when it comes to the rate you’ll get. Higher scores equate to lower rates and vice versa. 
• Income: A high income can help you get a low rate, sometimes even if your credit isn’t perfect. At a minimum, your income should be sufficient to cover your current debt obligations plus the new one you want to take on. 
• Debt-to-income ratio (DTI): This simple calculation shows how much debt you have relative to your income. In other words, it tells lenders how much room you have in your budget for a new monthly payment. Most lenders prefer a DTI below 36% but the lower, the better.
• Loan purpose: What you intend to do with the loan can impact the rate you get. For instance, home improvement loans and credit card consolidation loans through LightStream tend to have lower interest rates compared to loans for medical and family planning.
• Repayment term: Shorter repayment terms tend to have lower interest rates and vice versa. In other words, a shorter loan term, though it increases your monthly payment, can save you a lot of money on interest compared to a longer-term loan.
• Loan amount: Lower loan amounts may carry lower interest rates than higher loan amounts.
• Cosigner or co-borrower: If you apply with a cosigner or co-borrower who has good credit and a strong income, you might qualify for a lower interest rate. The lender takes their financial information into account along with yours in determining the rate. A co-signer is responsible for repaying the loan if you default. With a joint personal loan, you and the co-borrower share responsibility for repayment and have equal access to the loan.

How does a low-interest loan work?

Personal loans with low interest rates are like other installment loans. Once approved, you receive a lump-sum payment transferred to your checking account or, perhaps, transferred directly to your creditors in the case of debt consolidation loans. 

After receiving your funds, you'll repay your loan monthly in fixed payments based on a predetermined payment schedule and interest. Most lenders let you pay off a loan early without penalty, but check with yours to make sure before doing so.

Related: How Do Personal Loans Work?

Low-interest loans vs. no-interest loans

No-interest loans include short-term “buy now, pay later” (BNPL) apps, some in-store financing promotions, and 0% APR credit cards as well as ill-advised options like payday loans and cash advance apps. “No interest” doesn’t necessarily mean low cost. It can mean very high-cost in the case of payday loans and, often, cash advance apps. In these cases, interest charges are replaced by high fees.

However, it’s important to be careful with true low-cost loans like 0% APR credit cards and in-store 0% financing offers. Low and 0% APRs have expiration dates. If you don’t pay off the loan by that time, a couple of things can happen. 

1. You’d owe interest on the remaining balance at the card’s standard rate (such as 29.99% APR).
2. You’d owe deferred interest on the full amount you originally financed. This is called deferred financing. 

Plus, it can be tempting to take on more debt than you can handle, especially if payments are deferred for one or more months.

In contrast, low-interest loans require paying interest from the start, but there's no promotional period after which the interest rate rises. You will have a consistent monthly payment with no surprises and a set end date for paying off your loan.

Pros and cons of low-interest loans

Related: Should I Get a Personal Loan?

How to apply for a low-interest loan

1. Research and compare lenders: Find lenders that meet your specifications, including available loan amounts, repayment terms, funding times, available loan purposes, and eligibility requirements.
2. Prequalify: You can prequalify with many lenders via a personal loan marketplace like Credible or directly on their websites. (Tip: To prequalify with LightStream, go through Credible. You can’t prequalify directly through the lender’s website.) 
3. Fill out and submit the application: You'll likely need to provide proof of income, such as a W-2 or paystubs, and a legal form of personal identification like a driver's license.
4. Review the loan offer before accepting: If approved, the lender will send an offer your way for review and approval. The rate, loan amount, fees, and repayment schedule could be different from what you prequalified for. Closely review all documents required to accept the loan. Reach out to the lender with any questions.
5. Await funding: Some lenders can provide your funds the same or next business day once you're approved. But you could wait a week, depending on the lender.

Related: How To Apply for a Personal Loan

Alternatives to low-interest loans

If you can’t qualify for a low-interest loan or need a longer repayment period or larger loan amount than what’s available to you, consider the following alternatives:

• Home equity loan or a line of credit (HELOC): Home equity loans and HELOCs are often low-interest loans but they can have much longer terms than other low-interest loan options like personal loans and 0% APR credit cards. You’ll need to have at least 15% equity in your home to qualify, and the home will serve as collateral for the loan (meaning you could lose it if you default). But rates tend to be sub-10% APR, repayment terms can extend to 30 years, and loan amounts can be quite large, depending on your equity.
• Friend or family loan: These loan types can have the best rates and terms, but come at the risk of harming relationships if not handled properly. Put everything clearly in writing, including the loan amount, repayment schedule, interest rate, fees (like late fees), and any other conditions (like what the lender is comfortable with you using the loan for). 
• Payday alternative loan (PAL): If you’re struggling to meet the credit requirements for a low-interest loan, you might be eligible for a PAL from a credit union. Rates on PALs are capped at 28%, which is often much lower than what you might find on other types of bad credit loans. You’ll need to be or become a member of the credit union to qualify, and loan amounts top out at $2,000.
• Small bank loan: Some banks offer small, short-term loans to existing customers for a low rate or flat fee. For example, loans may be available up to $500 or $1,000 with short repayment terms, such as 3 months.

Learn More: 9 Personal Loan Alternatives

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.