Personal loans are a great way to finance large expenses, consolidate debt, or handle unexpected financial needs. With interest rates fluctuating, finding a personal loan with a low rate can save you significant money in the long run. In 2025, lenders are offering competitive rates, making it easier than ever to secure affordable financing. Here’s a look at the best personal loans with low interest rates in 2025.
Factors Affecting Personal Loan Interest Rates
Before diving into the best loan options, it’s essential to understand what affects interest rates. The rate you qualify for depends on several factors:
- Credit Score: Borrowers with higher credit scores get lower interest rates.
- Loan Amount & Term: Shorter loan terms often have lower interest rates.
- Income & Debt-to-Income Ratio: Lenders assess your ability to repay the loan.
- Lender Policies: Banks, credit unions, and online lenders have different risk evaluations.
Best Personal Loans with Low Interest Rates
1. SoFi Personal Loan
- Interest Rate: 5.99% – 20.99% APR
- Loan Amount: $5,000 – $100,000
- Repayment Terms: 2 – 7 years
- Why Choose SoFi?
- No fees (origination, prepayment, or late fees)
- Unemployment protection available
- Competitive rates for high-credit borrowers
2. LightStream Personal Loan
- Interest Rate: 6.49% – 22.49% APR (with autopay)
- Loan Amount: $5,000 – $100,000
- Repayment Terms: 2 – 12 years
- Why Choose LightStream?
- No fees
- Low rates for excellent credit borrowers
- Rate Beat Program (matches competitors’ rates)
3. Marcus by Goldman Sachs
- Interest Rate: 6.99% – 24.99% APR
- Loan Amount: $3,500 – $40,000
- Repayment Terms: 3 – 6 years
- Why Choose Marcus?
- No fees (origination, prepayment, or late fees)
- On-time payment rewards
- Transparent and simple process
4. Discover Personal Loan
- Interest Rate: 7.99% – 24.99% APR
- Loan Amount: $2,500 – $40,000
- Repayment Terms: 3 – 7 years
- Why Choose Discover?
- No origination fees
- Direct payments for debt consolidation
- 30-day return policy without interest charges
5. Upgrade Personal Loan
- Interest Rate: 8.49% – 35.99% APR
- Loan Amount: $1,000 – $50,000
- Repayment Terms: 2 – 7 years
- Why Choose Upgrade?
- Accepts fair credit borrowers
- Flexible repayment options
- No prepayment penalties
6. Upstart Personal Loan
- Interest Rate: 6.70% – 35.99% APR
- Loan Amount: $1,000 – $50,000
- Repayment Terms: 3 – 5 years
- Why Choose Upstart?
- AI-driven approval process
- Accepts borrowers with limited credit history
- Fast funding process
7. PenFed Credit Union Personal Loan
- Interest Rate: 7.99% – 17.99% APR
- Loan Amount: $600 – $50,000
- Repayment Terms: 1 – 5 years
- Why Choose PenFed?
- Low minimum loan amounts
- No origination fees
- Competitive rates for members
How to Get the Lowest Interest Rate on a Personal Loan
To secure the best rate, follow these steps:
- Check Your Credit Score: Aim for a score of 700+ for the lowest rates.
- Compare Lenders: Research multiple lenders to find the best terms.
- Choose a Short Loan Term: Shorter loans typically have lower rates.
- Consider a Credit Union: Credit unions often offer better rates than banks.
- Apply with a Co-Signer: If you have bad credit, a co-signer can help get a lower rate.
- Negotiate: Some lenders may adjust their rates based on your financial profile.
Final Thoughts
Finding a personal loan with a low interest rate in 2025 is easier with careful research and comparison. Whether you have excellent or fair credit, there’s a lender offering competitive rates to meet your needs. Always review terms carefully, consider additional fees, and choose a repayment plan that fits your budget. With the right approach, you can secure a low-interest personal loan and achieve your financial goals affordably.