Personal loans are a popular way to finance unexpected expenses, consolidate high-interest debts, or fund a major purchase. If you’re in the market for a personal loan, you might be wondering where to start. One of the most important factors to consider is the interest rate.
A low-interest personal loan can save you a significant amount of money over the life of the loan. In this article, we’ll explore the eight best low-interest personal loans available today.
What is a Personal Loan?
A personal loan is a type of installment loan that you can use for any purpose, from consolidating debt to paying for a wedding or home renovation. Unlike credit cards, personal loans have a fixed interest rate, fixed repayment term, and fixed monthly payments. This makes it easier to budget for the loan and ensures that you will pay it off within a set period of time.
Factors to Consider When Choosing a Personal Loan
When choosing a personal loan, there are several factors to consider, including:
Interest rate: The lower the interest rate, the less you’ll pay over the life of the loan.
Fees: Some personal loans charge origination fees, prepayment penalties, or other fees that can add to the cost of the loan.
Repayment term: The longer the repayment term, the lower the monthly payments, but the more you’ll pay in interest over time.
Loan amount: Some lenders have minimum and maximum loan amounts, so make sure the loan you choose meets your needs.
Credit score: Your credit score will determine whether you qualify for a loan and what interest rate you’ll pay.
8 Best Low-Interest Personal Loans
Now that we’ve covered the basics, let’s dive into the eight best low-interest personal loans available today.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers personal loans with interest rates as low as 6.99% APR. There are no origination fees, prepayment penalties, or late fees. Loan amounts range from $3,500 to $40,000, with repayment terms of three to six years. Marcus also offers a free credit score and credit monitoring service.
LightStream
LightStream is an online lender that offers personal loans with interest rates as low as 2.49% APR. There are no fees, and you can borrow between $5,000 and $100,000 with repayment terms of two to 12 years. LightStream also offers a $100 loan experience guarantee.
Discover
Discover offers personal loans with interest rates as low as 6.99% APR. There are no origination fees, closing fees, or prepayment penalties. Loan amounts range from $2,500 to $35,000, with repayment terms of three to seven years. Discover also offers a 30-day money-back guarantee.
SoFi
SoFi offers personal loans with interest rates as low as 5.99% APR. There are no fees, and you can borrow between $5,000 and $100,000 with repayment terms of two to seven years. SoFi also offers career coaching, financial planning, and member events.
Upgrade
Upgrade offers personal loans with interest rates as low as 6.94% APR. There are no prepayment penalties or fees, and you can borrow between $1,000 and $50,000 with repayment terms of three to five years. Upgrade also offers credit monitoring and a credit health check.
Upstart
Upstart is an online lender that uses artificial intelligence to evaluate your creditworthiness. It offers personal loans with interest rates as low as 6.27% APR. There are no prepayment penalties or fees, and you can borrow between $1,000 and $50,000 with repayment terms of three to five years. Upstart also considers factors such as your education and job history when determining your interest rate.
LendingClub
LendingClub is a peer-to-peer lending platform that offers personal loans with interest rates as low as 6.95% APR. There is an origination fee of 1% to 6%, and you can borrow between $1,000 and $40,000 with repayment terms of three to five years. LendingClub also offers a mobile app and investment opportunities for lenders.
Best Egg
Best Egg offers personal loans with interest rates as low as 5.99% APR. There is an origination fee of 0.99% to 5.99%, and you can borrow between $2,000 and $50,000 with repayment terms of three to five years. Best Egg also offers a loan calculator and free credit score monitoring.
Conclusion
When it comes to personal loans, finding a low-interest rate can save you a significant amount of money over the life of the loan. The eight lenders we’ve discussed in this article offer some of the best low-interest personal loans available today, but it’s important to shop around and compare rates and terms before making a decision. Consider your needs and financial situation, and choose the loan that’s right for you.
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