Personal loans are convenient and among the most accessible loans, people can get. Unfortunately, people often don’t have to present collateral to get the loan, but some lenders require it, especially for high amounts.
One of the main advantages of personal loans is that borrowers can use them for anything, including planning a wedding, vacation, loan consolidation, or medical bills. Personal loan rates usually vary from lender to lender, but the average rates are between 6% and 36% annually. The lower the rates, the cheaper the loan, but those with the lowest rates are usually reserved for borrowers with high credit scores.
People can apply for low interest personal loans online, through traditional banks, or credit unions. According to experts at SoFi Invest, borrowers should check their credit scores first before borrowing and comparing different lenders.
Some of the best companies where borrowers can get low interest personal loans to include:
SoFi Invest
This online lending platform allows people to get unsecured fixed-interest personal loans. With a minimum credit score of 680, people can get loans of between $5,000 and $100,000 with an APR rate of 5.74% to 21.28% with autopay.
It is one of the most flexible options because it offers a repayment period of two and seven years. To get approved, borrowers must have an annual average income of at least $45,000. Although SoFi does not allow co-signers, borrowers can submit joint applications. They also don’t charge prepayment penalties or origination fees, plus they have perks and discounts like unemployment protection.
Once approved, borrowers receive their money within a few business days, but funding may take longer if loans are over $20,000.
LightStream
This is Trust’s consumer lending division, whose personal loans are best for home improvements. In addition, they offer unsecured personal loans from $5,000 to $100,000 with a two and seven years repayment period.
The APR rates are between 2.49% and 19.99% with autopay, and borrowers don’t have to pay origination fees or prepayment penalties. In addition, the company has a 30-day loan experience guarantee, a rate-beat program, and Covid-19 hardship assistance to ensure borrower satisfaction.
Borrowers’ credit score should be at least 660, and once approved, they can get the funds as soon as the same day if the approval time is before 2:30 pm.
Marcus
This is a subsidiary of Goldman Sachs, an investment bank, and it offers personal loans from $3,500 to $40,000. The loans’ repayment period is between three and six years, plus an APR of 6.74% and 19.74% with autopay. Autopay enrollees get a 0.25% discount. Marcus does not charge for sign-up, prepayment, or late repayment, and it offers benefits for flexible payment dates and on-time payments.
PenFed
Although it was initially developed for the US military and veterans, anybody can join now and enjoy personal loans of between $500 and $20,000. Depending on the amount and credit information, they have APR rates between 5.99% and 17.99%.
There are no origination, prepayment, or hidden fees. Borrowers with a credit score of at least 680 can apply for a personal loan via PenFed, but once approved, they must join the credit union and deposit at least $5 in their new PenFed savings account.
Borrowers should ensure a good credit score to get the best low interest personal loans. They can improve it by making timely debt repayment and lowering credit card usage
