Finding a loan with low interest rates can significantly impact your financial future, helping you save money in the long run.
Whether you’re refinancing debt, purchasing a car, or securing funds for a major purchase, choosing a low-interest loan allows you to pay back less over time.
In this article, we will explore the top 10 low-interest loans available now in 2024—highlighting the best options for borrowers with good or average credit, and offering insights into their rates, terms, and unique benefits.
This guide will help you understand the variety of low-interest loan options available today, their eligibility requirements, and how to find the right loan for your financial needs.
What is a Low-Interest Loan?
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A low-interest loan is a type of financing that offers a significantly lower interest rate compared to typical market rates. Interest rates for loans are generally determined by a variety of factors, including your credit score, income, loan type, and the lender.
Low-interest loans are usually offered to borrowers with good to excellent credit, though some lenders may provide competitive rates for those with average or even subpar credit.
Typically, the lower your interest rate, the less money you’ll pay over the life of the loan, making low-interest loans highly desirable for consumers who want to minimize costs.
Why Should You Choose a Low-Interest Loan?
- Lower Monthly Payments: A lower interest rate reduces the total amount you pay each month, giving you more financial flexibility.
- Lower Total Repayment Amount: With a reduced interest rate, the total repayment amount (the amount you owe over the life of the loan) will be less.
- Improved Financial Health: By saving money on interest, you can pay off your loan faster or use your savings for other financial goals.
Top 10 Low-Interest Loans Available Now (2024)
Below are some of the best low-interest loans available in 2024, including options for personal loans, home equity loans, auto loans, and more.
These options are ideal for borrowers who are looking to save on interest costs while meeting their financial goals.
1. SoFi Personal Loans
Best for Borrowers with Good to Excellent Credit
SoFi offers personal loans with competitive low interest rates for individuals who have good to excellent credit. SoFi is known for its customer service and flexible terms.
Key Features:
- APR: Rates start at 5.99% (with AutoPay).
- Loan Amounts: From $5,000 to $100,000.
- Loan Terms: 24 to 84 months.
- Eligibility Requirements: Requires a minimum 680 credit score, stable income, and a good debt-to-income ratio.
Pros:
- No fees (origination, prepayment, or late payment).
- Offers unemployment protection for qualifying borrowers.
- Fast online application and approval process.
Cons:
- Limited to borrowers with good to excellent credit.
- High rates for those with less-than-perfect credit.
SoFi is an excellent choice for borrowers who want a personal loan with no fees and flexible repayment options.
2. LightStream Personal Loans
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Best for Low-Interest Rates and Fast Funding
LightStream, a division of Truist, is a standout option for borrowers with good credit who need a fast and low-interest personal loan.
The company is known for offering some of the lowest interest rates in the industry.
Key Features:
- APR: Starting as low as 3.49% (with AutoPay).
- Loan Amounts: From $5,000 to $100,000.
- Loan Terms: 24 to 144 months.
- Eligibility Requirements: Requires a minimum 660 credit score, proof of income, and a clean financial history.
Pros:
- Extremely low rates for borrowers with excellent credit.
- No fees for early repayment or origination.
- Flexible terms ranging from 2 to 12 years.
Cons:
- Requires excellent credit to qualify for the lowest rates.
- Only available to U.S. citizens or permanent residents.
LightStream offers some of the lowest personal loan interest rates available, making it ideal for borrowers who can qualify for its competitive terms.
3. Best Egg Personal Loans
Best for Borrowers Who Need Quick Funding
Best Egg is a popular online lender that provides low-interest personal loans. The application process is fast, and borrowers can receive funding quickly.
Key Features:
- APR: Starting at 5.99%.
- Loan Amounts: From $2,000 to $50,000.
- Loan Terms: 36 to 60 months.
- Eligibility Requirements: Requires a minimum 640 credit score and stable income.
Pros:
- Quick approval and funding process (as fast as one business day).
- Competitive low-interest rates.
- No prepayment penalties.
Cons:
- Higher rates for borrowers with lower credit scores.
- Origination fee may apply (ranging from 0.99% to 5.99%).
Best Egg is a great choice for individuals looking for a fast and reliable loan, with competitive rates available even for borrowers with fair credit.
4. Upstart Personal Loans
Best for Borrowers with Limited Credit History
Upstart uses artificial intelligence to offer personal loans to borrowers with limited credit history. It’s an ideal option for people who may not have a long credit history but still want to take advantage of low-interest loans.
Key Features:
- APR: Starting at 5.22%.
- Loan Amounts: From $1,000 to $50,000.
- Loan Terms: 36 to 60 months.
- Eligibility Requirements: Requires a minimum 600 credit score, proof of income, and a clean financial history.
Pros:
- Fast online application and approval process.
- Low-interest rates for those with limited credit history.
- Flexible loan terms.
Cons:
- Higher rates for borrowers with poor credit.
- Loan amounts may not cover large expenses for some borrowers.
Upstart is a great option for borrowers with limited credit history who need access to low-interest financing.
5. Marcus by Goldman Sachs
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Best for No Fees and No Penalties
Marcus by Goldman Sachs is another top lender offering low-interest personal loans, with no fees, prepayment penalties, or hidden charges. It’s a great option for borrowers looking for a straightforward and transparent loan.
Key Features:
- APR: Starting at 6.99%.
- Loan Amounts: From $3,500 to $40,000.
- Loan Terms: 36 to 72 months.
- Eligibility Requirements: Requires a minimum 660 credit score and a stable income.
Pros:
- No fees for application, origination, or early repayment.
- Flexible loan terms with no penalties.
- Competitive low rates for good-credit borrowers.
Cons:
- Best rates are available only for those with good credit.
- May not be the best option for small loan amounts.
Marcus by Goldman Sachs is ideal for borrowers who want a low-interest loan with no hidden fees and a clear repayment structure.
6. LendingClub Personal Loans
Best for Peer-to-Peer Lending
LendingClub offers personal loans through a peer-to-peer lending platform, allowing borrowers to receive funds directly from individual investors.
The platform provides competitive rates, especially for borrowers with good credit.
Key Features:
- APR: Starting at 6.95%.
- Loan Amounts: From $1,000 to $40,000.
- Loan Terms: 36 to 60 months.
- Eligibility Requirements: Requires a minimum 600 credit score and proof of income.
Pros:
- Peer-to-peer lending platform with lower overhead costs.
- No fees for early payment.
- Fast online application and approval process.
Cons:
- Higher rates for borrowers with bad credit.
- Origination fees can range from 1% to 6%.
LendingClub is a solid option for borrowers who want to explore peer-to-peer lending while securing low-interest financing.
7. PenFed Credit Union Personal Loans
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Best for Credit Union Members
PenFed Credit Union offers highly competitive interest rates on personal loans, with the added benefit of being available to credit union members. If you qualify for membership, you can access favorable rates and terms.
Key Features:
- APR: Starting at 5.99%.
- Loan Amounts: From $600 to $20,000.
- Loan Terms: 36 to 60 months.
- Eligibility Requirements: Requires membership in PenFed Credit Union, proof of income, and a minimum 600 credit score.
Pros:
- Extremely competitive rates for credit union members.
- No fees for early repayment or loan origination.
- Fast online application process.
Cons:
- Only available to PenFed members.
- Loan amounts are limited for smaller loans.
PenFed Credit Union is the go-to choice for members of the credit union, offering some of the most competitive interest rates in the industry.
8. Discover Personal Loans
Best for Flexible Loan Terms
Discover provides personal loans with competitive interest rates, flexible terms, and no origination fees, making it an excellent choice for borrowers who need flexibility.
Key Features:
- APR: Starting at 6.99%.
- Loan Amounts: From **$2,500 to $35
,000**.
- Loan Terms: 36 to 84 months.
- Eligibility Requirements: Requires a minimum 660 credit score, stable income, and good credit history.
Pros:
- No fees for origination, prepayment, or late payment.
- Flexible loan terms with no penalty for early repayment.
- Fast and simple online application process.
Cons:
- Best rates available for borrowers with good to excellent credit.
- Limited loan amounts for some borrowers.
Discover is a reliable lender for those looking for a personal loan with low interest rates and flexible repayment options.
9. Wells Fargo Personal Loans
Best for Bank Customers
Wells Fargo offers competitive rates on personal loans to both new and existing customers, making it a convenient option for those who already bank with the company.
Key Features:
- APR: Starting at 7.49%.
- Loan Amounts: From $3,000 to $100,000.
- Loan Terms: 12 to 60 months.
- Eligibility Requirements: Requires a minimum 660 credit score and proof of income.
Pros:
- Low interest rates for existing Wells Fargo customers.
- No fees for origination or early repayment.
- Fast approval and funding process.
Cons:
- Best rates available for existing customers only.
- Higher rates for those with less-than-perfect credit.
Wells Fargo is a good choice for customers who want low-interest rates and have an existing relationship with the bank.
10. Credible Personal Loans
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Best for Loan Comparison
Credible allows you to compare offers from multiple lenders, ensuring you find the best low-interest loan available to you. It’s a great tool for those who want to shop around without multiple credit inquiries.
Key Features:
- APR: Rates start at 4.99%.
- Loan Amounts: From $1,000 to $100,000.
- Loan Terms: 24 to 84 months.
- Eligibility Requirements: Varies by lender, but generally requires a 600+ credit score and proof of income.
Pros:
- Compare loan offers from multiple lenders at once.
- No fees for applying or comparing rates.
- Ability to find the best low-interest rates across different lenders.
Cons:
- Rates vary based on the lender you choose.
- Best offers require good to excellent credit.
Credible is ideal for those who want to compare various loan offers to find the best rates and terms.
Conclusion: Choosing the Right Low-Interest Loan for You
Securing a low-interest loan can provide significant savings over time, especially if you qualify for the best rates.
Whether you’re seeking a personal loan, auto loan, or home loan, it’s essential to understand your credit standing and financial needs before applying.
For 2024, the lenders listed above represent some of the most competitive options available.
Before committing to a loan, take the time to compare rates, terms, and fees. Remember, credit score and financial stability play key roles in the loan terms you’ll be offered.
By researching your options and choosing the right loan, you can secure the best deal for your personal situation.
Frequently Asked Questions (FAQs)
1. What is considered a low-interest rate for a loan?
A low-interest rate generally falls below the average market rate for personal loans, which is typically between 10% and 30%. For 2024, rates starting around 5% or lower are considered competitive and low.
2. How can I qualify for the lowest interest rates?
To qualify for the lowest interest rates, you’ll typically need a good to excellent credit score (typically above 700), a stable income, and a low debt-to-income ratio. Having a co-signer with a strong credit history can also help.
3. Are low-interest loans available for those with bad credit?
While low-interest loans are generally reserved for borrowers with good credit, some lenders offer competitive rates for those with bad credit, though the rates will be higher. Options like Upstart or Best Egg may still offer relatively low rates for fair-credit borrowers.
4. Can I get a low-interest loan if I have no credit history?
Yes, some lenders, like Upstart, use alternative data (such as your job history and education) to offer loans to those with limited credit history. However, interest rates may still be higher for individuals without established credit.
5. What should I look for when choosing a low-interest loan?
When choosing a low-interest loan, consider the APR, loan terms, fees, and the lender’s reputation. Be sure to read the fine print for any hidden charges and evaluate whether the loan fits your long-term financial goals.