Best Personal Loan Options with Low Interest Rates in 2025 

They're not something that people usually budget for, but things do happen. Whether you want to consolidate debt, pay off medical expenses, or finally begin that dream home remodel, personal loans can be an intelligent method for accessing quick cash without the outlandish interest rates of credit cards.

The question is: where can you find the best personal loans with low interest rates in 2025?

Well, the good news is that this year, lenders have gotten more competitive. With inflation slowing down somewhat and banks preferring more borrowers, personal loan interest rates are relatively steady compared to previous years. Let's break it all down in simple terms.

What Exactly Is a Personal Loan?

A personal loan is essentially money you borrow from a bank, credit union, or online lender — then repay in regular monthly payments.

Loan amounts: typically from $1,000 to $50,000.

Loan terms: usually 2–7 years.

Secured vs. Unsecured: Most personal loans are unsecured, so you don't have to provide collateral such as a car or home.

The number one thing that impacts your cost? The interest rate. That's why discovering the lowest one available is so important.

What Are Personal Loan Interest Rates Like in 2025?

As of early 2025:

Excellent credit (720+): 6% – 9% APR

Good credit (660–719): 9% – 14% APR

Fair credit (600–659): 15% – 20% APR

Poor credit (<600): 20%+ APR

Tip: A 2% gap will save you thousands throughout the duration of your loan. Always shop around first.

Best Personal Loan Providers with Competitive Interest Rates in 2025 

Following is a list of some of the most trustworthy lenders this year. These names just keep coming up for providing competitive interest rates, good terms, and good customer service.

1. SoFi

APR range: 6.5% – 18%

Loan amounts: $5,000 – $100,000

Bennies: No interest, unemployment protection, and complimentary financial guidance.

SoFi is a go-to for individuals who have excellent credit. They also allow you to temporarily suspend payments if you become unemployed.

2. LightStream (managed by Truist Bank)

APR range: 6.99% – 20%

Amount of loans: $5,000 – $100,000

Bennies: Rate beat program — they will beat competitor rates by 0.10%.

If you're got good-to-excellent credit, LightStream is hard to beat. They're famous for closing loans quickly (sometimes on the same day).

3. Marcus by Goldman Sachs

APR range: 7% – 19%

Loan amounts: $3,500 – $40,000

Perks: No fees, flexible payment terms, and debt consolidation.

Perfect for individuals seeking a simple, hassle-free loan with no hidden fees.

4. Discover Personal Loans

APR range: 7% – 20%

Loan amounts: $2,500 – $40,000

Perks: 30-day money-back guarantee (pay back the loan interest-free if you reconsider).

Discover is particularly well-liked for debt consolidation since they'll pay creditors for you.

5. Upstart

APR range: 7% – 24%

Loan amounts: $1,000 – $50,000

Perks: Utilizes AI to approve those who might not have long credit histories.

If you lack ideal credit but do have a respectable income, Upstart can provide you with an opportunity. Their approval is faster than most.

6. LendingClub

APR range: 9% – 24%

Loan amounts: $1,000 – $40,000

Pros: Ideal for debt consolidation; simple online process.

Not the best rates for excellent credit borrowers, but a good option for average credit.

7. PenFed Credit Union

APR range: as low as 6.5%

Loan amounts: $600 – $50,000

Perks: Extremely low rates for credit union members.

If you qualify to join (membership is open to most now), PenFed is one of the lowest-priced options out there.

How to Get the Lowest 2025 Interest Rate 

Even the best lender won't do much good if you don't qualify for their best rates. Here's how you can tip the scales:

1. Improve Your Credit Score

Pay off balances, don't pay late, and review your credit report for errors. A 680 to 720 jump can save you thousands.

2. Select a Shorter Loan Term

A 3-year loan will usually have a lower rate than a 5-year one. Sure, your payments are higher monthly, but you'll pay less over the life of the loan.

3. Get a Co-Signer

If your credit isn't ideal, having a co-applicant with better credit can get you a lower rate.

4. Shop Around

Don't accept the first offer. Most lenders allow you pre-qualify with a soft credit check (so your score isn't hurt). Compare 3–5 lenders.

5. Borrow Only What You Need

Larger loans = more interest paid. Keep it as low as possible.

Pros and Cons of Personal Loans 

Before you apply, keep the ups and downs in mind.

Pros:

Fixed monthly payments (knowable)

Lower interest rates than credit cards

Can combine multiple debts into a single payment

Typically no collateral needed

Cons:

Not good for bad credit individuals (high interest rates)

Originations fees charged by some lenders

Late payments can damage your credit score significantly

When Should You Take a Personal Loan? ????

A personal loan is a good idea if:

You're paying credit card debt at 20%+ APR to refinance into a 8–12% loan. You're looking for cash for an emergency or big expense and have a solid plan to repay. You want predictable payments instead of juggling multiple debts.

But it’s NOT a great idea if:

You’re borrowing for non-essential spending (vacations, luxury items). You don’t have stable income to cover payments.

Final Thoughts

So, what are the best personal loan options with low interest rates in 2025?

If you have perfect credit, SoFi, LightStream, and PenFed are among the top choices. For run-of-the-mill borrowers, Marcus, Discover, and LendingClub provide decent options. And if your credit is less than stellar, Upstart might offer you a shot when others won't.

The moral of the story? Don't merely glance at the top APR. Consider fees, repayment terms, and whether or not the loan actually works within your budget.

In the end, the "best" personal loan is not necessarily the cheapest one — it's the one that you can actually pay without damaging your financial future.

If you're considering applying in 2025, do research, shop around, and don't be in a hurry. A bit of preparation can save you thousands in the long run.