Personal Loans » Compare Loans » Best Low-Interest Personal Loans of September 2022
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Best Low-Interest Personal Loans of March 2023

In a rising interest rate environment, getting a low interest on your loan can be difficult. Here are some lenders that offers lower rates
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor


Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO


Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor


Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO


Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

You can trust the integrity of our unbiased, independent editorial staff. We may, however, receive compensation from the issuers of some products mentioned in this article. Transparency is a core value for us, see how we make money.

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What Happens to Personal Loans When Inflation is High?

Inflation does have an impact on interest rates. When the rate of inflation is higher, there is a greater likelihood that interest rates will also rise. This is due to lenders requiring higher interest rates as compensation for the declining purchasing power caused by the higher inflation.

The good thing is that personal loans typically have a fixed interest rate. So, while the cost of new loans may be impacted by higher interest rates, if you’ve already secured a loan, a fixed rate will not change.

This means that if you secured a loan with a five year term when the rate of inflation is 2%, even if the rate increases dramatically over those five years, your repayments will remain the same.

Another consideration for personal loans when inflation is high is that lenders may be more reluctant to approve loans. Since buying power is reduced and many consumers can feel the financial pinch, lenders tend to have more restrictive lending criteria. This means that if you have a less-than-excellent credit score, you may find that you struggle to get approved for a low-interest personal loan.

Getting a Low-Interest Loan

If you’re planning a large purchase, you may be looking at personal loans. However, these don’t need to cost a fortune, as there are a number of low-interest personal loans available.

Here we’ll explore this niche in more detail to help you to choose the right financial product for your needs.

What is a Low-Interest Loan?

As the name suggests, a low-interest loan is an unsecured personal loan that has a comparably low rate. Typically low interest personal loans have an APR of less than 12 percent.

These are generally short-term loans and depending on whether the loan is provided by a bank, credit union, or peer-to-peer lender, you can use the proceeds for making a major purchase, consolidating credit card debt, or another purpose.

The terms of the loan will vary by lender. However, you will have a predetermined payment schedule, typically for three to five years. This means that you’ll know each month how much you will need to repay and when your repayments will pay off the loan in full.


Marcus logo
Marcus logo
On Credible Secure Website

Marcus by Goldman Sachs


6.99% – 24.99%

Loan Term

36-72 months

Minimum Score

660 (FICO)

Loan Amount

$3,500 – $40,000
On Marcus Secure Website

With an autopay discount of 0.25 percent, borrowers have access to APRs ranging from 6.99% – 24.99% . Additionally, Marcus doesn't impose any fees—including for sign-up, late payments, or early repayment—like some other notable lenders. Borrowers can also profit from the platform's customizable payment dates and on-time payment reward.

Marcus allows applicants to prequalify with a soft credit pull, just like many other top lenders, making it simple to explore your loan alternatives without negatively impacting your score. Despite the lack of a mobile app for managing loans for Marcus customers, the lender makes up for the inconvenience with a wide range of customer assistance choices.

  • No Fees
  • Competitive Rates
  • One Time Payment Deferment
  • Simple Application Process
  • Soft Pull Inquiry
  • Multiple Loan Options
  • High Requirements
  • Not for Limited Credit
  • Pre-Approval Does Not Mean Approval
  • Limits on Loan Amount for Loan Use
  • No Joint Applicants

Does Marcus personal loans verify income?

When you apply for a Marcus personal loan, you may be required to verify your income in the form of bank statements or recent pay stubs.

While this may not apply to all applications, you do need to be prepared to verify your income and employment status.

Is Marcus good for debt consolidation?

Marcus does offer personal loans for up to $40,000 with competitive rates and minimal fees.

However, what makes Marcus stand apart is that there are nine repayment plans, so you can customize your loan to suit your circumstances. You can also make use of the direct payment to creditors feature, which is a free service that can be applied to credit cards and other personal loans.

Can I add a cosigner to Marcus personal loan?

Unfortunately, Marcus does not allow joint or co-signed loans. There are no options to add a co-signer to secure your loan or obtain a better rate.

This means that you will need to qualify for the loan on your own merits. So, if you have less than ideal credit circumstances, Marcus may not be the best option for you.

Marcus Terms & Conditions

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.


On Credible Secure Website



6.99% – 24.99%

Loan Term

36 to 84 months

Minimum Score


Loan Amount

$2,500 – $35,000
On Discover Secure Website

Discover offers low interest rates compared to other ledners if you have excellent credit score.

When you obtain a debt consolidation loan, Discover can make direct payments to your creditors. Linking the credit card accounts will allow Discover to transmit the funds directly to you after your personal loan has been approved and accepted.

If your application was submitted accurately and before the deadline, you could get your money as soon as the following business day (and the loan was funded on a weekday). If not, it will take no longer than a week to receive your payments.

  • Soft Pull Inquiry
  • No Origination Fee
  • Direct Payment to Creditors
  • Competitive Interest Rates
  • Available in All States
  • Longer Application Process
  • Smaller Max Amount
  • No Joint Borrowers
  • Large Late Payment Fee
  • Can I negotiate with Discover?

If you are struggling to make your repayments or want to organize your finances by making a settlement, you can call the Discover helpline.

Discover claims to be prepared to help you whether you’re having long term hardship issues or a temporary financial setback. The bank has a variety of repayment assistance programs that could help you.

  • Can I get a Discover loan with a 600 credit score?

Although Discover does not disclose its minimum credit score requirements, generally speaking you will need a good credit score.

However, this does not mean that you will be automatically declined if you have a score of 600. If you have a good debt to income ratio and can meet the other requirement criteria, you may still qualify.

  • Does Discover personal loans offer prequalification? (soft credit check)

Discover offers online prequalification, so you can check the rate you can qualify for when you apply for a personal loan.

This is a quick process that takes a matter of minutes and Discover will only use a soft credit check that will not impact your credit score. A full credit check will only be necessary if you decide that you would like to proceed with your loan application.

  • Is Discover good for debt consolidation?

Discover offers personal loans for a variety of reasons including debt consolidation. You can borrow up to $35,000 with a personal loan or up to $300,000 if you use a Discover home loan.

Discover also offers student consolidation loans, allowing you to combine private and federal student loans into one new loan.


Rocket Loans
Rocket Loans
On Credible Secure Website




Loan Term

36-60 months

Minimum Score


Loan Amount

$2,000 -$45,000
On Rocket Loans Secure Website

Rocket was founded to offer a rocket fast loan processing system to provide personal loans to eligible borrowers.  Qualifying for a Rocket loan is contingent on creditworthiness rather than business type. You can use your loan for any purpose, including starting a business.

For its personal loans, Rocket Loans provides prompt funding. In some circumstances, loans may be given to borrowers the same day they are approved. This may be useful if you need money right away to pay for an urgent expense.

However, Rocket only qualifies people with a credit score minimum of 640 and a good credit history. You also need to have a permanent source of income and a low debt to income ratio. Where Rocket stands apart is that loans are processed very quickly. 85% of borrowers receive loans within a day.

  • Soft Pull Inquiry
  • Competitive Rates
  • Easy Application
  • Same day funding
  • Auto Discount
  • Business Loan
  • Limited Terms
  • Origination Fee
  • No Joint Borrowers
  • Restrictions on Use
  • Late Fees and Check Processing Fee
  • Is Rocketloans good for debt consolidation?

Rocketloans could be a good option for your debt consolidation. You can borrow up to $45,000 with no origination fee and a rate discount if you sign up for autopay.

However, Rocketloans does not offer direct payments to creditors if you want to consolidate your debt. This means that you will need to receive the lump sum from your loan and distribute the funds yourself.

  • Can I add a cosigner to Rocketloans personal loan?

Unfortunately, Rocketloans does not offer co-signed or joint loans. It is not possible to add a second person to your loan application to either share the loan or boost your lending profile and chances of approval.

So, if you need a cosigner for your loan, Rocketloans is not the right lender for you.

  • Do Rocketloans personal loans offer prequalification? (soft credit check)

Rocketloans does have a prequalification feature that allows potential customers to check their rate before they commit to a loan. This prequalification process only uses a soft credit check that will not impact your credit score. If you decide to go ahead with the loan, a hard credit pull will be triggered.

  • Can I negotiate with Rocketloans?

Rocketloans does not specifically state that it will negotiate settlement figures, but very few lenders do.

However, Rocketloans does have some quite inflexible features, such as not being able to set your monthly repayment date that suggests that this financial institution may be a little rigid on other aspects of the loan management. Of course, it is still worth speaking to the Rocketloans team if your financial circumstances have changed.



Upstart logo
Upstart logo
On Upstart Secure Website



5.60% – 35.99%

Loan Term

36-60 Months

Minimum Score


Loan Amount

$1,000 – $50,000
On Upstart Secure Website

Upstart is not a top lender for borrowers who can qualify for more competitive rates because of its competitive APRs. Even yet, those with fair credit can use the site because it requires a minimum credit score of 600 . Additionally, it is just as extensively accessible as many other top lenders because it is offered in all states bar West Virginia and Iowa.

There are just two loan repayment terms available through Upstart: three years or five years. The organization does, however, typically fund loans within one business day, which is helpful if you require money straight away.

  • Soft Pull Inquiry
  • Modest Income
  • Quick Turnaround Times
  • No Prepayment Penalty
  • No Processing Fee
  • Higher low end rates for those with excellent credit
  • Origination Fee
  • No Joint Borrowers
  • High Interest Rates
  • New Company
  • When and how will I receive the funds from my Upstart loan?

If you accept your loan before 5 p.m. ET Monday through Friday, you should receive your loan proceeds the following business day. If your application is accepted after 5 p.m. ET Monday through Friday, you should receive your loan proceeds two business days later.

There is an additional three business days between when you accept your loan and when you receive the funds for loans used for educational purposes.

  • Is it possible to cosign with Upstart?

You cannot apply for a loan with a cosigner through Upstart. Because this is a personal loan, Upstart claims they can only consider your personal information.

What happens if I miss a payment on my Upstart loan?

If we do not receive your payment by the monthly due date, we will contact you to remind you. You have 15 days from the due date of your payment before any fees are assessed. If you make a monthly payment after the grace period has expired, you may be charged a late fee of 5% of the unpaid amount or $15, whichever is greater.

Please keep in mind that Upstart reports your account's status on each due date. We may exercise all of the remedies available to us under applicable law or the Promissory note in the event of an Event of Default.

  • How can I get in touch with Upstart?

There are 2 ways to get in touch with Upstart:

  1. Sending a message via our contact form or calling 650-204-1000 (local) or 1-855-438-8778 (toll-free) between 6AM and 5PM PST.
  2. Sending a message to [email protected]

How Are Personal Loan Interest Rates Determined?

Each lender has its own algorithm to set interest rates for borrowers. However, this algorithm is designed to assess risk. The lender needs to create a risk profile for you as a borrower to determine the likelihood that you will repay the loan without any issues.

If you are deemed to be lower risk and therefore less work, you will be offered a lower rate. However, if you are high risk, the lender needs to cover any potential problems with a higher rate.

There are several common factors used by the specific lender algorithms to determine your interest rate. These include credit score, annual income, and debt to income (DTI) ratio. If your credit score and income are high and your DTI is low, you will be more likely to qualify for a lower rate and larger loan amounts.

However, some lenders will take other factors into account. This can include the length of time you’ve been with your current employer, your education, and your job history. These factors can suggest your reliability and financial responsibility.

How to Choose a Low-Interest Personal Loan Lender?

With so many lenders on the market, choosing a low-interest personal loan lender can be tricky. Fortunately, there are a few pointers to help you.

  • Assess the Loan Packages: While you may have a personal loan in mind when looking for a lender, be open to other types of loans or finance deals. You may find that some lenders have finance products that better fit your circumstances and requirements.
  • Review the Customer Experience: We’ve touched on customer service above, but there are other aspects to the of customer experience. Can you apply online? Can you access a physical location if you prefer? How will you manage your account?
  • Availability of Other Products: Although you may be looking for a loan now, does the lender offer other types of products that could be helpful with your day-to-day finances? You may prefer to build a long-term relationship by moving your checking account or savings accounts over to this financial institution, particularly if they offer advantageous terms.

Choosing a low-interest personal loan need not be daunting. Even if this is your first personal loan, if you follow the guidance in our article, you should be able to make an informed decision to benefit your financial health in the long term.

Can I Get a Low-Interest Loan With a 700 Credit Score?

A 700 credit score is actually considered to be a good score, which means that you should be able to get a low-interest loan at a very reasonable rate. Although the best rates are reserved for those with excellent credit, a good rating should mean that you can still qualify for a rate of 12% or less.

Of course, this will also depend on your current financial circumstances. If you have maintained a 700 score, but your income has recently dropped or you’ve just changed employers, some lenders may consider you to be a higher risk.

This highlights the importance of shopping around for your loans, as some lenders may rely solely on your credit score, while others consider additional factors to determine your rate.

Tips to Get the Lowest Rates

Fortunately, regardless of your current credit, there are some tips that can help you to get the lowest rates. Some of these are long-term strategies, but you may be able to get some short-term benefits to help you with your loan shopping.

  • Create a Stable Profile: Lenders look for stable borrowers that are financially responsible. So, it is important to focus on creating a stable profile for long-term success. You should try to stay with the same employer for at least two years and avoid frequent home moves. This will show that you are a stable person that can financially support yourself.
  • Check Your Credit Report: If you’ve not had any financial problems in the past, you may assume that your credit report will reflect this. However, mistakes can occur, which could impact the rate you’ve offered when you apply for a loan. So, obtain a copy of your report and make sure that all the pertinent details are correct. If there is an error, report it to have it corrected by the appropriate financial institution or the credit bureau.
  • Fix Negative Information on Your Credit File: If you have negative information on your report, try to take steps to fix it. You can quickly fix any unpaid collections, as you can make a payment and request the note be removed from your report. However, you can also make payments to bring down your debt to income ratio and your credit utilization ratio.
  • Don’t Apply Too Often: If you’ve applied for credit frequently, it can be a sign that you are either casually shopping or that there is an underlying reason why other lenders have declined applications. It is possible to compare rates with only a soft credit pull, so be careful about how and when there is a hard pull on your credit report.
  • Build a Good Relationship With Your Lender: Banks and other lenders tend to appreciate their client relationships, so rather than just applying for a loan, consider building a good relationship. You can do this by moving across your checking account, opening up a savings account, or using their insurance services. This can justify lenders giving you discounted rates.

Can I Get a Low-Interest Loan With Bad Credit?

By their very definition, low-interest loans are typically associated with low-risk customers. This means that low-interest loans are generally reserved for those with good to excellent credit. However, even if you have poor credit, it may be possible to obtain a rate of less than 36% under the right circumstances.

You will need to do some shopping around and focus your efforts on lenders specializing in those with bad or poor credit. These lenders tend to look at more than your credit rating, considering other factors such as your employment record.

You may also be able to access a low-interest loan if you are prepared to offer some form of security. Providing security, such as your home or vehicle provides lenders with the reassurance that if you fail to repay your loan they can recoup any losses by seizing your property and selling it.

The paperwork for a secured loan can take longer than an unsecured loan, since the lender needs to verify the value of your asset, but it can be a good way to access a lower rate even if your credit is less than ideal.

What is a Good Interest Rate on a Personal Loan?

The rates for personal loans can be anywhere from 6 or 7%, all the way to 36% or more. However, at the midpoint of this range is not necessarily considered to be a good rate. If the rate is below 12%, it is considered a low-interest loan, but the average rate is typically approximately 10%. This means that if you can secure a rate under 10%, it is likely to be considered a good rate.

Just bear in mind that this level of rate is appropriate for those with good to excellent credit. If you have poor or average credit, a good interest rate for you is likely to be on or around 12%. So, you will need to tailor your expectations to your particular financial circumstances.

How to Negotiate a Lower Interest Rate on a Personal Loan?

There are many lenders, particularly traditional banks that will not negotiate their rates. You’ll be offered a rate according to your application and they will not negotiate at all.

However, there may be some circumstances where you may be able to create a little wiggle room and convince your lender to drop your rate if only a little.

These include:

  • Highlight Your Relationship History With the Lender: If your checking and savings accounts are with the bank or you’ve been banking with them for years, you should highlight this to them during the application process. You can also point out if you’ve had a loan in the past and repaid it with no problems.
  • Emphasize Your Financial Stability: If you have secure employment, you need to emphasize this on your application. Don’t just guess how long you’ve been with your current employer, but be specific about when you joined the company. You can also point out that the job is very secure, so the lender can be reassured that you are not likely to be laid off in tougher times.
  • Explain Your Loan Reasons: One of the things that lenders will look at when considering your application is your debt-to-income ratio and credit utilization ratio. So, if you let the lender know that you will be using the proceeds of this new loan to pay off some existing debt, it may convince the lender to offer a more attractive rate.
  • Price Matching: Some lenders have a price matching policy. So, if you’ve had a loan offer from another lender at a lower rate, present this to your bank. They may be willing to match the rate, which means that you can enjoy preferential terms and still remain with a financial institution that you know and trust.

Will the Interest Rate on a Personal Loan Go Up After a Loan is Taken Out?

Most lenders offer personal loans with a fixed interest rate. You’ll have a payment schedule detailing your monthly payments over the entire term of the loan. This includes the date of the first and last payments. This means that regardless of the situation in the current financial market, once you’ve taken out the loan, the rate is set.

However, in some circumstances, lenders may offer a variable rate. This is typically set a little lower than the fixed rate as an enticement to new borrowers, but it does mean that if the base rate increases, your loan payment will also increase.

There are some exceptions to this, which means that you can see your rate increase even if you’ve agreed to a fixed-rate loan. Some lenders may impose a late penalty if you fail to meet your regular payment schedule.

For example, if you miss a payment or make more than a specified number of late payments, a higher rate of interest will be applied to your loan account. Any such penalties will be detailed in the loan terms and conditions, which you can check before you agree to the agreement and take out your new loan.

APR vs Interest Rate on a Personal Loan

While the APR (Annual Percentage Rate) and interest rate on personal loans are related, they are not actually the same thing.

The interest rate for your personal loan is simply a percentage of the principal loan amount which reflects the amount you will pay for borrowing the funds. The APR is a little different as it combines the interest with any fees that are associated with the loan. If the loan has no fees, the APR will be the same as the interest rate. However, lenders often add upfront charges or origination fees to personal loans.

If you had a five-year loan with a 9% interest rate, but the loan has a 3% origination fee, it would increase the APR to 10.31%. Since differing fees, rates, and loan lifespans can make it difficult to compare personal loan offers, the APR can be a helpful tool.

However, the same standards apply for interest rates; a higher APR will cost you more over the loan lifetime compared to one with a lower APR, even if the monthly payments are similar.

What Else Should I Consider Other Than a Low Rate?

While getting a low rate is a great first step towards a good loan deal, it should not be the only consideration. There are other factors that you should look at before you agree to a loan deal. These include:

  • The Loan Term: This is the number of months or years you will be repaying the loan sum. Most personal loans have a term of three to five years, but there are some lenders that offer a longer term. However, if you’re comparing loan packages, bear in mind that even if the rate is lower, if the term is longer, you will pay more interest over the entire lifespan of the loan.
  • Origination Fees: An origination fee is charged by lenders to process new applications. The fee is typically percentage based, so you can pay 1% to 8% of the loan amount. The fee can depend on the length of the loan term, your credit score and other factors. However, there are some lenders that do not impose an origination fee.
  • Other Fees and Charges: You should also scan the terms and conditions document to check what other fees or charges may be applied to your account. This can include late payment fees, but you should watch out for prepayment penalties. These apply if you decide to repay the loan early, which means if you have a financial windfall or want to switch to another lender, you could get stung.
  • The Customer Service: This is often overlooked, but you should also evaluate the customer service offered by a potential lender. You may feel more reassured to pay a little extra on the rate if you’re dealing with a lender that you know and trust.
Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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