Best Personal Loan Companies are crucial in 2025 as the economy faces rising inflation, higher living costs, and fluctuating interest rates. With the financial landscape becoming more unpredictable, finding a personal loan with a low interest rate is essential for saving money in the long term. Whether you’re consolidating debt, covering unexpected expenses, or funding a home improvement project, securing a loan with a competitive interest rate can make a significant difference in your overall repayment.
The market in 2025 offers several options, including online lenders, traditional banks, and credit unions. Each has its pros and cons depending on your financial profile. However, not all lenders are the same. Some lenders offer fast approval and funding with flexible terms, while others provide lower APRs for borrowers who qualify. This guide will help you navigate through the best personal loan companies available in 2025.
What Makes the Best Personal Loan Companies?
When searching for a personal loan, it’s essential to evaluate various factors that define the best personal loan companies. Here are the key features to consider when choosing a lender:
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Competitive APRs:
Competitive Annual Percentage Rates (APRs) are essential for finding a cost-effective loan. The best personal loan companies offer low starting APRs for borrowers with good to excellent credit. Rates typically range from 6% to 24% depending on your credit score. The lower the APR, the less you pay in the long term. -
Transparent Fees:
Reputable lenders offer clear terms and no hidden fees. Many lenders charge origination fees, prepayment penalties, or late fees that can add up over time. The best personal loan companies disclose all fees upfront to avoid surprises later. Look for lenders that offer loans with no prepayment penalties, as this allows you to pay off the loan faster without extra costs. -
Flexible Loan Terms:
Flexible loan terms ranging from 12 to 84 months are standard, but the best personal loan companies offer even more flexibility in terms of payment schedules and the ability to change your due date. Some lenders may even allow you to skip a payment if needed, which could provide additional peace of mind. -
Fast Approval and Funding:
Many borrowers require quick access to funds. The best personal loan companies often offer same-day or next-day funding after approval, which is ideal for emergencies or time-sensitive projects. -
Strong Customer Support:
Customer support is an essential part of the loan process. High ratings from consumer platforms like Trustpilot and the Better Business Bureau (BBB) are good indicators that a lender offers responsive and helpful support throughout the loan journey. -
Prequalification Tools:
To help you shop around without affecting your credit score, many best personal loan companies offer prequalification tools. These tools allow you to estimate potential rates based on a soft credit inquiry.
Let’s now take a look at the top best personal loan companies in 2025 that meet these criteria.
Top 5 Best Personal Loan Companies with Low Interest Rates in 2025
1. SoFi
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Best for: No fees and high loan amounts
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APR Range: 6.99% – 22.23% (with autopay)
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Loan Amounts: $5,000 – $100,000
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Terms: 24 – 84 months
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Minimum Credit Score: 680
SoFi offers some of the most competitive personal loans in 2025. With no fees and loan amounts up to $100,000, SoFi is an excellent choice for those with strong credit profiles. In addition to competitive rates, SoFi offers a range of benefits like unemployment protection and free financial planning. You can learn more about SoFi’s offerings on their official website.
2. LightStream (A Division of Truist)
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Best for: Excellent credit borrowers seeking ultra-low rates
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APR Range: 6.49% – 20.99%
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Loan Amounts: $5,000 – $100,000
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Terms: 24 – 84 months
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Minimum Credit Score: 660
LightStream, part of Truist, offers the lowest APRs in the personal loan industry. They also have a Rate Beat Program™, ensuring they beat any competitor’s rate. However, they don’t offer prequalification, which means you will need to apply directly to find out your rate. Visit LightStream for more details.
3. Marcus by Goldman Sachs
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Best for: No-fee personal loans and excellent customer service
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APR Range: 6.99% – 24.99%
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Loan Amounts: $3,500 – $40,000
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Terms: 36 – 72 months
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Minimum Credit Score: 660
Marcus by Goldman Sachs is an ideal option for those looking for loans with no fees. There are no origination, late, or prepayment fees, which makes it a highly attractive option. Marcus also has an excellent reputation for customer service. Plus, they offer loan flexibility, allowing you to defer one payment after 12 on-time payments. Read more about Marcus on their official site.
4. Discover Personal Loans
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Best for: Debt consolidation and fixed-rate loans
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APR Range: 7.99% – 24.99%
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Loan Amounts: $2,500 – $40,000
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Terms: 36 – 84 months
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Minimum Credit Score: 660
Discover remains a trusted lender, especially for debt consolidation. They offer fixed APR loans and have no origination or prepayment fees. If approved, funds are typically available within one business day, making them a great option for those in urgent need. Discover also offers a 30-day money-back guarantee. For more, visit Discover.
5. Upgrade
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Best for: Fair credit borrowers and fast funding
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APR Range: 8.49% – 35.99%
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Loan Amounts: $1,000 – $50,000
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Terms: 24 – 84 months
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Minimum Credit Score: 580
Upgrade is ideal for borrowers with fair credit who need fast funding. Although the APRs for borrowers with lower credit scores can be higher, Upgrade offers rapid funding, often within 24 hours, and allows prequalification with a soft credit check. Learn more at Upgrade.
How to Choose the Best Personal Loan Company for You
When selecting a personal loan company, it’s crucial to not only focus on the interest rate but also the other factors that can make a significant difference in your loan experience. Here’s how you can make an informed decision:
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Check Your Credit Score:
A higher credit score will help you secure lower APRs. If your credit score is below 700, expect higher rates and terms. -
Use Prequalification Tools:
Prequalification allows you to see potential rates without affecting your credit score. This is important for shopping around without the risk of harming your credit. -
Compare Fees:
Some companies charge origination fees, while others may offer fee-free loans. It’s essential to compare these fees to determine the best deal. -
Consider Funding Speed:
If you need funds urgently, prioritize lenders that offer same-day or next-day funding. -
Evaluate Customer Support:
Good customer support can make the loan process easier, especially if any issues arise during your loan journey. Look for companies with excellent ratings on customer review platforms like Trustpilot and the Better Business Bureau.
Frequently Asked Questions (FAQs)
Q1: What is a good interest rate for a personal loan in 2025?
A good interest rate in 2025 typically ranges between 6.5% and 10% for borrowers with excellent credit. Rates can go up to 35.99% for those with lower credit scores. However, rates vary by lender, and many companies offer rate reductions if you set up autopay or meet other conditions. It’s crucial to compare rates and find the one that works best for your financial situation.
Q2: Does applying for a personal loan hurt my credit score?
When you prequalify for a loan, a soft credit inquiry is performed, which does not affect your credit score. However, if you submit a full application for a loan, it results in a hard credit inquiry, which may temporarily lower your credit score by a few points. To minimize the impact, complete all loan applications within a 14-day period, as multiple inquiries in this time frame are typically treated as a single inquiry.
Q3: Can I get a personal loan with bad credit?
Yes, some lenders specialize in loans for individuals with bad credit. Lenders like Upgrade and OneMain Financial offer personal loans for borrowers with credit scores as low as 580. However, expect higher APRs and potentially higher fees. Consider using a co-signer or securing the loan with collateral to improve your chances of approval and reduce the interest rate.
Q4: Are online lenders safe to use?
Yes, reputable online lenders are secure and take steps to protect your personal information with encryption and fraud protection. Always verify the lender’s credentials by checking their ratings on trusted platforms like BBB. Ensure the lender is registered, has clear contact information, and offers transparency regarding terms and conditions.
Q5: Is it better to get a personal loan from a bank or an online lender?
It depends on your financial situation. Banks may offer lower rates for those with excellent credit, especially if you’re an existing customer. On the other hand, online lenders are often more accessible, especially for those with fair or average credit. Online lenders typically offer faster approval and funding, which can be beneficial if you need funds quickly.
Final Thoughts
Securing the best personal loan companies in 2025 is not just about finding the lowest interest rate. It’s about choosing the right lender based on your financial needs, whether that means flexibility, fast funding, or minimal fees. By comparing rates, understanding the terms, and considering the company’s reputation and customer service, you can find a loan that suits your financial goals.
