Best Low-Interest Personal Loans For June 2023

If you’re looking for a personal loan, locking in a low interest rate can save you interest. The Fed has already raised rates twice this year, and more is expected. This means that the cost of borrowing money is likely to go up. So, applying for a low-interest loan now can help you save hundreds or thousands.

We have evaluated the best lenders and highlighted the best options below. We will update this list regularly as terms change and new loan products become available. All APRs or APRs listed are based on a high credit score of 800 or higher.

Keep scrolling for answers to frequently asked questions about personal loans and a list of all lenders we have reviewed.


  • APR: 4.98% to 20.49%
  • Loan amount: $5,000 to $100,000
  • Loan terms: 24 to 84 months
  • Time to receive funds: As soon as day of
  • Prequalification: No
  • Origination fee: No
  • Co-signer/joint applicant option: Joint applicant option

SunTrust Bank’s online lender, Lightstream, offers a full package of personal loans, including flexible loan amounts and terms, same-day loan options, very low APRS and no set-up fees, and prepayment or delinquency. You can also save 0.5% of the loan interest rate by signing up for automatic payment.

barter? Lightstream loans require significant credit. And to get the lowest interest rates, you need good credit, commonly known as 800 points or higher.

One caveat: Lightstream does not provide pre-verification. Therefore, your credit score may temporarily drop by a strong review of your TransUnion or Equifax credit history by lenders to determine the rate you are eligible for.

Wells Fargo

  • APR: 5.74% to 20.99%
  • Loan amount: $3,000 to $100,000
  • Loan terms: 12 to 84 months
  • Time to receive funds: As soon as 1 business day
  • Prequalification: Yes
  • Origination fee: None
  • Co-signer/joint applicant option: No

This large national lender offers the most flexible loan amounts and terms on our list, making it a great choice if you are looking for a loan term that is slightly longer than average, such as one year. The amount is also flexible, so you can borrow as little as $3,000 or as high as $100,000.

APR is very reasonable and offers customers with certain Wells Fargo checking accounts an additional discount of 0.25% or 0.50%. Wells Fargo may charge fees and significant late fees for rejected payments.

Your credit score also plays an important role in the amount and percentage of loan approvals. Wells Fargo does not disclose credit score requirements, but their website states that they may no longer be approved for a credit score of 700. It also states that people with scores between 600 and 600 may be accepted at a higher rate.


  • APR: 5.74% to 21.28%
  • Loan amount: $5,000 to $100,00
  • Loan terms: 36 to 84 months
  • Time to receive funds: As soon as 1 business day
  • Prequalification: Yes
  • Origination fee: No
  • Co-signer option/joint applicant option: Joint applicant option

Social Finance (SoFi) offers low annual interest rates and relatively flexible terms, but its real appeal lies in its completely fee-free lending process that can help you save while getting low-interest personal loans. A minimum credit score of 680 is required and the site runs regular promotions like our current referral program. This online lender also has its own perks, including free financial advice and unemployment protection to be patient with your loans and lower your monthly payments if you lose your job. SoFi does not offer loans in Hawaii or New York.

Happy Money

  • APR: 5.99% to 24.99%
  • Loan amount: $5,000 to $40,000
  • Loan terms: 24 to 60 months
  • Time to receive funds: 2 to 5 days
  • Prequalification: Yes
  • Origination fee: 0% to 5%
  • Co-signer/joint applicant option: No

Happy Money repayment loans are specifically aimed at borrowers looking to pay off their credit card debt. A credit score of 550 or higher is one of the best options if you have a low credit score and want to replace your high-interest debt with a low-interest loan.

To determine your annual interest rate, Happy Money also considers your debt-to-income ratio (the amount of debt you repay monthly on your monthly income), your credit history, the number of credit accounts, and your credit usage. (Amount of credits accessible versus amount spent). Happy Money does not charge late fees or prepayment fees, but does charge a subscription fee of up to 5%. Happy Money does not offer loans in Massachusetts or Nevada.

PenFed Credit Union

  • APR: 5.49% to 17.99%
  • Loan amount: $600 to $50,000
  • Loan terms: 12 to 60 months
  • Time to receive funds: 1 to 2 business days
  • Prequalification: Yes
  • Origination fee: None
  • Co-signer/joint applicant option: Co-signer and joint applicant option

The Pentagon Federal Credit Union, also known as PenFed, is a credit union that offers low interest rates, flexible loan amounts and terms. However, the late payment fee is $29. PenFed offers both co-signer and co-applicant options.

The co-signer acts as the guarantor of the loan and pays if the loan is impossible. If you have low or no credit and want to get approval at a lower rate, you may be interested in colocation. On the other hand, a co-applicant or co-borrower is an individual with a good credit history who is equally responsible for repaying the loan. If you are filing jointly, your credit score will be taken into account when determining the loan amount and interest rate.

To apply for a PenFed loan, you must be a member of a credit union that is open to everyone and requires you to open a savings account of at least $5.

Questions and Answers

What is a personal loan?

A personal loan is a loan that you can use for any purpose, such as debt consolidation, home improvement, family-related expenses, or emergencies, and is not an educational expense or investment.

Personal loans are usually unsecured, so you can borrow money and repay it on a fixed schedule at a fixed interest rate. A secured personal loan allows you to raise money using assets such as a house or car as collateral.

What is a Qualifier?

Pre-qualification offered by many lenders allows you to check potential loan rates and repayment plans before actually applying for a loan. Pre-qualification requires flexible withdrawal of credit, which allows lenders to see part of your credit history. Flexible credit withdrawals do not affect your credit score.

How is a co-signer different from a co-applicant?

If you don’t have a long credit history or have a low credit score, you may need someone with good credit to co-sign your loan. The co-signers act as guarantors and must repay the loan if it is impossible to repay it. Your loan repayment history directly affects your credit score.

On the other hand, a co-applicant is an individual with equal ownership of the loan, equal liability for repayment of the loan, and a high credit rating and history. As the equal owner of the loan, the co-applicant has more rights and responsibilities than the co-applicant.

How much is the incorporation fee?

An opening fee is a one-time loan processing fee that is a percentage of the total loan amount. For example, if you have a $10,000 loan with a 5% creation fee, you should receive $10,500.

What is the debt-to-income ratio?

The debt-to-income ratio (DTI) is often used as a way to predict the ability of a lender to repay the money it borrows. You can calculate this by adding up your monthly debt payments and dividing this number by your monthly pre-tax income.

Lenders reviewed:

More Loan Tips

The editorial content on this page is based entirely on the objective and independent reviews of our authors and is not influenced by advertising or partnerships. It is not provided or approved by any third party. However, we may receive compensation if you click on links to products or services offered by our partners.