Best Personal loans can be an effective financial tool that provides flexible financing for many different purposes — consolidating debt, making a big purchase, or covering an emergency expense. Choosing the best personal loan can prove to be a challenge with so many options to choose from. This article will review the best personal loans, highlight key features, and help determine which loan fits your needs.
What is a Personal Loan?
A personal loan is an unsecured type of credit, which means it doesn’t require collateral such as a home or vehicle. Typically, lenders assess your creditworthiness based on your credit score, income, and financial history and lend you the funds. Because personal loans are usually structured with fixed interest rates and repayment terms, they can be an excellent option for anyone who wants predictable monthly payments.
Best Personal Loans for 2025
In this guide, we’ll compare the best personal loans of 2025 and their features, such as low interest rates, flexible repayment terms, and overall customer satisfaction.
SoFi Personal Loan
- Best for: Low rates, large loan amounts
- APR Range: 5.99% – 20.49% (with autopay)
- Amount of Loan: $5,000 to $100,000
- Loan Term: 24 to 84 months
- Fees: No origination fee, no late fees or prepayment penalties
- Credit Score Required: Good to excellent (700+)
Why it’s excellent: SoFi is notorious for providing some of the most cutting-edge interest rates, especially for individuals with good credit. The flexibility in both loan amounts and repayment terms is one of the significant advantages for borrowers who need a large sum of money or would instead be paid back over a long period. SoFi also has many member benefits, from career coaching to financial planning.
Read More: About Debt Consolidation Loan
LightStream Personal Loan
- Most suitable for High credit scores and high-value mortgage loans
- APR Range: 5.99% - 19.99% (with autopay)
- LOAN AMOUNT: $5,000 to $100,000
- Loan Term: 24 to 144 months
- Fees: No fees
- Credit Score Needed: Very Good (760+)
Why it’s good: LightStream, part of SunTrust Bank, has one of the best loan products for borrowers with excellent credit. No fees and a large variety of loan terms to choose from may make this a good option for someone looking to borrow a large amount. LightStream is noted for its speedy approvals and fast funding; loans can even be funded the same day as the approval if it’s before 2:30 p.m.
Marcus by Goldman Sachs
- The ideal use case: Consolidating debt and a fixed rate
- APR Range: 6.99% – 19.99%
- Loan Amount: $3,500 to $40,000
- Loan Term: 36 to 72 months
- Fees: No origination, prepayment, or late payment fees
- Credit Score Needed: Good (660+)
Why it’s good: Marcus by Goldman Sachs is an excellent choice for borrowers who want to consolidate debt or finance personal projects. Marcus offers a simple online application process with no fees, allowing you to borrow money without fearing surprise charges. It also provides flexible loan terms so borrowers can customize their monthly payments.
Upstart Personal Loan
- Best for: Those with little credit history
- APR Range: 6.18% – 35.99%
- Receivable amount: $1,000 to $50,000
- Loan Term: 36 to 60 months
- Fees: 0% to 8% origination fee (based on the loan)
- CREDIT SCORE REQUIRED: FAIR TO GOOD (600+)
Why it’s excellent: Upstart employs artificial intelligence to evaluate your loan application, considering metrics such as education, job history, and credit habits. This makes it a fantastic option for people with thin files that do not have a FICO score. However, borrowers need to know the origination fee, which can differ.
Discover Personal Loan
- Best for: No-fee fixed-rate loans
- APR Range: 6.99% – 24.99%
- Loan Amount: $2,500 to $35,000
- Loan Term: 36 to 84 months
- Fees: No fees
- Credit Score Requirement: Good to excellent (660+)
We like it: Discover has no origination, late payment, or prepayment fees, and its interest rates are competitive. The simple online application process and the ability to see rates without hurting credit scores are popular with borrowers. Repayment terms are flexible enough that borrowers can pick a plan that fits best with their budget.
You can use data as recent as October 2023.
It’s a good idea to keep the following factors in mind as you decide which personal loan is best for you — especially since there are so many options to choose from:
Interest Rates
Interest rates impact the overall cost of your loan. Seek out a lender that will give you the best rates for your credit capabilities.
Loan Terms
Think about how long you want to spend repaying the loan. Shorter terms usually have higher monthly payments but lower overall interest costs, while longer terms can provide lower payments but may cost a lot more in interest.
Fees and Charges
Check for any associated fees, including origination fees, prepayment penalties, or late fees. The best loans will have the lowest costs.
Eligibility Requirements
Check the lender’s credit score, income, and other requirements to confirm your eligibility. Some lenders may approve loans for individuals with fair or limited credit histories.
Customer Service
Read customer reviews to stay informed about how they deal with customer service and loan servicing, which leads to a smoother experience from the application to the repayment stages.
Conclusion
The right personal loan for you will depend on multiple factors, including your credit score, the amount you want to borrow, and the loan’s purpose. Shop around for the best loan to meet your needs about interest rates, fees, and terms so you can secure a loan that fits your financial situation and helps you reach your goals. Whether you need to consolidate debt, cover a large purchase, or pay for an unexpected expense, these top personal loans will offer you competitive options that might work for you. As always, be sure to shop around, fully understand the loan terms, and select the option that best fits your budget and long-term financial plans.
