If you’re searching for personal loans with low interest rates, 2025 could be your year to finally land a loan that doesn’t eat up your budget.
Whether you’re consolidating debt, funding a big purchase, or handling an unexpected expense, the right loan can make a big difference – especially when the interest rate is on your side.
In this guide from Available Cards, we’ll explore the best options out there right now, explain what affects your rate, and give you smart strategies to lock in the lowest possible APR.
Why Interest Rates Matter When Choosing a Personal Loan
Let’s be real – when you’re borrowing money, the interest rate can make or break the deal. Even a small difference in APR could mean saving hundreds or even thousands of dollars over the life of your loan.
Take this example: a $10,000 loan with a 7% APR over five years costs about $1,880 in interest. Bump that rate to 12%, and you’re paying over $3,300 in interest. See the difference?
That’s why finding personal loans with low interest rates should always be your top priority. It’s not just about approval – it’s about making sure you’re getting a fair, affordable deal.
Best Personal Loans with Low Interest Rates in 2025
Let’s dive into some of the top personal loan providers offering competitive rates in 2025. These lenders stand out for their affordability, transparency, and borrower-friendly terms.
LightStream
LightStream, a division of Truist, continues to shine with APRs starting as low as 6.49%. It’s a great option if you have strong credit and want a higher loan amount – they offer up to $100,000. What really stands out is the absence of fees and the possibility of same-day funding. Plus, they’ll beat any qualifying rate from a competitor.
SoFi
SoFi is more than just a loan provider – they’re building a financial community. Their personal loans start around 8.99% APR and come with no fees, no pressure, and plenty of extras. Members get access to unemployment protection and free financial planning. If you have good to excellent credit, SoFi is a solid bet.
Upstart
Need a loan but your credit history isn’t perfect? Upstart could be your new best friend. With rates starting at 6.70%, they use AI to evaluate applicants, which means even those with limited or fair credit may qualify. It’s ideal for younger borrowers or those building a financial profile.
Discover Personal Loans
Discover brings the same customer-first approach from its credit cards to its personal loans. APRs start at 7.99%, and there are no origination or prepayment fees. Loan amounts go up to $40,000, and the process is easy – just like their reputation for reliable customer service.
Marcus by Goldman Sachs
Marcus prides itself on being completely transparent. No fees, flexible payment dates, and fixed APRs starting at 6.99% make this a top pick for debt consolidation or large expenses. You can borrow between $3,500 and $40,000 with full control over your repayment schedule.
What Affects Your Loan Interest Rate
So, how do lenders decide what rate to offer you? It’s not random – a few key factors go into the decision.
Credit Score: This is the big one. The higher your score, the better the rate you’re likely to get. Most low-interest personal loans are aimed at people with credit scores above 670.
Debt-to-Income Ratio (DTI): Lenders check how much debt you already have compared to your income. A lower DTI shows you manage your money well.
Loan Term: Shorter terms generally come with lower interest rates, but they’ll have higher monthly payments.
Loan Type: Unsecured loans (no collateral) usually have higher rates than secured ones.
Income and Employment History: Stable income and a solid job history give lenders more confidence in your ability to repay.
Each lender weighs these factors differently, but improving them across the board will help you get closer to that ideal low-rate offer.
How to Qualify for the Lowest Rates
You don’t need a perfect credit score to get a good deal – but the better your profile, the more options you’ll unlock. Here are some practical ways to boost your chances of qualifying for personal loans with low interest rates:
- Check your credit report for errors – Incorrect data could be hurting your score without you knowing.
- Pay down existing debts – Reducing your credit utilization can quickly improve your credit standing.
- Avoid new credit applications – Too many recent inquiries can drag your score down.
- Choose a shorter loan term – Even if the monthly payments are higher, lenders see this as lower risk.
- Use a co-signer – If your credit isn’t great, applying with someone who has excellent credit can help secure a better rate.
At Available Cards, we always recommend comparing multiple offers before committing. Even a 1% difference in APR can make a big impact over time.
Pros and Cons of Low-Interest Personal Loans
Before you apply, it’s good to weigh the ups and downs. Low-interest personal loans can be an amazing financial tool – but they’re not right for everyone.
Pros:
- Lower overall cost – You’ll pay less interest over time.
- Fixed monthly payments – Easier to budget.
- No need for collateral – Most personal loans are unsecured.
Cons:
- Higher credit standards – You’ll need a strong score to qualify.
- Potentially limited amounts – Some lenders cap low-interest loans.
- May require automatic payments – To get the lowest rate, autopay might be mandatory.
Knowing both sides helps you make a smarter decision and choose the loan that truly fits your needs.
FAQs – Frequently Asked Questions
What is considered a low interest rate for a personal loan in 2025?
Anything under 10% APR is generally seen as a low rate, though it depends on your credit profile.
Can I get a low-interest loan with bad credit?
It’s tough, but possible. Some lenders like Upstart consider other factors beyond your score.
Do personal loans have fixed or variable rates?
Most have fixed rates – meaning your payment stays the same each month.
How fast can I get approved?
Many lenders offer same-day or next-day approval and funding, depending on eligibility.
Are there fees with low-interest loans?
Not always – some lenders charge origination fees, but others (like Marcus or LightStream) don’t.
What’s the average APR for personal loans right now?
In 2025, the average APR for good credit borrowers is around 16.61%, but top lenders offer much better rates.
Final Thoughts on Getting the Best Loan Rate in 2025
Finding personal loans with low interest rates in 2025 doesn’t have to be overwhelming. With so many trusted lenders offering competitive terms, it’s more about knowing where to look – and what to look for.
Whether you’re consolidating debt, planning a home project, or need fast cash for an emergency, getting the lowest rate possible should always be part of the plan.
Take time to compare offers, improve your credit where you can, and never rush into a loan you don’t understand.
The team at Available Cards is here to help you explore your options, make informed decisions, and feel confident about your financial future.