Best Low-Interest Personal Loans of April 2025

We at the MarketWatch Guides team did the work for you, finding the best lenders with no origination fee that fund personal loans either the same day or the following business day.

Summary of the Best Low-Interest Personal Loans of April 2025

Reviews of the Best Low-Interest Personal Loans

*APR accurate as of April 14, 2025

Best Uses for a Low-Interest Personal Loan

Personal loans can be used for a variety of reasons, including debt consolidation loans, wedding expenses or auto financing. When taking out a personal loan, it’s wise to have a clear reason, and avoid using it for discretionary spending that could lead to debt accumulation and financial strain, said Dr. Chris Courtney, cognitive neuroscientist and senior vice president of Happy Money, a personal loan lender.

Some popular reasons for personal loans include:

Debt consolidation

Consolidating debt was the top reason individuals in MarketWatch Guides team’s most recent personal loans survey took out a personal loan. Consolidating high-interest debt like credit cards into a lower-interest personal loan can help you save money on interest payments and reduce your debt more quickly, Courtney explained.

“Importantly, Happy Money research has found that people with no credit card debt experience nearly 40% less financial stress than those with $1 or more.”

He added that their data shows that people who use the majority of their loan proceeds to pay down debt are more than twice as likely to keep debt below $1,000 long term.

Car financing or repairs

About 18% of people surveyed by MarketWatch about their personal loan use told us they used a personal loan for car financing or repairs. While personal loan interest rates from a bank are usually a bit higher than auto loans since they’re unsecured, they can be a good option because they’re fast to apply for and you may qualify for longer terms than with a car loan. A personal loan is a solid way to finance if you’re buying a car from a private seller and need to finance it.

Home improvements

The second-most popular reason for taking out a personal loan on our survey was home improvements or renovations. While many people use a home equity loan or line of credit to finance home improvements, these secured loans take time to process and often have origination fees. Personal loans, with their fast approval processes and quick funding, allow homeowners to start their home improvement projects quickly.

Although low-interest personal loans can save you money, it’s wise to chat with a financial adviser or credit counselor first to make sure a loan is the best option for you. 

How to Qualify for Low-Interest Personal Loans

Without a doubt, your best bet to qualify for a lender’s best rates is to get your credit score as high as you can. 

Ways you can improve your score include paying bills on time, reducing existing debt balances, and resolving any errors on your credit report, said Leslie Tayne, financial attorney and founder of Tayne Law Group. Because your payment history accounts for 35% of your FICO calculation, it’s imperative to make on-time payments every month to pay down your loans. 

Tayne also recommended applying with a cosigner if the lender offers this option. “However,” she cautioned, “Be sure the co-signer is aware of their legal responsibilities and comfortable with the risks.” While a cosigner can improve your chances of getting approved or help you get a lower rate, their credit will suffer if you miss a payment. 

Another way you can qualify for lower rates is to consider your repayment term. The shorter your term, the lower your rate will typically be.

Finally, consider rate discounts. Some banks and financial institutions offer 0.25% to 0.50% discounts for autopay or sending payments directly to a debtor.

Calculate Your Personal Loan Payments

Before you apply for a loan, use our personal loan calculator to see whether a personal loan is likely to fit in your monthly budget. The calculator is also a great way to see how different interest rates and terms affect your monthly payments.

If you’re not sure which interest rate to pick, you can use the national average personal loan rate – which was 12.35% in November, according to the latest data from the Federal Reserve. Keep in mind, though, that the interest rate you’ll be offered can vary based on your credit score and existing debt.

Choosing a Low-Interest Loan Lender

While rates are certainly important when comparing lenders, they’re not the only items to pay attention to. You’ll also want to check if the lender offers flexible repayment options, like monthly or biweekly payments or the option to adjust your due date to better fit your budget. Also, consider customer support — you’ll want a lender that’s easy to reach when you have questions. And stay away from origination fees if you can. They’re deducted directly from the amount you’re borrowing, meaning less money in your pocket.

Here’s what else to consider when choosing a bank or financial institution:

• Watch out for hidden fees, such as origination or prepayment penalties. Most of our recommended lenders don’t have origination fees and none of our recommended lenders charge prepayment penalties.
• Check the loan term: Longer terms can mean lower monthly payments but higher overall costs.
• Look for flexible repayment options that match your budget. Lenders on this list have repayment terms from one to seven years (and up to 12 years for home renovation loans).
• Read online reviews or ask friends for recommendations to gauge customer service.
• Talk to a few lenders to see who you feel most comfortable with — they should be transparent and helpful in answering your questions.

Don’t rush. Take your time to find the best low-interest personal loan for your needs.

The Bottom Line: Low-Interest Personal Loans

Methodology 

Our team researched 37 of the most prominent lenders in the U.S., analyzing disclosures, websites and sample loan agreements. To determine the best personal loans, we ranked the top lenders over five categories: affordability, loan features, customer experience, company reputation and accessibility. 

For further insight into consumer banking trends, MarketWatch Guides surveyed 1,000 American personal loan consumers using Pollfish. The results were post-stratified to reflect a nationally representative sample based on age, gender, marital status and household income. Pollfish uses an organic random device engagement method for sampling. To learn more, read our full personal loans methodology.