Personal loans are a popular financial product for individuals looking for flexibility and financial relief. Whether you need to pay off high-interest credit card debt, fund a large purchase, or cover unexpected expenses, the right personal loan can provide the funds you need at affordable rates. However, with so many options available, it’s essential to choose the best personal loan for your needs.
In this article, we’ll explore the best personal loans for 2025, factors to consider when selecting a loan, and tips for securing the best deal.
What Makes a Personal Loan the “Best”?
When evaluating personal loans, you should look for several key factors to ensure you're getting the best deal. These factors include:
- Interest Rates: Lower interest rates are always preferable, as they reduce the total cost of the loan. The best personal loans offer competitive interest rates, often starting at a lower APR for qualified borrowers.
- Loan Terms: The best personal loans offer flexible repayment terms. Some may offer short-term loans (1–3 years), while others might provide longer repayment periods (5–7 years).
- Fees: Ideally, the best personal loans come with minimal fees. Look for loans with no origination fees, early repayment penalties, or hidden charges.
- Loan Amounts: Depending on your needs, you may need to borrow a small or large sum. The best personal loans can accommodate a wide range of loan amounts to fit various financial situations.
- Lender Reputation: The lender’s reputation and customer service matter. Opt for lenders with positive reviews and a proven track record for reliable service.
Top Personal Loan Lenders for 2025
Here are some of the best personal loan lenders to consider in 2025, based on interest rates, loan terms, customer service, and application processes:
1. LightStream Personal Loans
Best For: Borrowers with good to excellent credit
Interest Rates: Starting at 5.73% APR (with autopay)
Loan Amounts: $5,000 to $100,000
Loan Terms: 2 to 12 years
Fees: No fees
Why Choose LightStream? LightStream, a division of SunTrust Bank, offers some of the lowest rates in the personal loan market. With loan amounts as high as $100,000 and no fees, it’s an excellent choice for borrowers with good to excellent credit who need a larger loan. LightStream also offers flexible loan terms and same-day funding for qualified applicants.
2. SoFi Personal Loans
Best For: Borrowers who need flexible terms and may want to refinance later
Interest Rates: Starting at 7.99% APR (with autopay)
Loan Amounts: $5,000 to $100,000
Loan Terms: 2 to 7 years
Fees: No fees
Why Choose SoFi? SoFi is a well-known online lender that offers competitive interest rates and a variety of loan amounts and terms. They provide unique benefits like career coaching and financial planning, making it a good choice for those seeking added value beyond just the loan. SoFi also doesn’t charge fees, making it an appealing choice for those looking to avoid unnecessary costs.
3. Marcus by Goldman Sachs
Best For: Borrowers with good credit looking for a reliable lender
Interest Rates: Starting at 6.99% APR (with autopay)
Loan Amounts: $3,500 to $40,000
Loan Terms: 3 to 6 years
Fees: No fees
Why Choose Marcus? Marcus by Goldman Sachs offers competitive rates for borrowers with good credit, and its no-fee structure makes it an attractive option for those seeking low-cost personal loans. With customizable loan terms and a simple application process, Marcus is a popular choice for a wide variety of borrowers.
4. Discover Personal Loans
Best For: Borrowers who value reliable customer service
Interest Rates: Starting at 6.99% APR (with autopay)
Loan Amounts: $2,500 to $35,000
Loan Terms: 3 to 7 years
Fees: No fees
Why Choose Discover? Discover offers low rates and flexible repayment options, making it a top contender for the best personal loan. Its well-established reputation and excellent customer service set it apart from other lenders. Discover also offers a 30-day return policy, so if you change your mind about the loan, you can return the funds with no penalty.
5. Avant Personal Loans
Best For: Borrowers with fair to good credit
Interest Rates: Starting at 9.95% APR
Loan Amounts: $2,000 to $35,000
Loan Terms: 2 to 5 years
Fees: No prepayment penalties, but some fees may apply
Why Choose Avant? Avant offers personal loans to borrowers with less-than-perfect credit. While its interest rates are slightly higher than other lenders, it’s still a great option for those with fair or average credit. Avant’s streamlined online application process and quick approval times make it a convenient option for borrowers who need funds fast.
6. Upstart Personal Loans
Best For: Borrowers with limited credit history
Interest Rates: Starting at 6.18% APR
Loan Amounts: $1,000 to $50,000
Loan Terms: 3 to 5 years
Fees: No fees
Why Choose Upstart? Upstart uses a unique underwriting process that considers factors beyond your credit score, such as education and employment history, which makes it a great option for young borrowers or those with limited credit history. It offers competitive rates and a fast approval process, making it one of the best personal loan options for those new to credit.
Factors to Consider When Choosing the Best Personal Loan
Before you apply for a personal loan, it’s important to consider several key factors that will affect the overall cost and suitability of the loan for your needs:
- Credit Score: Your credit score will have a significant impact on the interest rate you’re offered. Borrowers with excellent credit typically receive the lowest rates, while those with lower scores may face higher rates or may need to seek lenders that specialize in bad credit loans.
- Loan Amount: Consider how much you need to borrow. Some lenders offer loans up to $100,000, while others have lower limits. Borrow only what you need to avoid taking on unnecessary debt.
- Repayment Terms: Choose a loan term that fits your budget. Shorter terms generally come with higher monthly payments but lower interest costs over the life of the loan. Longer terms result in lower monthly payments but can lead to higher total interest costs.
- Loan Fees: Always check for fees such as origination fees, late payment fees, or prepayment penalties. The best personal loans come with no fees or only minimal charges.
- Lender Reputation: Research lenders’ customer service and reputation before making a decision. Look for online reviews, ratings, and complaints to gauge the reliability of the lender.
Conclusion
Finding the best personal loan in 2025 involves comparing different lenders and evaluating key factors like interest rates, loan terms, and fees. Whether you’re looking for a small loan to cover an emergency expense or a larger loan to consolidate debt, there are options available for various financial situations.
By carefully considering your needs and researching the best personal loan options, you can secure a loan with favorable terms and get the financial help you need at an affordable cost.
