A low-interest personal loan is any loan that has an interest rate under the current market average. To qualify, you will need excellent credit and good finances — and the willingness to compare lenders to see which is willing to give you the most competitive offer.
What is considered a low interest rate for a personal loan?
Top lenders like LightStream, Upgrade and Achieve all have a starting annual percentage rate (APR) under 8 percent. But provided you have excellent credit and strong income, you may be able to qualify for a low-interest personal loan with an APR under 10 percent.
Interest rates on loans fluctuate significantly with the rest of the finance market. Because they have increased over the last year, even borrowers with good credit could still face rates over 10 percent. You are unlikely to find any lender offering an APR under 7 percent.
This also affects what lenders and borrowers consider a low rate. While it won’t be as low as it might have been a few years ago, it can still be a competitive rate when compared to the rest of the current market.
Where do you get a low-interest personal loan?
Low-interest personal loans are just like any other loan — they just cost less. You can find competitive, low rates with online lenders, banks and credit unions. However, you may need to meet some additional requirements to score the absolute lowest rate available.