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The flexibility that comes with a personal loan has made these loans a very appealing option to U.S. consumers. A personal loan can be used for various purposes, since they rarely come with spending restrictions. It’s common for a personal loan to help with debt consolidation, education, home renovation, vacations, weddings, or general emergencies. Personal loans have also become a standard option for people looking to start a new business.

The possibilities are virtually endless with a personal loan. You can find excellent loan terms, with lower interest rates and low APR (annual percentage rates). Whether you have excellent, good, or bad credit, loan options and offers fit your situation with competitive rates.

Most personal loans have interest rates that are locked in at the moment that they are signed. The bad news is that it will make taking out a new personal loan more expensive. You’ll need to look harder than usual to find a personal loan that you can manage safely. However, it’s worth the hard work because it can save you a lot of money in the long run.

Which personal loans have the best interest rates in 2023?

Regarding personal loan interest rates, you need to consider things like interest debt, higher interest rates vs. lower loan payments, lowest rates overall, and fixed interest rates range. Finding loan funds with competitive interest rates is massively essential.

You’ll also want to do a soft credit inquiry or free credit check to gauge your creditworthiness. Most financial institutions — such as banks and credit unions — will check your credit profile and FICO score and look for existing debt (along with loan purpose and assets in any checking accounts or savings accounts) before granting loan approval. Securing even a minimum loan amount or line of credit requires a minimum credit score, which also applies to personal loan lenders.

There are a lot of factors that you will need to take into consideration when applying for a personal loan. Ideally, you should look for the best personal loan offers with low fees, quick funding, a flexible payment structure, and high-quality customer support. While the interest rate is typically the most critical aspect of a personal loan, these are also essential qualities that you should consider.

Here is a list of the four best low-interest loans in 2023:

  1. LightStream
  2. SoFi
  3. Marcus
  4. Happy Money

LightStream is the online lender division of Truist Bank—the new company created when BB&T and SunTrust Bank merged. There is a lot to like about a LightStream personal loan. For starters, the interest rates are among the lowest on this list and typically range from 3.99% to 19.99%. The rates can reach as low as 2.49% if you enroll in autopay and meet other qualifying criteria. LightStream also guarantees to beat competitors’ interest rates by 0.1% if specific requirements are met.

A LightStream loan can range between $5,000 and $100,000 and feature repayment terms between two and 12 years. The funding can be deposited into your account the same day as long as the loan is approved by 2:30 p.m. EST on a typical business day. Another excellent feature of a LightStream loan is that it doesn’t include any origination, late payment, or prepayment fees. LightStream loans are available in all 50 states, Washington D.C., and Puerto Rico.

There are a few downsides to doing business with LightStream. The two most important issues are their strict requirements for loan applications. You’ll need at least a 660 credit score with several years of positive history. You’ll also need an annual income of at least $50,000 to apply. 

Another potential issue is. While LightStream grants personal loans for more than 30 different purposes, there are limitations on what you can spend the money on. Other common complaints include no due date flexibility, no online prequalification process, a higher minimum amount for borrowing, and no direct payments to creditors when taking out a debt consolidation loan.


SoFi is an American online personal finance company based in San Francisco. SoFi has quickly become one of the country’s premier loan lenders for various reasons. One such reason is their interest rates, which usually range from 6.99% to 23.43%. SoFi also offers a discount of up to 0.25% for setting up an autopay option for your loan. By borrowing from SoFi, you’ll become a company member and be granted eligibility for various additional benefits. 

A SoFi loan can range between $5,000 and $100,000 and comes with repayment terms between two and seven years. It will usually take you a few days to receive your funding, but it may be transferred within one or two days. SoFi doesn’t charge any additional fees for their loans, has an unemployment protection program, and prequalification is possible with just a soft credit check.

The most significant issue with a SoFi personal loan is its strict eligibility requirements. You’ll need a credit score of at least 680 to qualify and an annual income over $45,000. There are also pretty severe limitations on what your loan can be spent on. A SoFi loan will have to be used for personal, family, or household purposes. Other common issues are that SoFi doesn’t allow for co-signers and doesn’t make direct payments to creditors for debt consolidation loans.


Marcus by Goldman Sachs is an online-only banking option made available by Goldman Sachs Bank USA. These loans include several beneficial features that make them ideal for most consumers. The interest rates typically range from 6.74% to 19.74%, but service members can qualify for rates as low as 4%. Marcus loans also come with an autopay discount of up to 0.25%. 

Marcus loans are available for between $3,500 and $40,000, with three to six years of repayment terms. One of the best benefits of a Marcus loan is that you can defer a monthly payment without interest after a year of making on-time payments. Another benefit is that you can change the amount due date up to three over the life of the loan. There is no sign-up, late payment, or prepayment fees and applications only require a soft credit pull. Unlike its competitors, Marcus does pay directly to third-party lenders for debt consolidation loans.

The biggest issue with Marcus is that qualifications for loans can be vague. They don’t list credit score requirements, which is usually an indicator that a company requires excellent credit. The minimum annual income of $35,000 is lower than other options on this list but can still be tough since Marcus doesn’t allow co-signers or joint applications. 

Another significant issue is that Marcus has fairly strict spending requirements on their loans. For example, you can use a Marcus loan to refinance existing student loans. The last drawback to a Marcus loan is that it usually takes around four days to receive the funding to your bank account.


Happy Money (previously known as Payoff) is a financial company that offers a variety of financial products and services. This option is slightly different from the others on this list because it can only be used to pay off credit card debt. The interest rates are among the lowest in the industry and range from 5.99% to 24.99%. These rates are much lower than the average credit card, which makes Happy Money the ideal candidate for paying off credit card debt. 

Happy Money loans are available for between $5,000 and $40,000, with repayment terms between two and five years. There are no prepayment penalties or late fees, and Happy Money doesn’t require a hard credit check during the application process. 

The main issue with Happy Money is that their loans can only be used to pay off credit cards. If you don’t have credit card debt, then a Happy Money loan won’t be helpful to you. 

There are also strict requirements, such as a credit history of at least three years, at least two open accounts on your credit report, zero credit delinquencies, no bankruptcies within the last two years, and a maximum debt-to-income ratio of 50%. 

Additionally, you’ll need a credit score of at least 600 and a minimum annual income of $30,000. Happy Money charges an origination fee of as high as 5%, and funding usually takes at least three days.

Find a low-interest loan and save yourself some money

It’s no secret that the current times are callous for many Americans. The pandemic’s financial and economic ramifications will be felt for a very long time. More people are relying on personal loans to cover the costs of their various projects. Unfortunately, that typically causes the interest rates of new loans to increase.

These elevated interest rates mean that now may not be the best time to take a personal loan. However, if you need the money right now, you should start with the list featured above. 

On the other hand, it might be a good idea to consider applying for a credit card instead. Depending on how much you need and when you can pay it back, it might be better to use a credit card with credit that resets every statement cycle.  

Whatever you decide, make sure to take the time to consider all of your options before agreeing to anything. The last thing you want to deal with in today’s economy is being saddled in debt. Climbing out debt is tricky, so make sure you can handle whatever debt you take on. 


Information provided on Entrepreneur Guide is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, we do not recommend or advise individuals to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results

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