Making wise decisions when borrowing money is key to maintaining a healthy financial life. Personal loans are versatile tools that can help cover many needs, such as consolidating debt, handling unforeseen expenses, or making large purchases. One of the most important details to assess when selecting a loan is the interest rate, as it directly affects how much you'll repay in total. Whether you're new to personal loans or an experienced finance-savvy individual, identifying low-interest loan options can save you substantial amounts over time. We’ll provide an updated look at the top personal loans with competitive interest rates for 2025 and share tips to help you choose the right one for your needs.

Why Low Interest Rates Matter

Interest rates determine how much you’re charged to borrow money. When you take out a loan, you repay the original borrowed amount (the principal) along with interest, which is the lender's fees for providing you with funds. Lower interest rates mean paying less in the long run. For example, borrowing $10,000 at an interest rate of 6% over five years could cost you around $1,600 in interest. If the rate increases to 12%, your interest charges more than double to over $3,300. That’s why choosing a loan with a lower rate is critical for saving money.

Factors That Influence Personal Loan Interest Rates

Several factors determine the interest rates offered by lenders. Here are the key ones:

  1. Credit Score - A higher credit score indicates you're financially reliable, making you eligible for lower rates.
  2. Income Stability - Consistent income reassures lenders that you'll repay the loan.
  3. Debt-to-Income Ratio (DTI) - A low DTI, which is the share of your income that goes toward debt repayment, suggests you manage your finances well.
  4. Loan Type and Repayment Term - Longer-term loans typically have higher interest rates, while short-term or secured loans often carry lower rates.

With these factors in mind, here’s a review of the best personal loan options with competitive rates in 2025.

1. LightStream Personal Loans

Rate Range: Starting as low as 6.94% (with autopay)

Loan Amounts: $5,000 - $100,000

Best For: Borrowers with excellent credit

LightStream, a division of Truist Bank, continues to offer some of the most competitive rates for well-qualified borrowers in 2025. This option is ideal for those with a credit score of 700 or higher. The application process is fully digital, with same-day funding available for many applications. LightStream also offers significant flexibility, making it a great choice for various borrowing purposes.

Use their rate-beat program, which guarantees to beat a competitor's rate by 0.10 percentage points under certain conditions. It’s an excellent way to secure the lowest market rates.

2. SoFi Personal Loans

Rate Range: Starting at 8.99% (fixed rates with discounts)

Loan Amounts: $5,000 - $100,000

Best For: Borrowers interested in added member benefits

While its minimum interest rate is slightly higher than that of some competitors, SoFi offers value beyond just competitive rates. If you take out a loan with them, you gain access to resources such as financial planning tools, career coaching, and networking opportunities at no additional cost. You’ll also avoid any fees, including origination, late payment, or prepayment penalties, making managing your loan straightforward.

If you’re eligible, take advantage of the 0.25% rate discount for autopay and an additional 0.25% for direct deposit to further reduce your borrowing costs.

3. Marcus by Goldman Sachs

Rate Range: Starts as low as 6.99%

Loan Amounts: $3,500 - $40,000

Best For: Debt consolidation

Marcus remains a standout option for consolidating high-interest debt into a single, lower-interest loan. The platform is known for its transparency, not charging any fees whatsoever (no late fees, origination fees, or prepayment penalties). This makes it perfect for borrowers striving for predictable payments and savings over time.

Marcus rewards borrowers who make 12 consecutive on-time payments. You can defer one payment without interest accruing on the deferred amount during that period.

4. Discover Personal Loans

Rate Range: Begins at 6.99%

Loan Amounts: $2,500 - $40,000

Best For: Flexible loan repayment terms

Discover offers highly flexible repayment terms of 36 to 84 months, ensuring you can tailor your payments to fit your budget. The lender imposes no fees, including origination or prepayment penalties, ensuring that more of your money goes toward paying off the principal. Loans typically require at least a good credit score to achieve the lowest available rates.

Take advantage of their 30-day satisfaction guarantee, which allows you to return the loan without any associated interest if you decide it’s not the right fit.

Tips for Securing the Best Personal Loan in 2025

Navigating through options can be challenging, but these tips can help you lock in the best rates and terms:

Review Your Credit Report

Begin your research by checking your credit score and resolving any inaccuracies. A higher score often results in better offers.

Shop Across Multiple Lenders

Comparing rates and terms from various lenders can potentially save you thousands of dollars over the life of the loan.

Opt for Autopay Discounts

Many lenders, like LightStream and Sofi, provide rate discounts if you set up automatic payments. Enrolling can lower your interest and simplify your repayment process.

Use Loan Calculators

Online tools help estimate your monthly payments and total costs, enabling you to make informed choices that align with your budget.

Understand Fees and Penalties

Even with lenders that advertise "no fees," it’s always wise to read the fine print for any hidden costs that could impact your repayment plan.

You can confidently choose a loan that meets your needs by comparing rates, terms, and added perks. Remember, a little research upfront can go a long way in ensuring your borrowing experience is both affordable and stress-free.