8 Best Personal Loan Companies in 2022

 LendingClub

Best for: Borrowers who need a cosigner

If you need a cosigner, LendingClub could be a good choice — it’s one of the few lenders that allow cosigners on personal loans. You can borrow $1,000 to $40,000 with a three- or five-year repayment term.

Pros

Accepts borrowers with poor or fair credit

Allows cosigners

Being turned down doesn’t hurt your credit score

Cons

Origination fees from 3% to 6%

Charges late fees

Funding time can be longer compared to other lenders

LendingPoint

Best for: Borrowers with near-prime credit

LendingPoint specializes in working with borrowers who have near-prime credit — usually meaning a credit score in the upper 500s or 600s. With LendingPoint, you can borrow $2,000 to $36,500 with terms from two to five years.

Pros

Accepts near-prime credit

Streamlined approval and application process

Fast loan funding

Cons

Origination fees from 3% to 6%

Not available in Nevada or West Virginia

Rates can be higher than other lenders

LightStream

Best for: Large loan amounts

LightStream could be a good option if you need to borrow a large amount — you can borrow $5,000 to $100,000 and could have your funds as soon as the same business day if you’re approved.

Most LightStream loans have terms ranging from two to seven years, but if you use your loan for home improvements, you could have up to 12 years to repay it.

Pros

Can borrow up to $100,000

Fast loan funding

0.50% autopay discount

Cons

Might be difficult to qualify if you have poor credit

Not available in Rhode Island or Vermont

Doesn’t disclose minimum income requirements

Marcus

Best for: Budget-friendly repayment options

With Marcus, you can borrow $3,500 to $40,0002 with terms ranging from three to six years. Marcus personal loans offer tailored monthly payment options designed to fit your budget — plus the option to defer one monthly payment interest-free after making 12 consecutive, on-time payments.

Pros

No fees

0.25% autopay discount

Can defer one monthly payment interest-free after making 12 consecutive, on-time payments

Cons

Might be difficult to qualify if you have poor credit

Doesn’t disclose minimum income requirements

Can have longer funding time compared to other lenders

OneMain Financial

Best for: Borrowers with below-average credit

Unlike many other lenders, OneMain Financial doesn’t have a minimum required credit score — which means you might be able to qualify with poor or even no credit. In addition to your credit, OneMain Financial will also consider your financial history, credit history, income, expenses, and loan purpose to determine creditworthiness.

You can borrow $1,500 to $20,000 with terms from two to five years. Keep in mind that collateral might be required in some cases.

Pros

No minimum credit score

Fast loan funding

Previous customers might qualify for larger loans

Cons

Rates can be higher than other lenders

Might require collateral

Will have to visit a branch location to discuss your options if you’re approved

Payoff

Best for: Consolidating credit card debt

If you’re looking to consolidate credit card debt, Payoff could get a good option — its personal loans can only be used for this purpose. You can borrow $5,000 to $40,000 with repayment terms from two to five years.

Pros

Free FICO score updates

If you lose your job, FreedomPlus will work with you on payments

Offers scientific personality, stress, and cash flow assessments to help you get a better understanding of your personal finances

Cons

Origination fees from 0% to 5%

Loans can only be used for credit card consolidation

Not available in Massachusetts, Nevada, or Ohio

PenFed

Best for: Borrowers who need a cosigner

If you only need a small loan, PenFed could be a good option — you can borrow as little as $600 up to $50,000 with terms from one to five years.

Keep in mind that while you don’t have to be a PenFed member to apply for a loan, you’ll have to join the credit union if you are approved and want to accept the loan.

Pros

Can borrow as little as $600

Allows cosigners

No fees

Cons

Must join the credit union to accept a loan if you’re approved

Doesn’t disclose minimum income requirements

Funds are disbursed by mail, which can take longer

Prosper

Best for: Home improvement loans

Prosper offers personal loans from $2,000 to $40,000 with three- or five-year terms. Keep in mind that because Prosper is a peer-to-peer lender, loan funding can take longer compared to other lenders — however, you might also get your funds in as little as one business day.

Pros

No minimum income requirement

No prepayment penalty

Can borrow up to $40,000

Cons

Origination fees from 2.4% to 5%

Charges late fees

Not available in Iowa or West Virginia

  

10 Apps - Interest-free Online Loan Application in 2022

1. SmartCoin – Mobile Personal Loan App

SmartCoin is a FinTech company with a mission to offer its customers a user-friendly and scalable lending platform. It is a personal loan app in India that provides instant loan for individuals looking for short-term personal loans. Use its mini loan app to get loans from ₹ 1,000 to ₹ 25,000.

The company caters to all profiles like support executives, business owners, salaried professionals, managers, stay-at-home moms, teachers and more with no minimum limit on the salaries, unlike other personal loan apps.

2. Home Credit – Mobile Personal Loan App

Home Credit India is a part of the international Home Credit Group that has a presence across ten countries in Europe and Asia. The India chapter started in 2012 and it already has operations in over 60 cities across 15 states.

The personal loan app sanctions personal loan of up to ₹2 Lakh with a repayment tenure ranging from 9 months to 4 years. The instant loan app in India makes financial services simple, transparent and easily accessible to you.

3. LazyPay – Mobile Personal Loan App

LazyPay is powered by PayU. You just need to enter your mobile number to find out your personal loan eligibility. With quick approvals and safe online loan application processing, LazyPay disburses 1 million+ loans every month.

Its key offerings include pocket-friendly EMIs, an instant personal of up to ₹ 1 Lakh through an easy digital process with minimal documentation.

4. Flexsalary – Mobile Personal Loan App

This company has planned its product to take on personal loans. Thus, its features are in sharp contrast to those of personal loans.

One-time application, one-time approval, instant disbursals, the option to access the credit anytime, the option to decide the loan tenure, and a flexible repayment policy are a few hallmarks of Flexsalary.

The company has no fixed EMIs and provides instant approval, making it function as an advance salary loan app.

5. Bajaj Finserv – NBFC and Mobile Personal Loan App

Bajaj Finserv offers personal loans that are instantly approved and disbursed within just 24 hours. These collateral-free loans are offered to women, government and public sector unit (PSU) employees, schoolteachers, college professors and more.

The personal loans are offered with a feature to reduce your instalment by up to 45% by paying interest-only EMIs. Once approved, you borrow as much as you need from your approved loan amount without the hassle of reapplying for the loan.

6. Rupeelend – Mobile Personal Loan App

Rupeelend, launched in 2015 is a digital finance company that offers short-term credit to individuals and businesses. Currently, it operates in Bangalore, Mumbai and NCR. The personal loan online application process takes just 3 minutes with a promise of quick loan decisions. Rupeelend is a secure and trustworthy personal loan app for short term emergencies.

7. Upwards – NBFC and Mobile Personal Loan App

Upwards claims to be India’s quickest personal loan provider for salaried individuals looking for short-term loans between ₹15,000 – ₹1,00,000. Upwards offers hassle-free personal loans to people across various job profiles such as teachers, accountant, nurses, software engineers, retail store employees and more with a minimum salary of ₹15,000.

8. StashFin Mobile Personal Loan App

StashFin is one of the best online loan apps in India. The startup was founded by a team of experienced financial services professionals with an aim to make lending easier for people in India.

The team has worked with various disciplines that include customer experience, technology and process re-engineering and through its collective experience, StashFin aims to deliver best in class services and superior convenience to its customers.

9. Mobikwik Mobile Personal Loan App

Personal loans are small unsecured loans taken for personal uses such as funding a vacation,household repairs, tuition fees etc. By Unsecured, we mean that loans are available without any collateral or security. A user can avail instant personal loans online via MobiKwik. MobiKwik offer instant personal loan and the instant loan online can be availed without pledging any security. A user has to provide only a few basic details to avail the instant personal loan online. Personal loan online on MobiKwik comes with various benefits.

10. QuickCredit.in Mobile Personal Loan App

Get your mini cash loan approved within minutes. If you’re looking for instant cash loan to meet your urgent needs, we are here! Get loan without any physical verification and documentation in 1 hour with our AI-based system.

5 Best Personal Loan Companies

 

5 Best Personal Loan Companies

A personal loan can help you cover almost any personal expense — but before you get one, it’s important to compare as many lenders as you can to find the right loan for you.

As you consider lenders, keep in mind that the best personal loans should provide competitive interest rates, a wide selection of loan terms, and inclusive eligibility requirements.

Avant

Best for: Borrowers with poor credit

With Avant, you can borrow $2,000 to $35,000* with repayment terms from two to five years**. If you’re approved, you could get your funds as soon as the next business day.

Pros

• Accepts poor and fair credit scores
• Fast loan funding
• Variety of loan uses

Cons

• Not available in Colorado, Iowa, Hawaii, Vermont, Nevada, New York, or West Virginia
• Origination fees up to 4.75%
• Charges late and dishonored payment fees

Axos Bank

Best for: Borrowers with excellent credit

Axos Bank offers personal loans from $5,000 to $35,000 with repayment terms from one to five years. If you’re approved, you could get your funds as soon as the next business day.

Keep in mind that you’ll need good to excellent credit to qualify for a loan from Axos Bank.

Pros

• Fast loan funding
• Variety of loan uses
• No prepayment penalty

Cons

• Could be difficult to qualify if you don’t have good credit
• Origination fees from 0% to 2%
• Charges late and insufficient funds fees

Best Egg

Best for: Borrowers with good credit

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With Best Egg, you can borrow $2,000 to $50,000 with terms from two to five years. In addition to your credit score, Best Egg also considers more than 1,500 proprietary credit attributes from sources that include external data providers and your “digital footprint” — which means you might have an easier time qualifying with Best Egg compared to traditional lenders.

Pros

• Competitive rates
• Fast loan funding
• Accepts borrowers with poor and fair credit

Cons

• Origination fees from 0.99% to 5.99%
• Charges late fees
• Not available in Iowa; Vermont; Washington, D.C.; or West Virginia

Discover

Best for: Long repayment terms

If you’re looking for a longer repayment term, Discover might be a good option for you — you can borrow $2,500 to $35,000 with terms from three to seven years. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.

Pros

• Repayment terms up to seven years
• No origination fees
• If you decide you don’t want the loan, you can return the funds within 30 days interest-free

Cons

• Charges late fees
• Might be difficult to qualify if you have poor credit
• No discounts

FreedomPlus

Best for: Consolidating high-interest debt

FreedomPlus personal loans range from $10,000 to $50,000 with terms from two to five years. If you use at least 85% of your loan proceeds to pay off existing debt, you could get a better rate. You might also qualify for a lower rate by adding a cosigner or showing proof of retirement savings.

Pros

• Could get a better rate by using at least 85% of the loan to consolidate debt, adding a cosigner, or showing proof of retirement savings
• Quick approval decisions
• Fast loan funding

Cons

• Must borrow at least $10,000
• Origination fees from 1.99% to 4.99%
• Not available in Nevada

What Are the Best Online Loans?

 You can get just about anything online, including loans to buy a house, pay off high-interest debt, go to school or start a business. Some online loans can be approved in less time than it takes to drive to a bank branch.

As with any financial product, you will want to work with a reputable company and make sure your loan is a good fit for you.

Best for loans of up to $100,000 with no fees

SoFi, short for Social Finance, offers personal loans of up to $100,000. The lender operates nationwide and is known for offering loans with no fees. In addition to personal loans, SoFi offers student loans, student loan refinancing, home loans and small business financing.

Best for low minimum loan amounts

PenFed Credit Union serves members of all branches of the U.S. military, employees of the Department of Defense and Department of Homeland Security, eligible veterans and retirees, and their families. However, everyone is eligible for membership. The credit union offers personal loans for eligible members and eligible co-borrowers in all 50 states, as well as in Guam, Puerto Rico and Okinawa, Japan.

Best for no origination fee

Marcus is the consumer bank and lending arm of investment bank Goldman Sachs. Established in 2016, the lender offers personal loans of up to $40,000.

Best for low interest

LightStream is the national online consumer lending division of SunTrust Bank, which recently became Truist after merging with BB&T. LightStream's online personal loans can be as large as $100,000 and used for nearly any reason. Personal loans are available to borrowers with good to excellent credit in all 50 states.

Best for debt consolidation

Payoff offers personal loans designed to consolidate credit card and other high-interest debt. It operates in all but three states and provides loans of up to $40,000.

Payoff is not a bank; instead, it works with lending partners that originate the loans. The company, which considers itself a financial wellness firm, is based in California.

In 2017, Payoff launched a sister company called Happy Money, which takes a psychological approach to money matters. Today, Payoff is a service under the Happy Money umbrella.

Pros and Cons of Personal Loans

 

Pros and Cons of Personal Loans

Pros

Depending on the lender, borrowers can potentially receive funds for personal loans in as little as one business day.

Personal loans can help borrowers consolidate high-interest credit card debt and pay it off faster at a lower interest rate.

Personal loans are delivered as a lump sum.

Personal loans are typically unsecured, so the borrower doesn’t have to use collateral.

Cons

Depending on the lender, borrowers may have to pay origination fees, or even prepayment fees.

A personal loan may have a higher APR than other options, such as a 0% credit card or a home equity loan, depending on creditworthiness and other factors.

Personal loans may be difficult for consumers with fair credit or below to obtain.

Who Can Get a Personal Loan?

Who Can Get a Personal Loan?

Lenders often set minimum requirements and will likely look at your credit score, payment history, income and debt-to-income ratio.

If you’re furloughed or unemployed, the lender may ask you for documentation that indicates when you’ll return to work, such as your furlough letter or a job offer.

Age eligibility requirements can vary by lender or by state and territory laws. Generally, consumers must be 18 to apply, but some states may require borrowers to be 19 or 21.

If you’re applying for a secured loan, the lender will also consider your collateral.

Should You Get a Personal Loan?

Although they won’t work for everyone, personal loan might make sense in certain situations. You may consider applying for a personal loan if you have an emergency expense, need to make a large purchase or want to consolidate some of your high-interest debts.

There are times when a personal loan might not be the best option, though. While personal loans can be used as home improvement loans, for example, you may want to consider a home equity loan instead if you don’t mind using your home as collateral. And for some types of special purchases, such as a wedding or a vacation, it’s best to plan and save so you can pay cash rather than take out a personal loan.

How to Apply for a Personal Loan?

How to Apply for a Personal Loan?

Follow these steps to apply for a personal loan:

1. Get preapproved rates. Make sure the lenders you’re requesting rates from will obtain them using a soft credit inquiry. When you request a rate quote, you’ll provide your personal information, such as your address, income and Social Security number, on the lender’s secure website. You’ll indicate the amount you want to borrow, the reason for borrowing and the repayment term length you prefer.

Once you give these details, you’ll be informed of rates and how to formally apply for a loan.

2. Compare offers. Research different lenders to find the best personal loan interest rate.

3. Choose your top one or two lenders. Then formally complete your loan application, which will trigger a hard credit inquiry on your credit report. Keep in mind that even with good credit, you won’t be guaranteed approval or a particular interest rate.