P2P Lending

The Best Online Personal Loan Rates and Offers

If you need a loan, we’ve put together this list of the best online personal loan rates available today. We include both traditional lending and peer-to-peer options.

Editor's Note

You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author's alone. This content has not been provided by, reviewed, approved or endorsed by any advertiser, unless otherwise noted below.

Not too long ago there was one option for those needing a personal loan--the local bank. The application process was long and tedious. It was difficult and time consuming to compare rates. And fees were often extremely high.

P2P lending sites and other online financial institutions have changed the way we shop for a personal loan. These sites allow you to build a custom loan without having to go through the often grueling underwriting process for which banks have become infamous. Furthermore, you can usually complete the entire process online. It eliminates uncomfortable and inconvenient face-to-face meetings with loan officers.

In this article we'll cover the leading online unsecured loan options. For each will look at their interest rates, loan terms, fees, and credit score requirements.

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Why Get a Personal Loan

The number one reason consumers get personal loans is to refinance existing debt. Lowering your interest rates is a smart way to reduce your monthly payment and shorten the time it takes to become debt free. For those looking to transfer high interest credit card debt to a 0% card, you’ll find several options here. For those looking to refinance other types of debts, the options below are your best bet.

Related: What is a Good Interest Rate for a Loan?

Beyond refinancing, many seek unsecured loans to consolidate several debts into one convenient loan. This too can be a smart move, although you need to always keep the interest rates and fees in mind. You don't want to opt for the convenience of a loan consolidation if it's going to increase your cost of borrowing.

How to Choose the Best Option

As you read through the options below, you can use this guide on how to choose the best option for you:

  • Excellent Credit: For those with excellent credit and a good income, SoFi is the best choice. It offers the lowest rates, fixed and variable rate loans, no fees, and protections should you lose your job.
  • Good Credit: If you have good credit, LendingClub is a smart option. Their minimum credit score is 660.
  • Average Credit: For those with average credit, both Prosper and Upstart may be a good fit.
  • Small Business Loans: All of the lenders on this list provide lending to individuals looking to fund a small business. Funding Circle, however, specializes in business loans.

Best Personal Loan Options

1. LendingClub

LendingClub is perhaps the best known of all P2P lending platforms and generally gets the highest rating. The platform is virtually synonymous with P2P lending for a reason. The site has made loans worth $22 billion dollars since it started in 2007, with most offering rates and terms better than what you can get at a bank.

The entire application process takes place on the website and is completely anonymous. In fact, investors typically buy notes, which are small slivers of many loans, rather than funding an entire loan at once. So many investors, possibly even hundreds, will chip in.

You can borrow as much as $40,000 with terms of between 36 and 60 months. LendingClub has no application fees or prepayment penalties, though you do have to pay an origination fee of between 1% and 6% of your loan amount. Rates are based on a credit grade that the platform assigns you based on your credit score, the loan amount, and other factors.

LendingClub offers debt consolidation, personal loans, medical loans (up to $50,000), Auto Refinancing, or Business Loans. Business loans can be for up to $300,000! To qualify for a business loan, you must be in business for at least two years, have more than $75,000 in annual sales, own at least 20% of the business, have fair or better credit, and no recent bankruptcies or tax liens. LendingClub requires no collateral for loans of less than $100,000, and has no requirement for appraisals, business plans, or business projections.

LendingClub Summary:

  • Loan Amount: $1,000 to $40,000
  • Loan Terms: 3 or 5 years
  • Fees: 1% to 6%
  • Prepayment Penalty: No
  • Credit Needed: Minimum Credit Score of 600
  • To Get Started: Visit Lending Club

2. Monevo

Monevo is an online personal loan marketplace. They work with more than 30 lenders, including some on this list (Lending Club, Prosper, SoFi, Upstart and Best Egg). Others include Payoff, Marcus: by Goldman Sachs, Avant, Barclays, Upgrade and LightStream.

You complete a one-page application indicating the purpose of your loan and your estimated credit score. Borrow up to $100,000 for just about any purpose, including debt consolidation, purchasing a car, student loan refinancing, moving and relocation, medical or dental expenses, or even for business purposes.

The application will request very specific information, including your name, date of birth, contact information, highest level of education, monthly house payment, employment status, annual income, and your Social Security number. The platform does a soft credit pull," which will not impact your credit score.

Once your information has been submitted, you'll receive offers from lenders that provide the type of loan you need, as well as the loan terms based on your financial situation and estimated credit score. You can then choose the lender and loan program that will work best for you.

It’s important to understand that Monevo is not a direct lender. The platform merely serves to connect you with direct lenders. The final application, as well as the loan itself, will be provided by the specific lender you select. Pricing, terms, and loan fees will be set by that lender. As is always the case with a loan marketplace, the main benefit is the ability to investigate loan opportunities with multiple lenders, through the same web platform and application.

Monevo Summary:

  • Loan Amount: $500 to $100,000
  • Loan Terms: 12 months to 144 months
  • Fees: Not indicated, but varies by lender selected
  • Prepayment Penalty: Not indicated, but varies by lender selected
  • Credit Needed: Minimum credit score of 450
  • To Get Started: Visit Monevo

Related: Monevo Review

3. Credible

Founded in 2012, Credible offers a variety of loan options for consumers. In addition to offering fresh student and personal loans, they also offer student loan refinancing (something I took advantage of earlier this year).

What makes Credible different is that they’re a search engine of sorts, not the loan provider. In fact, every other name you find on this list is offered as a personal loan through the Credible search process. You only have to fill out one initial form and your information is then used to provide you the best options from a long list of loan providers. Credible doesn’t charge fees to use its service.

After you've completed the short form, Credible will provide you with a list of all available lenders. After you select one of them, Credible will then ask for more information to get your application started (usually takes no more than five minutes). Once that is complete, you'll likely be contacted by the loan provider to verify your application.

When complete, a decision is made on whether or not you're approved and the underwriting process can begin.

Credible Summary:

  • Interest Rates (Fixed): Rates starting at 4.49% APR (with AutoPay), See Terms*
  • Loan Amount: $1,000 to $50,000
  • Loan Terms: 3
  • Fees:1% to 6%
  • Prepayment Penalty: No
  • Credit Needed: No listed minimum; typical client has a credit score starting at 700
  • To Get Started: Visit Credible

4. Prosper

Prosper is another popular P2P lending platform, so much so that it is often mentioned in conjunction with LendingClub. Prosper launched its P2P platform in 2005, two years before LendingClub. In that time, it has made over $4 billion in loans to more than a quarter million borrowers. Prosper makes loans in all states except Iowa, Maine, and North Dakota.

Loan amounts range from $2,000 to $40,000. Origination fees are between 2.41% and 5% of the loan amount, and there is no prepayment penalty. Loan terms are either 36 or 60 months. All their loans are fixed rate and self-amortizing. Loans are unsecured and can be used for any purpose.

You create a loan listing on the site, which is a request for a loan from investors. Much like LendingClub, Prosper assigns you a credit rating which forms the basis of the rate you are charged for your loan. Prosper will fix the rate once your loan investors fund your loan and you pass Prosper’s verification process.

Prosper Summary:

  • Loan Amount: $2,000 to $40,000
  • Loan Terms: 3 or 5 years
  • Fees: 2.41% to 5%
  • Prepayment Penalty: No
  • Credit Needed: Minimum Credit Score of 640
  • To Get Started: Visit Prosper

5. SoFi

Sofi is an online lending platform that specializes in refinancing and consolidation loans. While it is best know for refinancing student loans, it also offers unsecured personal loans. Founded in 2011, SoFi has made over $30 billion in loans. The loans are funded by both institutional investors and alumni investors. SoFi represents one of the few lending sources dedicated to providing refinancing for both federal and private student loans.

The minimum loan amount is $5,000, and SoFi offers loans up to $100,000.They can be fixed rate or variable, with terms of two - seven years. SoFi does not charge an application fee, loan origination fees or prepayment penalty fees.

The loan process takes place online. You can scan and send any needed supporting documents through the web platform. You can also send documents through your smartphone.

SoFi also provides Unemployment Protection. SoFi will suspend your loan payments for up to 12 months in the event that you lose your job through no fault of your own. You must have applied for unemployment insurance, and SoFi will provide you with job placement assistance to help you find a new job.

SoFi Summary:

  • Interest Rates (Fixed): Check with Lender
  • Interest Rates (Variable): Check with Lender
  • Loan Amount: $5,000 to $100,000
  • Loan Terms: 2-7 years
  • Fees: None
  • Prepayment Penalty: No
  • Credit Needed: Excellent Credit Required
  • To Get Started: Visit SoFi

6. Upstart

Like SoFi, Upstart is a P2P site that focuses largely on refinancing for recent college graduates. For that reason, the platform emphasizes the borrower’s education as criteria for their loan. This includes consideration of your college major, academic performance, the school you attended, and your recent work history. Speaking of work history, Upstart will qualify you on a promise of employment as long as you’re scheduled to start work within six months.

But recent college grads aren’t the only borrowers who can benefit from a loan through Upstart. Since the platform requires verification of only a few months’ worth of income history (six months if you’re self-employed) it can be an excellent loan source for the self-employed, particularly those with a short business history. Best of all, you can take a loan for any purpose.

Upstart makes loans between $3,000 and $35,000. All loans are offered at a fixed rate and for a term of 36 months, and there are no prepayment penalties. Upstart requires a minimum credit score of 640 (with no public records, such as bankruptcies). And it applies an origination fee of between 1% and 6% of the loan amount. The application process is entirely online, and Upstart can approve your loan in just minutes with funding as soon as the next business day.

UpstartSummary:

  • Interest Rates (Fixed): Check with Lender
  • Loan Amount: $3,000 to $35,000
  • Loan Terms: 3
  • Fees: None
  • Prepayment Penalty: No
  • Credit Needed: Minimum Credit Score of 640
  • To Get Started: Visit Upstart

Related: Upstart Personal loans Review

7. Best Egg

Best Egg offers the opportunity for funding inside of a 48-hour window. The minimum individual annual income needed to qualify for a loan of $50,000 (their highest amount) is $150,000. If you have a current Best Egg loan, the total amount of money you can borrow at one time cannot exceed the $50,000 mark.

To qualify for the lowest rate of 5.99%, you must have a minimum FICO credit score of 700 and a minimum income of six figures. Having shopped around for a personal loan in the past, I can tell you Best Egg is very aggressive in their mail advertising. At least once a week, I would receive a mailer with a different offer code suggesting I was pre-qualified for a high dollar loan. If you utilize their application form, expect to receive the same.

Applying for a personal loan through Best Egg is easy. Click the apply now on their homepage, enter your email address (verify it), and you're off. After a short form, Best Egg will provide you with options on the loan that best suits your needs, assuming you qualify. The longer the term, the higher the interest rate. So make sure before deciding which loan you want that you've done an apples to apples comparison with others on this list.

Best Egg Summary:

  • Loan Amount: $2,000 to $50,000
  • Loan Terms: Minimum payment duration is 3 years
  • Fees:0.99% to 5.99%
  • Prepayment Penalty: No
  • Credit Needed: Minimum credit score of 700 required to achieve the lowest rate of 5.99%
  • To Get Started: Visit Best Egg

8. Funding Circle

Funding Circle is an excellent choice if you’re looking for a business loan. They offer business loans for amounts up to $500,000 (the minimum loan amount is $25,000). Funding Circle specifically serves the business loan niche since it is one that is left largely uncovered by traditional banks. The platform has provided loans totaling more than $1 billion to more than 10,000 businesses worldwide since the platform was founded in 2010.

They’re also one of the more relaxed P2P platforms in regard to credit. They’ll accept a credit score as low as 620. However, you must have a minimum of $150,000 in annual sales the previous year and be in business for at least two years. Since it is a business loan site, the application process is more involved than it is for other P2P lenders. Plus, it can take up to 14 days.

All loans are secured with a lien on your business assets and a personal guaranty.

Loan proceeds can be used to expand your business, invest in new equipment, or increase staff for marketing campaigns. Since Funding Circle provides large business loans the documentation requirements are more substantial than for other P2P sites, and typically include three years of business income taxes, your most recent personal income tax return, six months' business bank statements and other documents as needed.

Funding CircleSummary:

  • Loan Amount: $25,000 to $500,000
  • Loan Terms: 1 to 5 years
  • Fees: 0.99% to 4.99%
  • Prepayment Penalty: No
  • Credit Needed: Minimum Credit Score of 620
  • To Get Started: Visit Funding Circle

9. Marcus by Goldman Sachs

Perhaps best known for paying some of the highest interest rates on savings, Marcus by Goldman Sachs also provides personal loans. You can apply for a personal loan online and complete the application in as little as five minutes. The loan can be used for many purposes, including home improvement, paying for a wedding, moving and relocation, paying for a vacation, or consolidating high-interest credit card debt.

You can borrow between a minimum of $3,500 and a maximum of $40,000, with terms ranging from 3 to 6 years. And just as important, personal loans provided by Marcus by Goldman Sachs have no fees. That means no application fee and no origination fee. That’s a welcome relief in an industry that commonly charges between 1% and 6% of the personal loan amount for an origination fee.

But in exchange for the lower rate and the no-fee structure, Marcus by Goldman Sachs does require good or excellent credit for personal loan approval. You’ll need a minimum FICO Score of 660 to qualify.

Marcus by Goldman Sachs offers a unique benefit on their personal loans. If you pay your loan on time and make your payments in full every month for 12 consecutive months, you can defer a payment. Even better, interest will not accrue during the deferred month. They’ll just extend your loan term by an additional month.

Marcus by Goldman Sachs Summary:

  • Loan Amount: $3,500 to $40,000
  • Loan Terms: 3 to 6 years
  • Fees: None
  • Prepayment Penalty: None
  • Credit Needed: Minimum FICO Score 660
  • To Get Started: Visit Marcus by Goldman Sachs

Marcus By Goldman Sachs® Offer Terms and Conditions

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

Related: Best Small Personal Loans

Final Thoughts

A personal loan can help refinance debt to a lower rate, consolidate existing loans, or start a business. But you must take care not to assume more debt than you need or can handle. Further, your credit score is an important factor in the underwriting process. It will determine in large part the interest rate you can get. So if you don’t know your score you can get your official myFICO score here.

Finally, keep in mind that rates and terms do change frequently. We have worked hard to verify the rates, fees, and other terms contained in this article. But please confirm all terms of any loan directly with the lender before applying for a personal loan.

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