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Best Personal small loans of 2024
The NY Times

Best Personal small loans of 2024

Small Loan: You occasionally need some more money. obtaining a small personal loan might be beneficial whether you’re remodelling your bathroom, obtaining a new car, or seeking to reduce the interest rate on some of your bills.

However, some providers of personal loans have greater minimum borrowing amounts, and others charge higher interest rates to customers who just require a small sum of money.

The finest small personal loans have minimal minimum borrowing amounts, a low rate of interest, flexible payback options, and quick funding. To assist you in obtaining a modest personal loan from an online lender, bank, or credit union, we assessed more than 40 lenders.

It is a good idea to compare a few different lenders while conducting your search. Your timeline, credit score, and the things you value most will all affect which small personal loan is best for you. Every lender listed here offers loans with a minimum of no more than $2,000 and some as little as $250.

Best for building credit: Possible Finance

Why Possible Finance is unique: Customers can apply for additional funding via the Possible app on their phone through Possible Finance, a payday loan alternative app. Possible Finance discloses loan payments to the credit bureaus, in contrast to payday lenders, to aid customers in establishing credit.

  • Repayment terms —Loans are repaid in installments over two months. If you’re unable to make a payment, you can reschedule it for up to 29 days after your original due date without penalty.
  • Loan amounts —Customers may be able to borrow up to $500, but maximum loan amounts vary by state.
  • Eligibility requirements —To qualify for a loan through the Possible Finance app, you need a valid driver’s license or state-issued ID. You must have a positive bank balance and an income of at least $750.

Before submitting an application with Possible Finance, be aware that the lender’s website does not display interest rates; instead, it lists fees that correspond to the cost of borrowing in each state. In all states, Possible Finance does not provide loans. Consult the lender before applying.

Best For People Who Are Self-Employed: Upgrade

Why Upgrade stands out: Obtaining a personal loan while working for yourself is feasible, but you must be able to convince the lender that you have the ability to pay back the loan. You must submit your last two years’ tax returns.

IRS tax transcripts, and 40 days’ worth of bank statements in order to apply for a personal loan with Upgrade. After examining your application, Upgrade can ask for more supporting documentation.

  • Loan details — Upgrade offers loan amounts ranging from $1,000 to $50,000 with term lengths of 24 months to 84 months.
  • Fees — Upgrade charges an origination fee of 1.85% to 9.99%, which is deducted from your loan proceeds at the time of funding. The company charges nonsufficient funds fees and late payment fees of up to $10, but there’s no prepayment penalty if you want to repay your loan early.
  • Interest rates — Upgrade’s starting annual percentage rate, or APR, is in line with what other personal loan lenders charge. To qualify for the company’s lowest rates, you must sign up for autopay.

Upgrade doesn’t offer loans in all states. Check with the lender before you apply.

Best Bank Personal Loan: Pnc

Why PNC stands out: PNC provides loans with low annual percentage rates, flexible repayment terms, and loan amounts as little as $1,000. When you set up autopay using a PNC checking account, you can get a 0.25% rate discount.

  • Loan details —PNC offers personal loans starting at $1,000 and repayment terms of six to 60 months.
  • No collateral required —PNC doesn’t require a pink slip or other collateral to approve your loan.
  • Joint applications accepted —PNC accepts joint loan applications. If you don’t have perfect credit, applying with someone who has a solid credit history may improve your chances of qualifying for a loan or getting a lower interest rate.

Best for multiple offers: Fiona

Why Fiona stands out: Fiona is an online search and comparison portal for personal loans, credit cards, and other financial services; it is not a provider of personal loans.

If you are approved for a loan after submitting an application, lenders in Fiona’s network will contact you with personalised loan offers. You can decide which, if any, is best for you.

  • Loan details —Fiona’s network includes lenders that offer loan amounts ranging from $1,000 to $250,000 and repayment terms of six to 144 months.
  • Fees —Fiona doesn’t charge fees for its service, but some of the lenders in Fiona’s network might. Be sure to read the fine print of all loan offers you receive to ensure you understand what fees you may be responsible for.
  • Ability to apply for prequalification — Checking to see if you qualify for a loan offer won’t affect your credit scores. Note that prequalification isn’t a guarantee of approval, and you may be offered different terms after completing a full application.

Best online personal loan: Discover

Why Discover is unique: You can submit your application for Discover totally online. In most circumstances, you will receive a loan decision the same day that you apply, and after accepting the terms of the loan, you will receive your loan proceeds as soon as the following working day.

Discover offers 30-day money-back guarantees on its loans, as well as free access to your FICO® score.

  • Loan details —Discover offers loans ranging from $2,500 to $40,000 with repayment terms of 36 to 84 months.
  • Fees —Discover doesn’t charge origination or prepayment fees, but you may have to pay a late fee if you miss a payment.
  • Ability to prequalify —Checking your estimated rate and loan term won’t affect your credit scores. If you submit a formal loan application and are approved, your rate and term may be different from what you saw during the prequalification process.

Best for immigrants: Stilt

Why Stilt stands out: Stilt is a smartphone application that focuses on lending money to underserved communities and immigrants.

You don’t need a Social Security number or credit history to apply for a loan with Stilt. Experian and TransUnion receive monthly payment records from Stilt, which can assist users in building a strong credit history in the United States.

  • Loan details —Stilt offers loans ranging from $1,000 to $35,000 with repayment terms of 12 to 36 months. Minimum loan amounts are higher in certain states.
  • Eligibility requirements —You must have a U.S. address, bank account and valid visa for at least six months to qualify for a loan with Stilt. Stilt reviews applicants’ employment history, education and financial habits to make lending decisions.

What you should know about small personal loans

Saving money for emergencies isn’t always practical, and not all situations need a lot of money to fix them. A modest personal loan could be a suitable option to receive additional money when you need it. However, there are a few things you need to be aware of when looking for a loan.

How do small personal loans work?

Individual lenders set their own minimum loan amounts, so the smallest loan you can obtain from certain lenders may be more than you require. However, certain lenders provide modest personal loans, including those for $1,000 or less.

It’s wise to shop around and compare offers from many lenders to discover one that’s a suitable fit because loan amounts, rates, periods, and fees differ by lender.

How do I apply for a small personal loan?

Various lenders offer small personal loans, including banks, credit unions, online lenders, and mobile apps. You must submit an application along with any required supporting materials in order to be considered.

Lenders often consider your credit history, income, debt-to-income ratio, and other criteria to decide whether to give you money.

Are there other types of small loans?

A small personal loan isn’t the only way to get extra cash. Here are some other options to consider.

  • Payday loans —Payday loans are an option for covering small unplanned expenses, but they’ll likely cost you more than a non-payday type personal loan. The average APR for a payday loan is close to 400%.
  • Credit cards —Credit cards are a convenient option to pay for unplanned expenses. But the average credit card interest rate is higher than the average personal loan rate. Comparing the APR on your card to the personal loan rate you might qualify for might help you decide which option is better.

How we picked these loans

We examined a dozen modest personal loans from various lenders, and based on the eligibility conditions, the capacity to establish credit, interest rates, fee structures, and the availability of prequalification applications, we selected our top options.


Investopedia is committed to offering customers objective, in-depth assessments of personal loan lenders. We gathered hundreds of data points from more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to rate providers in order to be sure that our ratings would assist customers in making wise borrowing selections.

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