Best Personal Loan Rates

LightStream

LightStream is a division of SunTrust Bank dedicated to online consumer lending. Based in Georgia, SunTrust is one of the largest banks in the United States.

As you can see from the table above, its interest rates vary quite widely according to borrower qualifications. Crucially though, besides quoted rates, it offers a “Rate Beat” program, through which it says it’lll beat any other lender’s rate for a comparable loan by 0.10%.

Besides the offer of competitive rates, LightStream is geared toward giving consumers a streamlined borrowing process. It has a fully online application system, and says that it can, on some days, deliver loan funds the same day that the application is received.

FreedomPlus

FreedomPlus offers a streamlined online application process for loans ranging from $7,500 to $40,000. It is a division of Freedom Financial Asset Management based in California, though loans are made by New Jersey-based Cross River Bank.

The application process is initiated online but also involves talking to a loan consultant so FreedomPlus can get a more detailed picture of your financial circumstances. Its website says that the application process can be completed in a matter of minutes.

While convenience is an attractive feature of online lenders, borrowers should always look closely at the financial details before agreeing to a loan. Note, for example, that both the range of APRs and origination fees at FreedomPlus are quite wide. That means the competitiveness of terms will depend on your particular circumstances, so you should get a specific quote before deciding to choose it as a lender.

Assuming the loan terms in your case are competitive, FreedomPlus might be a good option is you are in a hurry to obtain your loan, because it offers same-day qualification, and the possibility of receiving the loan proceeds as quickly as within 48 hours.

Earnest

Earnest is a financial institution that is founded on the premise of reworking the way banks lend money. It says it brings together math, finance, design and technology specialists to pursue its mission.

This encompasses everything from the way it uses data to determine loan qualification and terms to a streamlined application process. As part of that mission, Earnest seeks to make loans more accessible by using a unique set of metrics beyond credit rating to determine eligibility for a loan.

Earnest’s process is centered around customization. Rather than forcing borrowers into predetermined buckets for loan terms and repayment structure, Earnest allows customers to choose the precise loan characteristics that suit them best.

Earnest makes approval decisions based on factors such as having enough savings to meet two months’ worth of expenses, living within your means with rising bank balances, having low amounts of non-mortgage debt, and demonstrating a good record of paying your bills and not being assessed overdraft or late fees.

First Midwest Bank

First Midwest Bank is a Chicago-based bank with 125 branches in Illinois and Indiana, but it offers loans to residents of 26 different states. Consumers can initiate a loan inquiry online, and the bank advertises that it can provide decisions on personal loans within 24 hours.

Rather than having a fully automated application process, First Midwest Bank offers a simple online form which will prompt a contact from a loan officer. This might be a plus for people who want guidance from a lending professional, though it might also be seen as a negative for anyone looking for a completely online lending process.

One point to note about First Midwest Bank is that it has an origination fee (it calls it a documentation fee) of $100. Because this is a fixed dollar amount rather than a percentage, it will represent a larger proportion of a smaller loan than of a larger one. Because of this, the APRs First Midwest advertises are actually lower for higher loan amounts than for smaller amounts.

While First Midwest Bank’s interest rates are fixed, it does offer flexible payment terms.

Wright-Patt Credit Union

Wright-Patt Credit Union has a variety of branches concentrated in central and southern Ohio. Consumers can create a user account online which will allow them to apply for a loan via the Wright-Patt website, and then track the progress of their application online.

Besides applying online, consumers can automate their loan payments via a variety of options offered by Wright-Patt. Those with a Wright-Patt checking account can arrange to have loan payments made automatically from that account. Wright-Patt can also automate payments from other financial institutions, or users can direct payments online.

In addition to personal loans, Wright-Patt also offers a personal line of credit. A line of credit can be a more cost-effective way of borrowing money for people who need to access funds periodically rather than all at once.

Wright-Patt Credit Union has a “Skip-A-Pay” program that allows borrowers to skip one scheduled payment per calendar year, subject to advance approval. Using the Skip-A-Pay program will incur additional fees and finance charges.

Best Egg

Best Egg is an online lending platform offering loans from Cross River Bank, a financial institution based in New Jersey. It has provided loans for 270,000 customers.

Best Egg’s low-end loan rate of 5.99% is reasonably competitive, but for some loans the APR can range as high as 29.99%. In part this is because origination fees can be as much as 5.99%, which would add substantially to your APR.

Because the cost of borrowing from Best Egg is so widely variable, you need to get a quote specific to your situation before you comparison-shop. While Best Egg touts its loans as a potential tool for debt consolidation, note that if you are quoted an APR at the high end of Best Egg’s range you might find that even credit card debt is cheaper.

Best Egg describes its application process as one of the fastest and simplest available, and with electronic transfers, it can get money into an approved borrower’s bank account as quickly as one business day.

Discover

Discover Bank is a large, diversified financial services company perhaps best known for the Discover credit card. It also offers personal loans, which can be a cost-effective alternative to using a credit card for large purchases or debt consolidation.

Discover Personal Loans uses its online platform to offer speed and efficiency, with same-day approval in most cases and fund transfers within one business day after approval. Having no origination fees helps keep the APR on Discover loans competitive, though you should compare APRs with other institutions to put the combination of interest rates and loan fees in the proper perspective.

In addition to having no origination fees, Discover advertises no loan fees of any kind as long as you make your payments on time. In fact, if you change your mind about borrowing, you can even return the money within 30 days and pay no interest charges.

In addition to its online application process, Discover’s website offers other useful resources such as articles about personal loans and personal loan calculators.

Peerform

Peerform is a peer-to-peer lender which uses its platform to match borrowers with investors willing to lend money.

Peer-to-peer lending can be especially attractive to borrowers who might have trouble meeting the traditional underwriting standards of a bank lender. Rather than getting your fund from a financial institution, with peer-to-peer lending your loan would be funded by a variety of investors who are willing to take the risk of lending money in exchange for the investment return represented by the interest rate you pay.

In this arrangement, Peerform provides the online platform where borrowers and investors can provide information on what types of loans they are interested in taking out or funding. Peerform evaluates your credit credentials and provides a score investors can use to evaluate your creditworthiness. The better your credit looks, the lower your interest rate is likely to be.

Peerform offers a streamlined registration process online, and then offers a variety of loan options so you can choose the terms that meet your needs.

Lending Club

Lending Club is a peer-to-peer lending platform that has been matching borrowers with investors for 10 years. Significantly, Lending Club describes itself as a technology company rather than a financial institution, and it uses its tech to provide borrowers with a timely range of options based on their needs and circumstances.

Lending Club advertises that it will let you see what loan terms you would qualify for in just minutes. This inquiry will not affect your credit score, and you are likely to see a variety of loan options so you can choose which suits you best.

While peer-to-peer lending can be a viable option for borrowers who have trouble meeting traditional bank lending standards, note that the high end of Lending Club’s APR range is extremely high, in part because of high origination costs. If the loan options this platform offers based on your situation are toward the high end of that range, you should rethink whether borrowing the money is really a smart financial move.

Lending Club offers loans in as little in seven days, and their loans have no prepayment penalties, which gives the borrower some added flexibility.