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Sometimes you need some extra cash. Whether you’re renovating your bathroom, buying a new car, or trying to lower the interest rate on some of your debts, getting a small personal loan can help. But some personal loan lenders have higher minimum borrowing amounts, and others charge higher rates to borrowers who need a small amount of cash.
The best small personal loans come with affordable rates, low minimum borrowing amounts, flexible repayment terms, and fast funding. We evaluated more than 40 lenders to help you get a small personal loan from an online lender, bank, or credit union. Comparing a few different lenders during your search is a good idea. The right small personal loan for you will depend on your timeline and credit score, as well as the features you think are most important. All of the lenders you see here offer loan minimums no higher than $2,000, with some as low as $250.
Best Small Personal Loans of 2023
Company | APR | Credit Score est. | Loan Amount | More Details |
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These lenders offer very small loans, but there are many other loan companies out there. See a broader selection with our picks for the best overall personal loans.
Best for Affordable Small Loans : PenFed Credit Union
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- APR Range: 7.74% - 17.99%
- Loan Amount: $600 - $50,000
- Loan Terms: 12 months - 60 months
A top pick for small personal loans, PenFed, is a national credit union that offers banking services as well as personal loans to members. Loans as little as $600 are available, no origination fees are charged, and interest rates are lower than many competitors.
Competitive rates
Next-day funding on some loans
Borrow as little as $600
PenFed membership required
Pentagon Federal Credit Union (PenFed) is the second-largest federal credit union offering personal loans, credit cards, checking, and saving accounts to its over 2.8 million members. For small loan customers, PenFed offers pre-qualification allowing you to see your potential rates and terms by filling out a short application, which does not hurt your credit score. After completing your application, funds may arrive as soon as the next business day. There are no hidden fees on PenFed loans.
The application process is as simple as filling out a quick online form. Although membership is required, you can quickly sign up as you apply for a loan by opening up a $5 savings account.
- Be a PenFed member
- Live in the United States
- Be the age of majority as defined by state of residence
- Be a United States citizen (PenFed does not support permanent residents)
- Recommended minimum credit score of 650
- Qualify based on financial history, credit history, and other factors
Best for Fair Credit : Upgrade
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- APR Range: 8.49% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 24 months - 84 months
Upgrade is an online lender that offers personal loans to borrowers with credit scores as low as 560. With a loan minimum of only $1,000, you can borrow small amounts and qualify even with fair credit. This lender also made it on our list because of their flexible terms and ability to pay creditors directly.
Low minimum recommended credit score of 560
Pays creditors directly
Next-day funding
Can apply with a co-applicant
1.85% to 9.99% origination fee
Late payment fee of $10
Upgrade is an online lender with regional offices around the U.S. offering personal loans for debt consolidation, purchases, and home improvements. Loan terms are available from 24 to 84 months in length, giving you flexibility for your repayment timeline and monthly payment amount. There are origination fees included, ranging from 1.85%–9.99%. Interest rates can reach as high as 35.99%, which is expensive, but these are the trade-offs you typically have to make if you don’t have the best credit.
Upgrade makes it easy to apply with online pre-qualification, and you can receive funds as soon as the next business day. Overall, Upgrade can offer decent terms for borrowers with less-than-stellar credit, but if you’re in that boat, you may get something on the higher end of the APR range unless you apply with a co-signer.
- U.S. citizen or permanent resident, or living in the U.S. on a valid visa
- At least 18 years old (19 years old in Alabama and certain other states)
- Must have a verifiable bank account
- Must have a valid email address
- Qualify based on credit score, credit usage, and payment history
Best for Debt Consolidation : Best Egg
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- APR Range: 8.99% - 35.99%
- Loan Amount: $2,000 - $50,000
- Loan Terms: 36 months - 60 months
A fully online lender, Best Egg offers actionable solutions for debt consolidation through small loans starting at $2,000. In addition to a Better Business Bureau rating of A+, it provides the option to pay creditors directly and an easy application process. Additionally, it made our list of best for debt consolidation due to the accessible credit score requirement of 600 to apply.
Pays your creditors directly
Minimum credit score of 600
Minimum loan amount is $2,000
Not available in all states
Origination fee of 0.99%–8.99%
Best Egg is an online lender that offers personal loans for various uses, including debt consolidation. You can borrow as little as $2,000, and the lender will pay off your creditors directly, making it easy to consolidate or refinance your debt.
Best Egg offers a simple online application to pre-qualify, which allows you to see your potential interest rates before completing your application. Funds may be deposited as soon as the next business day. Unfortunately, you can’t apply with a co-applicant to improve your chances of qualifying (and getting a lower rate), but Best Egg does offer secured loans.
Best Egg charges an origination fee on all loans, which can reach 8.99% of the loan total. There’s no fee for late payments, but there is a returned payment fee. Best Egg is a great option for consolidating your debt into a single payment; just keep an eye on the fees.
- U.S. citizen or permanent resident, or living in the U.S. on a valid visa
- At least 18 years old (19 years old in Alabama and certain other states)
- Live in a state supported by Best Egg (not available in Iowa, Vermont, West Virginia, or Washington, D.C.)
- Recommended minimum 600 credit score
- Verifiable income and employment
- Minimum $3,500 annual income
Best for Poor Credit : Upstart
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- APR Range: 6.70% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 36 months - 60 months
Upstart offers personal loans as small as $1,000 and only requires a 300 credit score to apply (that’s the lowest possible credit score). This means that anyone with any credit history will be considered, which we think makes it great for new lenders or those with less than optimal credit history. Plus, pre-qualification offers allow you to see the rates without affecting your credit.
Minimum credit score of only 300
Can borrow as little as $1,000
Up to 10% origination fee
Not available in all states
Upstart, a leading artificial intelligence lender, offers fully automated personal loans, starting at $1,000, for debt consolidation, credit card balances, and refinancing. Depending on your credit score, you can find low fixed rates and next-day funding. Pre-qualification is available within a few minutes, meaning you can check rates without a hard pull on your credit.
Upstart charges up to 10% of the loan as an origination fee, which is taken directly from your loan. The lender is not available in West Virginia and Iowa. But overall, Upstart is an excellent option for borrowers with poor credit who can’t qualify elsewhere.
If you have bad credit, you have to expect to pay more for loans. That means you’ll probably get something closer to the high end of Upstart’s APR range and the high end of the origination fee range.
- Must be a U.S. citizen or permanent resident
- Must not live in West Virginia or Iowa
- Must be at least 18 years old
- Must have a valid email account
- Must have a verifiable name, Social Security number, and birth date
- Need a minimum credit score of 300
- Must have a full-time job, a full-time job offer starting in 6 months (except if accepted to a partner bootcamp and seeking employment after graduation), a regular part-time job, or another source of regular income
- Must have a personal banking account at a U.S. financial institution with a routing transit number
Best for Secured Loans : OneMain Financial
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- APR Range: 18.00% - 35.99%
- Loan Amount: $1,500 - $20,000
- Loan Terms: 24 months - 60 months
Topping our list for secure loans, OneMain Financial has secured personal loans starting at $1,500, allowing you to put up collateral to help you qualify for the loan. This collateral (such as an automobile) acts as a guarantee for the loan in case you are unable to repay, making the loan easier to qualify for. This lender also features various term lengths and prequalification offers.
Offers secured loans
Next-day funding
Can borrow as little as $1,500
Not available in all states
Origination fee up to $500 or 10% (varies by state)
Late fee up to $30
OneMain Financial offers 1,400 branch locations and interest rates starting at 18%. Secured loans can be used for almost anything, and borrowers may receive funding as soon as the next business day.
OneMain Financial charges an origination fee that is deducted from the total loan amount. The fee may be as high as 10% of the loan, or $500. Late fees may also be assessed, costing up to 15% of your monthly payment (or $30). These fees vary by state, unlike most lenders. Although OneMain Financial charges higher rates than competitors, it could be a good pick for you if you’ve struggled to obtain an unsecured loan.
OneMain Financial is available in most states but is not available in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, or Washington, D.C.
- Must be at least 18 years old (or the age of majority in your state)
- Must live in a supported state (not Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, or Washington, D.C.)
- Must pledge collateral for secured loans
- Qualify based on financial history, credit score, collateral, and other factors
Best Big Bank : U.S. Bank
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- APR Range: 8.74% - 21.24%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
Offering personal loans with various flexible terms, U.S. Bank is a national bank with a secure history going back to 1863. In addition to no origination fees, you don’t have to be a member to qualify for loans. The easy application process and pre-qualification tool also put U.S. Bank on our radar for personal loans.
Minimum loan only $1,000
No origination or prepayment fees
Same-day funding available
Not available in all states
Late payment fee of $29
U.S. Bank is an excellent choice if you want the backing and security of a big bank, even for a small loan. It’s a large national bank that offers personal loans starting at $1,000. You can apply for a loan with a 660 credit score (or higher), and you don’t need to be a U.S. Bank customer to qualify. You can pre-qualify online to check your rates without hurting your credit score as well.
U.S. Bank’s repayment terms run from 12 months up to 84 months in length. No origination, application, or prepayment fees are applied, though you may have to pay a late payment fee of $29 if you miss a payment.
U.S. Bank loans are only available in 26 states, and you must be within a 50-mile radius of a branch to qualify. You can’t apply for a U.S. Bank personal loan in Alabama, Alaska, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, or Washington, D.C.
Qualifications
- U.S. citizen or permanent resident, or living in the U.S. on a valid visa
- At least 18 years old
- Valid address
- Valid Social Security number
- Valid government-issued ID
- Qualify based on credit score, credit usage, and payment history
Best for Flexible Repayment Terms : First Tech Federal Credit Union
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- APR Range: 8.99% - 18.00%
- Loan Amount: $500 - $50,000
- Loan Terms: 24 months - 84 months
First Tech, a technology-oriented premier credit union, offers flexible loan terms and same-day funding. The loan application process is simple for secured and unsecured loans to those with a minimum 600 credit score. First Tech is a flexible option for smaller personal loans and can save you on rates and fees compared to many competitors, which puts it on our list of best small loans.
Easy membership requirements
Same-day funding available
Loans as small as $500
Must be a First Tech member
Rates higher for longer-term loans
First Tech Credit Union offers loans starting at just $500 to First Tech members; luckily, membership is available to anyone in the U.S. Loan terms are available from 24 up to 84 months, giving you flexibility in your term length and monthly payments.
First Tech has a minimum recommended credit score of just 600 to apply, making it relatively accessible. Like many lenders, it offers pre-qualification to check your rates without a hard credit pull. Both secured and unsecured loans are available, and there are no origination fees on personal loans.
- Be a U.S. citizen or permanent resident
- Be at least 18 years old
- Have a minimum credit score of 600
- Qualify based on financial history, credit score, and other factors
Best for Quick Funding : Rocket Loans
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- APR Range: 9.12% - 29.99%
- Loan Amount: $2,000 - $45,000
- Loan Terms: 36 months - 60 months
When you need money fast, Rocket Loans is an online lender (the sister company of Rocket Mortgage) that famously offers loans with same-day funding. We recommend this online lender due to their instant offers and simple, secure process for loans starting at $2,000. They’ve also received an Excellent rating from Trustpilot.
Same-day funding easier than with most lenders
Borrow as little as $2,000
Recommended minimum credit score of 640
Origination fee up to 7%
Limited repayment terms
At Rocket Loans, you can pre-qualify to see your rates in just a few minutes, and if you complete the application and sign the promissory note by 1 p.m. Eastern Time, you can receive funds on the same business day. Rocket Loans will send the funds to your bank account by ACH, but your actual access to the money will depend on your bank’s processing time.
Rocket Loans offers smaller personal loans starting at $2,000 and going up to $45,000; the loan terms are relatively restrictive, as you can only choose between 36 months or 60 months. Rocket Loans recommends having a 640 credit score for the best shot at approval, so it’s possible to qualify without having the best credit.
The upper end of the APR range is fairly high, and there’s also an origination fee that could reach 7%. So if your credit isn’t the best, you may end up paying some decent fees. Rocket Loans is ideal for borrowers that need funding quickly, especially those with better credit who won’t be charged the origination fee.
- Must be at least 18 years old
- Must be a U.S. resident
- Credit score and credit history are reviewed
- Monthly income is reviewed
- Tax forms may be reviewed
- Debt-to-income ratio (DTI) is reviewed
Best for Military Members : Navy Federal Credit Union
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- APR Range: 7.49% - 18.00%
- Loan Amount: $250 - $50,000
- Loan Terms: 6 months - 180 months
The flexible term loans and no origination fees helped Navy Federal Credit Union top our list for military members. Loans for as little as $250 are open to military members and their families with low-interest rates. Borrowers can also find longer loan terms to keep the monthly payments affordable.
Can borrow as little as $250
Flexible loan term lengths
No application, prepayment, or origination fees
No pre-qualification available
Requires membership
Navy Federal offers personal loans with excellent rates to its credit union members, with membership open to all military members and their families. Loans are available starting at only $250, and there are no origination or prepayment fees on loans.
NFCU’s low rates make it a good choice for any kind of loan, but it’s particularly useful for debt consolidation and refinancing to lower the rate on your high-interest debts. Loan terms are available for up to 15 years on certain loans as well, giving you comfortable monthly payments.
Like other lenders, Navy Federal charges a higher APR for longer-term lengths and a $29 fee for late payments. You also need to be a member, but membership is free if you are a military member, veteran, or family of either.
- Must be a Navy Federal member
- Must be at least the age of majority in your state
- Must be a United States citizen, eligible permanent resident, or non-permanent resident alien
- Available in all 50 U.S. states and Washington, D.C.
- Qualify based on credit history, income, and other financial factors
- Meet minimum borrowing requirements
Compare the Best Small Personal Loans of 2023
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Final Verdict
PenFed offers the best variety of loan options, low rates, and a lack of fees to help you get cash and not overpay for it. You can get funding by the next business day, and there are no origination or even late fees assessed. PenFed’s overall flexibility and cost make it our top pick if you're looking for a small loan with competitive interest rates.
The others on this list are great for specific cases, such as having a low credit score or needing to access the funds on the same day. These companies can help you get a small personal loan—just make sure to understand all of the rates and fees before applying.
Guide to Choosing the Best Small Personal Loans
Best Place to Get a Small Personal Loan
The best place to get a personal loan will depend on your needs. If you’re looking to borrow $500 or less, a credit union may be your best option for low rates, but many credit unions have membership requirements. Online lenders often have higher minimum borrowing amounts or charge higher rates for small loans, but they can be a good option if you’re looking for a fast and easy process. If you prefer to apply in person and have a good relationship with your bank, you could apply for a small personal loan there as well.
Should You Apply for a Small Personal Loan?
That depends on your individual financial need. If you just need a little cash to tide you over until your next paycheck, you can take advantage of the grace period offered on a credit card or even apply for a 0% introductory APR credit card. These options can be less expensive than a loan. On the other hand, if you have poor credit and can’t qualify for a credit card, a personal loan from a bad credit lender, like OppLoans, would be a much better option than a payday loan.
If you don’t want to open a new card or you need more time to pay back the debt, a small personal loan might make sense for you. Personal loans have lower APRs than credit cards on average. You can even use a personal loan to consolidate credit card debt if you’re having difficulty paying down your cards. This will work best if you have good or excellent credit.
Pros and Cons of Small Personal Loans
Lower interest rates than credit cards
Better terms than payday loans
Can be used for almost any purpose
No grace period
Rates are generally better with higher borrowing amounts
Higher monthly payments than credit cards
Comparing Small Personal Loan Lenders
When comparing small personal loan rates among lenders, you’ll want to pay attention to the following:
- APR: Your APR represents the total cost of taking out a small personal loan, including any origination fees. Aim for the lowest you can qualify for based on your creditworthiness and your desired monthly payment.
- Loan amounts: You don’t want to borrow more than you need. Look for a personal lender offering the right amount for your purposes.
- Terms: Choose a lender that offers a term that will result in a monthly payment you can afford.
- Fees: Aim for the fewest/lowest fees possible, and avoid all lenders that charge prepayment penalties.
- Ease of application process: If you prefer an easy online application process, be sure the lender you choose is right for you.
- Lender reputation: Pay attention to customer reviews on third-party review websites, like Trustpilot.
- Speed of funding: If your cash need is an emergency, narrow down your choices to lenders that can provide same or next-day funding.
- Customer support: Ensure the personal lender you choose has customer service hours that are convenient for you.
How to Get a Small Personal Loan
- Pre-qualify: The first step is to provide information such as your Social Security number, contact info, intended borrowing amount, and loan purpose. Many lenders will allow you to check your pre-qualification status without a hard credit pull.
- Choose a loan offer: You may be shown a few different term options with different associated APRs. Note that small personal loan rates at this stage are only an estimate. Select the option with the monthly payment you can comfortably afford.
- Provide additional documentation: From here, you’ll likely create an account on the lender’s online portal if you haven’t already. You’ll need to provide more details, such as proof of income and employment. The lender will review this information and give you a decision.
- Accept your loan offer: Check to ensure you’re happy with your rate and read the fine print before signing your loan documents.
- Receive your funds: Wait for the money to be deposited in your bank account. This typically takes a few days but can happen as soon as the same day.
- Manage your account online: Many lenders will allow you to set up automatic payments from your online account, and some will even let you change your due date.
- Repay your loan: Expect to begin making fixed monthly payments about one month after receiving your funds.
Frequently Asked Questions
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What Is the Difference Between Small Loans and Credit Cards?
The difference between a personal loan and a credit card comes down to the type of credit available. A personal loan offers you money in a lump sum, while a credit card has a revolving line of credit that can be increased. Another key difference between a personal loan and a credit card is that a personal loan has fixed payments, while credit card payments vary based on the minimum monthly amount.
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What Is the Difference Between Small Loans and Payday Loans?
Payday loans are a type of short-term borrowing in which you pay off the loan in a few weeks to possibly a few months. With a small personal loan, you typically have years to repay the loan. Additionally, payday loans have very high-interest rates, as high as over 600%. Small loans, on the other hand, have fixed interest rates between 5% and 37% or higher, depending on the lender.
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What Is the Easiest Loan to Get Right Now?
The easiest loan to apply for and get approved for is a payday loan. These loans have high-interest rates but don't typically require a credit check. You must simply provide your bank account and employment information. These loans give you the funds the same or the next day. Small personal loans typically require a specific credit score or collateral to get approved.
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Do Small Loans Hurt Your Credit?
The process of applying for any type of loan, including a small loan, will cause a small dip in your credit score as lenders look at your credit rating. However, the hard inquiry of your credit score usually only causes a decrease of a few points. While you might experience a slight initial dip, small loans can have a positive impact on your credit as you make your monthly payments on time.
Methodology
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected hundreds of data points across more than 40 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure that our reviews help users make informed decisions for their borrowing needs.
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