Best Personal Loans in 2025 – Are you worried about the rising interest rates and are looking for low-cost options to consolidate your debt? If yes, then a personal loan might be the right solution for you. Personal loans help achieve goals such as home renovations or unexpected expenses. With a lot of lenders in the market, it can be overwhelming to pick the right one. That is where we come in to assist you in narrowing down your options.
Personal loans are offered by credit unions, traditional banks, and online lending platforms, typically ranging from $1,000 to $50,000. This is with a few lenders providing loan amounts up to about $100,000. However, over 70% of Americans borrow less than $20,000. The best part is that a lot of personal loans can be funded within a few business days, offering you quick access to the money you need.
What is a personal loan?
A personal loan is a sum of money that you can borrow to meet numerous financial needs. This can include funding home renovations, consolidating debt, or even financing a wedding. Personal loans, available through credit unions, banks, and online lenders, require repayment over time with interest. In addition, some lenders may charge fees for personal loans.
How a Personal Loan Works
Personal loans provide a lump sum of money that can be repaid in installments, making them suitable for various expenses. This includes debt consolidation, wedding costs, funeral expenses, unexpected bills, moving costs, medical expenses, home renovations, and vacation funding. Unlike specific loans aimed at particular purchases, personal loans offer flexibility for diverse financial needs.
The Best Personal Loans in 2025
Personal loans are offered by various lenders, each tailoring loans to meet diverse needs and financial situations. The lists below are some of the best personal loans in 2025, and they are as follows:
Discover
If you are not looking to consolidate debt from a Discover card, then a Discover personal loan is a great option for debt consolidation or any other type of loan. With zero origination fees and low rates, it is very easy to pay back. Plus, the fast funding time means you could get the funds in your bank account the next business day.
It is very important to note that you can only apply as a solo applicant. However, you can still make use of your household income on your application. To qualify for a Discover loan, applicants must rely solely on their credit merits, as co-signers, co-borrowers, and collateral are not permitted. To protect your credit, ensure timely payments, as Discover imposes a $39 late fee.
U.S. Bank
Working with a large bank like U.S. Bank gives the added advantage of being able to walk into a branch and talk to someone about your loan. U.S Bank is one of the largest banks in the country, with more than 2,300 branches in about half of U.S. states. If you are already a customer of U.S. Bank, you may benefit from abridged credit requirements and higher maximum loan amounts.
New customers are restricted to a maximum loan amount of $25,000 or less. U.S. Bank was previously ranked as the second-best option for personal loans in 2022 by J.D. Power. However, in the year 2025 survey, it was relegated to below-average status.
PenFed Credit Union
Pentagon Federal Credit Union (PenFed) is one of the largest credit unions in the country, boasting nearly three million members. The credit union is easy to join, needing only a $5 deposit into a savings account to get started. You can apply for a loan without being a member, but membership in the credit union is necessary to receive loan funds. This is if you accept a loan offer, To be accepted for a loan, you must have good credit.
If you have poor credit, consider applying with a co-borrower or using collateral for your loan. However, PenFed does not offer any details on how this works. PenFed offers competitive loan rates and a discount program for H&R Block tax preparation, college planning services, and insurance.
SoFi
SoFi is the most affordable lender that gives a good blend of options and some nice extras. While there are lower-rate personal loans available, SoFi stands out for its complete benefits package that comes with all of its loans. This package offers complimentary financial planning services, unemployment assistance if job loss occurs, and career counseling and support.
Borrowers love this approach, which has assisted SoFi in earning the fourth-best spot in J.D. Power’s annual survey of customer satisfaction among personal loan lenders. The downside is that the minimum loan amount is about $5,000, so borrowers looking for a smaller loan may not be able to use SoFi. In addition, SoFi does not offer the option to apply with a co-signer or make use of collateral if you are unable to be approved otherwise.
First Tech Federal Credit Union
If you are not able to qualify for Sofi and are not satisfied with the U.S. Bank offer, First Tech Federal Credit Union is a great alternative for a small personal loan. It gives affordable rates and does not charge origination fees, although there are no available rate discounts. First Tech also reports your payments to all three credit bureaus, making it an excellent choice if you are looking to build your credit.
In addition, it has options for secured loans backed with savings or stock as collateral. Qualifying for membership is easy if you work for a qualified employer like Amazon or Microsoft. However, if that is not an option, you can still join by connecting to another organization first, which charges a small membership fee.
Tips for Comparing Personal Loans
When comparing personal loans, make sure you consider the tips that are listed below, and they are as follows:
Consider the purpose of your loan
Personal loans serve various purposes, including debt consolidation, weddings, home improvements, vacations, large purchases, funerals, and other personal expenses. However, lenders frequently restrict the use of personal loans for business purposes, postsecondary education expenses, and illegal activities. Before picking a lender, it is important to confirm that your proposed use of the loan is allowable under its borrower agreement.
Evaluate the lender’s customer support options
Once you have found a lender that gives suitable terms for your needs, it is important to consider their customer support. Customer support may not seem like a big deal originally, but it can make an important difference if you experience issues with payments or face financial difficulties throughout the repayment period. To make sure that you have a good fit, review the lender’s customer service resources and read reviews from past and present borrowers.
Where possible, prequalify
a lot of personal loan providers offer the capacity for prospective borrowers to prequalify for a loan. This process permits the applicant to submit details about their financing needs, housing situation, income, and other relevant information to find out what kind of loan rates, amounts, and repayment terms they are likely to qualify for. Even better, this process typically only needs a soft credit inquiry, so you can shop around without hurting your credit score.
Keep an eye out for additional fees
Some lenders provide fee-free personal loans that do not require borrowers to pay origination fees, prepayment penalties, late payment fees, or any other common loan costs. However, this is more the exception than the rule, so it is important to ask about fees when shopping for the best loan terms. In addition, if a lender charges an origination fee, it is important to find out whether it is built into the APR or taken out of the loan amount before funding, as this may influence the loan amount you need to request.
Final Thought
Navigating the vast array of personal loan options available can be overwhelming. However, with some little research, you can find the best loan for your financial needs in the year 2025. Do not forget to take your time to compare different lenders and loan products to find the best possible loan for you. This will assist in keeping your monthly payments low while reducing your risk of default.
