One of the most common approaches adopted for satisfying financial needs is acquiring a personal loan. The best feature of this loan category is that, unlike specific financing programs, it does not restrict the use of a borrowed amount to a particular purpose. Thus, a personal loan might be used for a variety of reasons, including but not limited to, financing education, healthcare, or even a vacation.

Although the interest rate on personal loans was reported to be 9.65% by the Federal Reserve in the 4th quarter of 2020, the current rate varies between 2.49-36%, depending on the borrower’s credit history. Also, some providers refuse to lend more than a certain amount which might not be enough for your particular needs.

Therefore, we would advise you to review multiple options before signing an agreement with a lender, to ensure that you avail the best personal loan option concerning your requirements.

We have brought to you a summary of the ones we found most attractive.

1SoFi

SoFi’s is one of the best personal loans that we came across. Not only does it allow halting payments temporarily in case of unfortunate circumstances like losing a job, but the interest rates offered are also quite reasonable. They may be as low as 5.99% with autopay.

Those who meet SoFi’s qualifying criteria may be granted a loan up to $100,000.

Pros
  • Reasonable interest rates
  • Protection against unemployment
  • Those earning a significant amount and having a good credit history may easily qualify for bigger loans.
Cons
  • Alternate options with lower interest rates are available in the market.
  • Receiving the funds may take time.
  • Those who do not have good credit history cannot avail of this option.

2Marcus by Goldman Sachs

If you want to acquire a personal loan for debt consolidation, Marcus by Goldman Sachs is your best bet. This is because it allows a repayment period of up to 72 months. Those having a remarkable credit rating may qualify for getting the loan at a low-interest rate of 6.99%, that too, with no additional fee.

The highest amount that can be borrowed from this provider is $40,000.

Pros
  • Monthly payments are low as a result of longer repayment terms.
  • The lender does not charge any fee.
  • Borrowers have the option to set a customized due date for payment, per their budget.
Cons
  • Having good credit is mandatory.
  • Cosigners are not accepted.

3Upstart

An online platform is considered a relatively unique borrowing avenue. However, Upstart has proved that the fears regarding such platforms are usually based on stereotypes. Having been formed by ex-employees of Google, this lending platform particularly benefits those with low credit because it makes use of artificial intelligence to collect alternative data for background checks.

Those who meet the criteria may borrow between $1000-50,000 via Upstart.

Pros
  • If you pay off your loan early, no amount is charged as a prepayment penalty.
  • Besides the credit rating, other information such as savings and education is also considered when deciding on granting the personal loan.

Cons
  • Only online applications are entertained, thus putting those who are not technologically savvy at a disadvantage.
  • Maximum APR can be as high as 35.99%.
  • The loan origination fee is charged and it may be up to 8%.

4Avant

Avant may provide a sigh of relief to those who struggle to acquire a personal loan due to bad credit history. Qualified individuals may receive a loan at an interest rate as low as 9.95%. Although this is not one of the lowest rates offered on a personal loan, it is quite reasonable compared to other options available to those with a challenged credit history.

Applicants may avail of a loan of up to $35,000 upon meeting the criteria set by the provider.

Pros
  • Lower rate of interest as compared to other personal loan options available to those with bad credit.
  • Funds can be accessed as soon as the next working day.

Cons
  • The maximum loan allowed is only $35,000, which is low as compared to other providers.
  • Interest rates are high as compared to those available to borrowers with good credit.
  • Along with interest, an administrative fee may also be charged.

5Wells Fargo

There would be hardly anyone who hasn’t heard the name Wells Fargo. The procedure to apply for a personal loan with this institution is available on the bank’s website. Furthermore, those who are customers of Wells Fargo do not even need to visit the branch-they can make their loan request either online or via a phone call.

Pros
  • The bank does not charge any prepayment penalty or origination fee.
  • Funding is made available promptly.
  • Relationship discounts are available.

Cons
  • Those who are not prior customers of the bank need to visit in person for making the application.
  • The minimum loan amount of $3000 is comparatively higher than other lenders.

We hope that the information we have shared proves to be helpful in your search for the best personal loan.

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