Best Small Personal Loans of June 2024
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You may find yourself in a situation where you need just a bit of cash to cover the cost of things like moving expenses or car repairs. A personal loan is one option. There are some lenders, credit unions in particular, where you’re likely to find small loans available. You might even be able to borrow as little as a few hundred dollars.
We’ve gathered the best lenders for people with a range of credit scores, with a specific focus on finding companies that offer low APRs.
Best Small Personal Loans
Compare the Top Small Personal Loans
The best lenders for small personal loans have loan amounts starting as low as $1,000, plus a variety of repayment terms. Credit unions are often good choices for small loan amounts, but we included bigger online banks in our list of best options as well.
Best for Short Repayment Terms: PenFed Credit Union Personal Loan
PenFed Credit Union Personal Loan
Regular APR
7.99% to 17.99%
Loan Amount Range
$600 to $50,000
- Wide range of loan amounts
- Low minimum APR
- No origination fees or prepayment penalties
- Coborrowers allowed
- Need to be a member to get a loan
- Late fee
Product Details
- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
PenFed Credit Union has the shortest minimum repayment term length of any of the lenders on our list. This may be helpful if you can afford larger monthly payments and want to save on the total interest you pay. PenFed also has one of the lowest starting APRs of any of our top picks for small personal loans.
The company’s personal loans have no origination fees and no prepayment penalties. You can apply with a co-borrower, which may help you get a better interest rate if your co-borrower has a good credit history.
You don’t need to be a PenFed member to apply for a loan, but you’ll need to become a member to accept a loan offer. If you’ve served in the military or work at qualifying associations or organizations, you’ll qualify. If that doesn’t apply to you, you can join by opening a savings account with a $5 minimum deposit.
PenFed Credit Union Personal Loan Review
Best for Fast Approval and Funding: Alliant Credit Union Personal Loan
Alliant Credit Union Personal Loan
Check rates
Regular APR
starts at 11.79%
Loan Amount Range
$1,000 to $50,000
Minimum Credit Score
Undisclosed
- High maximum loan amount
- Quick approval time
- Quick funding time
- No origination fees or prepayment penalties
- Debt protection offered
- High minimum loan amount
- Need to be an Alliant member to get a loan
Product Details
- Loan term lengths from one to five years
- Loan amount range from $1,000 to $50,000
- You can join Foster Care to Success to qualify for membership, and Alliant will cover your $5 joining fee
- For a small fee, you can cover death, disability, and involuntary unemployment, protecting you from unexpected events that may make you unable to pay back your loan
Alliant Credit Union, like every other credit union on our list, has an unspecified minimum credit score. The higher your credit score, the more likely you are to be approved for a loan with a great rate. The lender charges no origination fees and has no late payment penalty, lowering the overall cost of your loan.
In most cases, you can get loan approval and funding on the same day, which gives Alliant a leg up on competitors whose approval processes are slower.
Alliant offers one of the shortest repayment terms of any lender on our list of top picks. While you’ll pay more per month with a shorter repayment term, you’ll save in the long term by paying less in total interest.
You’ll have to be a member of Alliant to take out a personal loan with the company, but the good news is the eligibility requirements are relatively lax. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.
You can also purchase debt protection for your loan that covers death, disability, and involuntary unemployment, safeguarding you from unexpected events that could leave you unable to repay your loan. The monthly cost for debt protection per $1,000 of your outstanding loan balance is $1.99.
Alliant Credit Union Personal Loan Review
Best for Excellent Credit: Upgrade Personal Loan
Upgrade Personal Loan
Regular APR
8.49% to 35.99%
Loan Amount Range
$1,000 to $50,000
- Small minimum loan amount
- Quick access to funds
- Low minimum credit score
- Origination and late fees
Product Details
- Loan amounts range from $1,000 to $50,000
- Loan term lengths range between 2 to 7 years
- You can get your money within one business day after your loan is reviewed and approved
- Loans made by Upgrade’s lending partners
Upgrade offers one of the lower minimum APRs among our picks. Keep in mind that you’ll only qualify for this rate if you have excellent creditworthiness, so if your credit score isn’t in the best of shape, exercise caution. People with worse credit scores may end up paying an APR closer to 35.99%.
Upgrade will charge you an origination fee between late fee of up to $10, which will be deducted from your loan proceeds. You may also be charged a fee for late payments. However, there are no prepayment penalties with this lender.
You can choose a loan term between two to seven years — a longer term will mean your monthly payments are small, but you’ll pay more in total interest. Once you accept your loan offer, you should get your funds as soon as the next day.
Best for Long Repayment Terms: First Tech Personal Loan
First Tech Personal Loan
Check rates
Regular APR
8.99% to 18.00%
Loan Amount Range
$500 to $50,000
Minimum Credit Score
Varies based on the amount of money you want to take out
- Wide range of loan amounts
- No origination fees
- No prepayment penalties
- 24/7 customer support
- Same day funding available
- Membership required to apply
- Late fees
Product Details
- Loan amounts range from $500 to $50,000
- Loan term lengths are either 24 months or 84 months
- Eligiblefor First Tech by joining the Financial Fitness Association for $8, or if you live or work in certain parts of Oregon
- Speak to a customer representative at any time over the phone
- Loans are made by First Technology Federal Credit Union
Firts Tech will lend you as little as $500, which is useful if you’re looking for a small amount of cash and want to avoid the high APRs that accompany payday loans. First Tech loans come with no application, origination, or annual fees, and there’s no penalty for paying off your loan early.
If you’re looking to spread out your payments over a longer amount of time, First Tech has the longest maximum loan repayment length of any lender on our list. You can divide up your payments over seven years, which will reduce your monthly payments but will cost you more overall due to interest.
First Tech doesn’t specify its minimum credit score, so you’ll have to apply with the lender to see if you’re eligible.
While you’ll have to join First Tech to be eligible to take out a personal loan with them, it’s relatively easy to qualify for membership. The simplest way to qualify is by joining the Financial Fitness Association for $8, though you may also be eligible if you live or work in certain parts of Oregon.
First Tech Personal Loan Review
Navy Federal Credit Union offers loans for as little as $250, the smallest minimum loan amount of all the lenders on our list. If you are looking for an alternative to a payday loan with lower APRs, Navy Federal’s personal loans may be for you. Keep in mind, while the lender doesn’t have a specified minimum credit score, eligibility requirements will likely be higher than with a payday lender.
Navy Federal’s APR range depends on the repayment term length. For loans up to three years, the range is 8.99% to 18%, while for loans between 37 and 60 months, you’ll pay between 14.79% to 18%. You may find a better rate on a longer repayment term elsewhere.
However, you’ll face relatively stringent eligibility requirements to join the credit union. You qualify if you are active military or a veteran, as well as an employee or retiree of the Department of Defense. Family members of any of the aforementioned groups are also eligible.
Navy Federal Credit Union Personal Loan Review
Best for Easy Qualification: Upstart Personal Loan
Upstart Personal Loan
Check rates
Regular APR
6.40% – 35.99% fixed
Loan Amount Range
$1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
- Small minimum loan amounts
- No prepayment penalty
- Quick loan fund disbursement
- Only three and five year terms
- Potential for high origination fees
Product Details
- Loan amounts range from $1,000 to $50,000. However, borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100
- Loan term lengths are either 3 or 5 years
- Can have origination fees up to 8%
- Considers employment and education history when making loan approval decisions
- Loans are made through one of several Upstart-powered bank partners
Upstart personal loans may be easier to qualify for than any others on our list. The minimum credit requirement for Upstart is 600, the lowest of all of our top picks. However, if your credit score is low, you might end up paying a high APR and may want to consider an alternative to a personal loan.
Upstart’s loan repayment term options are fairly limited — you can choose between a three-year or five-year term. On the bright side, the company usually funds loans within one business day, which is useful if you need your money fast.
Best for Excellent Customer Service: Best Egg Personal Loan
- Fast access to funds
- High customer satisfaction
- No prepayment penalty
- Origination fees
- High maximum APR
- Unavailable in a few states and DC
Product Details
- Loan amounts range from $2,000 to $35,000
- Loan term lengths range between 3 to 5 years
- You may get your money by the next business day after your loan is reviewed and approved
- Loans made by Best Egg’s lending partners
- Unavailable if you live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories
Best Egg has the highest minimum credit score requirement of any lender on our list, but offers a low minimum APR for borrowers with good creditworthiness. Additionally, about half of Best Egg customers will receive their money the day after applying for the loan, so the lender could be a good option if you need money quickly.
If you’re looking for a company with great customer service, Best Egg may be a good choice. The company boasts a 95% customer satisfaction rate, which is supported by its top-notch A+ Better Business Bureau trustworthiness score.
While there are no prepayment penalties with Best Egg, you will pay an origination fee between 0.99% and 5.99%, which is included in the APR listed above. Some of our other top picks don’t charge origination fees. Best Egg also has a lower maximum loan amount than most of the other companies on our list.
Small Loan Lender Trustworthiness
Whether you’re looking for a $2,000 loan or a $5,000 loan for your small loan, finding a trustworthy lender can help improve your loan experience.We’ve only selected online personal loan lenders with no public controversies in the last three years. We’ve also compared each institution’s Better Business Bureau score.
The BBB measures businesses based on factors like their responsiveness to consumer complaints, truthfulness in advertising, and clarity about business practices. Here is each company’s score:
All of our top picks are rated A+ by the BBB, with the exception of First Tech Federal Credit Union and Navy Federal. The BBB gives First Tech an F grade because of 92 complaints filed against the business, including five unresolved complaints. Navy Federal is unrated as the company responds to previously closed complaints.
Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most comprehensive information possible.
Alternatives to Small Personal Loans
While personal loans can be a good option to get money quickly, there may be less expensive avenues if you only need a small amount:
- Ask friends or family. It may be uncomfortable to ask friends or family for a loan, but you can often come to an agreement with lower interest rate payments than through an official lender.
- Get a paycheck advance. Certain banks will allow you to receive your paycheck a couple of days early, and you can use apps that allow you to receive a portion of money you’ve already earned in a pay period. You can also ask your employer for a paycheck advance. However, taking a paycheck advance isn’t free — you’ll often be charged fees that come out of your earnings when you receive them.
- Take out a credit card. You might also consider a credit card instead of a personal loan. This could be particularly helpful if your credit isn’t in the best shape and you qualify for a lower APR with a credit card than a personal loan lender. See our post on personal loans vs lines of credit for more on which option is better for you.
- Seek assistance from a local nonprofit or charity. Many local organizations have programs aimed at short term aid for those in need. You can find a list of some near you here.
- Take up part-time work in the gig economy. You can work on your own time with gig work like rideshare and food delivery apps. These extra jobs may allow you to make enough money to negate the need for a loan.
The Difference Between a Small Personal Loan and a Payday Loan
People often use payday loans to bridge the gap between paydays or to cover emergency expenses, so term lengths are much shorter than personal loans.
Payday loans also come with particularly high APRs — the average interest rate on a payday loan is roughly 400% — which is over 10 times higher than the highest APR of any personal loan lender on our list. The high interest rate on payday loans could trap you in a cycle of debt quickly if you happen to miss a payment.
You can also take out smaller amounts of money with payday loans. Minimums generally start around $50, while on our list of top picks, the lowest amount you can borrow is $250.
Payday loans usually aren’t as hard to qualify for as personal loans. Many payday lenders don’t run a credit check or even ensure you’re able to repay the loan. Many states have banned payday loans due to predatory lending practices, whereas personal loans are generally accessible across the country.
FAQs
There is no specific definition for small personal loans. In general, lenders consider amounts less than $3,000 to $5,000 to be small personal loans. However, it’s possible in some cases to borrow as little as a couple of hundred dollars.
It can as much to service a small loan as a larger one, and many banks don’t find the low interest rates and small profit margins worth it. As a result, many online lenders and traditional brick-and-mortar institutions have relatively high minimum loan amounts.
While many lenders offer loans from $1,000 and up, you can get loans in the hundreds of dollars. For instance, you can get a loan of as little as $250 from Navy Federal Credit Union, and you can get a NetCredit personal loan of as little as $500.
You can get your money as soon as the same day depending on the lender. Usually, a lender will send the money fairly quickly after the application is approved, but there is often no guarantee on the speed of the approval process.
Why You Should Trust Us: Our Methodology
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan’s terms, so they have less of an impact on the overall rating.
See our full personal loans rating methodology >>
OneMain Financial Personal Loan disclosure: Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral) and your state of residence. If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: $3,100. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers in these states are subject to these maximum loan sizes: North Carolina: $9,000 for unsecured loans to all customers, $9,000 for secured loans to present customers. Maine: $7,000. Mississippi: $15,000. West Virginia: $14,000. Loans to purchase a motor vehicle or powersports equipment from select Maine, Mississippi, and North Carolina dealerships are not subject to these maximum loan sizes. Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07. Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.
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