Best Banks for Personal Loans for October 2024

Discover® personal loans stand out for their low fee structure, which is ideal for cost-conscious borrowers. Personal loans from Discover don’t have any origination fees or prepayment penalties, so most borrowers only pay interest charges.

If you’re using Discover® Bank for debt consolidation, it can pay off your outstanding loans and credit cards directly on your behalf. Interest rates are competitive for borrowers with outstanding credit, and you can borrow up to $40,000 with terms from 36 to 84 months.

In addition to personal loans, Discover® Bank is a good option for low-cost banking. It features low-fee checking accounts and high-yield savings accounts with no minimums.

Axos Bank offers funding as early as the same day you accept your loan terms, though it can take up to three days after signing your final loan agreement. You can prequalify and get your loan options in minutes.

You’ll need a credit score of at least 700 to qualify, and loans are available for up to $50,000, with terms of 36 to 72 months. There’s no prepayment penalty, but loans incur an origination fee of 1% to 2% based on your credit rating.

If you like Axos Bank, you may also enjoy its online banking offerings, including a rewards checking account with no fees and a full suite of accounts, including savings, investing, business banking, auto loans, and mortgage loans.

While PenFed offers excellent personal loans, we picked PenFed for its >auto loan refinance offering. You can refinance an auto loan up to $150,000 with a competitive interest rate. Terms range from 36 to 84 months, helping you balance costs and monthly payments. Remember, a lower monthly payment with a longer term may cost more in the long run.

For traditional personal loans, you can borrow up to $50,000 with interest rates from 7.99% to 17.99%. You can borrow up to $50,000 with terms of up to 60 months, and there are no origination or prepayment penalties. Funds are typically received one to two days after approval.

PenFed is a full-service credit union also offering checking and savings accounts, credit cards, and home loans. You have to be a member to get a loan from PenFed, but it’s open to anyone without membership restrictions.

SoFi features personal loans from $5,000 to $100,000. There are no origination, prepayment, or late fees, and terms range from 24 to 84 months. An unusual feature of SoFi personal loans is unemployment protection. If you lose your job, SoFi may change payment terms temporarily while you get back on your feet, and there’s support to find a new job.

Rates are not the lowest around, depending on your credit, but you can get funding as soon as the same day your loan is approved. If you have good credit, consolidating credit card debt with a SoFi loan could lead to significant interest savings and put you on track to get out of debt permanently.

In addition to personal loans, SoFi offers excellent checking and savings accounts, a cash back credit card with no annual fee, investment accounts, and other types of loans.

Navy Federal Credit Union is a nonprofit financial institution open only to households with a military connection, including the Department of Defense or National Guard. Navy Federal personal expense loans are available with competitive interest rates, and you can borrow as little as $250.

In addition to the personal expense loan, Navy Federal features home improvement loans, debt consolidation loans, and personal loans secured by savings or certificate of deposit (CD) accounts. Secured loans come with extremely low interest rates compared with most other personal loans.

Like other credit unions, Navy Federal also offers competitive checking, savings, credit card, auto loan, and mortgage accounts. If it’s an option for your family, moving all of your accounts to Navy Federal may be a good choice.

LightStream personal loans offer one of the lowest interest rates we’ve found for qualifying borrowers. Still, even if it isn’t your lowest offer initially, it may be your lowest-priced loan once you factor in the Rate Beat Program. LightStream offers a rate that’s 0.10% lower than any comparable unsecured loan you’re approved for elsewhere.

The company specifies that good to excellent credit is required, and loans are listed with terms up to 144 months for certain uses, such as home improvement. LightStream is also a standout for offering loans with no fees of any kind, including origination, prepayment, and late fees.

LightStream is exclusively a personal lender with no bank accounts or other loan offerings. Behind the scenes LightStream is operated by Truist Bank, which offers a full suite of banking products and services.

While the average borrower with Avant has a credit score of 600 to 700, it approves some borrowers with credit scores as low as 580, one of the lower credit score thresholds we’ve found. Be aware, however, that borrowers with lower credit scores pay higher interest rates, and the top rates at Avant exceed a 35% annual percentage rate (APR).

Loans are also subject to an “administrative fee” of up to 4.75%, which is a steep cost for loan origination. Avant loans are often one of the fastest lenders for approval and funds receipt. In many cases loan funds are received as soon as the next business day.

In addition to personal loans, Avant offers a credit card designed to help users build credit. No other banking services are available through Avant.