When it comes to borrowing money, interest rates can make or break your repayment experience. A small difference of just 2% in APR can save you hundreds or even thousands of dollars over the life of a loan. That’s why borrowers looking for personal loans in 2025 are increasingly searching for the best low-interest options.
Whether you’re consolidating debt, funding a home renovation, covering medical bills, or planning a big purchase, choosing the right lender with the lowest possible rate is crucial.
This guide will cover:
- The best low-interest personal loan providers in 2025 (USA & Canada)
- Average rates, fees, and loan terms
- Tips to qualify for lower interest
- Pros and cons of low-interest loans
- FAQs to help you decide
What Are Low-Interest Personal Loans?
A low-interest personal loan is a type of unsecured loan that comes with below-average APR compared to standard offers.
- In the U.S., the average personal loan APR ranges from 10% – 28%. Low-interest loans are usually considered below 12% APR.
- In Canada, low-interest personal loans typically fall between 8% – 12% APR.
Lenders determine your rate based on:
- Credit score
- Income and employment stability
- Debt-to-income ratio (DTI)
- Loan amount and repayment term
Why Choose a Low-Interest Personal Loan?
- Lower monthly payments – Pay less interest each month.
- Reduced total repayment cost – Save thousands over the loan term.
- Faster debt payoff – More of your payments go toward the principal.
- Financial flexibility – Easier to budget and plan.
- Safer borrowing – Less risk of default compared to high-interest loans.
Best Low-Interest Personal Loan Providers in 2025
Below are some of the top lenders offering low-interest personal loans in the U.S. and Canada this year.
1. SoFi (USA)
- APR Range: 8.99% – 23.99% (with autopay discount)
- Loan Amounts: $5,000 – $100,000
- Loan Terms: 2 – 7 years
- Benefits:
- No fees (no origination, late, or prepayment fees)
- Fast approval and same-day funding
- Free financial planning resources
Best for: Borrowers with excellent credit seeking high loan amounts.
2. LightStream (USA – Division of Truist Bank)
- APR Range: 7.99% – 22.49%
- Loan Amounts: $5,000 – $100,000
- Loan Terms: 2 – 12 years
- Benefits:
- Rate Beat Program (will beat competitor rates by 0.10%)
- No fees
- Large loans for big projects (e.g., home improvements)
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Best for: Borrowers with strong credit looking for flexible repayment terms.
3. Marcus by Goldman Sachs (USA)
- APR Range: 8.99% – 24.99%
- Loan Amounts: $3,500 – $40,000
- Loan Terms: 3 – 6 years
- Benefits:
- No fees
- Payment deferral option (skip one payment after 12 months)
- Fixed APRs with predictable monthly payments
Best for: Borrowers who value transparency and fee-free loans.
4. Discover Personal Loans (USA)
- APR Range: 9.99% – 24.99%
- Loan Amounts: $2,500 – $40,000
- Loan Terms: 3 – 7 years
- Benefits:
- No origination fees
- Same-day approval in many cases
- 30-day return policy (cancel loan without paying interest)
Best for: Borrowers seeking fast approvals and flexible repayment.
5. TD Bank Personal Loans (Canada & USA)
- APR Range (Canada): 8.99% – 12.99%
- APR Range (USA): 9.49% – 21.99%
- Loan Amounts: $2,000 – $50,000
- Loan Terms: 1 – 7 years
- Benefits:
- Available in both Canada and the USA
- Flexible repayment options
- Branch support + online management
Best for: North American borrowers who prefer a traditional bank.
6. CIBC Personal Loans (Canada)
- APR Range: 7.99% – 12.99%
- Loan Amounts: $3,000 – $50,000
- Loan Terms: 1 – 5 years
- Benefits:
- Low fixed APRs for strong credit borrowers
- Ability to skip payments once per year
- Direct debt consolidation options
Best for: Canadians consolidating credit card debt at high interest.
7. BMO (Bank of Montreal) Personal Loans (Canada)
- APR Range: 8.49% – 13.99%
- Loan Amounts: $2,000 – $50,000
- Loan Terms: 1 – 5 years
- Benefits:
- Competitive low rates for qualified borrowers
- Online pre-approval process
- Flexible payment frequency (weekly, biweekly, monthly)
Best for: Canadians who want structured repayment flexibility.
8. Borrowell (Canada – Online Lender)
- APR Range: 9.99% – 19.99%
- Loan Amounts: $1,000 – $35,000
- Loan Terms: 1 – 5 years
- Benefits:
- Quick online approval
- Helps those with fair/good credit access low rates
- Partners with multiple lenders for best match
Best for: Canadians with fair credit seeking online lending convenience.
Comparison Table – Best Low-Interest Personal Loans 2025
| Lender | Country | APR Range | Loan Amount | Terms | Best For |
|---|---|---|---|---|---|
| SoFi | USA | 8.99% – 23.99% | $5k – $100k | 2–7 yrs | High loan amounts, fee-free |
| LightStream | USA | 7.99% – 22.49% | $5k – $100k | 2–12 yrs | Long-term loans, large projects |
| Marcus | USA | 8.99% – 24.99% | $3.5k – $40k | 3–6 yrs | No fees, simple repayment |
| Discover | USA | 9.99% – 24.99% | $2.5k – $40k | 3–7 yrs | Fast funding, 30-day return |
| TD Bank | USA/Canada | 8.99% – 21.99% | $2k – $50k | 1–7 yrs | Bank-backed loans |
| CIBC | Canada | 7.99% – 12.99% | $3k – $50k | 1–5 yrs | Debt consolidation |
| BMO | Canada | 8.49% – 13.99% | $2k – $50k | 1–5 yrs | Flexible payment schedules |
| Borrowell | Canada | 9.99% – 19.99% | $1k – $35k | 1–5 yrs | Quick online approvals |
Tips to Qualify for the Lowest Interest Rates
- Improve your credit score – Pay bills on time, reduce balances, and dispute errors.
- Reduce your debt-to-income ratio – Pay down existing debt before applying.
- Choose shorter loan terms – Shorter terms often come with lower APRs.
- Apply with a co-signer – Strong co-signers can help secure better rates.
- Compare multiple lenders – Use online marketplaces to shop around.
- Opt for autopay – Many lenders offer 0.25%–0.50% APR discounts for autopay.
Pros & Cons of Low-Interest Personal Loans
Pros
- Lower total repayment cost
- Easier budgeting with fixed monthly payments
- Useful for consolidating high-interest credit card debt
- Can improve credit score with on-time payments
Cons
- Harder to qualify (usually requires good/excellent credit)
- Lower rates often limited to shorter terms or high incomes
- Some lenders still charge origination fees or penalties
FAQs
1. What’s considered a low-interest personal loan in 2025?
Anything below 12% APR is considered competitive, though rates vary by credit score.
2. Can I get a low-interest loan with bad credit?
Unlikely. Most low-interest loans require good or excellent credit (670+ FICO). With bad credit, expect higher rates or secured loan options.
3. Do online lenders offer lower rates than banks?
Often, yes. Online lenders like SoFi, LightStream, and Borrowell may undercut traditional banks because of lower overhead.
4. What’s the average loan term?
Most low-interest personal loans run between 2–7 years, but some go up to 12 years.
5. Can I pay off early without penalty?
Some lenders allow early repayment with no fees (SoFi, Marcus, LightStream), but always confirm before signing.
Conclusion
Finding the best low-interest personal loans in 2025 can help you borrow smarter and save thousands. Whether you’re in the USA or Canada, lenders like SoFi, LightStream, Marcus, TD, CIBC, and Borrowell are offering competitive rates and flexible repayment terms.
The key to getting the lowest APR is maintaining strong credit, comparing multiple offers, and selecting a loan that fits your repayment ability. Used wisely, a low-interest personal loan can be one of the best financial tools for consolidating debt, managing expenses, or funding major life goals.