“Before borrowing money from a friend, decide which you need more.” – Anonymous
What Are Low-Interest Personal Loan Options?: When it comes to borrowing money, choosing a low-interest personal loan can significantly reduce your total repayment amount. Whether you’re consolidating debt, funding a home renovation, or covering medical expenses, understanding your options is key to borrowing smart.
Understanding Low-Interest Personal Loans
Low-interest personal loans come with competitive annual percentage rates (APRs), making them more affordable over time. These loans are typically unsecured, meaning they don’t require collateral, but your credit score plays a major role in determining your eligibility and rate.
According to CreditMantri, a good personal loan interest rate in 2025 ranges between 10% to 13% in India, while international lenders may offer even lower rates to applicants with excellent credit.
Best Low-Interest Loan Providers
- LightStream – Known for offering some of the lowest rates in the U.S. for borrowers with strong credit histories (Forbes).
- SoFi & Marcus by Goldman Sachs – Offer low APRs, no fees, and quick funding options for qualified applicants (Investopedia).
- Australian options like Credit24 provide flexible unsecured loans, which typically have higher rates but more borrowing freedom (Credit24).
- Vocal Media lists several emerging low-interest providers in 2025 catering to tech-savvy and younger borrowers.
Secured vs. Unsecured Loans
- Secured loans (like those backed by property or fixed deposits) offer lower rates but risk asset forfeiture if unpaid.
- Unsecured loans are quicker and more flexible but usually come with slightly higher rates unless your credit score is excellent.
Tips To Secure The Best Rates
- Check your credit score and work on improving it.
- Compare offers from banks, NBFCs, and online lenders.
- Use EMI calculators to assess affordability.
- Negotiate with lenders—especially if you’re a long-time customer.
FAQ
What Is A Good Interest Rate For A Personal Loan?
A good rate is typically 10 in India and 6 in the U.S., depending on your credit score and loan type.
Are Secured Loans Cheaper Than Unsecured Ones?
Yes, secured loans usually offer lower interest rates but come with the risk of asset loss if unpaid.
How Can I Qualify For A Low-Interest Loan?
Maintain a high credit score, low debt-to-income ratio, and stable income history to improve your chances.
Can I Get A Low-Interest Loan With Bad Credit?
It’s difficult, but some lenders offer competitive rates with collateral or co-signers.