Best Small Personal Loans of September 2023

Personal loans are known for being used to cover big-ticket expenses like weddings, funerals and home renovations. However, they can also be used to cover things that may be a little less costly but that you don’t have the money to cover on your own — like a small emergency or a car fix that, luckily, won’t run you thousands.

Many personal loan lenders offer funding amounts that start at around $5,000. However, that isn’t ideal for someone who needs to borrow significantly less since it forces them to apply for more money than they’ll actually need (which means higher monthly payments and interest charges).

CNBC Select dug through dozens of personal lenders to find ones that allow you to apply for as little as $1,000. We looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

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Who’s this for? Upstart allows borrowers to apply for as much as $50,000, but its low funding minimum of $1,000 makes it an option for those who don’t need to borrow as much. This lender is also more flexible when it comes to who can qualify for this loan — it has a minimum credit score requirement of 600, however, Upstart also accepts applicants with no credit history. Just keep in mind that if you are approved for the loan with a lower credit score, you may be subject to a higher interest rate — just like with any other financial product that charges interest.

While there are no penalties for paying off your balance early, Upstart does charge an origination fee (up to 12% of the amount you borrow) and late fees ($15 or 5% of the past due balance, whichever is greater).

When it comes to repaying the balance, loan terms range from 36 to 60 months, which can be appealing to borrowers who think they may need a longer time horizon to repay the entire loan.

Who’s this for? PenFed loans can be used for a variety of reasons, including debt consolidation, home improvement, medical expenses, auto financing and more. This lender is actually a credit union and while you don’t need to be a member to apply, you will need to sign up for a PenFed membership and keep $5 in a qualifying savings account to receive your funds.

You can actually get approved for a loan as little as $600 with this lender, which makes it the lender with the lowest minimum funding amount on this list. So this might ensure that you don’t borrow more than you can afford to pay back if you don’t necessarily need $1,000 or more. Personal loan interest rates range from 4.99% to 17.99%. Not all applicants will qualify for the lowest rate, since it will depend on your creditworthiness, but the higher your credit score the more likely you are to receive a lower interest rate.

One thing to keep in mind, though, is that PenFed provides its funds in the form of a paper check. If you know a nearby PenFed location, you can pick up your check at any time directly from the bank. Otherwise, you can receive your funds as early as the next day if you pay for expedited shipping.

Who’s this for? Upgrade loans approve qualified borrowers with fair or good credit, which makes it an appealing choice for those with a credit score that’s less than ideal. These loans are fast and easy to secure, and all the funds will arrive to your checking account within one business day of submitting the required documents. All Upgrade personal loans have an origination fee of up to 8%, which is deducted directly from your loan proceeds so if you know you’ll need $1,000, you should account for the origination fee and apply for a loan amount closer to $1,080.

Upgrade doesn’t have any repayment penalties, but it does have a late fee: if you pay late or miss a payment, you could be hit with a $10 late fee if your payment is not received in full within 15 calendar days of the due date. 

And, like most of the other lenders on this list, Upgrade personal loans start at just $1,000, but qualified applicants can apply for as much as $50,000. Upgrade loans come with repayment terms of 24 to 84 months.

Who’s this for? PNC Bank gives borrowers the potential for having a longer repayment term — the terms can be as long as 60 months. This can be an appealing option for borrowers who would prefer to have smaller monthly payments stretched out over longer periods of time (although, you’ll end up paying more in interest over time). Generally, the higher your credit score, the more likely you are to have a longer repayment period.

The interest rate and terms you receive will vary based on your location (you can enter your ZIP code on their website to get an idea of what the rates in your area are like). Also, you’ll want to make sure your credit score is in a healthy range in order to increase your chances of getting approved for the lowest possible rate.

On the flip side, funding from this lender is generally not the fastest — it can take up to 10 business days to receive funding in some cases. There are no origination or prepayment fees but there is a late fee, which amounts to 10% of the payment or $40, whichever is greater. Still, though, this could be an option for potential borrowers who are PNC Bank customers who feel more comfortable taking on a loan from their current bank.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best personal loans.

To determine which personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best personal loans, we focused on the following features:

• No origination or signup fee: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for overall financing needs, debt consolidation and refinancing, small loans and next-day funding.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

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