Best Small Personal Loans in 2023
A small personal loan can fill an income gap or help you through a financial emergency. Compare small loan options and borrowing alternatives.
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A small personal loan can help you bridge a gap in income or cover an emergency, such as a car repair. Even if you urgently need cash, it’s useful to compare financing options before getting a loan — you may find a cheaper one.
Learn where to get a small loan, how to compare lenders and which alternatives to explore. These lenders offer small personal loans with starting amounts from $250 to $2,000:
Navy Federal: Loans starting at $250.
Oportun: Loans starting at $300.
First Tech: Loans starting at $500.
LendingClub: Loans starting at $1,000.
Upgrade: Loans starting at $1,000.
Upstart: Loans starting at $1,000.
Universal Credit: Loans starting at $1,000.
Alliant: Loans starting at $1,000.
OneMain: Loans starting at $1,500.
Best Egg: Loans starting at $2,000
A small personal loan can help you bridge a gap in income or cover an emergency, such as a car repair. Even if you urgently need cash, it’s useful to compare financing options before getting a loan — you may find a cheaper one.
Learn where to get a small loan, how to compare lenders and which alternatives to explore. These lenders offer small personal loans with starting amounts from $250 to $2,000:
Navy Federal: Loans starting at $250.
Oportun: Loans starting at $300.
First Tech: Loans starting at $500.
LendingClub: Loans starting at $1,000.
Upgrade: Loans starting at $1,000.
Upstart: Loans starting at $1,000.
Universal Credit: Loans starting at $1,000.
Alliant: Loans starting at $1,000.
OneMain: Loans starting at $1,500.
Best Egg: Loans starting at $2,000
Best Small Personal Loans in 2023
Lender | NerdWallet rating | Est. APR | Loan amount | Min. credit score | Learn more |
---|---|---|---|---|---|
![]() Navy Federal Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Small loans starting at $250 | 7.49- | $250- | None | See my rates on NerdWallet's secure website |
Oportun See my rates on NerdWallet's secure website | Best for Small loans starting at $300 | 20.05- | $300- | None | See my rates on NerdWallet's secure website |
![]() First Tech Credit Union Personal Loan See my rates on NerdWallet's secure website | Best for Small loans starting at $500 | 6.70- | $500- | 660 | See my rates on NerdWallet's secure website |
LendingClub Get rate on LendingClub's website | Best for Small loans starting at $1,000 | 8.30- | $1,000- | 600 | Get rate on LendingClub's website |
![]() Upgrade Get rate on Upgrade's website | Best for Small loans starting at $1,000 | 7.96- | $1,000- | 560 | Get rate on Upgrade's website |
Upstart Get rate on Upstart's website | Best for Small loans starting at $1,000 | 6.50- | $1,000- | None | Get rate on Upstart's website |
Universal Credit Get rate on Universal Credit's website | Best for Small loans starting at $1,000 | 11.69- | $1,000- | 560 | Get rate on Universal Credit's website |
![]() Alliant Personal Loan See my rates on NerdWallet's secure website | Best for Small loans starting at $1,000 | 6.24- | $1,000- | 620 | See my rates on NerdWallet's secure website |
![]() OneMain Financial Get rate on OneMain Financial's website | Best for Small loans starting at $1,500 | 18.00- | $1,500- | None | Get rate on OneMain Financial's website |
Best Egg Get rate on Best Egg's website | Best for Small loans starting at $2,000 | 8.99- | $2,000- | 600 | Get rate on Best Egg's website |
Our pick for
Small loans starting at $250

on NerdWallet's secure website
Navy Federal Credit Union Personal Loan

Est. APR
7.49-Loan amount
$250-Min. credit score
Noneon NerdWallet's secure website
Our pick for
Small loans starting at $300
on NerdWallet's secure website
Oportun
Est. APR
20.05-Loan amount
$300-Min. credit score
Noneon NerdWallet's secure website
Our pick for
Small loans starting at $500

on NerdWallet's secure website
First Tech Credit Union Personal Loan

Est. APR
6.70-Loan amount
$500-Min. credit score
660on NerdWallet's secure website
Our pick for
Small loans starting at $1,000

on NerdWallet's secure website
Alliant Personal Loan

Est. APR
6.24-Loan amount
$1,000-Min. credit score
620on NerdWallet's secure website
Our pick for
Small loans starting at $1,500
Our pick for
Small loans starting at $2,000
» COMPARE: See your bad-credit loan options
What is a small loan?
A small loan is generally a personal loan for less than $2,500. Repayment terms vary widely; reputable lenders give you at least a few months to repay a small loan.
Annual percentage rates — the interest rate plus any fees a lender charges — also vary, ranging from about 6% to 36%, with the lowest rates offered to borrowers with strong credit.
Pros and cons of small personal loans
Pros
Fast funding. Many lenders can fund a small personal loan the day you’re approved or the next day.
Lump sum. You get the funds from a personal loan all at once after approval. There’s no credit limit or draw period to remember.
Fixed payments. Personal loans have fixed interest rates that keep your monthly payment the same for the life of the loan.
No collateral. Most personal loans are unsecured, so collateral (like a house or car) isn’t required to borrow. If you don’t repay the loan, the lender can’t take any of your possessions, but your credit score will take a hit.
Cons
Approval based on credit and income. Approval depends on your creditworthiness and finances. Borrowers with thin credit histories, low scores or low incomes are usually offered higher rates, and some may not qualify.
High rates. Personal loan rates can be high compared to other borrowing options, especially for borrowers with low credit scores and incomes. Still, rates on these loans are lower than on payday loans.
Possible origination fees. Some lenders charge an origination fee of 1% to 10% of the loan amount, which the lender takes before sending you the funds. If a lender charges this fee, make sure the final loan amount is enough to cover your expense.
Where to get a small loan
Credit unions
To qualify you for a personal loan and determine your rate, many credit unions look beyond your credit score to information like your standing as a credit union member. Credit union personal loan amounts can start below $1,000.
Some federal credit unions also offer payday alternative loans, typically between $200 and $2,000, to borrowers with low credit scores. Federal credit unions charge maximum APRs of 18% for personal loans and 28% for payday alternative loans.
Online lenders
Loan amounts at online lenders start around $1,000 or $2,000. Many online lenders let you pre-qualify to preview potential small loan offers, including the APR and monthly payment, without affecting your credit score.
Capital Good Fund is one of few online lenders with low rates and loans that can be less than $1,000. These loans are available in only a handful of states, though, and loan amounts vary by state.
Banks
Personal loan starting amounts at banks are usually around $2,000, and banks typically prefer borrowers with good or excellent credit. However, some banks have introduced new small-dollar loans in recent years. Here are a examples:
The U.S. Bank Simple Loan is offered in amounts from $100 to $1,000 and is repaid over three months. The loan’s fee is $6 for every $100 borrowed.
Bank of America’s Balance Assist provides loans from $100 to $500 and is repaid over three months. The loan carries a flat $5 fee.
Truist’s Ready Now loan is offered in amounts from $100 to $1,000 and has a fee of $5 per $100 borrowed. The loan is repaid over six months.
Wells Fargo offers short-term small loans of either $250 or $500. These loans are repaid in four monthly installments, according to the bank.
Most banks require customers to have a bank account open for a few months before they can apply for a small loan.
How to compare small loans
Here are the most important features to compare when choosing a small loan.
APR: Annual percentage rate is the best apples-to-apples cost comparison for all loan types. The least expensive loan has the lowest APR.
Payments: Review your budget to see how much room you have to repay a loan. A personal loan calculator can help you see what rate and repayment term you’d need to get an affordable monthly payment.
Terms: Some small loans have a repayment term of a few weeks or months, while others can be repaid over a year or more. A long repayment term means you’ll pay more in interest, so find a term that keeps payments low but helps you clear the debt quickly.
Requirements: Some lenders prefer borrowers with strong credit and income, while others accept lower credit scores. Review a lender’s borrowing requirements to determine your likelihood of qualifying.
Funding time: Loan approval and funding can take a couple of days or up to a week, depending on the lender and how smoothly the application process goes. If you need the funds fast, look for a lender that offers fast loans.
How to get a small personal loan
Review your credit and debts. Before applying, check your credit report for opportunities to address any negative marks or unpaid debts. Also, calculate your debt-to-income ratio, which lenders use to see how much of a borrower’s income goes to other debts. Many lenders prefer borrowers with DTIs below 40%.
Pre-qualify. Since pre-qualifying takes a few minutes with most online lenders and doesn’t affect your credit score, it’s a quick way to compare small loans.
Collect necessary documents. A loan application may require information like your Social Security number, W-2s and pay stubs. Gathering this information before you apply can speed up the loan application process.
Submit the application. This part may be done in person with local banks and credit unions, but many lenders have online applications. If you’re approved, expect funding within a day to a week. Applying will temporarily shave a few points off your credit score.
How to qualify for a small loan with bad credit
If you have bad credit (a score of 629 or lower), you may still qualify for a small loan from a credit union or reputable online lender, but your rate could be on the high end of the lender’s range.
Here are some ways to improve your chances of qualifying:
Add a co-signer whose credit score or income is higher than yours. A co-signer won't have access to loan funds or information about your payments, but they will be on the hook if you fail to repay.
Get a joint personal loan with someone whose credit score or income is higher than yours. Co-borrowers share the responsibility for repayment and have equal access to the loan funds and payment information.
Choose a lender that offers secured personal loans. Most lenders let you use a bank account or vehicle as collateral.
Take more time to build credit before you apply.
» MORE: Best bad-credit loans
How to spot a predatory small loan
A small loan from a predatory lender can damage your finances and trap you in a cycle of debt. Watch for these red flags when shopping for a small personal loan.
High interest rates: Reputable lenders cap APRs at 36%, the highest rate most consumer advocates say an affordable loan can have. Some high-interest lenders can charge triple-digit interest rates or high fees that make the loan difficult to repay.
Extra short repayment terms: Payday loans are so named because you repay them on your next payday — usually in two weeks or less. These loans require a balloon payment (all or most of the loan repaid at once) and may not give you enough time to pull the funds together.
» MORE: Alternatives to payday loans
Extra long repayment terms: Installment loans with long repayment terms are appealing because they have low monthly or bi-weekly payments, but some lenders draw out the repayment term for longer than you need in order to make more money on interest. An extra long repayment term, even on a small loan, could have you paying more than 50% of what you borrowed in interest.
No credit checks: A lender that approves you without checking your credit — or without at least reviewing a few months’ worth of bank account transactions — isn't trying to ensure that you can repay the loan. This means the lender doesn’t know if you can repay and may be betting that you can’t, which could lead you to borrow more money to pay off the first loan.
Alternatives to small personal loans
NerdWallet recommends exhausting cheaper alternatives before getting a small loan, even if you need the money for an emergency. Consider these options first:
Form a lending circle with friends and family members you trust, or accept a loan from a family member.
Pick up a side gig to make extra money. Options range from selling clothes to walking dogs.
Seek assistance from local nonprofits, charities and religious organizations for help with things like bills, gas, groceries, food or clothes.
Borrow against your next paycheck with a cash advance app. These loans can be an affordable way to borrow a few hundred dollars, but be prepared to repay the money on your next payday.
Use a “buy now, pay later” app to split the cost of a large purchase into smaller payments spread out over a few weeks or months.
Last updated on December 13, 2022
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
To recap our selections...
NerdWallet's Best Small Personal Loans in 2023
- Navy Federal Credit Union Personal Loan: Best for Small loans starting at $250
- Oportun: Best for Small loans starting at $300
- First Tech Credit Union Personal Loan: Best for Small loans starting at $500
- LendingClub: Best for Small loans starting at $1,000
- Upgrade: Best for Small loans starting at $1,000
- Upstart: Best for Small loans starting at $1,000
- Universal Credit: Best for Small loans starting at $1,000
- Alliant Personal Loan: Best for Small loans starting at $1,000
- OneMain Financial : Best for Small loans starting at $1,500
- Best Egg: Best for Small loans starting at $2,000
Frequently asked questions
Some lenders have minimum credit score requirements as low as 560. If you're not sure whether you'd qualify, you can pre-qualify for a personal loan. Pre-qualifying won't hurt your credit score, and it allows you to see the rate and terms a lender would offer you.
Few major banks offer personal loans below $1,000. These two large banks offer small-dollar loans to existing customers:
U.S. Bank’s Simple loan is offered in amounts from $100 to $1,000.
Bank of America’s Balance Assist loan is offered in amounts from $100 to $500.
You can find small personal loans at banks, credit unions or online lenders. Some large banks provide small loans to existing customers. Credit union personal loans may have low starting amounts. Federal credit unions can also offer a specific type of small loan called a payday alternative loan. Online personal loans usually start at $1,000, but some lenders may offer smaller loans.