BEST OF
Small Personal Loans in 2021: Compare Your Options
For small personal loans, look first to credit unions or online lenders for affordable loans. Compare small loans and learn about alternatives.
A small personal loan can be a quick, convenient option to pay an immediate expense, like a medical bill or car repair, if you don’t have emergency savings or alternative ways to cover the expense. The nonprofit Pew Charitable Trusts says affordable small-dollar loans should have:
Monthly payments that are not more than 5% of your monthly income.
Fixed monthly payments and no balloon payments.
Loan terms between 3 and 12 months.
Some online lenders offer personal loans for as little as $1,000. Always compare multiple personal loans to find one that best fits your budget.
A small personal loan can be a quick, convenient option to pay an immediate expense, like a medical bill or car repair, if you don’t have emergency savings or alternative ways to cover the expense. The nonprofit Pew Charitable Trusts says affordable small-dollar loans should have:
Monthly payments that are not more than 5% of your monthly income.
Fixed monthly payments and no balloon payments.
Loan terms between 3 and 12 months.
Some online lenders offer personal loans for as little as $1,000. Always compare multiple personal loans to find one that best fits your budget.
Summary of Small Personal Loans in 2021: Compare Your Options
Lender | NerdWallet Rating | Est. APR | Min. Credit Score | Learn More |
---|---|---|---|---|
Best for Small loans starting at $1,000 | 6.94 - 35.97% | 580 | on Upgrade's website | |
Best for Small loans starting at $1,000 | 8.05 - 35.89% | 600 | on LendingClub's website | |
Best for Small loans starting at $1,000 | 8.27 - 35.99% | 580 | on Upstart's website | |
Best for Small loans starting at $1,500 | 18.00 - 35.99% | None | on OneMain Financial's website | |
Best for Small loans starting at $2,000 | 9.95 - 35.99% | 550 | on Avant's website | |
Best for Small loans starting at $2,000 | 5.99 - 29.99% | 600 | on Best Egg's website | |
Best for Small loans starting at $2,000 | 7.95 - 35.99% | 640 | on Prosper's website | |
Best for Small loans starting at $2,000 | 7.16 - 29.99% | 640 | See my rates on NerdWallet's secure website |
Our picks for
Small loans starting at $1,000
on Upgrade's website
Upgrade
Min. Credit Score
Est. APR
Loan Amount
on Upgrade's website
on LendingClub's website
LendingClub
Min. Credit Score
Est. APR
Loan Amount
on LendingClub's website
on Upstart's website
Upstart
Min. Credit Score
Est. APR
Loan Amount
on Upstart's website
Our pick for
Small loans starting at $1,500
on OneMain Financial's website
OneMain Financial
Min. Credit Score
Est. APR
Loan Amount
on OneMain Financial's website
Our picks for
Small loans starting at $2,000
These lenders offer loans starting at $2,000. Credit requirements vary across them.
on Avant's website
Avant
Min. Credit Score
Est. APR
Loan Amount
on Avant's website
on Best Egg's website
Best Egg
Min. Credit Score
Est. APR
Loan Amount
on Best Egg's website
on Prosper's website
Prosper
Min. Credit Score
Est. APR
Loan Amount
on Prosper's website

on NerdWallet's secure website
Rocket Loans

Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Small loans from credit unions
For some borrowers, a local credit union is the best place to get a small-dollar loan. Credit unions are not-for-profit institutions built to serve their members, and many look at more than your credit score when they assess you for a loan.
Many federal credit unions offer payday alternative loans, typically between $200 and $1,000, to borrowers with low credit scores. By law, federal credit unions can charge maximum annual percentage rates of 18% for personal loans and 28% for payday alternative loans.
Borrowers can get a loan from PenFed for as little as $500, depending on the chosen repayment term.
Small loans from banks
Not all major banks offer personal loans, and many that do offer larger loans. Citibank and PNC are two banks that offer small personal loans in addition to competitive interest rates and rate discounts for existing customers.
Citibank loans start at $2,000, and customers with Citibank checking accounts can get rate discounts for making automatic loan payments. PNC’s loans start at $1,000, and existing customers receive a 0.25% rate discount if they set up payments from their checking accounts.
In late 2020, Bank of America introduced Balance Assist, a small-dollar loan available in amounts from $100 to $500. It has a low borrowing fee of $5 and a three-month repayment term. You must be an existing Bank of America customer to qualify.
The U.S. Bank Simple Loan lets bank customers borrow between $100 and $1,000, repaid in three monthly installments. The loan carries a fee of $12 to $15, or an APR of 77% - 81%. It's an expensive option, but still cheaper and safer than payday loans.
Small online loans for bad credit
Borrowers with bad credit (629 or lower FICO) may qualify for a small loan from a reputable online lender. Rates on these loans don't exceed 36%, but bad-credit borrowers may qualify for a rate on the high end of a lender's APR range.
Compare bad credit loans from online lenders to find the lowest rate. Some of these lenders can offer fast funding and they typically have repayment terms of six months or more.
Alternatives to small personal loans
You have options other than taking a small loan with interest and potentially fees. NerdWallet recommends exhausting cheaper alternatives first, even if you need the money for an emergency.
Seek assistance from local nonprofits, charities and religious organizations.
Ask your employer for a paycheck advance or use an app like Earnin.
Get a pawnshop loan secured by something you own.
Try other ways to make money.
If you are comfortable with it, ask family and friends for a loan through lending circles or a loan agreement.
Avoid predatory small loans
Payday lenders typically offer loans with high rates, short terms and late fees. A $500 payday loan due in two weeks with the typical fee of $15 for every $100 dollars you borrow would be an APR of 391%, a rate that's considered unaffordable by consumer finance advocates.
Other predatory lenders offer loans for under $1,000 with excessive terms that allow them to earn more interest.
You can spot a predatory lender a few different ways. If a lender doesn’t check your credit before approving you for a loan, requires access to your bank account or doesn’t state the loan’s APR before closing it, then it's likely it isn’t engaging in consumer-friendly lending.
If you can only qualify for a high-interest loan, understand how your rate translates to payments and find a lender that checks your credit.
Learn how to take a high-interest loan without slipping into a cycle of debt before you apply.
» MORE: Alternatives to payday loans
How to pre-qualify for a personal loan
Pre-qualifying for an online loan can get you access to potential loan terms, including the loan’s interest rate, loan amount and payments. Take the steps to pre-qualify and compare offers to find the loan that gives you an amount you need and a payment you can afford.
Last updated on February 24, 2021
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.
To recap our selections...
NerdWallet's Small Personal Loans in 2021: Compare Your Options
- Upgrade: Best for Small loans starting at $1,000
- LendingClub: Best for Small loans starting at $1,000
- Upstart: Best for Small loans starting at $1,000
- OneMain Financial : Best for Small loans starting at $1,500
- Avant: Best for Small loans starting at $2,000
- Best Egg: Best for Small loans starting at $2,000
- Prosper: Best for Small loans starting at $2,000
- Rocket Loans: Best for Small loans starting at $2,000
Frequently asked questions
Some lenders have minimum credit score requirements as low as 580. 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.
You can apply for a personal loan in three steps. First, pre-qualify to see which lender can offer you the best terms and rates. Then, get documentation like employment and bank account information ready so you can refer to it. Finally, submit your application. If you're getting a loan online, the process could take an hour or two.
Some lenders offer no-credit-check loans, but tread cautiously because interest rates can be sky high, and you risk getting trapped in a cycle of debt. It's best to try alternatives to borrowing first.