When you need to finance a car repair, emergency vet visit, dental procedure or other relatively small expense, a personal loan of $1,000 or less can ease the financial burden by spreading the cost across monthly installments over a year or more.
While many personal loan lenders only offer loans starting at $2,000 or higher, some online lenders, credit unions and banks provide smaller loan amounts so you don’t have to borrow more than what you need.
Here are our best picks for lenders offering $1,000 loans as well as other small borrowing options to consider.
Best lenders for a $1,000 loan or less
Online lenders
Online lenders offer fast funding and may accept borrowers from across the credit spectrum.
Here are our top online lenders with $1,000 minimum loan amounts:
Lender | Min. loan amount | APR range | Repayment terms |
|---|---|---|---|
 on NerdWallet's secure website | $1,000. | 7.74% - 35.99%. | 2 to 7 years. |
 on NerdWallet's secure website | $1,000. | 6.20% - 35.99%. | 3 to 7 years. |
 on NerdWallet's secure website | $1,000. | 11.69% - 35.99%. | 2 to 5 years. |
 on NerdWallet's secure website | $1,000. | 8.99% - 35.99% | 2 to 6 years. |
Credit unions
Many credit unions offer personal loans under $1,000, but you’ll need to be a member of the credit union to get a loan. This type of lender can be favorable if you have a low credit score, because credit unions tend to look beyond credit scores to qualify loan applicants.
Also, federal credit unions cap annual percentage rates at 18%, making them a less expensive option than other lenders with maximum rates around 36%.
Here are the best credit unions offering $1,000 loans or less:
Lender | Min. loan amount | APR range | Repayment terms |
|---|---|---|---|
 on NerdWallet's secure website | $300. | 6.99% - 17.90% | 6 months to 7 years. |
 on NerdWallet's secure website | $250. | 8.74% - 18.00%. | 6 months to 5 years. |
 on NerdWallet's secure website | $600. | 6.09% - 17.99%. | 1 to 5 years. |
Payday alternative loans (PALs): Some federal credit unions also offer payday alternative loans, or PALs. These are small loans up to $2,000 with rates capped at 28% and repayment terms from one to 12 months.
Banks
Banks tend to lend to borrowers with good or excellent credit. If you have an established account at the bank, you may benefit from perks like rate discounts or faster funding times. A personal loan from a bank may also have a lower maximum APR compared to loans from online lenders.
Here are the best banks offering loans as low as $1,000:
Lender | Min. loan amount | APR range | Repayment terms |
|---|---|---|---|
 on NerdWallet's secure website | $1,000. | 9.24% - 24.99% | 1 to 7 years. |
 on NerdWallet's secure website | $1,000. | 5.96% - 35.99% | 2 to 7 years. |
Small-dollar bank loans: Some of the nation’s largest banks offer special small-dollar loans to their existing customers. These loans typically have shorter repayment terms than traditional personal loans and come with a set fee. Here are a few examples:
- U.S. Bank Simple Loan: You can borrow amounts from $100 to $1,000 with a three-month repayment term. The loan’s fee is $6 for every $100 borrowed.
- Bank of America’s Balance Assist: You can borrow $300 to $500 and repay it over four months. The loan carries a flat $15 fee.
- Wells Fargo Flex Loan: This short-term, small loan must be repaid in four monthly installments. Loans can be $250 with a $12 fee or $500 with a $20 fee.
Estimated costs for a $1,000 loan
Monthly payments on a traditional personal loan are determined by your loan amount, APR and repayment term. To minimize interest costs, aim for a short term with monthly payments you can afford. A longer repayment term may mean lower monthly payments but you’ll pay more in interest.
See how the monthly payments, total interest and total loan costs compare for a two-year, $1,000 loan at two different APRs:
APR | Monthly payment | Total interest | Total loan cost |
|---|---|---|---|
15% | $48 | $164 | $1,164 |
30% | $56 | $342 | $1,342 |
Use our personal loan calculator below to see what your loan costs might be if you received a different rate or repayment term.
The average APR for borrowers who pre-qualified for a personal loan with NerdWallet over the past 30 days was:
- 15.16% for those with excellent credit (a score from 720 to 850).
- 19.53% for those with good credit (a score from 690 to 719).
- 23.75% for those with fair credit (a score from 630 to 689).
- 27.56% for those with bad credit (a score below 630).
However, the rate you receive could vary from the average.
Loan details
2026
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Your loan estimate
Monthly payment
$48.49
Total principal
$1,000
Total interest payments
$163.68
Total loan payments
$1,163.68
Payoff date
10 / 2028
How to get a small loan
- Pre-qualify with multiple lenders. Pre-qualifying for a personal loan lets you see your estimated APR and loan terms. Since pre-qualifying usually takes a few minutes and doesn’t affect your credit score, it’s a quick way to compare loans and determine which is the best for you. The loan with the lowest APR is typically the least expensive.
- Collect necessary documents. A formal 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 an application. Many lenders have online applications, but you may also have the option to apply in person with local credit unions or banks. Applying usually triggers a hard credit check, which can shave a few points off your credit score. If you’re approved, expect funding within a day or two.
» GET STARTED: Pre-qualify for a personal loan with NerdWallet
How to qualify for a small loan with bad credit
If you have bad credit (a score below 630), 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 for a personal loan:
- 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 responsible for payments 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. A secured loan is usually easier to qualify for and often has a lower rate compared to an unsecured loan. You can typically use a savings account or vehicle as collateral.
» MORE: See your bad-credit loan options
Other options when you need a small loan
Before applying for a personal loan, consider cheaper alternatives to get the money you need. Even if you urgently need cash, it can be useful to compare financing methods to find the best deal. Consider these options:
- Family loan: A loan from a family member could come without interest and with a repayment schedule that works best for you. Put loan terms in writing so there’s no confusion about how the loan will be repaid.
- Cash advance app: A cash advance app essentially lets you borrow a few hundred dollars from your next paycheck without any credit checks or interest. But these apps may come with fast-funding fees or subscription fees. They may also request an optional tip.
- Buy now, pay later: 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. One popular plan breaks a purchase into four biweekly payments with no interest.
- Charitable assistance: Seek assistance from local nonprofits, charities or religious organizations for help with expenses like bills, gas, groceries, food or clothes. Some nonprofits, like Capital Good Fund, provide small-dollar loans with low rates or no interest to people in need.
Know the signs of predatory lending
You may be able to borrow several hundred dollars fast with a payday loan, car title loan or pawnshop loan, but the high costs and short repayment periods can damage your finances and trap you in a cycle of debt. Only consider these options as a last resort. Watch for these signs of predatory lending when shopping for a small personal loan:
- Interest rates over 36%.
- Repayment terms that are only a couple of weeks long.
- No credit checks.
- Guaranteed approval.
Methodology
How we chose the best personal loans
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
Star rating categories
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. 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. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
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