What is a Personal Loan?
Personal loans are a useful tool to help you reach your goals, whether you intend to launch a new business, renovate your home or buy a large appliance. They allow you to borrow money from institutions that you pay back over an agreed timeframe and at an agreed rate.
Personal loans are advantageous to those in need of funds because money is provided quickly and different banks offer varying repayment options. This means that you can always find the personal loan that’s best for you.
How Does a Personal Loan Work?
Personal loans differ from provider to provider, but most follow these steps.
- The institution you’re looking to take out a personal loan with will consider your personal situation and offer you a maximum monetary amount. They’ll consider your credit score as part of this process. The amount you’ll be offered can range from small to large sums of money. Tens of thousands of dollars may be available, depending on your financial history and the reason you’re looking to borrow.
- You’ll be informed of the repayment terms in the next step. This is usually in the format of X number of years, during which time the lender will need the money paid back. The duration of your loan term will depend on multiple factors and can be as little as one year but as many as seven or more.
- As well as learning about the loan term, you’ll be informed of the interest rate. This is usually, but not always, fixed. Interest rates for personal loans can be high, so it’s best practice to fully understand what you’re agreeing to before accepting the loan. There may also be loan fees, which will be outlined during this stage by the provider or in the terms of your contract.
- Once you’ve been approved, you’ll be able to access your loan. This sometimes takes 5-7 days but can be as fast as 24 hours. The lender will be able to inform you when you can expect to see the funds in your account.
Remember, the personal loan process varies from lender to lender — so don’t be surprised if the steps happen a little differently for you. The key is to understand the loan terms and ask questions if you’re unsure of anything.
Who Offers Personal Loans?
Many lenders on the U.S. market today are offering personal loans. Here are a few for your consideration.
Happy Money
Happy Money is one of the most trusted personal loan providers in the U.S. today, offering funds of up to $40,000 USD. Loan terms range from two to five years with estimated APR (interest rates plus loan fees) of between 8.95% and 17.48%. The smallest loan you can receive is $5,000 USD.
Grabbing a personal loan from Happy Money is easy. Simply visit their website and click ‘Check my rate’. Follow the steps to see what you can borrow.
Avant
Avant offers those looking to reach their goals personal loans of between $2,000 USD and $35,000 USD. Their estimated APR is 9.95% to 35.99% with loan terms of two to five years.
By visiting the Avant website, you can check your loan options and receive funds as quickly as the next business day after approval.
Upstart
With Upstart, you can secure a loan of as little as $1,000 USD and as much as $50,000 USD. It’s ideal for everyone, whether you’re in the market for a new washing machine or car. Funds can reach your account as quickly as one business day after approval. Estimated APR ranges from 7.8% to 35.99% and loan terms can be as long as seven years.
Upstart makes it easy to secure a personal loan with a simple five-minute online process, where you’ll discover your rate and start the ball rolling. Visit their website to kick things off.
SoFi
With loan terms of up to seven years and amounts of up to $100,000 USD, it’s no wonder that SoFi is one of the most popular personal loan providers in the United States. Estimated APR typically ranges from 8.99% to 29.99% and the minimum loan amount is $5,000 USD.
Simply visit the SoFi website and select the ‘View your rate’ button to get started.
LendingClub
LendingClub is offering a personal loan of between $1,000 USD and $40,000 USD, with two to five-year loan terms and an estimated APR of 8.91% to 35.99%.
Loans can be turned around within as little as 24 hours. Simply visit LendingClub’s website, enter the amount you’re hoping to secure and click ‘Check Your Rate’. It’s that simple.
If you’re looking to kickstart a business venture, buy something expensive or simply need funds because of an unexpected bill, consider a personal loan.