How To Get a $25,000 Personal Loan (April 2024 Guide) (2024)

Compare the Best Lenders for a $25,000 Personal Loan

The Best Lenders for a $25,000 Personal Loan

The best lenders for $25,000 personal loans have specialties such as small loans, low rates or borrowers with bad credit. Comparing lender rates and terms can help save you money and meet your budget needs.

  • LightStream: Our top pick
  • SoFi: Best customer service
  • PenFed: Best for small loans
  • Discover: Best for low rates
  • Upstart: Best for bad credit
  • U.S. Bank: Best for bank switchers
  • Upgrade: Best discounts
  • Wells Fargo: Best for in-person service

LightStream

Our Top Pick

5

Our Rating

Affordability: 33/35
Loan Features: 29/35
Customer Experience: 18/20
Company Reputation: 10/10

Interest Rate (APR)7.49% to 25.49%Term Options24 months to 144 monthsLoan Size Offered$5k to $100k

LightStream Overview

LightStream is an online lender that makes it simple to apply for personal loans. LightStream stands out for charging no fees and one of the widest ranges of loan terms, from 24 to 144 months. But to qualify, you need to have good or excellent credit.

Pros & Cons

Pros Fast application can be completed in minutes Funds may be available the same day No fees or prepayment penalties Autopay discount available for 0.5% off Cons Wide range of stated rates means limited clarity during the research and application process Only available for good-to-excellent credit profiles No in-person branches to visit

LightStream Eligibility Requirements

LightStream prefers good to excellent credit scores, so around 670 to 850 on the commonly used FICO scale. LightStream will also evaluate your financial profile to ensure that you have sufficient income and assets to handle paying down the loan alongside any debt you already have. You must also have a valid Visa or MasterCard credit card for verification purposes.

SoFi

Best Customer Service

4.9

Our Rating

Affordability: 30/35
Loan Features: 29/35
Customer Experience: 19/20
Company Reputation: 10/10

Interest Rate (APR)8.99% to 29.49%Term Options24 months to 84 monthsLoan Size Offered$5k to $100k

SoFi Overview

SoFi offers personal loans from $5,000 to $100,000 and terms from two to seven years. You can get support from their customer service over chat and phone so you can feel confident during the application and loan closing process.

Pros & Cons

Pros Same-day personal loan funding is available Autopay discount of 0.25% Fixed interest rates for the term of your loan No origination fees, prepayment penalties or late fees for qualified borrowers Unemployment protection” may pause your payments if you lose your job Cons May charge an origination fee up to 6% Credit score of 670 or more may be necessary Not available in all states

SoFi Eligibility Requirements

SoFi considers credit history alongside current income and financial history during the approval process. If you are not currently employed, you must have an offer of employment starting within the next 90 days. SoFi is not licensed in all states, so you shouldverify state eligibilitybefore applying.

PenFed Credit Union

Best for Small Loans

How To Get a $25,000 Personal Loan (April 2024 Guide) (3)

4.8

Our Rating

Affordability: 35/35
Loan Features: 24/35
Customer Experience: 17/20
Company Reputation: 10/10

Interest Rate (APR)7.99% to 17.99%Term Options12 months to 60 monthsLoan Size Offered$600 to $50k

PenFed Overview

Not everyone needs a large personal loan, and that’s where lender PenFed comes in. PenFed Credit Union offers loans from $600 to $50,000. However, if you need money fast, PenFed may not be the best option. You’ll need to join the credit union to qualify, and it does not offer same-day funding.

Pros & Cons

Pros No fees for early payoff origination or other hidden fees Small loans available from $600 Competitive rates ranging to the lower end of potential rates Cons Must become a member of PenFed Credit Union to receive funds Loans capped at $50,000 No same-day fund delivery available

PenFed Eligibility Requirements

PenFed does not state a required credit score for eligibility, but does indicate that a score of at least 580 is needed in general for personal loans. PenFed offers prequalification resulting in several preapproved offers to choose from for your official application. Borrowers must become members of PenFed Credit Union before taking on the loan.

Discover

Best for Low Rates

4.6

Our Rating

Affordability: 35/35
Loan Features: 21/35
Customer Experience: 16/20
Company Reputation: 10/10

Interest Rate (APR)7.99% to 24.99%Term Options36 months to 84 monthsLoan Size Offered$2.5k to $40k

Discover Overview

Discover is a familiar name offering personal loans from $2,500 to $40,000 with competitive rate options. Loans are available in 36- to 84-month terms. However, you can’t get money delivered to you the same day, and you’ll need to pay a late fee if you’re behind on a payment.

Pros & Cons

Pros Competitive low rates available for desirable applicants Smaller loans available, starting at $2,500 No prepayment penalties Cons Wide range of rates makes it difficult to know what to expect during the application process Discover charges late fees No same-day funds available Loans capped at $40,000

Discover Eligibility Requirements

Discover requires that borrowers be U.S. citizens or permanent residents and at least 18 years old. They must have an individual or household income of at least $25,000. Borrowers must provide a physical address and email address during the application process.

Upstart

Best for Bad Credit

How To Get a $25,000 Personal Loan (April 2024 Guide) (5)

4.4

Our Rating

Affordability: 28/35
Loan Features: 25/35
Customer Experience: 17/20
Company Reputation: 10/10

Upstart Overview

Sometimes, a loan can help you improve a bad credit history by consolidating debt, but getting approved for apersonal loan with a low credit scorecan be difficult. Upstart takes into consideration things like your education* and employment weighted alongside your credit score to give you the best chance of approval.

Pros & Cons

Pros Available for some borrowers with bad credit Small loan amounts available starting at $1,000** Fixed interest rates for simple budgeting No prepayment fees Cons Loans capped at $50,000 Wide range of interest rates with some on the high end (up to 35.99%***) make Upstart loans potentially expensive Upstart loans may come with origination fees of up to 12%

Upstart Eligibility Requirements

Upstart loan applicants must have a valid U.S. street address, be 18 years old, have a valid email and verifiable personal information such as Social Security number and date of birth. Borrowers must have a regular source of income providing at least $12,000 per year. Applicants must also meet minimum credit requirements such as at least one consumer credit report, no new adverse credit changes, no recent bankruptcies, no current delinquent accounts, a debt-to-income ratio maximum of 45% to 50% and fewer than six credit inquiries in the last six months for credit outside student loans, vehicle loans or mortgages. Upstart is not available to residents of West Virginia or Iowa.

U.S. Bank

Best for Bank Switchers

How To Get a $25,000 Personal Loan (April 2024 Guide) (6)

4.4

Our Rating

Affordability: 34/35
Loan Features: 28/35
Customer Experience: 12/20
Company Reputation: 5/10

Interest Rate (APR)8.74% to 24.99%Term Options12 months to 60 months (for non-customers)Size Offered$1k to $50k

U.S. Bank Overview

Sometimes, it pays to borrow from a new bank, and that’s what customers may find when applying for a personal loan from U.S. Bank. Customers of U.S. Bank often see better borrowing perks versus non-customer applicants, including a lower required credit score, double the borrowing potential and extended terms.

Pros & Cons

Pros Minimum required FICO score of 660 required Loan terms from 12 to 84 months Loan amounts from $1,000 to $50,000 No origination fees or prepayment penalties Autopay discount of 0.5% available Cons Non-U.S. Bank customers need a higher minimum required FICO score of 720 Non-U.S. Bank customer loan terms are limited to a maximum of 60 months Non-U.S. Bank customer loan amounts are limited to $25,000

U.S. Bank Eligibility Requirements

U.S. Bank requires a FICO Score of 660 or above for personal loans for current customers looking to borrow. Borrowers who are not customers will need a FICO Score of 720. Applicants must be able to provide a Social Security number, physical address and employment information.

Upgrade

Best Discounts

How To Get a $25,000 Personal Loan (April 2024 Guide) (7)

4.3

Our Rating

Affordability: 22/35
Loan Features: 28/35
Customer Experience: 18/20
Company Reputation: 10/10

Interest Rate (APR)8.49% to 35.99%Term Options24 months to 84 monthsLoan Size Offered$1k to $50k

Upgrade Overview

Upgrade is an online lender that helps customers qualify for loans from $1,000 to $50,000. Customers may get rate discounts by using autopay and having debt paid off directly.

Pros & Cons

Pros No prepayment fees Offer to get a $200 bonus when you open an Upgrade checking account Adjustable payment dates to meet your budget needs Cons Origination fee of 1.85% to 9.99% Upstart does charge late fees Best rates require autopay and applicable direct debt payoffs

Upgrade Eligibility Requirements

Loan applicants with fair creditmay be considered by Upgrade, however applicants will need to provide income and identity documents.

Wells Fargo

Best for In-Person Service

How To Get a $25,000 Personal Loan (April 2024 Guide) (8)

4.3

Our Rating

Affordability: 35/35
Loan Features: 26/35
Customer Experience: 17/20
Company Reputation: 0/10

Interest Rate (APR)7.49% to 23.24%Term Options12 months to 84 monthsLoan Size Offered$3k to $100k

Wells Fargo Overview

For customers looking to borrow from a lender with the option for in-person branch visits, Wells Fargo personal loans are worth consideration. Loans are available from $3,000 to $100,000 with terms ranging from 12 to 84 months. However, Wells Fargo only offers existing customers personal loans, so applicants must have an account for at least 12 months.

Pros & Cons

Pros No origination or closing fees No prepayment penalty Relationship discount of 0.25% to 0.5% is available to those with a qualifying checking account and making automatic payments from a Wells Fargo deposit account Cons Must be a Wells Fargo customer for at least 12 months to apply Wells Fargo may charge late fees If autopay turns off, monthly payments and interest rates may increase

Wells Fargo Eligibility Requirements

To be eligible for Wells Fargo, you must have a pre-existing banking relationship for at least 12 months. With a qualifying checking account, you will be further eligible for a relationship discount of 0.25% to 0.5% while making automatic payments. Applicants must provide personal contact information, Social Security or Individual Tax Identification number, along with employment and income information.

If you want to learn more, here’s ourreview of Wells Fargo.

How To Get a $25,000 Personal Loan

The process to get a $25,000 personal loan is straightforward. You’ll first need to apply for a personal loan from a lender. Then, if you meet the requirements, you’ll likely get approved.

Applying for a $25,000 Personal Loan

Typically, you can apply for a $25,000 personal loan directly with a lender. They may offer application forms on their website or in hard copies at a branch location. Some approvals may only take minutes, while you may wait to hear about approval for several days in other cases. You may receive funds as quickly as that day or sometime within the next week.

Research and compare lenders before submitting an application. Each lender may offer its own rates and terms. They may also have different approval requirements. You can get prequalified — contingent approval — before applying to ensure you meet requirements. This can help protect your credit score, as rejections can lead to multiple applications, each of which can temporarily ding your score.

Follow these steps to apply for a $25,000 personal loan:

  1. Gather the necessary documents, including income proof like pay stubs, and personal data such as your Social Security number.
  2. Check your credit score to know which types of loans you may qualify for. You may already have access to your credit report through your bank or credit card account. Free copies are available from AnnualCreditReport.com.
  3. Research and choose lenders.
  4. Prequalify where available to see which lenders will most likely officially approve your loan application.
  5. Submit your final applications and wait for approval.

Requirements for a $25,000 Personal Loan

Lenders consider your financial situation holistically when assessing you for a loan. They will consider your credit score, income and current debts before making an approval decision. Typically, a desirable credit score for a $25,000 personal loan is around 670 and above, but some lenders work with those who have scores from 580 and up.

Demonstrating that you have enough income to pay the monthly loan payments is essential. Lenders may request your pay stubs to assess income. They will also use your debt-to-income (DTI) ratio to compare the amount of debt obligations you have to your income. To get approved for a loan, ideally your DTI should be below 36%, but some lenders may accommodate DTIs up to 45%.

The better your credit score, income and DTI, the better rates and terms you may qualify for when borrowing a $25,000 loan.

Alternatives to a $25,000 Personal Loan

Some other borrowing alternatives may offer better rates or repayment flexibility than a personal loan, such as home equity lines of credit, home equity loans or peer-to-peer lending.

Home Equity Line of Credit (HELOC)

A home equity line of credit (HELOC) is a type of revolving credit — similar to a credit card — that you can apply for based on the equity in your loan. You can spend up to your limit, pay it down, and then spend it again during the draw period of your loan, making this versatile for expected but unknown expenses. Typically, you can get approved for a line of credit for up to 80% of your existing home equity. Rates are often lower than personal loans because the property acts as collateral, but may rise if you have poor credit. But you can lose your home if you default on this loan.

Home Equity Loans

Similar to a HELOC, home equity loans let you borrow cash based on your home equity. This type of loan delivers the full amount all at once. You pay it back in set payments like a mortgage. This makes it ideal for set expenses, such as funding a home addition. Generally, you can borrow up to 80% of your home equity for this type of loan. Like a HELOC, the best home equity loan rates are often lower in general but subject to your credit history. You can lose your home if you default on this loan.

Peer-to-Peer (P2P) Lending

Peer-to-peer (P2P) lending loans permit you to borrow money directly from an individual. It is often useful for riskier endeavors like business startups or borrowers with poor credit who may have trouble securing a traditional loan. Borrowers apply for loans on peer-to-peer platforms and will likely need to undergo typical lending eligibility assessments, including credit checks. These loans also generally come with origination fees, which make your loan more expensive.

Things To Consider When Applying

If you want to get a $25,000 loan, there are many lenders that may fit your personal financial situation. Compare and prequalify at a variety of financial institutions to see the best rates available. During the application process, you should be ready to provide your personal information, including your income information. You’ll only want to borrow the amount you can comfortably repay. Once you are approved for a loan, protect your credit by paying on time for the duration of the loan.

A financial advisor or expert can help you assess your borrowing capacity. They may also be able to help you choose between personal loan alternatives like HELOCS, home equity loans or peer-to-peer lending.

Frequently Asked Questions About $25,000 Personal Loans

Different loans come with different term lengths, so it may depend on your lender how long it will take to pay off a $25,000 loan. Loan terms often come in common lengths such as two years to five years.

Some lenders work with customers who have credit scores around 580 and up, while other lenders look for good-to-excellent credit profiles around 670 to 850.

Many lenders draw the line at $100,000 for the maximum available as a personal loan.

Getting approved for any loan will be dependent on your financial profile as a whole, but targeting loans designed for bad credit — such as Upstart’s personal loans — may make it easier to get approved due to lower qualification requirements.

Methodology: Our System for Ranking the Best Personal Loans

Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.

  • Affordability (35%): How expensive each company’s loans are to pay back
  • Loan features (35%): The breadth of loan terms and features available to prospective customers
  • Customer experience (20%): Ease of application, prequalification and customer service interactions
  • Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions

Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

How To Get a $25,000 Personal Loan (April 2024 Guide) (9)

Emily CahillContributing Writer

Emily Cahill is a freelance personal finance writer who is passionate about empowering people to make smart choices in their financial and personal lives. Her work has appeared on Experian, GOBankingRates and Money.com.

How To Get a $25,000 Personal Loan (April 2024 Guide) (10)

Jen Hubley LuckwaldtEditor

Jen Hubley Luckwaldt is an editor and writer with a focus on personal finance and careers. A small business owner for over a decade, Jen helps publications and brands make financial content accessible to readers. Through her clients, Jen’s writing has been syndicated to CNBC, Insider, Yahoo Finance, and many local newspapers. She is a regular contributor to Career Tool Belt and Career Cloud.

How To Get a $25,000 Personal Loan (April 2024 Guide) (2024)

FAQs

How much is the monthly payment on a $25,000 loan? ›

Advertising Disclosures
Loan AmountLoan Term (Years)Estimated Fixed Monthly Payment*
$25,0003$771.81
$25,0005$514.57
$30,0003$926.18
$30,0005$608.15
13 more rows

How hard is it to get a $25,000 personal loan? ›

Typically, a desirable credit score for a $25,000 personal loan is around 670 and above, but some lenders work with those who have scores from 580 and up. Demonstrating that you have enough income to pay the monthly loan payments is essential. Lenders may request your pay stubs to assess income.

How much personal loan can I get on $25,000? ›

In the multiplier method, lenders sanction a multiple of the monthly income as loan. The multiple can range from 10 to 20 times, depending on lender to lender. Using this method, a person with a monthly income of Rs 25,000 will be eligible for a loan of anywhere between Rs 2.5 lakh and Rs 5 lakh.

What is the best time of the year to apply for a personal loan? ›

When Should You Apply for a Personal Loan? While getting a personal loan can sometimes be challenging, the good news is that there is no real best time to apply for one. The bad news is that it will take some effort to make sure you're in the best possible financial position to get the personal loan.

How to get a 25k personal loan? ›

How to Get a $25,000 Personal Loan
  1. Check Your Credit Score. Your credit score is a key factor that lenders use to determine your eligibility and interest rate. ...
  2. Shop Around for Lenders. Different lenders offer varying interest rates, terms and fees. ...
  3. Get Prequalified. ...
  4. Review and Choose a Loan Offer. ...
  5. Submit Loan Application.
Nov 1, 2023

How long does it take to pay off a $25,000 loan? ›

$25,000 at 20%: Your minimum payment would be $666.67 per month and it would take 437 months to pay off $25,000 at 20% interest. You would pay $41,056.85 in interest over the life of the debt.

What credit score do I need to get a $25,000 loan? ›

You will likely need a credit score of at least 660 for a $25,000 personal loan. Most lenders that offer personal loans of $25,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.

What to do when no one will give you a loan? ›

If you need the money now, there might be other ways to borrow, such as credit unions, employer salary advance schemes or Community Development Finance Institutions. But it's important to avoid being tempted to take out high-cost credit that you might be able to get but would struggle to afford, such as payday loans.

What is the easiest bank to get a loan from? ›

The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.

How to get 20k instantly? ›

Well, it's possible now, and the only document you require is your Aadhar Card. Yes, you can avail of an instant paperless Rs. 20,000 loan on Aadhar Card. All you need is your 12-digit Aadhar Number; no prolonged loan application, processing, and documentation required.

Which bank is best for a personal loan? ›

Lowest interest rates charges by banks on their personal loans:
BankMinimum interest rate on personal loan (%)
HDFC Bank10.5
State Bank of India12.30
Bank of Baroda13.15
Punjab National Bank13.75
6 more rows
Jan 24, 2024

Is it hard to get a 20k personal loan? ›

Generally, you'll need a good to excellent credit score — 670 or higher — to qualify for a $20,000 loan. The higher your credit score, the better your chances of qualifying for a loan and securing a lower interest rate.

What to say to get approved for a personal loan? ›

To get a better idea of what you may want to tell your lender, below are some of the most common reasons to get a personal loan:
  • A Short-Term Unexpected Emergency Expense.
  • To Consolidate Debt.
  • A Large Purchase.
  • Home Repair and Renovation.
  • Covering Costs for Major Milestones and Goals.
  • Paying for School.
  • Buying Real Estate.
Dec 8, 2021

Why is it so hard to get a personal loan now? ›

Lenders tend to tighten credit requirements during tough economic times, making it harder to get approved for credit products, including loans. Credit score, income and debt-to-income ratio are the main factors lenders consider when reviewing applications.

Does the reason for a personal loan matter? ›

The reason why you're borrowing could impact the terms of your loan, including your interest rate, available repayment terms, potential loan amounts, and more.

How much is a $20000 loan over 5 years? ›

A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.

How much can I borrow with repayments of $2000 per month? ›

One applicant may fall into the parameters of the above example. Other applicants will face a higher interest rate. At a 5% interest rate, 30 years, and $2,000 monthly repayment, the amount borrowed is $375,000.

How much income do I need for a 20k loan? ›

Some lenders state they require stable, consistent income, while others list a minimum income requirement. For example, Discover requires a household income of at least $25,000. Finally, personal loan lenders consider your DTI ratio or your ratio of debt to gross income.

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