High inflation has left many people short of cash/savings at the start of 2023. Personal loans can be a way to solve the cash crunch, as they tend to have lower interest rates than credit cards depending on the type of personal loan.

Best personal loans you can borrow up to $100,000

The average annual interest rate on a personal loan is 8.73%, according to the most recent data from the Fed, while the average rate on a credit card is 16.65%. In addition, pre-determined installment payments make it easier to pay them off.

LightStream

LightStream an online lending company that offers loans for practically anything including personal loan and with flexible interest rates and terms for people with good credit. Depending on the applicant’s credit score, the person can get loan approved from minimum $5,000 to maximum $100,000. The tenure ranges from 1 – 12 years. The annual percentage rate (APR) ranges from 5.99% to 22.99%. However lending is not offered for small businesses or higher education payments.

Money gets disbursed on the same day if applied on the banking business day. That is, personal loan application is approved and you electronically sign your loan agreement to verify your direct deposit bank account information by 2:30 p.m. (ET). LightStream does not charge origination fees, administrative fees or prepayment fees.

SoFi

Applicant can borrow from $5,000 to $100,000 with interest rates ranging from 7.99% to 23.43% and terms ranging from 1 year to 7 years. The company started as a student loan refinance, but expanded into personal loans.

SoFi’s type of loans are perfect for debt consolidation or refinancing. The application process is simple, with an easy-to-use application to manage your payments. Plus, SoFi lets you choose between a variable or fixed APR.

PenFed

PenFed is a federal credit union offering personal loans for debt consolidation, home improvement, medical expenses, auto financing, among other things. One of its advantages is that you can get a minimum loan of $600 and maximum up to $50,000. The interest rate ranges from 7.74% to 17.99% APR, with terms ranging from 12 – 60 months.

Even though it is a credit union, you do not need to be a member to submit a loan application. Although you will subsequently need to sign up for PenFed membership and maintain $5 in a savings account to qualify for loans. One of the disadvantages is that the loan is repaid on a paper check. If you don’t have a location nearby, you’ll have to pay expedited shipping to receive your check the next day.

Marcus from Goldman Sachs

Minimum loan amount offered is $3,500 and maximum is $40,000. The tenure is 3 – 6 years and interest rate is 6.99% to 24.99% APR. There is no additional fees for debt consolidation financing.

After a debt consolidation loan is approved, the company will ask if you want to use direct payments to send money to up to 10 creditors, which helps ensure that the funds are used to pay off your debt directly. To choose this option, you will need to provide the account numbers and addresses of your creditors, as well as the amounts you wish to pay. Marcus deposits everything remaining in your connected bank account.

Discover

Discover’s personal loans can be used for consolidating the debt, renovating your home, weddings and vacations. While the company doesn’t charge origination fees but there is a late fee of $39, if you delay the repayment every month. Loan amount ranges from $2,500 to $35,000, with fixed interest rates from 6.99% to 24.99% APR, depending on your score, and repayment terms of 3 years – 7 years.

One of the great advantages of Discover’s personal loans is that there is a no foreclosure penalty or making additional payments in the same month to reduce your interest rate. Also, if you get a debt consolidation loan, Discover can pay your creditors directly. Once approved and your personal loan is accepted, you can link your credit card accounts, so Discover sends the money directly.

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].