Personal loans are a great way to pay for large expenses, such as weddings and home renovations, but lenders have minimum loan requirements that can reach $5,000.
If your budget is smaller, you could wind up borrowing more than you need and paying more in interest.
CNBC Select reviewed dozens of lenders and found the best options for a loan of $3,000 or less.
We based our picks on key factors like interest rates, fees, loan amounts and term lengths, as well as whether there was an autopay discount, how fast funds are distributed and the quality of customer service. Read more on how we made our selections in our methodology.
Compare offers to find the right loan
Best for low loan minimum: Oportun
Who's this for? Oportun will approve loans for as little as $300, one of the lowest minimums we've seen on the market. It also works with borrowers with limited or no credit history.
Standout benefits: Borrowers have at least 12 months to repay the loan, which makes Oportun an excellent alternative to a payday loan. The application process usually takes less than 10 minutes, and most loans are funded on the same business day.
Fees: There may be an origination fee of up to 10%. After a 15-day grace period, there is a late fee of up to $15 or 5%, whichever is greater. A $15 fee may also be charged if a payment fails because of insufficient funds.
Open to borrowers with no credit history, especially if needing only a small loan.
- Open to borrowers with no credit history
- No early payoff fee
- Same-day funding available
- Loan amounts as small as $300
- May charge an administrative fee of up to 10% of the principal
- Not available in all states
Best for debt consolidation: Discover
Who's this for? Discover Personal Loans will pay your creditors directly, which can be a real load off if you're trying to consolidate debt. The loan minimum is $2,500.
Standout benefit: As long as your application is error-free and you submit on a weekday, funds may be available as early as the next business day.
Fees: There is no origination fee, late fee or prepayment penalty.
No origination fees, no early payoff fees
- No origination fees, no early payoff fees
- Same-day decision (in most cases)
- Option to pay creditors directly
- 7 different payment options from mailing a check to pay by phone or app
- No autopay discount
- No cosigners or joint applications
Best for flexible terms: OneMain Financial
Who's this for? If your credit isn't great, OneMain Financial allows borrowers to secure their loan with collateral. The Indiana-based lender offers loans as low as $1,500, with repayment terms of 24 to 60 months.
Standout benefits: You can apply with a co-applicant and choose your monthly payment date.
Fees: The origination fee is either a fixed rate of $25 to $500 or up to 10% of the loan amount, depending on your state. The late fee is either $30 or up to 15% of the loan total.
Approves applicants with bad or fair credit and offers secured loans.
- Approves applicants with bad or fair credit
- Relatively low $1,500 loan minimum
- Same-day funding available
- Option to apply with collateral for a lower rate
- Co-applicants allowed
- High origination fee
- High interest rates
- No autopay discount
- No co-signers
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB's Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Best for bad credit: Avant
Who's this for? Avant approves loans for as little as $1,000 and considers applicants with credit scores as low as 580.
Standout benefits: Avant offers debt consolidation, home improvement and emergency loans, with funds available as early as the next business day.
Fees: There is an origination fee of up to 4.75% and, after a 10-day grace period, a late fee of up to $25.
Lends to applicants with poor credit and offers next-day funding.
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Best for co-borrowers: Prosper
Who's this for? Prosper accepts co-borrowers, which can help you get a better interest rate than if you applied solo. The fintech company approves loans for between $2,000 and $50,000, with the possibility of next-day funding.
Standout benefit: Borrowers can choose term lengths of 2 to 5 years.
Fees: Origination fees range from 2.41% to 5% and are deducted from the loan proceeds.
You can sign with collateral or a co-borrower to better your approval odds and secure a lower rate. Funding can be quick.
- Approves loans of up to $50,000
- Repeat borrowers may qualify for an APR discount
- Borrowers can choose their payment date
- Co-borrowers permitted
- Higher maximum APR than other lenders
- Funding may take several days
- No direct payment to creditors
- Numerous fees
Personal loan FAQs
How small a personal loan can I take out?
Lenders can set loan minimums as high as $5,000. The lowest minimum we found was $300, with Oportun. Keep in mind that, no matter how small the loan, there will be interest (and likely fees). For very modest amounts, you may want to consider other options.
How long is a personal loan term?
A loan's term is the length of time you are given to pay it off. Terms for personal loans are usually between six months and seven years. The longer the term, the smaller the monthly payments, but the more the borrower ends up paying in overall interest.
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Our methodology
CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar financial institutions. To narrow down our list, we focused on the following features:
- Loan sizes: Lenders with lower minimum loan amounts were given greater weight. All the companies on our list were transparent about their loan sizes and approval processes.
- APR: The lenders on our list all offer fixed rates, so monthly payments are predictable. Variable rates can go up and down over the lifetime of your loan.
- Loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your budget and how long you need to pay back your loan.
- Prepayment penalties: None of the lenders on our list charge a fee for paying off your loans early.
- Application process: We considered whether lenders offered same-day approval decisions and a speedy online application process.
- Customer support: Every lender provides customer service via telephone, email or secure online messaging. We also opted for lenders with an online resource hub and/or a mobile app providing details about their offerings.
- Fund disbursement: Lenders that delivered funds the next business day were given more weight.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on that criteria, our picks for the best lenders for small personal loans are:
Best for low loan minimum: Oportun
Best for debt consolidation: Discover Personal Loans
Best for flexible payment terms: OneMain Financial Personal Loans
Best for a lower credit score: Avant Personal Loans
Best for co-borrowers: Prosper Personal Loans
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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