Top 4 Providers of Small Unsecured Personal Loans

Leading Options for Small Unsecured Personal Loans

Most individuals encounter the need for a loan at some stage, often requiring collateral or a guarantor. However, in situations where borrowers lack a guarantor or assets to pledge, a small unsecured personal loan becomes a viable alternative. These loans depend solely on your credit profile, making them accessible to those with a good credit score. Below are four top lenders offering such unsecured options, ideal for borrowers with solid credit and stable income seeking quick funding without collateral.

Avant
The main advantage of Avant is its straightforward application process. Begin by exploring loan options through their online platform, which performs a soft credit check that won’t impact your score. If approved, you can quickly fill out your personal details, such as name, address, income, and Social Security number, in minutes. Loan amounts range from $2,000 to $35,000, with repayment terms from two to five years. Suitable for those with average credit scores and at least $40,000 annual income, Avant offers payment flexibility and a late fee forgiveness feature that refunds fees if you make three timely payments.

LendingClub
LendingClub operates through a peer-to-peer lending model, connecting borrowers directly with individual investors instead of traditional banks. This approach increases transparency and trustworthiness. Borrowers can request between $1,000 and $40,000, with funds typically delivered within three to seven days. Repayment periods are between three and five years, with origination fees of 1% to 6%. The application involves a soft credit check, and if approved, borrowers are presented with multiple loan options with varying rates and terms. Funding is approved once at least 60% of investors commit to the loan.

Prosper
Prosper appeals to those who prefer managing their loans via mobile apps, offering full control over payment tracking and credit monitoring through its BillGuard app. Since 2006, Prosper has issued over $6 billion in loans, with minimum credit scores of 640 required. Loan amounts between $2,000 and $35,000 are available, with APRs ranging from 5.99% to 36%. Funds typically arrive within three to five days, and repayment spans three or five years. Origination fees are between 1% and 5% of the loan amount.

LightStream
Best suited for highly creditworthy borrowers, LightStream conducts detailed financial and credit assessments. Their rates vary based on the purpose of the loan—home improvement, debt consolidation, or other reasons—with interest rates adjusted accordingly. For example, a $10,000 loan for home improvement might have monthly payments between $196 and $213, with an APR of 6.54% to 10.04%. Borrowers with a credit score of 680 or higher are eligible, and the application process is thorough. If approved, clients benefit from competitive rates tailored to their specific needs.