Top Lenders for Personal $20,000 Loans in 2021
Personal loans act as a lifeline for anyone looking for financial assistance. A personal loan is an unsecured loan that doesn’t require any collateral, and hence it is a more viable option for people who don’t want to risk their assets. Many lenders offer personal loans, but choosing the right lender can be a tricky affair. In this article, we will discuss the top lenders that can provide personal loans of up to $20,000 and help you make an informed decision.
Before we dive into the lenders’ discussion, let’s understand the factors that you should keep in mind while selecting a lender for your personal loan. The first factor is the interest rate, which directly impacts the total amount that you will repay. The second factor is the loan term, which determines the duration of the loan and the amount of interest that you would pay. The third factor is the loan amount, which depends on your credit score and history. Lastly, your personal loan interest rate may vary depending on the lender’s terms and conditions.
The top three lenders for personal $20,000 loans that we will consider are:
1. LendingClub
2. SoFi
3. LightStream
LendingClub
LendingClub is a US-based peer-to-peer lending company that provides personal loans. The company offers personal loans up to $40,000. The minimum credit score required to qualify for a loan by LendingClub is 600. The average interest rate on a personal LendingClub loan is between 10.68% and 35.89% APR. The term of the loan ranges from three to five years, with no prepayment fees.
SoFi
SoFi is a financial institution that offers mortgages, personal loans, and student loan refinancing. The company provides personal loans for amounts ranging from $5,000 to $100,000. The minimum credit score required to qualify for a loan by SoFi is 680. The loan term ranges from two to seven years, and the average interest rate is between 5.99% to 18.85%, depending on the borrower’s creditworthiness.
LightStream
LightStream is a division of SunTrust Bank that provides personal loans for amounts ranging from $5,000 to $100,000. The minimum credit score required to qualify for a loan by LightStream is 660. The loan terms range from two to seven years, and the average interest rate is between 2.49% to 19.49%. LightStream offers a rate discount of 0.50% for borrowers who enroll in automatic payments.
In conclusion, personal loans have become a more practical solution for people in need of financial assistance. While there are many lenders that provide personal loans, it is essential to select the right lender that will help you to make an informed decision. When selecting the right lender, you should consider the interest rates, loan terms, and loan amounts that they offer. By following these simple steps and considering LendingClub, SoFi, and LightStream, you can have a better chance of finding a personal loan that fits your needs.
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