Adam McCann, Financial Writer
You can get a small personal loan from a bank, credit union or online lender. Friends and family are an option, too, especially since many traditional lenders don’t give out personal loans of less than $5,000-$7,500. But there are some notable exceptions. You can get small personal loans with reasonable APRs from Citibank ($2,000+), LendingClub ($1,000+) and Prosper ($2,000+). And there are plenty of other lenders that also offer loans as small as $1,000 - $2,000. You just need to know where to look.
The first major place where you can get a small personal loan is a bank. Banks let you inquire about small personal loan options in person. Their maximum APRs often don’t exceed 25%, and the minimums can be as low as around 6%. Some good banks that offer small personal loans include Discover (min. $2,500) and TD Bank (min. $2,000).
The next option is credit unions, which are similar to banks but have specific requirements for membership usually related to living/working in a certain area. Federal credit unions are required to cap their interest rates at 18%, and state credit unions have similar caps that are set by the state. The minimum APRs can be as low as around 6%. Use WalletHub’s credit union finder to see which credit unions in your area you might qualify to join.
Finally, some personal loan providers operate exclusively online. Their APRs generally range from 6% to 36%, though individual lenders may have higher minimums or lower maximums. Online lenders tend to offer very quick decisions. Some good options include Avant (min. $2,000) and Best Egg (min. $2,000).
In general, it’s difficult to find any major lenders that will give a personal loan of less than $1,000. Ask local financial institutions if they’ll provide a smaller loan, or try borrowing from a friend or family member. Alternatively, you could just put the expense on a credit card, assuming you have a high enough limit.
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