How to Find Low Interest Rate Personal Loans Online

It always amazes me when people start searching for low interest rate personal loans from their local banks. Typically these banks are owned and operated by multinational institutions that honestly care more about their bottom line than they do about your personal welfare. The need for these short term personal loans arise from a variety of circumstances including, but not limited to, debt consolidation, unexpected emergency expenses or even home improvements or repairs. Before signing an unfavorable promissory note with a bank, follow these steps.

Step 1

Consider Peer-to-Peer lending - The primary reason why banks are forced to charge such high interest rates on personal loans is the amount of risk they are assuming. When borrowing $2,500 from a bank, there is only one entity that will be damaged if you default on your loan. With peer-to-peer lending, also known as social lending, hundreds of investors pool their money together and lend it out in various packages.

Instead of borrowing the entire amount from one entity, you can borrow $25 from 100 different people. Since the amount that each person is investing in you is smaller, the perceived risk is also smaller, thus resulting in being able to obtain low interest personal loans.

Step 2

Develop Your Story - If you should decide to borrow money from one of these lending networks, you must fully develop your story. Consider things as:

• Why do you need this personal loan? • What are you going to do with the money? • How do you intend to repay this debt?

Step 3

Gather Appropriate Information - Along with you personal story, you must also provide some relevant personal information. Gather such information as your current credit score and the number of delinquencies that you have had in the past 24 months.

You should also develop a personal profit & loss statement for the past 12 months showing how much money you earn versus how much your monthly expenses total. Low interest personal loans can be easier to obtain online than at your current bank. Always seek the opinion of a qualified financial adviser before applying for any loan online.


Short terms personal loans need to be repaid. As with any other debt, not paying a loan obtained from a peer-to-peer lending network will negatively impact your credit score.


Always compare personal loans from numerous peer lending sites before settling on one. Always read the fine print and make sure you fully understand the terms and conditions of the promissory note!

Things You'll Need

  • Computer

  • Internet Access

  • Personal P&L

  • Current Credit Score