#Small loans

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A small personal loan can help you bridge a gap in income or cover an emergency, such as a car repair. Even if you urgently need cash, it’s useful to compare financing options before getting a loan — you may find a cheaper one.

Learn where to get a small loan, how to compare lenders and which alternatives to explore. These lenders offer small personal loans with starting amounts from $100 to $5,000:

• USA New Loan: Loans starting at $100.
• Funds Joy: Loans starting at $200.
• Albert: Loans starting at $50.
• Your Payday: Loans starting at $100.

• Lend Plans: Loans starting at $200.

  What is a small loan?

A small loan is generally a personal loan for less than $5,000. Repayment terms vary widely, but reputable lenders give you at least a few months to repay a small loan.

Annual percentage rates — a loan’s interest rate plus any fees a lender charges — also vary, ranging from about 6% to 36%, with the lowest rates offered to borrowers with strong credit.

Pros and cons of small personal loans

Pros

• Fast funding. Many lenders can fund a small personal loan the day you’re approved or the next day.
• Lump sum. You get the funds from a personal loan all at once after approval. There’s no credit limit or draw period to remember.
• Fixed payments. Personal loans have fixed interest rates that keep your monthly payment the same for the life of the loan.
• No collateral. Most personal loans are unsecured, so collateral (like a house or car) isn’t required to borrow. If you don’t repay the loan, the lender can’t take your possessions, but your credit score will drop.

Cons

• Approval based on credit and income. Approval depends on your creditworthiness and finances. Borrowers with thin credit histories, low scores or low incomes are usually offered higher rates, and some may not qualify.
• High rates. Personal loan rates can be high compared to other borrowing options, especially for borrowers with low credit scores and incomes. Still, rates on these loans are lower than on payday loans.
• Possible origination fees. Some lenders charge an origination fee of 1% to 10% of the loan amount, which the lender takes before sending you the funds. If a lender charges this fee, make sure the final loan amount is enough to cover your expense.

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