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Personal Loans

How to Get a $25,000 Personal Loan

Personal loans let you borrow a lump sum of cash, which you repay with interest in monthly installments. Minimum loan amounts may be as low as $1,000, and the maximum personal loan can top out at $200,000; interest rates are usually fixed. Getting approved for a personal loan can hinge on your credit scores, income, and other debts. 

A $25,000 personal loan could be useful for consolidating high-interest credit card debt, funding home improvements, or covering a large purchase. If you need a loan for this amount, it’s helpful to know which lenders offer them and how to increase your chances of being approved. Read on to find out where to find a personal loan for $25,000. 

What lenders offer personal loans for $25,000? 

Personal loan limits vary by lender, and it’s common for lenders to set minimum and maximum loan amounts. But that doesn’t guarantee that you’ll be approved for the largest loan even if you qualify. When determining loan amounts, lenders can consider:

  • Credit scores
  • Income and employment history
  • Debt-to-income ratio (DTI)
  • Purpose of the loan

Generally speaking, you’re more likely to be approved for a $25,000 personal loan if you have a stronger credit score, steady income, and low debt levels overall.

Your credit scores can also influence the annual percentage rate (APR) you pay for a personal loan. A higher credit score can translate to a lower APR, and a lower credit score could result in paying more interest. Here’s a quick comparison of top lending options when you need a personal loan of $25,000. 

5 best lenders for a $25,000 personal loan

Several reputable lenders can help you borrow $25,000. We’ve evaluated leading companies on ease of application, rate offers, credit score requirements, and customer reviews. Here’s a view of our top picks.

LenderLoan limits
Credible$600 – $200,000
LightStream$5,000 – $100,000
SoFi$5,000 – $100,000
Upgrade$1,000 – $50,000
Upstart$1,000 – $50,000

Credible – Best marketplace

LendEDU rating: 5.0 out of 5

  • Options for various credit scores
  • Easy-to-navigate platform
  • Comparison service

Credible stands out as a marketplace for borrowers across a wide spectrum of credit scores, making it an option for individuals seeking a $25,000 personal loan. Its user-friendly design enables quick and comprehensive comparison of multiple lenders. This saves borrowers significant time and effort in their search for the best terms.

Credible’s commitment to transparency ensures that borrowers are well-informed about their options, helping them make educated decisions without worrying about hidden fees or conditions.


LightStream – Best for excellent credit

LendEDU rating: 4.8 out of 5

  • Competitive interest rates
  • No fees
  • Quick loan disbursement

LightStream is the go-to lender for individuals with FICO scores of 740 and higher seeking a $25,000 personal loan. The platform’s main appeal lies in its competitive interest rates and a transparent borrowing process with no hidden fees, ensuring borrowers face no unexpected costs. 

LightStream’s application and approval process is designed to be as straightforward as possible, catering to borrowers who value efficiency and simplicity. The lender’s quick disbursement of funds appeals to those in urgent need of financial resources, whether it’s for consolidating debt, financing a major purchase, or covering unexpected expenses. 

LightStream’s focus on serving borrowers with strong credit profiles means qualified individuals can access some of the best terms available in the market, making it an optimal choice for those who have maintained a solid credit history and are looking to leverage that for favorable loan conditions.


SoFi – Best for good credit

LendEDU rating: 5.0 out of 5

  • Flexible payments
  • Free credit counseling
  • 0% fees on loans

SoFi is a standout lender for individuals with FICO scores at and above 670, offering a hard-to-beat combination of flexible payment options and zero fees. This lender is not just about providing loans; it’s about fostering financial well-being among its borrowers. 

One of SoFi’s most notable services is its free credit counseling, a resource that can be invaluable for those looking to improve their financial health or navigate complex financial decisions. Beyond its fee structure and support services, SoFi prides itself on creating a community for its borrowers, offering additional perks, such as career counseling and networking events. 

This holistic approach to lending makes SoFi an attractive option for borrowers interested in securing a $25,000 loan and enhancing their overall financial situation.


Upgrade – Best for fair credit

LendEDU rating: 4.9 out of 5

  • Eases credit improvement
  • Unsecured loan options
  • Versatile loan uses

Upgrade caters to individuals whose FICO scores fall in the range of 580 to 669, providing an accessible platform for securing a $25,000 personal loan. What sets Upgrade apart is its commitment to supporting borrowers in improving their credit scores, thereby opening the door to better financial opportunities in the future. 

The lender offers unsecured loans, which means borrowers don’t need to provide collateral, making it a more accessible option for many. Upgrade’s loans are versatile and suitable for a variety of purposes, such as debt consolidation, home improvements, or significant personal expenses. This flexibility, combined with the platform’s educational resources aimed at helping borrowers manage their finances more effectively, positions Upgrade as a practical choice for those looking to borrow money while working on enhancing their creditworthiness.


Upstart – Best for little to no credit

LendEDU rating: 4.8 out of 5

  • Examines nontraditional data
  • Fast loan approval
  • Flexible loan terms

Upstart is the ideal solution for individuals with minimal or no credit history seeking a $25,000 personal loan. Unlike traditional lenders that focus primarily on credit scores, Upstart employs an innovative model that considers nontraditional data, such as education and employment history, to evaluate a borrower’s creditworthiness. Its minimum required FICO score is 300—the lowest possible.

This approach enables Upstart to offer loans to a broader array of borrowers, including those who might be overlooked by conventional lenders due to a lack of credit history. The platform’s quick loan approval process and flexibility in loan terms cater to the needs of borrowers seeking prompt and adaptable financing options. 

Whether for educational expenses, major purchases, or personal projects, Upstart’s inclusive lending criteria and efficient service make it a compelling choice for new borrowers aiming to establish a positive credit history.


Tip

When comparing personal loan options, watch out for predatory lenders. These lenders may offer $25,000 loans with no credit check required, but they often charge much higher interest rates or fees. 


How to get a $25,000 personal loan 

Applying for a personal loan is a process, but it’s typically not a complicated one. Checking your credit can be a sensible place to start. Your credit scores are often a central factor in getting loan approval. 

Once you know where you stand credit-wise, here are the next steps. 

  1. Compare rates and terms. Before applying for a personal loan, it helps to know what kind of loan terms lenders are offering. Checking rates and repayment terms with a minimum of three lenders can give you a better idea of what you might be approved for. How long this step takes can depend on how many lenders you compare. 
  2. Get preapproved. Preapproval means a lender reviews information about your finances that you report and makes a preliminary decision on whether to extend a loan. This decision can take just a few minutes. Getting preapproved doesn’t guarantee you’ll get a loan, but it can give you a framework for estimating your rates. 
  3. Complete the application. Many lenders allow you to apply for a $25,000 personal loan online. You’ll need to share personal and financial details, and you may be asked what you plan to use the loan for. Depending on the lender, it may only take 10 minutes or so to apply and upload any required documents. 
  4. Wait for approval. Getting approved for a $25,000 loan can be quick. Some online lenders offer near-instant approval. Approval at traditional banks or credit unions may take several days or even weeks. If you’re approved, you can move on to the next step. 
  5. Review and sign the loan paperwork. Once approved, you’ll have a chance to review the loan terms to ensure you want to accept. This may only take a few minutes. If you’re comfortable with the terms, you can sign the loan paperwork and wait for funding. 
  6. Get funded. Your lender may deposit loan funds in your bank account once you’re approved. You’ll need to provide your bank account number and routing number. Some lenders offer to fund loans as soon as the next business. 

How to repay a $25,000 personal loan 

Your lender may give you the option to choose your preferred repayment term for a personal loan. Using a personal loan calculator can allow you to estimate what your monthly payments might be with different terms. 

Your lender may give you the option to set up automatic payments to take advantage of an interest rate discount. A typical rate discount is 0.25%, and some lenders may offer additional discounts to reduce your rate even further. 

Here are strategies for repaying a $25,000 personal loan, including tips to pay less in interest:

  • Enroll in autopay. As we mentioned, your lender might offer a rate discount for automatic payments. You’ll need to share your bank account information to set up autopay. 
  • Pay biweekly. Most personal loan payments are due monthly, but you could accelerate repayment by paying biweekly instead. Splitting your payment in half and paying every other week allows you to make one full extra payment per year. 
  • Use windfalls to pay it down. If you’re expecting a tax refund or a bonus at work, you could apply those funds to your loan principal to pay down a chunk of debt at once.

Remember, the best way to make a personal loan less expensive is to qualify for the lowest rate possible. If you don’t need a loan right away, you may want to spend time improving your credit score to boost your chances of securing a lower APR. 

What are the payments on a $25,000 personal loan?

Your monthly payment can depend on your APR and loan term. Here are examples of what your repayment might look like for a $25,000 personal loan, assuming different terms.

APRTermMo. pmt.Interest
5.99%24 months$1,108$1,590
6.99%36 months$772$2,785
7.99%48 months$610$4,289
8.99%60 months$519$6,130
9.99%72 months$463$8,337

As your loan term increases, your monthly payment shrinks. However, the total amount of interest paid also increases. Most personal loans have fixed interest rates, which means your payment remains the same for the entire term. A fixed interest rate can help you manage your cash flow because you know what you’ll pay as a minimum monthly payment

Your APR is primarily influenced by your credit scores, but your loan term can also make a difference. The amount of the loan may be less important, but a longer loan term could mean paying a higher APR and more interest total. This is because the lender is taking more risk with a longer term and protects itself by charging a higher interest rate.

Pros and cons of a personal loan for $25,000 

Borrowing money, especially when it’s a personal loan of $25,000, has advantages and disadvantages. Weighing the pros and cons can help you decide whether a loan this size is right for you. 

Pros

  • Personal loans are usually unsecured, meaning you won’t need any collateral to borrow $25,000.

  • A $25,000 personal loan may have a more favorable interest rate than charging $25,000 to a credit card. 

  • Because rates are fixed, it’s easy to calculate the monthly payments and total interest paid on a $25,000 loan.

  • Perfect credit isn’t a requirement for a $25,000 personal loan—but without it, you may not qualify for the lowest rates. 

Cons

  • If you’re unsure how much you need, a $25,000 personal loan might not be sufficient.

  • A larger loan can mean paying more in interest overall, versus a smaller one. 

  • Borrowing $25,000 could put a strain on your budget if your loan term leaves you with sizable payments.

Other ways to borrow $25,000

A personal loan isn’t the only option you might have when you need to borrow $25,000. Here are other possibilities to consider. 

  • Credit card. Credit cards can offer charge limits equal to or above $25,000, especially with excellent credit. If you don’t have a single card with that limit, you might borrow using multiple cards. Repaying the debt could get tricky if each card has a different APR and monthly payment due date. 
  • Home equity loan or home equity line of credit (HELOC). If you own a home, you may be able to get a loan against your equity. Home equity loans can give you a lump sum at a fixed rate. A HELOC is a flexible credit line you can draw against as needed. 
  • Friends and family. Your friends and family members might be willing to loan you $25,000, and they may not even charge interest. If you go this route, consider drafting a formal loan agreement with clear repayment terms, and commit to paying the money back on time. Otherwise, you risk harming the relationship. 

If you prefer a personal loan but don’t meet the lender’s credit score requirements, you may ask someone to cosign or co-borrow. It may be easier to get approved if your cosigner or co-borrower has good credit. 

FAQ 

What is the minimum credit score required to qualify for a $25,000 personal loan?

Lenders might seek a credit score of at least 660 before approving a $25,000 personal loan. This varies depending on the lender’s policy. Those with excellent credit scores may qualify for more favorable interest rates.

Can I apply for a personal loan if I’m self-employed or have irregular income?

Yes, you can apply for a personal loan even if you’re self-employed or have irregular income. Most lenders require proof of steady income but not necessarily traditional employment. Be ready to provide tax returns, bank statements, or other documentation to demonstrate your earnings.

How long does it take to receive my $25,000 once I’m approved for a personal loan?

Upon approval of a personal loan, most lenders deposit the funds to your account within a few business days. But the time frame can vary by lender, so it’s best to confirm the expected timeline.

Are there restrictions on how I can use a personal loan?

In general, there are few restrictions on how you can use your personal loan. You can use it for debt consolidation, home improvements, medical expenses, or a planned purchase. However, some lenders may have certain limitations.

What happens if I miss a payment on my personal loan?

Missing a payment on your personal loan could result in several penalties. These might include late fees, higher interest rates, and a negative impact on your credit score. Consistent missed payments could lead to loan default. 

Can I pay off my personal loan early, and are there any penalties for doing so?

Many lenders will allow you to pay off a personal loan early. However, some might charge a prepayment penalty. It’s vital to check the terms and conditions of your loan agreement or consult with your lender to understand any potential penalties involved.

How do lenders determine the interest rate for a $25,000 personal loan?

Lenders determine the interest rate for a $25,000 personal loan based on several factors. These include your credit score, income stability, debt-to-income ratio, and the loan’s repayment term. Higher risk factors could result in higher interest rates.

Recap of lenders offering $25,000 loans

LenderLoan limits
Credible$600 – $200,000
LightStream$5,000 – $100,000
SoFi$5,000 – $100,000
Upgrade$1,000 – $50,000
Upstart$1,000 – $50,000