Online lenders have made a splash in the personal finance world over the last several years. Many are competing directly with conventional banks and credit unions for personal lending products. Personal loans through online lenders has shifted the game, giving consumers more options for accessing fixed financing for major expenses or high-interest debt consolidation.
Avant, a Chicago-based online lender, is one of these new entrants to the market that provides a variety of personal loan solutions to consumers who meet eligibility requirements.
Founded in 2012, Avant has served more than 600,000 borrowers through its online lending platform. Personal loans through Avant are available for as little as $2,000 and up to $35,000, with repayment terms from 24 to 60 months. The interest rate for an Avant personal loan is fixed and currently ranges from 9.95% to 35.99% based on the borrower’s credit history and other underwriting factors.
While Avant’s personal loans may be a solution for some borrowers, the administration fee of 4.75 percent can outweigh some of the benefits of a fast, streamlined personal loan approval.
Avant has several competitors in the personal loan arena which may serve as better solutions to financing needs for consumers with strong credit and steady income. It is important to shop around with various lenders before accepting a new personal loan to ensure the costs, including the interest rate and repayment terms, are most suitable for specific borrower circumstances.
On this page:
- Compare Avant Competitors for Personal Loans
- Reviews of Avant Alternatives
- Additional Alternatives to Avant
Avant Competitors: Personal Loan Comparison
Alternatives to Avant Personal Loans
Loans from $5,000 to $100,000 – Rate Beat Program
- Fixed rate loans from 4.99% APR
- Funds available as soon as the same day
Borrow what you need – as little as $5,000 or as much as $100,000
- Rates starting at 5.74% APR
- No origination fees or pre-payment penalties
Loans up to $4,000 – No credit check required
- Get your cash as soon as the next business day
- Affordable payments and personal service
Avant Alternatives for Personal Loans
Many borrowers look to other personal loan lenders outside of Avant to save on the total cost of borrowing, or to secure more favorable repayment terms. Below are three major competitors to Avant personal loans that may be worth evaluating in the search for financing.
Upstart personal loans are also available through an online lending platform, like Avant. Upstart makes it easy for borrowers to submit an application, check its status, and manage repayment once approved. Unlike Avant, Upstart personal loans are available from $1,000 up to $50,000 with interest rates currently ranging from 8.69% to 29.99% APR.
These options are more flexible than what Avant provides, and may serve borrowers better over the long run in terms of cost and borrowing power. However, Upstart personal loans only have three- or five-year of repayment which is less flexible than Avant’s repayment options. Neither Upstart or Avant charge prepayment penalties, which saves borrowers money if they chose to repay the loan early.
As a subsidiary of Goldman Sachs, Marcus personal loans are a new option available to borrowers through a streamlined online lending platform. Marcus personal loans have a higher loan maximum for qualified borrowers, up to $40,000, although no minimum is provided. Interest rates for Marcus personal loans currently range from 6.99% to 24.99% APR, far lower than Avant personal loans. Also, the repayment terms for Marcus personal loans range from 36 to 72 months.
However, the biggest differentiator between Avant and Marcus personal loans is that the latter charges zero fees, either for prepayment or for origination of the loan. This can be far more cost-effective than Avant personal loans. Borrowers may have to meet more stringent credit requirements with Marcus personal loans compared to Avant, however.
Another competitor of Avant personal loans is FreedomPlus personal loans, offered by a Tempe, Arizona-based online lender. FreedomPlus personal loans are available in amounts ranging from $10,000 to $35,000, with interest rates currently from 4.99% to 29.99% APR. The minimum loan amount is far higher than Avant’s minimum, but the interest rates are lower, particularly for excellent credit borrowers. FreedomPlus personal loans have repayment terms from 24 to 60 months, just like Avant.
Both online lenders charge origination fees on new personal loans, which can increase the total cost of borrowing even for well-qualified applicants. Like Avant, all borrowers listed on a FreedomPlus personal loan application are evaluated based on income, credit history, score, and other assets available.
Additional Alternatives to Avant
Although other products may be feasible alternatives to Avant personal loans, consumers have additional options which may be more cost-effective in the long run.
A credit card may offer a lower interest rate than an Avant loan product, making it more affordable to repay a large balance over time. For instance, a credit card with a 12 percent interest rate and a $10,000 balance will cost the borrower $1,957 in interest over a three-year period. The same loan with Avant and a 25 percent interest rate would cost $4,313 for the same timeframe, not including the administration fee charged to fund the initial loan.
For some borrowers who also own property, a home equity loan or line of credit may be a more efficient choice for a major purchase or debt consolidation than Avant personal loans. A home equity loan offers a lump sum payment to the borrower, like Avant, but instead of the potential for a double-digit interest rate, well-qualified borrowers may have an interest rate ranging between six and nine percent.
You can check out this article for a deeper comparison of personal loans vs. line of credit.
This is available to homeowners because the property is used as collateral to safeguard the loan from default in the future. Taking this approach to financing needs may be a more affordable solution to borrowers who have equity accumulated in their home.
Author: Melissa Horton
Join the LendEDU Newsletter
News, insights, & tips once a weekThanks for submittingPlease Enter a valid email
Personal Loans Information
Personal Loan Reviews