Personal loans can be used for a variety of expenses, including weddings, vacations, home repairs and even as a way to cover emergency costs. There’s a lot to learn about personal loans, but one draw is that they can sometimes be a more affordable alternative to credit cards since they typically carry a lower interest rate (though, the rate you receive will depend on how healthy your credit score is).

There are a few different ways you can go about applying for a personal loan from a lender. You can go through a peer-to-peer lending site, take a look at some smaller financial institutions, or apply for a loan through a big bank.

CNBC Select evaluated personal loans offered by a variety of big banks. We looked at key factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

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Who’s this for? PNC Bank offers personal loans that don’t need to be secured by collateral. There are many ways you can use this loan, however, a personal loan from this lender cannot be used to cover the cost of college or to refinance student loan debt. The interest rate range from PNC Bank is the lowest rate on this list, though the rate and terms you receive will vary based on your location and credit score.

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Who’s this for? PenFed loans can be a good option for someone who just needs to borrow smaller amounts of money. Most lenders have a $1,000 minimum for loans, but you can get a $600 loan from PenFed with terms ranging from one to five years. You don’t need to be a member to apply, but you will need to sign up for a PenFed membership and keep $5 in a qualifying savings account to receive your funds.

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Who’s this for? American Express Personal Loans can be a speedy option for those who need approval quickly (they’ll give you a decision in seconds as long as no additional information is needed). The one drawback to this, though, is that you’ll need to already be an American Express cardholder to apply for the loan. While there are no origination fees or prepayment fees, you will be charged a $39 fee for late payments.

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Who’s this for? Discover Personal Loans can be used for consolidating debt, home improvement, weddings and vacations. While there are no origination fees, Discover does charge a $39 late fee if you don’t make an on-time payment each month. Discover doesn’t charge a prepayment penalty, which means you can make extra payments in the same month to cut down on interest charges over the life of the loan.

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Who’s this for? Citi Bank stands out for not having origination fees. This can go a long way to helping borrowers trim down the costs of getting a loan, especially since origination fees often range from 1% to 8% of the loan amount. Citi also doesn’t charge late fees or prepayment penalties.

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Who’s this for? Navy Federal Credit Union provides solid personal loan options for its members; to become a member, you’ll need to have some sort of military affiliation including (but not limited to) active duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard and Space Force. Family members of those in these positions are also eligible for membership. Visit Navy Federal Credit Union’s website for more eligibility information.

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PNC Bank offers terms as long as 60 months. Generally, the higher your credit score, the more likely you are to have a longer repayment period. This can offer you some flexibility if you’d prefer to have smaller monthly payments (although you will pay more interest over time).

There are no origination fees or prepayment fees, however, you’ll be charged a $40 fee for any late payments.

Eligible borrowers

Enter your zip code to confirm product availability

Loan amounts

$1,000 to $35,000

Loan terms

Up to 60 months

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PenFed is a federal credit union that anyone can become a member of. It provides personal loan options for debt consolidation, home improvement, medical expenses and auto financing, to name a few.

One thing to be aware of is that you’ll only receive your funds in the form of a paper check. If you can travel to a nearby PenFed location, you can pick up your check directly from the bank. However, if you don’t live close to a branch, you’ll have to pay for expedited shipping to get your check the next day.

Interest rates can range from 7.99% to 17.99% but not all applicants will qualify for the lowest rate. And unlike most other lenders, PenFed doesn’t offer a discount for using autopay to make monthly payments.

Eligible borrowers

While it’s not required to be a PenFed member to apply, a membership will be created for you if you decide to accept the loan.

Loan amounts

$600 to $50,000

Loan terms

1 to 5 years

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The interest rates offered on an American Express personal loan are fixed and can range from 6.91% to 19.97%. Of course, the better your credit score, the more likely you’ll be to receive a lower interest rate and other more favorable loan terms.

The loan can be used for many things, including a wedding, moving costs, a home renovation, a vacation, or debt consolidation. Just be aware that you cannot use this loan to pay down debt on any American Express credit cards. You also cannot use the funds for post-secondary education expenses, real estate, business, securities, or vehicle payments (other than a down payment).

Funds are typically disbursed within three to five business days.

Eligible borrowers

Available to eligible card members

Loan amounts

$3,500 to $40,000

Loan terms

12 to 36 months

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If you’re approved for a debt consolidation loan, Discover can pay your creditors directly. You’ll just have to link the credit card accounts — and provide the amount you’d like paid and the payment address information — so Discover can send the money directly.

You can receive your money as early as the next business day as long as your application was submitted without any errors (and the loan was funded on a weekday). Otherwise, you’ll receive your funds no later than a week after approval.

Eligible borrowers

Must have a minimum individual or household annual income of $25,000

Loan amounts

$2,500 to $40,000

Loan terms

36, 48, 60, 72 and 84 months

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Citi offers personal loan funding amounts of up to $30,000, which is on the moderate end compared to other personal loan lenders in general. This lender also offers a 0.5% rate reduction for enrolling in autopay, which is very generous considering most other lenders only offer a 0.25% interest rate discount.

Eligible borrowers

Must be at least 18 years old

Loan amounts

$2,000 to $30,000

Loan terms

Up to 60 months

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Navy Federal Credit Union offers five different personal loan options, each with its own interest rate ranges, terms and funding amounts. The personal expense loan is a versatile funding option since it can be used for any large expense. The minimum funding amount is just $250 and the maximum is $50,000.

Navy Federal Credit Union offers two kinds of secured loan options: savings secured loan and certificate secured loan. With the savings secured loan, the money in your Navy Federal savings account is used as collateral. Terms range from 61 to 80 months.

The certificate pledged loan option is secured by the balance of your certificate account. The loan amount can’t exceed the certificate’s balance and the loan terms can’t exceed the certificate’s terms.

Eligible borrowers

Must be a member to apply

Loan amounts

$250 to $50,000

Loan terms

Up to 180 months

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Personal loans are a form of installment credit. You can use a personal loan to fund a number of expenses, from debt consolidation to home renovations, weddings, travel and medical expenses.

Most personal loan terms range anywhere from six months to seven years. The longer the term, the lower your monthly payments will be. Just keep in mind that longer loan terms mean you’ll spend more in interest over the life of the loan.

Once you’re approved for a personal loan, the funds will be directly deposited to your checking account. However, if you opt for a debt consolidation loan, you can sometimes have your lender pay your credit card accounts directly.

Your monthly loan bill will include your principal payment plus interest charges. Sometimes you can pay off the loan earlier but just be sure to check if the lender charges an early payoff or prepayment penalty.

When your personal loan is paid off, the credit line is closed and you can no longer access it.

Personal loans can be an instrumental way to foot the cost of large expenses, but they’re also appealing because they tend to carry lower interest rates compared to credit cards. As with any financial product though, it’s important to do your homework to make sure you agree to the terms being offered and to make sure you take your current circumstances into consideration when deciding on which loan product is right for you.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best personal loans, we focused on the following features:

• No origination or signup fee: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for overall financing needs, debt consolidation and refinancing, small loans and next-day funding.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

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