The average minimum loan amount offered by personal loan lenders that NerdWallet reviews is $2,000. But some lenders offer small loans — $1,000 or less — that can help you cover a car repair, emergency vet visit or other small expense.
You can shop for small personal loans from online lenders, credit unions or banks. These lenders offer lower rates and longer repayment periods than other small-borrowing options, such as cash advance apps, credit card advances or payday loans.
Here are our best picks for lenders offering $1,000 loans and what you should consider when applying for one.
Best lenders for a $1,000 loan
Online lenders
Online lenders offer fast funding and may accept borrowers from across the credit spectrum.
Here are our top online lenders with $1,000 minimum loan amounts:
Credit unions and banks
Many credit unions offer personal loans under $1,000. And federal credit unions cap APRs at 18%, making them less expensive than other lenders with maximum rates around 36%.
This type of lender can also be favorable for borrowers with lower credit scores, because credit unions often look beyond credit scores to qualify applicants. Most credit unions require you to become a member and pay a small membership fee in order to apply for a loan.
Banks tend to lend to borrowers with good or excellent credit. If you have an established account at the bank, you could benefit from perks like rate discounts or faster funding times. A personal loan from a bank may also have a lower maximum APR compared to loans from online lenders.
Here are the best credit unions and banks offering $1,000 loans or less:
Estimated monthly payments for a $1,000 loan
Monthly payments on a personal loan are determined by your loan amount, APR and repayment term. To minimize interest costs, aim for a short term with monthly payments you can afford.
Here are monthly payments for a three-year, $1,000 loan using estimated APRs for each credit score rating:
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from January 1, 2024, through December 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
Your loan’s APR might vary from the average. Personal loan rates tend to range between 6% and 36%. Use a personal loan calculator to estimate monthly payments at different rates and repayment terms.
Loan details
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How to get a small loan
Review your credit report and debts. Approval for personal loans is often based on a lender’s evaluation of your credit, income and existing debt. Before applying, check your credit report for opportunities to address any negative marks or unpaid debts. Also, calculate your debt-to-income ratio, which lenders use to see how much of a borrower’s income goes to other debts. A DTI ratio of 36% or lower shows lenders you can likely handle a new loan. Some lenders will accept higher ratios.
Pre-qualify with multiple lenders. Pre-qualifying for a personal loan lets you see your estimated APR and loan terms. Since pre-qualifying usually takes a few minutes and doesn’t affect your credit score, it’s a quick way to compare loans and determine which is the best for you.
Collect necessary documents. A formal loan application may require information like your Social Security number, W-2s and pay stubs. Gathering this information before you apply can speed up the loan application process.
Submit an application. Many lenders have online applications, but you may also have the option to apply in-person with local credit unions or banks. If you’re approved, expect funding within a few days, if not sooner. Applying can trigger a hard credit check, which can shave a few points off your credit score.
How to qualify for a small loan with bad credit
If you have bad credit (a score from 300 to the high 500s), you may still qualify for a small loan from a credit union or reputable online lender, but your rate could be on the high end of the lender’s range.
Add a co-signer whose credit score or income is higher than yours. A co-signer won’t have access to loan funds or information about your payments, but they will be responsible for payments if you fail to repay.
Get a joint personal loan with someone whose credit score or income is higher than yours. Co-borrowers share the responsibility for repayment and have equal access to the loan funds and payment information.
Choose a lender that offers secured personal loans. A secured loan is usually easier to qualify for and often has a lower rate compared to an unsecured loan. You can typically use a savings account or vehicle as collateral.
How to compare loan offers
Here are the most important features to compare between small personal loans.
APR: Annual percentage rate provides an apples-to-apples cost comparison for all loan types. The least expensive loan has the lowest APR.
Fees: Some lenders charge an origination fee, which typically ranges from 1% to 10% of the loan amount. This fee is often subtracted from the loan before you receive the funds, so make sure you’re borrowing enough to meet your needs.
Monthly payments: Review your budget to see how much you can afford to repay on a loan. Use the calculator above to see what rate and repayment term you’d need to get an ideal monthly payment.
Repayment terms: Many small personal loans are repaid over a year or more. A longer repayment term may mean lower monthly payments but you’ll pay more in interest.
Funding time: Personal loan approval and funding could take a few business days, depending on the lender and how smoothly the application process goes. If you need the funds urgently, look for a lender that offers same- or next-day funding.
Know the signs of predatory lending
A payday loan or another small loan from a predatory lender can damage your finances and trap you in a cycle of debt. Watch for these signs of predatory lending when shopping for a small personal loan:
Repayment terms are only a couple of weeks long.
Ways to get $1,000 or less without a traditional loan
Some of the nation’s largest banks offer special small-dollar loans to their existing customers. These loans typically have shorter repayment terms than traditional personal loans and come with a set fee. Here are a few examples:
The U.S. Bank Simple Loan is offered in amounts from $100 to $1,000 and is repaid over three months. The loan’s fee is $6 for every $100 borrowed.
The Wells Fargo Flex Loan is a short-term small loan that’s repaid in four monthly installments. Loans can be $250 with a $12 fee or $500 with a $20 fee.
Some federal credit unions also offer payday alternative loans, or PALs. These are small loans up to $2,000 with rates capped at 28% and repayment terms from one to 12 months. You must be a credit union member to apply.
Before applying for a loan, consider cheaper alternatives to get the money you need. Even if you urgently need cash, it can be useful to compare financing methods to find the best deal. Consider these options:
Use a zero-interest credit card. You can cover expenses with no interest as long as you pay the card’s balance by the end of the zero-interest promotional period, usually 15 to 21 months. Even without a zero-interest promotion, you could avoid interest charges on credit card purchases if you pay the balance in full before the end of the billing cycle.
Borrow against your next paycheck with a cash advance app. These apps can be an affordable way to borrow a few hundred dollars, but advances are repaid on your next payday.
Seek assistance from local nonprofits, charities or religious organizations for help with expenses like bills, gas, groceries, food or clothes. Some nonprofits, like Capital Good Fund, provide small-dollar loans with low rates or no interest to people in need.
Pick up a side gig to make extra money. For example, you could earn money delivering food or walking dogs.
Frequently asked questions
Can I get a small personal loan with bad credit?
Do banks offer small personal loans?
Where can I get a small personal loan?
