What is the minimum personal loan amount I can borrow?

Minimum loan amounts by lender type:

Online marketplace lenders: Most set $1,000 as the minimum. Upgrade minimum: $1,000. LendingClub: $1,000. Prosper: $2,000. Avant: $2,000. Best Egg: $2,000.

Banks: Wells Fargo and TD Bank personal loans start at $3,000. Discover: $2,500. Marcus by Goldman Sachs: $3,500.

Credit unions: Often offer smaller loans. Federal credit unions frequently offer $250-$500 personal or payday alternative loans (PALs) as a lower-cost substitute for payday loans. These are specifically designed for small emergency borrowing.

LightStream: $5,000 minimum (designed for larger, well-qualified borrowers).

Why minimums exist: Processing and underwriting cost roughly the same for a $500 loan and a $5,000 loan. Small loans generate minimal interest income that does not cover the per-loan cost. This economic reality pushes lenders toward minimums.

Alternatives for small amounts: For $200-$1,000, consider: (1) A payday alternative loan (PAL) from a federal credit union - up to $2,000, rate capped at 28%, 1-12 month term. (2) A cash advance from an employer (many HR platforms offer this). (3) A 0% intro credit card with a small purchase limit. (4) Asking family with a written repayment plan.

When borrowing small is still the right call: If a small loan prevents a larger financial problem (avoiding a bounced check, a utility shutoff, a missed bill that would incur a penalty), the cost may be justified even if the absolute amount is small.