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8 Best Bank Loans: Banks Offering Personal Loans in 2020
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Bank loans can have low rates and high borrowing amounts for existing customers with good credit.
A bank loan is a personal loan that's issued by either a local or national bank. A personal loan from a bank can have rates as low as 5% and amounts as high as $100,000 for qualified borrowers.
Many banks either only provide personal loans to existing customers, or offer exclusive perks to their customers.
Still, some major banks — like Bank of America, Chase and Capital One — don’t offer personal loans.
A personal loan from a bank can be used for debt consolidation, home improvement projects, emergency expenses and more.
» MORE: How do bank loans work?
Here are the best banks offering personal loans in all 50 states. Plus, learn about bank loan rates, how to qualify and alternatives.
A bank loan is a personal loan that's issued by either a local or national bank. A personal loan from a bank can have rates as low as 5% and amounts as high as $100,000 for qualified borrowers.
Many banks either only provide personal loans to existing customers, or offer exclusive perks to their customers.
Still, some major banks — like Bank of America, Chase and Capital One — don’t offer personal loans.
A personal loan from a bank can be used for debt consolidation, home improvement projects, emergency expenses and more.
» MORE: How do bank loans work?
Here are the best banks offering personal loans in all 50 states. Plus, learn about bank loan rates, how to qualify and alternatives.
Our picks for
Best bank loans
on Goldman Sachs's website
Marcus by Goldman Sachs
Min. Credit Score
Est. APR
Loan Amount
on Goldman Sachs's website
on LightStream's website
LightStream
Min. Credit Score
Est. APR
Loan Amount
on LightStream's website
on NerdWallet's secure website
PNC Bank Personal Loan
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
on NerdWallet's secure website
Discover® Personal Loans
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
on NerdWallet's secure website
Citizens Bank
Min. Credit Score
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Loan Amount
on NerdWallet's secure website
on NerdWallet's secure website
American Express
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
on NerdWallet's secure website
HSBC Personal Loan
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
on NerdWallet's secure website
Wells Fargo Personal Loan
Min. Credit Score
Est. APR
Loan Amount
on NerdWallet's secure website
Bank personal loan rates
The average annual percentage rate on a two-year loan from a bank is 9.63%, according to the most current data from the Federal Reserve. In 2019, the average bank loan interest rate was 10.32%.
As with most credit products, the rate you receive on a personal loan from a bank depends a lot on your credit score. The better your score, the lower your rate and the less interest you’ll pay over the life of the loan. The interest rate also affects your total monthly payment, as does the term length; a longer term means lower monthly payments, but more interest.
Our personal loan calculator shows estimated interest and monthly payments on a personal loan.
Summary of Bank Loan Rates, Terms, amounts
Lender | APR range | Loan amount | Loan term |
|---|---|---|---|
6.99 - 19.99% | $3,500 - $40,000 | 3 - 6 years | |
5.49 - 20.49% | $5,000 - $100,000 | 2 - 7 years | |
8.74 - 15.24% | $1,000 - $20,000 | 6 months - 5 years | |
6.99 - 24.99% | $2,500 - $35,000 | 3 - 7 years | |
6.78 - 20.88% | $5,000 - $50,000 | 3 - 7 years | |
5.91 - 19.98% | $3,500 - $40,000 | 1 - 4 years | |
6.99 - 22.90% | $3,000 - $30,000 | 2 - 5 years | |
5.49 - 24.49% | $3,000 - $100,000 | 1 - 7 years | |
You can pre-qualify with NerdWallet to see rates and terms from lenders that partner with us. | |||
Pros and cons of bank loans
While unsecured loans from banks are often structured similarly to online loans, the process of getting and qualifying for one may be different. Here are a few pros and cons to consider.
Pros
Banks typically offer lower rates, higher borrowing amounts and perks to existing customers.
If you already have accounts with the bank, you can keep them all in one place.
Customer service may be more robust at banks. You may even have the same contact person throughout the life of the loan.
Cons
Many banks require an in-person visit to complete a loan application.
Few banks offer an online pre-qualification process, so you can't see what rates and terms you qualify for before applying.
Costs from operating brick-and-mortar locations may drive up APRs.
How to qualify for bank loans
Bank loans may offer benefits for their customers, but they typically have tougher credit score requirements than online loans.
Some financial planners say having an existing relationship with employees at your bank — whether it's a small local bank or a large national bank — can help your chances of qualifying. But getting approved often comes down to how you look on paper. Consider these tips for the best chance at qualifying.
Build your credit. At least a few years of credit history showing on-time payments and no delinquencies will help your application, but avoid opening new accounts right before you apply. Check your credit report for errors that may be hurting your score and dispute the errors online.
Review your credit score. Many banks have a minimum credit score they'll accept from a borrower, but aim above the minimum requirement for the best chance at a low rate. You can get your free credit score with NerdWallet.
Boost your income and pay down debt. Lowering the percent of your income that goes to debts, also called your debt-to-income ratio, will be viewed favorably by most lenders. In many cases, lenders want to see that you make at least enough income to cover your existing obligations, plus the loan you're applying for. Still, the lower your DTI, the better.
Increase your savings, if you can. Showing a lender that you've got enough money in the bank to cover a difficult time can boost their confidence that you'll make payments on time.
Bank loan alternatives
Whether you’re a loyal bank customer or not, it’s always smart to consider other options for personal loans. The best loan for you is the one with the lowest rate and payments that fit your budget.
Credit unions: These not-for-profit, members-only organizations consider loan applicants’ full financial picture and are more likely to approve borrowers with average or bad credit. Rates on loans at federal credit unions are capped at 18%.
Online loans: With online lenders, you can complete the entire loan process on a mobile device and get funding within a day or two. Unlike some banks, online lenders typically let you pre-qualify for financing to see your estimated rate. This triggers a soft credit pull, so you can check your rate and terms at several lenders without impacting your credit score.
Home equity loans and HELOCs: This may be a lower-cost borrowing option if you have equity in your home, but you also risk losing it if you fail to repay the loan.
How to pre-qualify for an online personal loan
Taking the steps to pre-qualify for an online loan lets you see potential loan terms, including the loan’s interest rate, without hurting your credit. You can pre-qualify with multiple lenders on NerdWallet to compare offers and find the lowest rate.
Last updated on July 7, 2020
Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews.To recap our selections...
NerdWallet's Best Bank Loans: Banks Offering Personal Loans in 2020
- Marcus by Goldman Sachs: Best for Best bank loans
- LightStream: Best for Best bank loans
- PNC Bank Personal Loan: Best for Best bank loans
- Discover® Personal Loans: Best for Best bank loans
- Citizens Bank: Best for Best bank loans
- American Express: Best for Best bank loans
- HSBC Personal Loan: Best for Best bank loans
- Wells Fargo Personal Loan: Best for Best bank loans
Frequently asked questions
The best bank for a personal loan may be the one you already use. If you’re an existing customer and in good standing with a bank that offers personal loans, you could get benefits like rate discounts and a larger loan amount. If you’re not an existing customer, consider the APR and loan amount different banks can offer you based on your credit profile, and compare those offers with online lenders.
Depending on your bank, you could get up to $35,000, $50,000 or $100,000. Your credit profile, income and existing debts will help determine the amount the bank lets you borrow.
When you borrow from a bank, you apply for the loan and, if you're approved, the lender will let you know how much you can borrow and at what rate. It helps to be an existing customer, but it isn't always necessary. Customers often have to visit a bank branch to apply, and a bank employee can help guide you through their process.
