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8 Best Bank Loans: Banks Offering Personal Loans in 2020

Steve NicastroJuly 7, 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.

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

Marcus by Goldman Sachs

on Goldman Sachs's website

Marcus by Goldman Sachs

Marcus by Goldman Sachs

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

on Goldman Sachs's website


Min. Credit Score

690

Key facts

Marcus, the online banking and lending arm of Goldman Sachs, offers online loan applications to borrowers in all 50 states.

Pros

  • No fees.

  • Flexible payment options.

  • Directly pays creditors for debt consolidation loans.

  • Rate discount with autopay.

Cons

  • Requires good credit.

  • No co-sign option.

Qualifications

  • At least 18 years old (19 in Alabama; 21 in Mississippi and Puerto Rico).

  • Valid U.S. bank account, Social Security number or tax ID.

  • 660+ credit score.

  • For debt consolidation loans, you may be required to send part of the loan directly to your creditors.

Available Term Lengths

3 to 6 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Read Full Review
Lightstream

on LightStream's website

LightStream

Lightstream

Min. Credit Score

660

Est. APR

5.49 - 20.49%

Loan Amount

$5,000 - $100,000

on LightStream's website


Min. Credit Score

660

Key facts

LightStream, the online lending arm of SunTrust Bank, offers large loan amounts and rates that are among the lowest available. Qualified borrowers can apply online, be approved and receive a loan as soon as the same day.

Pros

  • No fees.

  • Rate discount for autopay.

  • Low starting rates.

Cons

  • Does not offer pre-qualification on its website.

  • Requires several years of credit history.

Qualifications

  • Minimum credit score of 660.

  • Enough income to pay existing debts and a new LightStream loan.

  • Maximum debt-to-income ratio varies depending on existing assets and the reason for the loan.

Available Term Lengths

2 to 7 years

Fees

  • Origination fee: None.

  • Late fee: None.

Disclaimer

Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). Rate quote includes AutoPay discount. AutoPay discount is only available when selected prior to loan funding. To obtain a loan, you must complete an application on LightStream.com, which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $5,000 loan at 12.8% APR with a term of 3 years would result in 36 monthly payments of $168. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank.
Read Full Review
PNC Bank Personal Loan
See my rates

on NerdWallet's secure website

PNC Bank Personal Loan

PNC Bank Personal Loan

Min. Credit Score

None

Est. APR

8.74 - 15.24%

Loan Amount

$1,000 - $20,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

PNC banking customers can get a 0.25% rate discount on a personal loan if they choose autopay from a PNC checking account. Applications can be submitted online, by phone or in person at a PNC branch.

Pros

  • Low rates.

  • Fast funding.

  • Co-sign option.

Cons

  • Hard credit pull at application.

  • Late fee.

  • Available in limited number of states.

Qualifications

  • No minimum credit score, income or debt-to-income ratio requirements disclosed.

  • Live in one of the states that PNC serves.

Available Term Lengths

6 months to 5 years

Fees

  • Origination fee: None.

  • Late fee: Greater of $40 or 10% of amount due, after 15-day grace period.

Disclaimer

Read Full Review
Discover
See my rates

on NerdWallet's secure website

Discover® Personal Loans

Discover

Min. Credit Score

660

Est. APR

6.99 - 24.99%

Loan Amount

$2,500 - $35,000

See my rates

on NerdWallet's secure website


Min. Credit Score

660

Key facts

Discover offers low starting rates on its personal loans and allows for direct payment to creditors, which makes consolidating debt easier.

Pros

  • No origination fee.

  • Option to directly pay creditors.

  • Flexible payment options.

Cons

  • Charges late fees.

  • No refinancing option.

Qualifications

  • Minimum credit score required: 660; borrowers' average score is about 750.

  • Minimum gross income required: $25,000, but typically much higher.

  • Minimum credit history: Not provided.

  • Maximum debt-to-income ratio: Not provided.

Available Term Lengths

3 to 7 years

Fees

  • Origination fee: None.

  • Late fee: $39.

Disclaimer

This is not a commitment to lend from Discover Personal Loans. Your approval for a loan is determined once you apply and is based on your application information and credit history. Your APR will be between 6.99-24.99% based upon creditworthiness at time of application. Not all applications will be approved.
Read Full Review
Citizens Bank
See my rates

on NerdWallet's secure website

Citizens Bank

Citizens Bank

Min. Credit Score

None

Est. APR

6.78 - 20.88%

Loan Amount

$5,000 - $50,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

Citizens Bank targets borrowers with good credit, offering rate discounts and a co-sign option.

Pros

  • No fees.

  • Autopay discount.

  • Co-sign option.

Cons

  • Lacks flexible payment options.

  • Does not offer direct payment to creditors.

Qualifications

  • At least 18 years old (19 in Alabama; 21 in Puerto Rico).

  • Good credit history.

  • Minimum annual income of $24,000.

Available Term Lengths

3 to 7 years

Fees

  • Origination fee: None.

Disclaimer

Read Full Review
American Express
See my rates

on NerdWallet's secure website

American Express

American Express

Min. Credit Score

None

Est. APR

5.91 - 19.98%

Loan Amount

$3,500 - $40,000

See my rates

on NerdWallet's secure website


Min. Credit Score

None

Key facts

American Express is best known for its credit cards, but it also offers personal loans to qualified AmEx cardholders who receive a preapproval offer from the company. Borrowers can use the loan to pay off up to four non-Amex credit cards.

Pros

  • No origination fee.

  • Free credit score access.

  • Option to directly pay creditors.

Cons

  • Charges late fees.

  • No flexible payment options.

Qualifications

  • Get a preapproval offer.

  • Be the primary cardholder on an eligible American Express Card, and be in good status with American Express at the time of application.

Available Term Lengths

1 to 4 years

Fees

  • Origination fee: None.

  • Late fee: $39.

  • Unsuccessful payment fee: Amount not disclosed.

  • Prepayment fee: None.

Disclaimer

Read Full Review
HSBC Personal Loan
See my rates

on NerdWallet's secure website

HSBC Personal Loan

HSBC Personal Loan

Min. Credit Score

700

Est. APR

6.99 - 22.90%

Loan Amount

$3,000 - $30,000

See my rates

on NerdWallet's secure website


Min. Credit Score

700

Key facts

With an HSBC loan, your first payment is due in 50 days instead of the typical 30. You may also get a lower rate if you already have an HSBC account.

Pros

  • No origination fee.

  • Able to fund a loan by the next business day.

  • Soft credit check with pre-qualification for new customers.

Cons

  • Requires an in-person visit for existing customers.

  • Does not offer direct payment to creditors for debt consolidation loans.

  • No co-sign or secured loan option.

Qualifications

  • No minimum credit score, income or debt-to-income ratio requirements.

  • Not available in Wisconsin.

Available Term Lengths

2 to 5 years

Fees

  • Origination fee: None.

  • Late fee: 5% of monthly payment, capped at $39.

  • Returned payment fee: 5% of monthly payment, capped at $39.

Disclaimer

Read Full Review
Wells Fargo Personal Loan
See my rates

on NerdWallet's secure website

Wells Fargo Personal Loan

Wells Fargo Personal Loan

Min. Credit Score

600

Est. APR

5.49 - 24.49%

Loan Amount

$3,000 - $100,000

See my rates

on NerdWallet's secure website


Min. Credit Score

600

Key facts

Existing customers can apply for and get a loan funded online, while new customers must apply at one of the bank’s 5,700 branches. Wells Fargo may also offer rate discounts for customers with a checking account or certificate of deposit.

Pros

  • Offers secured loan option.

  • Offers free credit score access.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • Borrowers without existing Wells Fargo accounts required to apply in person.

  • No option to pre-qualify.

Qualifications

  • Minimum credit score: 600; most borrowers have scores above 660.

Available Term Lengths

1 to 7 years

Fees

  • Origination fee: None.

Disclaimer

Read Full Review

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

Frequently asked questions