TD Bank Personal Loans: 2020 Review

To review TD Bank, NerdWallet collected more than 30 data points from the lender, called multiple bank locations and the bank’s corporate customer service department, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

TD Bank provides unsecured loans to existing TD Bank account holders with good credit and non-customers with excellent credit in the 15 East Coast states and Washington, D.C., where it has branches.

The bank’s unsecured personal loan is one of three loan offerings, along with the Express Loan, which has faster funding and a lower borrowing amount, and a secured loan that’s available to existing customers.

TD Bank is the product of a post-Great Depression merger between two Canadian banks, and its presence in the U.S. dates back to 1919. The bank began offering its unsecured personal loan broadly in 2020 after a testing period.

The lowest annual percentage rate available on a TD Bank loan is comparable with other banks; however, the highest available APR is below average for most other banks.

» MORE: Compare personal loans from banks

Autopay discount: TD offers a 0.25% rate discount on its personal and Express loans for borrowers who set up automatic deductions from a TD Bank checking or savings account.

Direct payment to creditors: With a TD debt consolidation loan, the bank pays your other creditors directly, leaving your only remaining obligation to the bank, according to a bank customer service representative. The feature is relatively rare among bank lenders.

» MORE: Find a debt consolidation loan

Branch visit required: Borrowers can apply for an unsecured loan online with the bank. But like many banks, once approved, a borrower has to visit a TD Bank location to close the loan. For secured loans, applications are in-person only.

If you prefer to not have to visit a bank branch, bank lenders HSBC and Discover complete the entire loan process, from application to funding, online.

No soft credit pull to pre-qualify: TD Bank requires borrowers to apply for a loan in order to see what rate they'll get, which is more common among bank lenders than online lenders.

How to qualify: 

Qualifying may come easier to existing TD Bank customers than non-customers, as the bank has a higher credit standard for non-customers. TD doesn’t disclose many hard requirements, but it reviews an applicant’s existing debts, income, employment and expenses like rent or mortgage payments. The debt-to-income ratio the bank accepts from a borrower varies based on their credit score.

Here are features that customer service representatives say the bank looks for in a borrower.

• Minimum credit score: 700 for customers; 760 for non-customers.

• Maximum debt-to-income ratio: 60%, including mortgage.

• Minimum credit history: None.

Fees:

• Late fee: 5% of the payment due or $10, whichever is less.

• Prepayment fee: None.

• Insufficient funds fee: None.

Loan example: For a borrower with good credit, a $20,000 loan with a repayment term of 36 months at an 18% APR will have monthly payments of $723, according to NerdWallet’s personal loan calculator.

Other loan offerings

TD Bank Express Loan

TD Bank’s Express Loan is similar to its unsecured loan, but it has a smaller loan maximum ($25,000) and faster funding time (two business days). The terms, APR range and minimum credit score requirement for this loan are the same as the personal loan.

» MORE: Compare lenders that offer fast funding

TD Bank Secured Loans

The bank’s secured loan has a higher minimum borrowing amount of $5,000, a $50 origination fee and a variable APR. A borrower can only use money from a TD Bank account as collateral, meaning loans are available to current customers only. There’s no minimum credit score requirement, but TD still considers a borrower’s credit profile on an application.

Summary of TD Bank Loans

Before you shop for a personal loan 

• Learn how personal loans work

• Boost your chances of getting approved

• 4 steps to pre-qualify for a personal loan

Pre-qualify with NerdWallet 

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify and receive a personalized rate from multiple lenders that partner with NerdWallet.

How to apply with TD Bank

Applications for the Express and Personal Unsecured loans are available online. The bank says it takes about 15 minutes to apply and tells applicants what information they’ll need at the beginning of the application. Once you submit your online application, a loan specialist will contact you to discuss your loan options.