Best Banks for Personal Loans of April 2024

With low interest rates starting at 8.99%, a versatile range of repayment terms and a substantial loan amount range, SoFi stands out as our favorite bank for personal loans in the market.

One thing that sets it apart is its free financial coaching service where a trained professional can help you improve your savings, reduce debt and raise your credit score. This makes it a solid choice for debt consolidation, the most common reason people take out a personal loan, according to a 2023 MarketWatch Guides survey.

However, keep in mind that SoFi only offers loans to borrowers with good credit or excellent credit scores, which means 680 or higher.

SoFi stands out for its unique features like unemployment protection and free financial counseling. However, since you need a higher credit score to qualify, it won’t work for people struggling with their credit.

SoFi personal loans are an excellent fit for those trying to get out of debt and improve their finances. It offers loan amounts up to $100,000 and free financial coaching. This means you could potentially pay off all of your debt and get help from a trained expert in taming your money situation. They’ll help you with things like getting your finances under control and raising your credit score.

Perhaps best known for its credit card offerings, Discover also offers several types of loans, including personal loans. While Discover’s maximum loan amount of $40,000 is lower than other popular lenders, it has some of the lowest rates (starting at 7.99%) and fees among lenders we researched for those who meet Discover’s eligibility criteria.

Discover offers same-day approvals and long payoff times, an advantage if you need more time but a downside if you’re hoping to pay off the loan quickly. You don’t need to be a Discover cardholder to qualify, but the lender will check your credit history and income, among other information. It also requires a minimum household income starting at $25,000.

Borrowers cannot use a Discover personal loan to pay off a secured loan, pay for college or consolidate high-interest debt from a Discover credit card. Late payments may also carry a $39 fee each time you miss your deadline.

Borrowers who pick Discover will get free monthly FICO credit score updates, which is helpful if you’re trying to rebuild or monitor your credit.

Discover personal loans are well-suited for people who want competitive rates with no hidden fees. It’s also for someone with a lower household income as Discover will consider applicants with annual salaries as low as $25,000.

If you’re looking for a new bank as well as a personal loan, you could consider switching to U.S. Bank. There are perks if you do: U.S. Bank offers faster approval and funding than many lenders, and the maximum loan amount and repayment terms are some of the best on the market. Its rates, starting at 8.24%, are also competitive. Based in Minneapolis, U.S. Bank has branches in 27 states and online banking nationwide.

If you’re already a U.S. Bank customer, the bank’s personal loans have some of the most attractive terms on the market. Customers with a credit score of 660 or greater may even get their funds within a few hours. This is a relatively low credit score requirement, ideal if you need funds quickly and don’t have a perfect credit history.

If you already have a U.S. Bank checking account, you’ll likely want to choose its personal loans, as well. Existing customers get the best rates and the fastest funding, often receiving their loan money within hours.

Headquartered in San Francisco, Wells Fargo is one of the largest banks in the country. Wells Fargo offers personal loans that provide a wide range of loan terms, but borrowers should be aware of the company’s past mismanagement across its student loan, mortgage, auto loan and deposit account lines of business. While settling the matter with federal regulators, Wells Fargo described the allegations as “behind” them.

If you prefer to apply for a loan in person at a traditional bank, Wells Fargo has branches across the country. It also offers the highest maximum loan amount on our list at $100,000, more than double some other lenders.

Wells Fargo is for those who prefer to do business in person. With more than 7,000 locations in 38 states, you can bank in person throughout the U.S.

Although TD Bank Group is based in Toronto, its U.S. banking arm offers plenty of banking products, including personal loans. While amounts are fairly generous, up to $50,000, TD Bank offers a relatively narrow window of repayment terms of 36 to 60 months. Its rates are competitive, with a range from 8.99% to 23.99%. Unfortunately, only borrowers in 15 states, primarily those on the East Coast, and Washington, DC., can apply for a TD Bank personal loan.

T.D. Bank is designed for borrowers in the mid-Atlantic region, and its personal loans offer funding within one business day and preapproval without a hard credit check. Interest rates are comparable to other lenders, and borrowers don’t have to worry about prepayment penalties or origination fees. Borrowers can, however, incur a late fee, $10 or 5% of the minimum payment due, whichever is less.

If you live in one of the states where TD Bank offers services, you might enjoy their convenient hours. Its tagline is “America’s Most Convenient Bank” because they have longer hours than most banks and are even open on Sundays.

Born and based in New York City, Citibank is a national lender that offers banking and lending products to customers across the country. Citibank doesn’t charge fees for its personal loans, but the starting interest rate is higher than other providers at 10.49%. The most you may borrow is $30,000, and you’re not allowed to spend the money on post-secondary education or business.

Unlike some other lenders on this list, Citibank does not charge late fees, so if you’re prone to forgetting payments, you may be well matched with a Citibank loan. Further, if you sign up for automatic payments, you can qualify for an interest rate discount.

Citibank is for the borrower with decent credit seeking discounts. While the starting interest rate is a bit higher than other lenders, the discounts can help offset that expense. Since it also doesn’t charge any fees, you won’t be hit with surprise costs with repayment.

Headquartered in Pittsburgh, PNC Bank is a national bank that offers both personal loans and a personal line of credit. PNC’s personal line of credit option for borrowers can be more versatile than a standard personal loan, but its starting APR of 16.25% is higher than many personal loans. A line of credit allows you to borrow what you need, up to your approved maximum, whereas a personal loan is a lump sum. The PNC personal line of credit amount range is between $1,000 and $25,000, so if you need a larger amount, a personal loan might be a better bet.

While its maximum loan amount doesn’t match other major banks, PNC does offer a banking hardship program if you temporarily can’t afford your payments. This can help borrowers avoid late payments or going into default if they lose their job or have a medical emergency. Please note that loan amounts, terms and rates may vary by location.

PNC is for the borrower who is not sure how much they need upfront. For example, someone who is remodeling a kitchen and doesn’t yet know the full cost of the project. The line of credit makes it possible to only withdraw what you need and only pay interest on what you use.