Best Banks Offering Personal Loans

Personal loans are the Swiss Army knives of financial products. You can use them for almost anything, from consolidating credit cards to funding a cross-country move.

With the rise of online lenders, you might have forgotten about a cornerstone personal loan source: banks.

In this article, you’ll learn which banks double as the top personal loan lenders when it makes sense to get a personal loan from a bank, and when it makes better sense to borrow elsewhere.

Best banks for personal loans

To bring you our list of the best banks for personal loans, we researched many options.

We wanted to know which banks offer the lowest rates, fastest funding times, and highest loan amounts. Which ones have the most user-friendly application process? Which ones give borrowers the best rate discounts?

Our evaluation process led us to five clear winners. In the table below, you’ll get the highlights: the APR range after any discounts and how much you can borrow. For the full scoop on what makes these banks the best, keep reading.

Bank	Rates (APR)	Loan amounts
SoFi	8.99% – 29.49%	$5,000 – $100,000
Discover	7.99% – 24.99%*	$2,500 – $40,000
M&T Bank	9.24% – 15.69%*	$2,000 – $50,000
Wells Fargo	7.49% – 23.24%*	$3,000 – $100,000
TD Bank	8.99% – 23.99%*	$2,000 – $50,000

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SoFi – Best for good credit

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• LendEDU rating: 5.0 out of 5
• SoFi’s unemployment protection has you covered if you lose your job
• Get same-day funding if you sign your loan documents before 7 p.m. Eastern

SoFi earns all five of our stars for a few reasons. Where many lenders cap personal loans around the $50,000 mark, SoFi lets you borrow up to $100,000. You can also take advantage of autopay, direct deposit, and member discounts to lower your APR.

The catch? SoFi is selective when it comes to approval. If your credit score is below 660, you might have a tough time qualifying.

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Discover – Best for low-income borrowers

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• LendEDU rating: 4.6 out of 5
• Discover only requires $25,000 in annual income
• Receive your funds as soon as the next business day

Discover wins points for economic accessibility. You’ll meet Discover’s income requirements if you earn at least $25,000 per year. You’ll still need a minimum 660 credit score, but that generous income threshold means Discover’s loans aren’t reserved for just the highest earners.

That said, Discover offers the lowest maximum loan amount on our list. You can only borrow up to $40,000. If you need more than that, Discover may not be the best fit.

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M&T Bank – Best for flexible repayment

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• LendEDU rating: 4.5 out of 5
• M&T Bank lets you repay your loan over 1 – 7 years
• Only residents in select Northeast states can apply

Do you prefer the comfort of a longer repayment timeline? M&T Bank gives you up to seven years to pay back loans greater than $15,000. Would you rather power through your payments and save on interest? You can do that, too, with repayment periods as short as one year.

Where M&T Bank shines in flexibility, it falls flat in availability. Only residents in select Northeast states can apply for M&T’s personal loans.

States where M&T Bank personal loans are available

Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Virginia, Washington, D.C., and West Virginia

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Wells Fargo – Best for relationship perks

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• LendEDU rating: 4.5 out of 5
• Eligible Wells Fargo customers can borrow up to $100,000
• Wells Fargo offers same-day approvals and funding in 1 – 3 days

If you’ve banked with Wells Fargo for at least 12 months, you’re in luck. Wells Fargo’s personal loans are exclusively for loyal customers—and you can borrow up to $100,000. Wells Fargo will also reduce your APR by 0.25%. Who doesn’t love a good loyalty reward?

Of course, that’s not great news for non-account holders. If you bank with another company or recently switched to Wells Fargo, you won’t be eligible for a Wells Fargo personal loan. Wells Fargo might still offer new customer deals, so don’t rule it out if you aren’t a customer without looking into it.

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TD Bank – Best for transparency

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• LendEDU rating: 4.5 out of 5
• TD Bank funds loans in as little as one business day
• TD Bank only lends to East Coast residents

Does the “TD” stand for “Toronto-Dominion” or “trust and dependability”? TD Bank made our list thanks to its upfront personal loan process. You’ll save time and headaches by not having to sift through legal terms or go through the entire application to know whether TD Bank is a match. 

You can’t use your TD Bank personal loan for business or educational purposes. However, the lender will let you know whether you qualify for a loan and give you an idea of your interest rate via prequalification, which doesn’t hurt your credit score.

States where TD Bank personal loans are available

Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C.

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What banks offer personal loans?

Not every bank offers personal loans. Capital One, Chase, and Bank of America provide other lending solutions, but personal loans aren’t on the menu.

Still, far more banks serve up personal loans than not. For this article, we prioritized banks that provide the best overall customer experience. These five lenders made the cut because they meet a variety of needs for a variety of borrowers.

If you aren’t sure where to apply, start by answering these questions:

• How do you want to use your personal loan?
• How much do you want to borrow?
• How soon do you need your loan funds?
• Does your current bank offer personal loans?
• Have you explored smaller local banks?
• How healthy is your credit profile?

Check out our reviews above and each lender’s website to ensure your top choices will meet your needs.

Knowing your must-haves, nice-to-haves, and limitations can help you narrow down your choices. It won’t hurt to expand your search, either. Perhaps a bank we haven’t covered is a better fit for your situation. Perhaps the best fit isn’t a bank at all. 

Bank personal loans vs. other types

Borrowing a personal loan from a bank is a wise choice in some circumstances, but it’s not the only choice. You can also look to credit unions. Here are several important differences between the two:

	Banks	Credit unions
Funding time	At least 1 business day	At least 1 business day
Eligibility	Strictest	More lenient
Rates and fees	Highest	Lower
How to apply	Online or at a branch	Online or at a branch
In-person support	✅	✅
Availability	Multiple states or nationwide	Usually regional or local
Membership req.?	Sometimes	Almost always

Credit union personal loans often come with more favorable terms, but you may need to become a member to apply. Many credit unions serve specific regions or types of customers (such as military personnel or state employees) and aren’t as widely available.

Online lenders aren’t limited by geography. Online lenders tend to have more lenient underwriting requirements than traditional banks, too. The trade-off, though, is that in-person support is rarely an option, if ever.

Here’s more about the differences:

	Banks	Online lenders
Funding time	At least 1 business day	Possibly same-day
Eligibility	Strictest	Most flexibile
Rates and fees	Highest	Varies
How to apply	Online or at a branch	Online
In-person support	✅	❌
Availability	Multiple states or nationwide	Nationwide
Membership req.?	Sometimes	Rarely

When it comes down to it, there’s no one right type of personal loan and no one right type of lender. There’s only the right type for you. If all these options are giving you analysis paralysis, reviewing the pros and cons might make the decision easier.

Our expert’s take on how to choose between a bank, credit union, or online lender

Erin Kinkade

CFP®

In my opinion, begin with the loan amount you need, whether you meet eligibility requirements, and then the most favorable interest rate and associated terms. After you’ve done this, narrow your list down to at least three options: calling and researching their customer service, reviewing the website, and talking with a representative. I also recommend reviewing the lender’s reviews, such as Trustpilot, and confirming they’re Better Business Bureau-accredited.

Pros and cons of bank personal loans

Getting your personal loan from a bank comes with major advantages, but it’s not the best solution for every borrower. Before you apply, research every option, and weigh the pros and cons:

Pros

• Often offer membership or relationship discounts for account holders

• Possibility to apply in person or receive face-to-face support at a branch

• Convenience of modern online lending technology with the reputation and track record of a time-tested institution

Cons

• Might need to open a new bank account to qualify

• Credit requirements can be tighter than other types of lenders

• Interest rates are often higher than credit unions

How to get a personal loan from a bank

Getting a personal loan from a bank usually begins with an application, but sometimes, it starts with a relationship.

Some banks only lend to current checking or savings account holders. You might be able to open any required accounts when you apply, but new accounts aren’t always eligible. If that’s the case, you’ll need to leave the account open and active until it’s old enough to qualify.

If you can meet or bypass existing customer requirements, you’ll move ahead to the prequalification or application steps. Of the banks on our list, here are the ones that let you check your rates before you apply:

Bank	Prequalification?
SoFi	✅
Discover	✅
M&T Bank	❌ You can see typical rates for credit score ranges, but you must apply to see your personal rate.
Wells Fargo	✅
TD Bank	✅

After you prequalify, you’ll submit an official application. Banks will ask you to verify your identity, income, and employment history. To streamline the application process, gather these documents ahead of time:

1. Proof of identity: Driver’s license, passport, or Social Security card
2. Income verification: Most recent pay stubs, W-2s, or tax returns
3. Address verification: A recent utility bill, mortgage statement, or lease agreement
4. Current debt information: Monthly statements reflecting creditors’ information and account balances (if you’re using your personal loan for debt consolidation)

If you want to include alimony, child support, or retirement income, have that supporting documentation ready, too.

Once you’ve finalized your application, the bank will review your information. You might get a decision right away, or it could take a couple of days. If you’re approved, you’ll sign your loan documents, confirm where you’d like to receive your funds, and let the bank handle the rest.

FAQ

Is it hard to get a personal loan from a bank?

Getting a personal loan from a bank isn’t any more difficult than getting a personal loan somewhere else. Some banks have stricter underwriting guidelines than others, but that’s true for any lender.

Besides, no matter where you get your loan—be it a bank, credit union, or online lender—you’ll still need to meet credit requirements, go through an application process, and work with your lender to coordinate funding.

Are there banks that give instant personal loans?

If, by “instant,” you mean, “the bank hands over the money without any to-do,” that’s not really a thing. Even banks that offer same-day approvals need one to three business days to move your funds.

Some banks, such as SoFi, go a step further with same-day funding if you apply and sign your loan documents before the end of the business day. That’s about as instant as it gets.

What is the minimum credit score to get a personal loan from a bank?

Every bank sets its own credit requirements, so we can’t give a one-size-fits-all answer here. Typically, the higher your credit score, the better your approval odds. But your score is only one piece of the personal loan puzzle. Your income and payment history play a role, too. 
If you’re concerned about a low credit score, look for bad-credit lenders, or work on improving your credit before applying.

Recap of best banks offering personal loans

Lender	Best for
SoFi	Good credit	View rates
Discover	Low-income borrowers	View rates
M&T Bank	Flexible repayment terms	View rates
Wells Fargo	Relationship perks	View rates
TD Bank	Transparency	View rates