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What we like:
|Estimated APR||6.99% – 11.99%|
|Loan Amounts||$5,000 – $25,000|
|Term Lengths||Not provided|
|Fees||Origination fee: None|
Prepayment penalty: None
Personal loans can be a great vehicle for financing a major or unexpected expense. Whether for consolidating high-interest credit card debt or paying for vehicle repairs, medical bills, or even a family vacation, a personal loan can be a way to afford things for which you can’t pay outright.
Personal loans offered by banks or online lenders provide you with a fixed sum of cash, and you repay that amount plus interest with predictable monthly payments over time.
First Midwest Bank is a regional financial institution offering such loans to well-qualified borrowers. The bank is headquartered in Chicago but operates more than 100 branch locations throughout the Midwest. The financial institution also operates online, providing banking customers from select states in the country an opportunity to use its products and services.
In addition to personal loans, First Midwest Bank also provides deposit accounts like checking and savings, auto loans, home equity loans and lines of credit, business loans, and wealth management services.
In this review:
- Applying for a First Midwest Bank Personal Loan
- First Midwest Bank Loans Rates, Terms, Fees, and Limits
- Benefits of a First Midwest Personal Loan
- Downsides of a First Midwest Personal Loan
Applying for a First Midwest Bank Personal Loan
First Midwest Bank currently offers personal loans to residents of:
- New Hampshire
- New York
- North Carolina
- Rhode Island
- South Carolina
Getting a loan through First Midwest Bank is a relatively simple process. Borrowers who live in eligible states can submit a personal loan application in just a few minutes online. The loan application requires information about the borrower’s location, the amount of the loan requested, income, and other personal details.
First Midwest Bank requires applicants to have a phone call with a loan specialist before granting approval. The phone call, which only takes a few moments, is to verify the details included in a borrower’s application, such as income and residential address.
In addition to verifying this information, First Midwest Bank does a hard credit pull to help determine whether an applicant is a good candidate for a personal loan. A minimum credit score of 680 is required to qualify. This may make First Midwest Bank a less attractive choice for a personal loan than other online lenders or financial institutions that rely less heavily on FICO scores.
First Midwest Bank Loans Rates, Terms, Fees, and Limits
A personal loan from First Midwest Bank has the following rates, terms, fees, and limits in all states where personal loans are available:
- Rates: 6.99% – 11.99% depending on creditworthiness
- Terms: Not provided
- Fees: Not provided
- Limits: $5,000 – $25,000
Benefits of a First Midwest Personal Loan
One of the biggest benefits of getting a personal loan from First Midwest Bank is the low cost. Although some of the best personal loan companies offer interest rates as low as those advertised by First Midwest Bank, many require spotless credit to qualify for those rates.
First Midwest Bank does have higher credit requirements than some other lenders offering personal loans, but the maximum interest rates are on the lower end of the spectrum. This means borrowers could save money using a First Midwest Bank personal loan.
In addition to the lower interest rate potential, the application process is both short and easy to complete. The phone call required as part of the process only takes a few minutes to get through once information is submitted online. After those details are verified, a loan application can be approved the same day.
There are also no additional fees above and beyond the documentation fee for a new personal loan, and no prepayment penalties if you wanted to pay off your loan balance early.
Downsides of a First Midwest Personal Loan
Although there are a handful of benefits offered with personal loans from First Midwest Bank, disadvantages exist and should be considered. As with many bank loans, the minimum credit score of 680 may make it difficult for individuals with less-than-ideal credit to qualify. Compared to some other online personal loan lenders, First Midwest Bank does have more stringent credit requirements.
>> Read More: Personal loans for bad credit
The loan maximum may also be a disadvantage for some borrowers. Personal loans from other lenders have far higher loan amounts, allowing borrowers to receive more financing for their needs. For example, Lightstream personal loans for qualified borrowers have a maximum loan amount up to $100,000, while Upstart offers personal loans for up to $50,0002 with similar repayment terms. Borrowers who need more access to cash may want to look at other lenders to get what they need.
Finally, First Midwest Bank offers same-day loan application approval so long as the borrower is available for the required follow-up phone call. However, funding from the personal loan may not reach a borrower’s bank account until two or three business days after approval takes place.
Some lenders provide personal loan funding more quickly — in some cases, the same business day — which may be more beneficial for borrowers who are in a hurry to get their cash.
>> Read More: Quick personal loans
First Midwest Bank personal loans may be a perfect solution for you if you are looking for a financing solution up to $25,000 with single-digit interest rates and longer repayment terms. If you have strong credit, you can qualify for a personal loan that offers a fixed monthly payment and interest rate, as well as minimal fees.
If you don’t have good credit or need more than $25,000, a different personal loan lender may be a smarter choice. As with all personal loans, be sure to compare your options before deciding which lender to go with.
2Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100
Author: Melissa Horton