TD Bank Personal Loans Review
- November 5, 2016
- Posted by: Jeff Gitlen
- Category: Personal Loans
TD Bank came into fruition after a number of mergers with several different companies that started in 2000. After four years of operating under the name of Banknorth, Toronto Dominion Bank came into play as the majority share holder. The end result was a nationally chartered bank in the United States under the name of TD Bank.
TD Bank offers all of the standard bank services that include bank accounts and credit cards; naturally, the bank offers loans for many different reasons. One of these reasons may fit under the personal loans category which are happily provided by TD Bank. TD Bank personal loans come with plenty of perks that TD Bank customers are sure to be happy with.
TD Bank has two main offers when it comes to personal loans. There are unsecured personal loans and secured personal loans. The main difference between these two loans is the collateral requirement. Unsecured loans require no collateral, but there are limitations when it comes to total loan amount offers. Secured loans require collateral in the form of either money or some material, and these loans have no limitation when it comes to loan amount. Any amount is possible for a secured loan so long as the required collateral is provided.
The Canadian-owned bank offers personal loans for several reasons. The first reason, and most common, is for debt consolidation. TD Bank basically offers a loan to pay off all debt, and the borrower can tackle this new debt under a different interest rate. Other cited reasons for a loan include vacations and home improvement. TD Bank most likely provides loans for medical expenses as well.
Rates & Terms
Since there are two different loans (secured and unsecured), there are two separate options for borrowers interested in a TD Bank personal loan. An unsecured loan ranging from $2000 to $50,000 can be obtained for any of the reasons listed earlier. The secured loan option has a minimum of $5000 with no cap limit. The only stipulation is the loan amount must be covered by collateral.
The annual percentage rates (APR) for an unsecured personal loan range between 8.99% and 14.99% (APR discount included); these rates are fixed throughout the life of a loan. The secured personal loan APR is based off of the prime rate from Wall Street Journal. TD Bank takes this prime rate and adds 2.00% to it, so the APR on a secured loan is variable at 6.42% after origination fees are factored in.
Both secured and unsecured loans have the same payment plan options. Borrowers can choose between plans starting at 12 months and ending at 60 months, so this includes plans of 24, 36, and 48 months.
There are no origination fees associated with a TD Bank unsecured loan, but the secured loan options includes a $50 origination fee. Late monthly payments on an unsecured loan warrant a 5% fee on the minimum payment; secured loans do not include a late fee. Aside from these differences, the fees for each loan do not differ. There are no annual fees or prepayment penalties on a TD bank personal loan.
An annual percentage discount of 0.25% is offered to any borrower who links automatic payments to a TD Bank account. This discount is included in the APR listings.
One neat benefit from a TD personal loan is the TD Express Loan. This is how it works. Any unsecured loan between $2000 and $15,000 is eligible for expedited delivery. Borrowers will receive these funds within 2 days of approval, and they are applicable for basically any large purchase.
There is a debt consolidation tool that helps potential borrowers figure out how much debt they have from various different sources. The calculator takes into account interest rates, balances, and monthly payments in order to come up with a total debt tally. This helps borrowers figure out how much they should borrow.
In addition to a helpful calculator, there are plenty of resources that aim to help educate borrowers. These learning resources cover the lending process, interest rates, and basically everything related to personal loans; additionally, they cover more services such as home equity and other loan options.
All loan processes can be dealt with online which makes a personal loan from TD Bank convenient. Information, loan standing, and payment due dates are all found online. The only personal loan service that must be dealt with in person is the secured loan option; it must be applied for over the phone or at a local branch.
TD Bank offers two different personal loan options to its borrowers that can be applied to a wide range of different purposes. These loans come with benefits that are generally standard in the industry, so there is not as much differentiation compared to its competitors. With that being said, TD personal loans still can boast some flexibility.
There are five different repayment options with no risk of a prepayment penalty which is fairly flexible compared to many competitors. On top of this flexibility, there are two different types of loans available: secured and unsecured. Multiple banks offer both options, but many of the online companies like SoFi and Upstart only cover unsecured loans.
The main attraction of a TD secured personal loan is the lack of a cap limit. So long as collateral is provided, there is no reason TD Bank will refuse a secured personal loan applicant. This allows borrowers to accrue interest on their savings while taking out a loan.
While not specifically outstanding, TD Bank offers solid options when it comes to personal loans, so there should not be much holding back a potential borrower from choosing TD Bank.