7 Best Banks for Getting a Personal Loan

If you want the short answer, SoFi® is the best bank for a personal loan for most people right now because it pairs low fixed rates with no required fees and same-day funding. The right pick for you still depends on your credit score, how fast you need the money and whether you already bank somewhere. Below you'll find seven strong options, each with a clear best-for label so you can jump to the one that fits.

It's important to shop around for personal loans when sorting through potential lenders. Some have limited loan amounts and sky-high interest rates. Others have hidden fees that make the loan more expensive than the rate suggests.

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Here's a look at the best banks for personal loans.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Key Takeaways

• The best banks for personal loans reward strong credit and existing relationships: SoFi® leads for most people thanks to low fixed rates, no required fees and same-day funding, but the right pick depends on your credit, speed needs and where you already bank.

• Rates and terms vary widely: Across major banks, APRs run from about 7% to 26%, loan amounts from $1,000 to $100,000, and terms from 12 to 84 months.

• Existing customers get the best deals: Banks like U.S. Bank, Wells Fargo and Citi® offer higher loan amounts, longer terms, faster funding or rate discounts to current account holders.

• Watch the fees, not just the rate: The strongest options charge no origination fee and no prepayment penalty — but many still charge a late fee, so read the fine print.

• Credit unions can beat banks on rate: Federal credit unions cap APRs at 18% and often approve fair credit, though you must join first and funding can take longer.

• Prequalify before you apply: A soft credit check lets you compare real rates from two or three lenders without affecting your score.

Summary generated by AI, verified by MoneyLion editors

How We Picked the Best Banks for Personal Loans

MoneyLion reviewed more than 20 national banks and looked at the numbers that matter most when you borrow. Each bank was scored on the same five factors, so the list stays fair and useful.

• Annual percentage rate (APR): Lower fixed APR ranges scored higher.

• Fees: Banks with no origination fee, no prepayment penalty and no hidden charges ranked above those that stack fees.

• Loan amounts and terms: Wider ranges — small loans under $5,000 and larger loans up to $100,000 — earned more points.

• Funding speed: Same-day or next-day funding beat lenders that take a week or more.

• Requirements and eligibility: Banks that serve a wider range of credit scores and income levels scored higher than those with tight rules.

Best Banks for Personal Loans

SoFi: Best Overall for Personal Loans

• APR: 6.99% to 35.49%

• Loan amount: $5,000 to $100,000

• Terms: 24 to 84 months

• Processing speed: Most borrowers receive funds the same day the loan is approved and the loan agreement is signed by 5:30 p.m. ET on a business day. 

• Autopay discount: Get a 0.25% interest rate reduction when you enroll in automatic monthly payments from a bank account of your choice.

• Late fees: No

• Prepayment penalties: No

• Origination fee: No, but optional origination fees apply in exchange for a lower interest rate

SoFi offers fixed-rate personal loans from $5,000 to $100,000 with repayment terms of two to seven years. According to SoFi’s rates page, APRs currently range from 6.99% to 35.49%. SoFi also advertises same-day funding and lets applicants check their rate online before applying.

Citi: Best for Fast Funding

• APR: 9.99% to 17.49%

• Loan amount: $2,000 to $30,000

• Terms: 12 to 60 months

• Processing speed: Receive your funds the same day you are approved through Citi deposit account. Expect funding to take two business days if direct deposited into a non-Citi account.

• Autopay discount: Score a 0.50% APR rate discount when you sign up for automated payments when your loan is originated.

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

To qualify for a Citi personal loan, you must already be a Citi customer. Current Citigold® and Citi Priority customers receive a 0.25% APR discount. Defaulting on your payments increases your rate by 2%. 

Discover: Best for No Fees

• APR: 6.99% to 24.99%

• Loan amount: Up to $40,000

• Terms: 36 to 84 months

• Processing speed: Funds sent as soon as the next business day after acceptance.

• Autopay discount: No

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

With a Discover® personal loan, there are no hidden fees. Additionally, Discover can send funds directly to your creditors or direct deposit them into any of your bank accounts as soon as one business day after acceptance, according to the bank's website. Checking your rate has no impact on your credit score.

Truist: Best for Large Loans and Low APRS

• APR: 7.74% to 24.39%

• Loan amount: $5,000 to $100,000

• Terms: 24 to 240 months

• Processing speed: Same-day funding may be available.

• Autopay discount: Yes

• Late fees: No

• Prepayment penalties: No

• Origination fee: No

Truist’s online personal loans are issued through LightStream, and your loan can be funded the same day if you work with a loan officer to submit the required documents and expedite the process. Truist also offers personal lines of credit. If you run into issues during the repayment process, you might qualify for payment relief for up to 90 days.

TD Bank: Best for Existing TD Customers

• APR: 7.99% to 23.99%

• Loan amount: $2,000 to $50,000

• Terms: 36 to 60 months

• Processing speed: After approval, funds might be available within one to three business days.

• Autopay discount: No

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

• Prepayment penalties: No

• Origination fee: No

TD Bank personal loans come with a fixed interest rate. You can check your loan options without affecting your credit unless you decide to move forward with the loan. Note: TD Bank lends only in 15 states and the District of Columbia.

U.S. Bank: Best for Small Loan Amounts

• APR: 7.24% to 24.99%

• Loan amount: $1,000 to $25,000 ($50,000 for current U.S. Bank customers)

• Terms: 12 to 60 months (Up to 84 months for current U.S. Bank customers)

• Processing speed: It may take only hours for U.S. Bank customers.

• Autopay discount: Yes

• Late fees: Up to $40

• Prepayment penalties: No

• Origination fee: No

Qualified U.S. Bank customers can apply for a loan of up to $50,000 — and if you meet the credit score requirements and other qualifying factors, you could receive your funds the same day. Non-U.S. Bank customers can apply for up to $25,000.

Wells Fargo: Best for Existing Wells Fargo Customers

• APR: 6.74% to 25.99%

• Loan amount: $3,000 to $100,000

• Terms: 12 to 84 months

• Processing speed: Same-day credit decisions

• Autopay discount: Yes, varies based on Wells Fargo accounts

• Late fees: Yes, an undisclosed amount

• Prepayment penalties: No

• Origination fee: No

Wells Fargo personal loans come with a simple online application and funding process. You'll need to have a Wells Fargo account that's been open for at least 12 months. Once you're approved, you can get your loan amount by the next business day at the earliest.

Customers who have a qualifying Wells Fargo consumer checking account and make automatic payments from a Wells Fargo deposit account qualify for a 0.25% relationship discount.

Bank vs. Credit Union vs. Online Lender for a Personal Loan

Where you borrow changes what you pay and how fast you get the money. Here's how the three main options stack up.

• Banks: Good if you already have a checking account and want in-person help. Rates can be higher than those of online lenders, and approval often needs a credit score above 660.

• Credit unions: Often the lowest APRs, and they cap rates at 18% by federal rule. You have to become a member first, and funding can take a few extra days.

• Online lenders: Fastest funding and the widest credit range, including options for scores under 640. Fees can be higher, so read the fine print before you sign.

If you have strong credit and an existing relationship with a bank, a bank usually wins out on trust and speed. If your credit is fair or you want the lowest possible rate, a credit union is worth a look. If you need money in your account tomorrow, an online lender is the safer bet.

How To Get Approved for a Bank Personal Loan

Follow these steps in order to boost your odds of approval and lock in a lower rate.

1. Check your credit reports and scores first. Pull your free report from Equifax, Experian or TransUnion, so you know where you stand before you apply.

2. Fix quick credit issues. Pay down credit card balances below 30% of your limit and dispute any errors you spot on your report.

3. Figure out how much you need. Borrow only what you can pay back — a smaller loan is easier to approve and cheaper over time.

4. Gather your documents. Have your pay stubs, W-2, photo ID and proof of address ready, so the application moves fast.

5. Prequalify with two or three banks. Prequalification uses a soft credit check, so you can compare real rates without hurting your score.

6. Pick the best offer and apply. Choose the lowest APR, including fees, then submit the full application and set up autopay to shave off another 0.25% at many banks.

Once you've decided on a bank, credit union or online loan, the next step is getting approved. Approval for a personal loan depends largely on your creditworthiness. If you have excellent credit, you're likely to receive approval at most financial institutions, an attractive interest rate and reasonable loan terms.

Even if your credit is less than perfect, you may have options. Many lenders will also consider other factors such as your employment history, income and overall financial stability. Some lenders specialize in lending to those with poor credit or no credit history, though you'll typically pay much higher interest rates.

Beyond your basic creditworthiness, you'll want to be ready to demonstrate your ability to repay the loan. Usually, this involves providing proof of regular income, whether from your job or another source (lenders consider pensions and benefits income, so even if you're on disability, you may still be able to get a loan).

Tips To Increase Your Chances of Personal Loan Approval

When comparing personal loans, consider these tips to increase your chances of approval.

• Boost your credit score. Not only can a higher credit score improve your approval odds, but it can also help you tap into lower interest rates. One way to improve your score is to make on-time payments on credit accounts.

• Check your credit report. You'll also want to be sure your credit report is accurate. Errors in your credit report can negatively impact your chances of approval, so be sure to review a recent copy. You can get one free credit report each week from AnnualCreditReport.com, which (despite the dot com domain name) is a website maintained by the federal government.

• Increase your income. A higher income tends to give a lender more confidence in your ability to repay the loan.

• Grow your savings. If you are able to build up more savings, a robust stash can indicate to lenders that you can make on-time payments.

• Do your research. The best banks for personal loans with good credit might not be the same as those for personal loans with bad credit. Evaluate your credit score and choose to apply for loans with banks that align with your credit needs. This is an especially important tip for people with bad credit because the easiest bank to get a loan from will likely be willing to work with borrowers with bad credit.

Weigh Your Options Carefully

As you consider which bank is best for a personal loan, remember that it is a significant financial obligation. Don't take it lightly. Make sure it fits within your budget and will allow you to achieve your goals without adding more stress. The choice you make can greatly impact your finances.

Best Banks for Personal Loans FAQs

Which bank has the lowest personal loan rates right now?

LightStream and SoFi tend to have the lowest fixed APRs for borrowers with strong credit, starting under 8% as of July 2026. Your actual rate depends on your credit score, loan term and whether you sign up for autopay.

Is a credit union better than a bank for a personal loan?

Credit unions often beat banks on rates because federal rules cap their APRs at 18%, and they tend to approve borrowers with fair credit more often. The trade-off is that you have to join first, and funding can take a day or two longer than with a big bank.

What credit score do you need for a personal loan from a bank?

Most major banks want a score of 660 or higher, and the best rates go to borrowers above 720. If your score is under 640, an online lender or credit union is a better place to start.

How fast can a bank fund a personal loan?

Citi® and Wells Fargo can fund approved loans the same day or the next business day for existing customers. New customers usually wait two to five business days.

Do personal loans from banks have fees?

Some banks charge an origination fee of 1% to 8% of the loan amount, while others — like Discover® and SoFi — charge no origination fee. Always check for prepayment penalties and late fees before you sign.

Does applying for a personal loan hurt your credit?

Prequalification uses a soft pull and does not affect your score. The final application triggers a hard credit inquiry, which can drop your score by a few points for a few months.

Key Terms

• Annual percentage rate (APR): The yearly cost of borrowing including interest and fees — the clearest way to compare bank offers.

• Origination fee: A one-time charge of 1% to 8% some banks deduct from your loan; the top-rated banks charge none.

• Prepayment penalty: A fee for paying off a loan early. Most major banks don't charge one, letting you save on interest.

• Autopay discount: A rate reduction, often 0.25% to 0.50%, for enrolling in automatic payments from a bank account.

• Relationship discount: An extra rate cut some banks give existing checking or premium-tier customers.

• Prequalification: A soft-credit-check preview of your rate and terms that doesn't affect your score.

• Soft vs. hard credit inquiry: A soft check (prequalification) doesn't affect your score; the hard inquiry from a full application can dip it a few points.

• Secured personal loan: A loan backed by collateral like a CD or savings, which can lower your rate or improve approval odds.

Sources

• Federal Reserve: Consumer Credit (G.19) 

• NCUA: Loan interest rate ceiling 

• CFPB: What's the difference between a hard and soft credit inquiry?

• CFPB: Shopping for the best personal loan

Summary generated by AI, verified by MoneyLion editors

Emily Gadd, CCC™, contributed to editing this article.

Photo Credit: fizkes / Gettyimages / iStockphoto.com