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Based on our research, U.S. Bank is our choice for the best bank loans thanks to generally competitive interest rates and a variety of loan terms, among other factors. We researched 70 personal loan lenders and evaluated them on 31 factors, including annual percentage rates (APRs), loan amounts and terms, fees, customer experience, and much more.
Best Personal Loans From Banks for March 2024
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- Best Overall: U.S. Bank
- Best for Debt Consolidation: Discover
- Best for Fast Funding: Citibank
- Best for American Express Cardholders: American Express
- Best for Large Loan Amounts: Wells Fargo
| Company | APR | Credit Score est. | Loan Amount | More Details | |
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Best Overall : U.S. Bank
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- APR Range: 8.74% - 24.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 12 months - 84 months
However, the amount you can borrow from U.S. Bank fails to impress, especially for non-customers, who can borrow just $25,000. Existing customers can borrow up to $50,000. Some competitors offer personal loans capped at $100,000. Also, the bank received a below-average score in the J.D. Power 2023 U.S. Consumer Lending Satisfaction Study.
- No restrictions on loan use
- 0.50% autopay discount on interest rate
Co-applicants allowed
- Loan funding possible within one business day
- Branches in only 26 states
- Co-signers not allowed
- Fewer benefits for non-customers
- $25 late payment fee
- Must be an existing U.S. Bank customer for the best terms
- Minimum credit score of 660
- Lowest APR requires credit score of at least 800
U.S. Bank is the country's fifth largest bank and dates back to 1863 when it began as First National Bank of Cincinnati. It is headquartered in Minneapolis.
Best for Debt Consolidation : Discover
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- APR Range: 7.99% - 24.99%
- Loan Amount: $2,500 - $40,000
- Loan Terms: 36 months - 84 months
Discover does restrict what types of debts you can consolidate, however. You can consolidate bills and credit card debt (except debt on a Discover card), but you can’t consolidate secured loans, such as mortgages and auto loans.
- Low minimum APR
Low income requirements
- Few restrictions on loan use
- Above-average score in J.D. Power 2023 U.S. Consumer Lending Satisfaction Study
- Highest APR is 24.99%, which is close to the average for credit cards
- No interest rate discount with automatic payments
- $39 late payment fee
- No co-signers or co-applicants
- Have a minimum recommended credit score of 660
- Be a U.S. citizen or permanent resident
- Be at least 18 years old
- Have a minimum individual or household annual income of $25,000
- Have a physical address and an active email address
- Have access to a computer or mobile device to finalize the online application
Headquartered in Greenwood, Delaware, Discover began as a credit card company in 1985.
Best for Fast Funding : Citibank
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- APR Range: 10.49% - 19.49%
- Loan Amount: $2,000 - $30,000
- Loan Terms: 12 months - 60 months
While Citi’s APRs aren’t the best, they’re still decent. However, the maximum loan amount is $30,000 for most borrowers, which is well below the caps for personal loans from some other lenders. (The cap bumps up to $50,000 for existing customers willing to visit a branch or apply over the phone.) Keep in mind that Citi prohibits using personal loan funds for post-secondary education or business purposes.
- Decent range of APRs
- 0.50% interest rate discount for automatic payments
- No fees
- Available in 50 states and the District of Columbia
- Low maximum loan amount for most borrowers ($30,000)
- Lowest APR requires a loan term of three years or shorter
- No co-applicants or co-signers
- Below-average score in J.D. Power 2023 U.S. Consumer Lending Satisfaction Study
- Be at least 18 years old (or 21 years old in Puerto Rico)
Citibank began in 1953 as the National City Bank of New York. It is headquartered in Sioux Falls, South Dakota.
Best for American Express Cardholders : American Express
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- APR Range: 5.91% - 19.97%
- Loan Amount: $3,500 - $40,000
- Loan Terms: 12 months - 60 months
But there also are disadvantages to getting an Amex personal loan. For instance, you must hold an Amex consumer credit card to qualify, and the loan terms are less attractive than some competitors. In addition, Amex places several restrictions on how you can spend your personal loan funds. For example, you can’t put proceeds from an Amex personal loan toward post-secondary education expenses, business costs, or real estate deals.
- APR as low as 5.91%
- No loan origination or prepayment fees
- Top score in J.D. Power 2023 U.S. Consumer Lending Satisfaction Study
- Available in 50 states and the District of Columbia
Must have an Amex consumer credit card to apply for a loan
- Restrictions on loan use
- Low maximum loan amount ($40,000)
- Minimum of three business days to receive funds
- Be an Amex consumer cardholder to submit a loan application
- Receive an offer from Amex to apply
- Be at least 18 years old
- Be a U.S. citizen, or a resident of the U.S. or U.S. territories
American Express began as a freight forwarding company in 1850 and introduced its travelers cheque in 1891. Its headquarters are in New York.
Best for Large Loan Amounts : Wells Fargo
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- APR Range: 7.49% - 23.24%
- Loan Amount: $3,000 - $100,000
- Loan Terms: 12 months - 84 months
Wells Fargo, the third largest bank in the country, sits atop the list of major lenders offering personal loans up to $100,000. It’s our highest-rated big bank in this category.
Adding to Well Fargo’s appeal, it earned an above-average score in the J.D. Power 2023 Consumer Lending Satisfaction Study.
At the lower end of the APR range, Wells Fargo fares well. But the upper end is higher compared to some of Wells Fargo’s rivals. It’s worth noting that to score the 0.25% relationship discount, you must have a qualifying Wells Fargo consumer checking account and must make automatic loan payments from a Wells Fargo deposit account.
- High maximum borrowing limit ($100,000)
Same-day funding available
- No loan origination or prepayment fees
- Broad array of loan terms
- Must be a Wells Fargo customer for at least 12 months to be eligible
- Restrictions on loan use not disclosed
- No co-signers or co-applicants allowed
- $39 late payment fee
- Be an account holder at Wells Fargo for at least 12 months
Wells Fargo dates back to 1852 and is headquartered in Sioux Falls, South Dakota.
Compare the Best Personal Loans From Banks for March 2024
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The Bottom Line
U.S. Bank jumps to the head of the class as our best overall bank for personal loans due to its competitive rates—especially for highly qualified borrowers. If you’re looking for the best lenders in more specific categories, we’ve got you covered there as well:- American Express for Amex cardholders
- Citibank for fast funding
- Wells Fargo for large loans
- Discover for debt consolidation
A big bank can be a good choice for a personal loan, but you have many options. See our selections for the 10 best personal loans, which features lenders and loans for most every need, from a variety of providers.
Guide to Choosing the Best Bank Loan
Should You Apply for a Bank Loan?
If your finances are in good shape, a personal loan might make sense to pay for a home improvement project, cover medical bills, or consolidate debt. However, if you’ve already got a lot of debt, you may not want to take on even more with a personal loan. Your current financial situation might even prevent you from qualifying for a loan.According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation was the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons.
What Loans Can't Be Used For
Personal loans can be used for almost any purpose, but there are some restrictions. For example, you can't use a personal loan for a down payment when buying a home. Most lenders will forbid this, but even if they do not, mortgage lenders would be far less likely to approve your application if you also need to borrow money for a down payment. It's also unlikely that you would be allowed to use a personal loan to pay down student loan debt. Before agreeing to the terms of your personal loan, be sure to familiarize yourself with any restrictions.
Where to Get a Bank Loan
You’ve got multiple options for where to get a bank loan. These include:- Traditional banks: Traditional banks are go-to sources for many people taking out personal loans. They normally operate branches where you can seek in-person customer service. Be sure to find out if you can apply for a loan online vs. in person or over the phone.
- Online lenders: Because they don’t operate branches, online lenders sometimes levy lower interest rates and fees than other lenders do.
Websites, Prior Relationships Influence Where Customers Get Loans
In our 2023 survey, we also asked how people choose where to get a personal loan. By far the most popular answers centered around online research—both by looking at bank websites and by reviewing third-party reviews. Having a prior relationship with a bank also plays heavily into decisions.
Pros & Cons of Bank Loans
- Money to cover big purchases or expenses
- Potentially high borrowing limit
- Ability to build a positive credit history
- Generally lower interest rates than credit cards
- Typically no requirement for collateral
- More debt
- Potentially low borrowing limit
- Possible short-term or long-term damage to credit
- Months or years of payments
- Possibility of fees
Comparing Bank Loans
When you’re shopping for a personal loan, be sure to consider:- Credit requirements: Will you need to meet certain criteria, such as a minimum credit score?
- APR: How much will the lender charge you to borrow money?
- Fees: Does the lender charge fees, such as late payment fees or prepayment fees?
- Co-signers or co-applicants: Will the lender allow you to have a co-signer or co-applicant?
- Loan restrictions: Does the lender prohibit you from using loan proceeds for certain purposes?
- Availability: Does the lender do business where you live?
Shorter Repayment Terms Can Save You Money
Based on data from 18 lenders, the average personal loan interest rate is 23.88% for terms of about 48 months. However, the Fed reports that 24-month personal loans have an average rate of 12.35%.
If you can afford the higher monthly payments that come with a shorter term, it could save you a lot of money. The chart below shows the potential savings of a 24-month term as opposed to a 48-month term on a $10,000 personal loan:
| $10,000 Personal Loan | |||
|---|---|---|---|
| Loan Term | APR* | Monthly Payment | Total Interest Paid |
| 24 months | 12.35% | $472.37 | $1,336.90 |
| 48 months | 23.88% | $325.36 | $5,617.05 |
Keep an Eye on the Fed's Target Federal Funds Rate
The Fed held rates steady at its most recent meeting March 19-20—the fifth consecutive meeting at which it has done so. From March 2022 through July 2023, the Fed increased its target rate range 11 times, from near zero to 5.25–5.50%. Before that rate-hiking campaign, the average APR for a 24-month personal loan from commercial banks was 9.38%. That number has risen along with the Fed's rate hikes to 12.35%.
Fed members indicated that they expect to cut rates later this year, but until that happens, lending rates are unlikely to get any lower. Because personal loans typically are fixed-rate products, the rate you get when take out your loan is the rate you'll have for the duration of that loan. Lending rates typically will rise or fall along with what the Fed does, so if you expect to have a longer repayment term, it might be a good idea to wait until later this year or next year to get a personal loan. The Fed is scheduled to meet again April 30–May 1.x
How to Qualify For and Apply For a Bank Loan
To qualify and apply for a bank loan, follow these steps:- Figure out how you’ll spend the money. Some lenders restrict how you can use personal loan proceeds.
- Review your credit report. Is your credit score in good shape? Are there any negative marks on your credit report that could make it harder to qualify and need to be addressed?
- Look at your finances. Is income enough to cover monthly payments for a personal loan without jeopardizing your ability to pay other bills? Lenders will consider your balance of debt and income—or your debt-to-income ratio.
- Compare several lenders. Shop around. Compare factors like interest rates, fees, and credit requirements across several lenders.
- Pick a lender. Make a choice based on what's best for your specific needs. For instance, you might go with a lender that offers a low interest rate and lets you borrow a generous amount of cash.
- Fill out an application. Most lenders will allow you to apply for a personal loan online. Information you’ll likely need includes tax returns, pay stubs, and your Social Security number.
- Wait for approval. It might take anywhere from one day to one week for a lender to accept or reject your application, although most decisions are fairly quick.
- Get your money. If your application is approved, the lender will prepare to send the loan proceeds to you, often through direct deposit. It may take one to five business days to receive the money.
Average APR by Credit Score
Alternatives to a Bank Loan
If you’re looking for alternatives to a bank loan:- Join a credit union: A key reason to look into borrowing from credit unions is that they typically offer lower interest rates and fees than traditional banks do.
- Opt for a credit card: If your credit limit can handle it, you might want to cover expenses (such as a home improvement project or a wedding) with a credit card offering a 0% introductory APR to avoid interest charges.
- Look into a home equity loan or home equity line of credit (HELOC): A home equity loan lets you borrow a lump sum of money by tapping into your home’s equity, while a HELOC gives you a line of credit based on your home’s equity. Both use your home as collateral.
- Consider a personal line of credit: While a personal loan gives you a one-time lump sum of money, a personal credit line gives you access to money over a period of time. A personal line of credit may charge a higher APR than a credit card or personal loan.
- Explore a retirement plan loan: If your employer allows it, you may be able to borrow money from your 401(k) or another workplace retirement plan. One drawback is that any money you withdraw will lose out on investment gains.
Why You Should Trust Us
Investopedia collected and analyzed hundreds of key data points from over 70 companies across three months to identify the most important factors for readers choosing a personal loan. We used this data to review each company for rates, fees, repayment terms, credit requirements, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best personal loans since 2015.Frequently Asked Questions
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Which Bank Is the Easiest to Get a Loan From?
Investopedia research indicates that, based on credit requirements, TD Bank may be one of the easiest banks for getting a personal loan. The bank’s recommended minimum credit score is 300. Generally, credit scores range from 300 at the low end to 850 at the high end.
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What Is a Good Rate for a Personal Loan?
The Fed's March 7, 2024, Consumer Credit Report states that the average APR for a 24-month personal loan is 12.35%. That is based on data through November 2023.
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Which Bank Offers the Best Personal Loan Rates?
Based on Investopedia research, Reach Financial offers the lowest rates—as low as 5.99% APR. However, to get the best rate, you'll have to qualify based on your credit score and other factors. Rates can fluctuate daily, so always be sure to shop around.
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How Much Money Can I Borrow From a Bank?
Typically, the maximum amount you can borrow with a personal loan from a bank is $100,000. -
What Do I Need to Qualify for a Personal Loan From a Bank?
Each lender has its own criteria for approving a personal loan. However, most lenders look for a good credit score, a regular source of income, a solid credit history, and a low debt-to-income ratio, among other things.
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How Are Banks Different From Credit Unions?
Banks typically are for-profit institutions, and credit unions are member-owned nonprofit institutions. Both are federally insured—banks by the FDIC and credit unions by the NCUA. You can get personal loans from both types of institutions, and rates, fees, terms, and more will vary from lender to lender.
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Is It Better to Get a Personal Loan Online or at a Bank?
Many banks allow you to apply online, so you can do both. Rates and terms will vary among lenders, whether they are online or not, so it really comes down to personal preference. If you prefer to visit a brick-and-mortar location, however, you are limited to just the banks with locations near you. -
Companies We Reviewed
We researched and reviewed more than 40 banks to find the best five lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the banks we researched, along with links to individual company reviews, to help you learn more before making a decision: Achieve, American Express, Avant, Axos Bank, Bankers Healthcare Group, Best Egg, CapexMD, Citibank, Discover, Dividend Finance, Fig Loans, Future Family, GoodLeap, Happy Money, Laurel Road, LendingClub, LendingPoint, LendingUSA, Lightstream, Lyon Financial, Mariner, Money Key, Netcredit, Old National Bank, OneMain Financial, OppLoans, Personify Financial, PNC Bank, Prosper, Reach Financial, Regions, Reprise, Rocket Loans, Santander, SoFi, Southeast Financial, SunPower, Tally, TD Bank, Trident Funding, Truist, U.S. Bank, Universal Credit, Upgrade, Upstart, USAA, Vantage Recreational Finance, Wells Fargo, and Zable.
How We Pick the Best Personal Loans from Banks
To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Learn more about how we evaluated personal loans in our complete methodology.
Guide to Personal Loans
Learn more about personal loans:- What Is a Personal Loan?
- How Do Personal Loans Work?
- When Are Personal Loans a Good Idea?
- How to Get a Personal Loan
- How to Apply for a Personal Loan
- How to Use a Personal Loan
- Where to Get a Personal Loan
- Personal Loans Vs. Credit Cards
- Alternatives to Personal Loans
- Personal Loan Calculator
- Personal Loans Methodology
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