Santander Personal Loans Review: A Good Option if You're Eligible

Santander Personal Loanss are only available to residents of certain U.S. states, but can be a solid option for eligible borrowers. With no fees and a below-average interest rate range, Santander is a personal lender that could be a good place to get a rate quote, and in this review, we'll help you decide if it's right for you.

This personal loan is a good fit for: Borrowers with relatively strong credit who live in one of the 28 states and D.C. where Santander makes personal loans.

Top perks

There's no such thing as a personal lender that's right for everyone, and Santander is no exception. However, there's a lot to like about its products. Here are some of the most notable perks.

Low interest rate range: Santander has personal loan rates that are significantly below average for the personal lending industry on both the top and bottom ends of the range. And, the best interest rates are available to highly-qualified borrowers on a variety of loan term lengths (many competitors only offer their best rates on shorter-term loans). For context, a $20,000 personal loan with a seven-year repayment term and 6.99% APR would have a monthly payment of $301.76. Over the life of the loan, this could save borrowers who consolidate credit card debt thousands of dollars.

Same-day funding: In many cases, Santander funds its personal loans on the same day. This isn't a guarantee and the exact timing depends on the time of day your application is received, your credit profile, and the institution where you have the funds sent. Santander says most of its loans are funded within two business days.

Easy to check your rate: Santander prides itself on making its application process as easy as possible and allows prospective borrowers the ability to check their customized loan offers quickly, and with no impact to their credit score.

No origination fees or prepayment penalties: Unlike many of its competitors, Santander doesn't charge any personal loan origination fees whatsoever, even for approved borrowers with less-than-stellar credit scores. There are also no prepayment penalties if you choose to pay back your loan quickly.

Borrow up to $50,000: Santander's personal loans range from $5,000 to $50,000. Borrowers can select loan repayment terms ranging from three to seven years. The seven-year term is a longer repayment term than many other lenders offer, and can be appealing to borrowers who want to keep their monthly payments as low as possible.

What could be improved

As mentioned, there is no personal loan originator that is perfect for everyone. Here are some potential drawbacks that could apply to you.

Not available in all states: This is perhaps the biggest negative factor about Santander. As of 2023, Santander only makes personal loans to borrowers in 28 states and D.C. Unless you live in a state where Santander makes personal loans, all of the other positive factors don't really matter to you.

High minimum loan amount: Santander's loans range from $5,000 to $50,000, and while this meets the needs of most borrowers, it also doesn't serve those who might need to borrow less. There are several competitors that make personal loans of as little as $1,000.

In order to qualify for Santander Personal Loans, you'll need to meet the lender's credit standards, have sufficient income to justify the loan, and a solid employment history. You'll also need to reside in a state where Santander makes loans.

• Credit history: Santander doesn't specify its minimum credit score, but it's safe to assume you'll need good credit (a FICO® Score in the upper 600s or higher to qualify).
• Debt-to-income: Santander will evaluate your income and other debts to make sure you'll be able to comfortably afford your loan payments.
• Employment history: You'll need to submit information about your employment situation. In addition to an acceptable debt-to-income level, banks typically want to know that your income is reliable.
• Residence: At this time, Santander only makes loans to borrowers who live in the following states: Arizona, California, Connecticut, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, North Carolina, New Jersey, New Hampshire, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Vermont, or Washington. Santander also makes loans to those in Washington, D.C.

It's also worth noting that Santander allows consumers to apply with a co-borrower if their credit and income don't meet all of the lender's standards.

Application process

Santander's EZApply process is designed to make the personal loan application and funding process as smooth as possible. Here are the basic steps:

1. Check your rate and loan offers. You can do this in just a few minutes and with no impact to your credit score. This makes it easy to compare Santander's rates with other lenders to make sure you're getting the best deal.
2. Accept a loan offer and apply online. Santander estimates that the entire loan application process will take approximately 10-15 minutes to complete. It's important to note that during this part of the application process, a hard credit pull will be performed, which is the standard practice in the industry.
3. Sign your loan documents and receive your funds, sometimes as quickly as the same day.

The bottom line is that Santander can be an excellent choice for borrowers who need a personal loan of up to $50,000, who have strong credit and an acceptable debt-to-income ratio. However, it's important to keep in mind that Santander is generally designed for consumers with good credit or better, and it doesn't lend in all states.