PenFed Personal Loans Review (2026)

Our take on PenFed

PenFed is one of the most affordable personal loan lenders on the market. Its APR range of 6.09% to 17.99% is considerably lower than that of all other lenders we’ve reviewed, and it doesn’t charge origination fees. But you must sign up for autopay (before your loan funds) to get the lowest rates. 

Since the lender allows co-borrowers, it's a good choice for anyone who needs a joint personal loan. You may need good credit, though, and the maximum loan limits and repayment terms are below what some competitors offer.

PenFed personal loan features

What is PenFed best for?

• Low APRs: As a non-profit credit union, PenFed offers ultra-low interest rates, with APRs as low as 6.09% when you enroll in autopay before your loan funds. PenFed also sets its maximum rate at just 17.99%, which is well below most lenders' maximum rates. And, while PenFed reserves the best rates for well-qualified borrowers, applicants with lower credit scores can apply with a co-borrower to improve the chances of qualifying or paying a lower rate.
• Small loans: While many personal loan lenders require you to borrow a minimum of $1,000 to $5,000, PenFed's minimum loan amount is just $600, making it an ideal choice for borrowers who need a small loan. 

Who is PenFed not best for?

PenFed isn’t a good choice if you’re looking for a secured loan, a large personal loan over $50,000, or a repayment term of more than five years. 

Though secured loans aren’t common, some lenders like Best Egg and OneMain Financial offer a discounted APR if you use collateral to guarantee the loan. PenFed doesn't offer this option.

PenFed also caps its personal loans at $50,000 and its repayment terms at five years. Consider competitors like SoFi or BHG Financial for large or longer-term loans. These lenders offer loans as high as $100,000 or $250,000, respectively, and offer terms up to seven or more years.

Pros and cons 

Details on the pros

• Competitive rates: PenFed's advertised APR range of 6.09% to 17.99% APR is one of the lowest on the market. While you need excellent credit and must sign up for autopay before loan funding to get the lowest rate, those who qualify benefit from financing costs that are well below what most competitors charge.
• Biweekly and multi-year repayment options: PenFed offers flexible repayment terms between 12 and 60 months. A maximum 5-year repayment period is common, although some lenders have repayment terms of 7 years or longer. If you're paying from a PenFed account, PenFed also allows you to choose biweekly or weekly payments to meet your budgeting needs. 
• No origination fee: Some competitors charge an origination fee based on the loan amount, often deducted upfront from the loan proceeds. PenFed doesn’t. This means you'll receive the full amount you're approved for. 
• Allows co-borrowers: PenFed allows you to apply with a co-borrower who shares both access to the loan funds and responsibility for repayment. Applying jointly with someone who has excellent credit or a high income may help you qualify for a lower rate. 
• Fast funding possible: While exact funding time varies based on where you bank, PenFed can deposit loan funds within one to two business days if you choose direct deposit.

Details on the cons

• Late payment fees: PenFed charges a $29 late fee if your loan payment is more than five days late. While late payment fees are common and avoidable, some competitors, including SoFi and LightStream, don't charge them. 
• Mixed customer reviews: PenFed received a 3.6 out of 5 Trustpilot rating, which is average. While many reviewers report positive customer service experiences, others complain of long wait times and problems making payments. 
• Membership required: PenFed loans are only available to credit union members. You can apply without becoming a member, but PenFed will create a membership for you if you're approved and move forward. Membership is open to anyone with no restrictions.
• Bad-credit borrowers may not qualify: While PenFed doesn't disclose a minimum credit score, multiple sources indicate that bad-credit borrowers aren't likely to qualify for a PenFed loan at all, unless they apply with a qualified co-borrower.

How to qualify for a PenFed personal loan

PenFed doesn’t disclose any specific qualifying requirements, but does indicate it will check your credit history and verify income when reviewing your application. You can check your prequalified rate before applying without impacting your credit score. 

PenFed personal loan purposes

You can use a PenFed personal loan for almost any expense, including:

Check your loan agreement for any prohibited uses, such as paying college educational expenses. 

PenFed fees and penalties

PenFed charges a $29 late payment fee after a five-day grace period. Late payments may reduce your credit score — setting up autopay is one way to help prevent them. Plus, you can earn a 0.25% rate discount if you sign up for autopay before loan funding.

PenFed vs. other lenders

To help you understand how PenFed’s personal loans stack up in the market, here’s how they compare to the offerings from two similar credit unions: Alliant Credit Union and Navy Federal Credit Union. 

PenFed company details and history

PenFed was founded in 1935 and is headquartered in McLean, Virginia. It is federally insured by the NCUA and has grown into one of the nation’s largest federal credit unions with around 2.8 million members. 

While membership is required for credit unions, PenFed has no membership limitations and welcomes anyone to join. 

In addition to personal loans, PenFed offers checking and savings accounts, credit cards, auto loans, mortgages, home equity loans, and financial assistance programs. As a member-owned, not-for-profit financial institution, PenFed's savings rates and loan rates are often more competitive than what banks offer. 

Contact information

To make payments on your PenFed personal loan, you can log in to your online account, use the PenFed mobile app, or send a check to the address below:

PO Box 247009
Omaha, NE 68124-7009

You can speak to a customer service representative by completing an online form to request a callback or calling member services at 1-800-247-5626. Hours of operation are 8 a.m. to 8 p.m. ET, Monday through Saturday. 

PenFed also operates brick-and-mortar branches in a few states, making in-person service an option for some customers. Find a branch near you.