Santander Bank Personal Loans Review

If you need a cash loan, there’s no shortage of online lenders that can serve your needs. But some people prefer to visit a bank branch and work with a loan specialist to apply. Santander Bank offers personal loans to existing account holders and new customers by invitation. The bank may be a good option if you have good credit, need fast funding, and want to avoid upfront fees. However, Santander currently isn’t accepting online personal loan applications.

Santander Bank isn’t the best choice for everyone, even if you qualify. We’ll cover the benefits, drawbacks, qualification requirements, and how Santander compares to similar banks.

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Who are Santander Bank personal loans best for?

Santander Bank customers

If you already have a Santander Checking account, you might find it convenient to apply for a personal loan through your bank. Same-day funding is available in many cases, and you can manage your loan through your online or mobile banking account. You’ll also get a discount for allowing automatic deductions from your Santander Checking account for loan payments. If you’re not a current or former Santander Bank customer, you can only apply by invitation with your 10-digit offer code. 

Great for in-person applications

While there are advantages to applying for a personal loan online, some people prefer to apply in person with assistance from a financial professional. If you live near a local Santander Bank branch, you can make an appointment to complete your personal loan application with help from a staff member.

Pros and cons of Santander Bank personal loans

Pros

• Competitive rates: Santander’s APR range for personal loans is 7.99% - 24.99% APR. Maximum APRs for non-bank lenders typically range as high as 36%.
• No origination fee: Many online lenders charge an origination fee on personal loans to cover the cost of processing your application and issuing the funds. Santander doesn’t charge an origination fee or any other upfront fees. 
• Several approved loan purposes: Santander offers personal loans to use for debt consolidation, home improvement, car repairs, and more. You can even use the funds for small business purposes. Santander restricts you from using the funds for college educational expenses. 
• Same-day funding available: Depending on your application and funding instructions, you could receive the loan funds as soon as the same day you apply. 
• Autopay discount: Santander offers a 0.25% rate discount for setting up ePay automatic payments that deduct loan payments from your Santander Checking account.

Cons

• High minimum loan amount: The minimum borrowing amount for a Santander Bank personal loan is $5,000, so it’s not a good option for small loans. 
• Not currently accepting applications: Currently, Santander doesn’t accept new online personal loan applications, although the bank says it’s a temporary situation.
• Not available in all states: You must be a resident of one of 28 states where Santander is licensed, or Washington, D.C., to be eligible for a personal loan.
• No cosigned, joint, or secured loans: Santander Bank’s application process is designed for single applicants, so you can’t apply with a cosigner or apply for a joint personal loan with a co-borrower, and the bank doesn’t offer secured loans. 

How to qualify for a Santander Bank personal loan

Like most lenders, Santander requires borrowers to be age 18 or older. You’ll need to submit basic information, including:

• Social Security number
• Proof of income
• Employment details

Santander also considers:

Your credit score and financial history

Santander prefers applicants with at least a good FICO score (670 or higher) and conducts a hard credit inquiry to review your credit score. Negative marks on your credit report, like late or missed payments, may decrease your approval odds. You can prequalify without damaging your credit score to get a sense of whether your formal application will be approved. To get approved for the lowest rates, you'll need excellent credit.

Your income and employment

When you apply for a personal loan from Santander Bank, the bank will ask about your employment status and check your debt-to-income ratio (DTI) to determine whether you can afford to repay the loan. To calculate your DTI, divide your total monthly minimum debt payments by your total monthly income.

Santander Bank doesn't publish a maximum DTI, but lenders typically prefer a DTI of less than 36% for personal loans. The bank doesn't disclose a specific minimum income requirement, either, but you will need to show proof of income to qualify.

Santander Bank personal loan purposes

You can use a Santander Bank personal loan for many types of expenses, with typical exceptions such as college tuition. The bank may even allow you to use the funds for small business purposes, but you'll need to answer a couple of questions about your business. Since restrictions can vary by state, you should check your loan agreement for any additional prohibited loan uses.

Some common ways to use a Santander Bank personal loan include:

• Debt consolidation
• Home improvement
• Auto repairs
• Moving
• Emergency expenses
• New appliances
• Life events

Related: What Are Personal Loans Used For?

Santander Bank personal loan fees and penalties

Loan origination fees

Many lenders charge an origination fee to cover the cost of issuing the loan, but Santander doesn't charge an origination fee. Personal loan origination fees can range from less than 1% to 12% of the loan amount and are typically deducted from the loan proceeds upfront, which reduces the amount of cash you receive.

Early repayment penalties

Like most personal loan lenders, Santander Bank doesn't charge a prepayment penalty. You can make extra payments or pay your entire balance early without incurring any prepayment fees.

Other fees

While Santander doesn't charge any upfront or required loan fees, it may charge late payment fees.

How Santander Bank compares to other lenders

Some other brick-and-mortar banks that provide in-branch support offer a wider range of loan amounts than Santander. While Santander's rates are competitive, they're not the lowest in the industry.

How Santander Bank compares to more lenders: Best Personal Loans

How to contact Santander Bank

• Santander Bank offers self-service options through its online portal and mobile banking app. 
• You can reach a personal loan specialist by phone at 1-833-SAN-LOAN (1-833-726-5626) on weekdays between 8 a.m. and 5 p.m. ET.
• If you need in-person assistance, visit a local branch. 

About Santander Bank personal loans

Santander Bank started as a small bank in Pennsylvania in 1902 and has since grown into a global bank active in 25 countries. The bank has $89.5 billion in U.S. assets. Santander Bank has branches located in the Northeast, Miami, and throughout Florida, along with more than 2,000 ATMs. The bank offers an array of financial products, including credit cards, auto financing, checking and savings accounts, and investments. 

Rating Santander Bank personal loans

Credible evaluates personal loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, and fees. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Methodology

Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.

We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating. 

Attributes were grouped into categories; each category contributed to lender scores as follows: 

• Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
• Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
• Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
• Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
• Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
• Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.

Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.