Big Banks That Don’t Offer Personal Loans

Are you considering applying for a personal loan? One might think that the best place to start would be a large bank. Surprisingly, though, a lot of big banks only offer personal loans to their existing clients, and some don’t even provide them. For instance, personal loans are not offered by big banks like Capital One, Chase, and Bank of America. It’s usually wiser to investigate and contrast highly regarded personal loan options rather than depending on a well-known bank in order to identify the one that best suits your requirements.

KEY:-
1.Among the biggest banks in the United States that do not provide personal loans are Bank of America, Chase, and Capital One.
2. Even though banks typically offer a variety of financial services, some big banks purposefully exclude personal loans from their menu.
3. Smaller banks, credit unions, and online lenders may offer more flexible personal loan options if you're looking for one.

Reasons Why Some Banks Don’t Offer Personal Loans

Banks are financial organizations that offer a range of services, including home loans, credit cards, and checking and savings accounts. Although many smaller banks offer personal loans, major banks typically do not prioritize them. Because unsecured personal loans don’t fit with their larger lending strategies or product offerings, some banks may decide not to offer them.

Banks That Don’t Offer Personal Loans

You can borrow money with a personal loan, which is a form of unsecured financing. Usually, you can borrow between $1,000 and $50,000, but some lenders might give you up to $100,000. You’ll pay back the loan balance in interest-bearing fixed monthly installments.¹
This is referred to as a personal installment loan by the Consumer Financial Protection Bureau.
Be aware that some large banks, such as Capital One, Chase, and Bank of America, do not offer personal loan services before applying.

Bank of America

In addition to its checking and savings accounts, Bank of America offers a variety of other personal financing options, even though it does not offer personal loans. Consumers have access to a variety of credit cards, such as student cards, rewards credit cards, and credit-building options.
Furthermore, Bank of America offers mortgages, home equity loans, and mortgage refinances, among other home financing products. It also provides auto loans. Finally, the bank offers a range of lending and credit card services to help businesses.

Chase

Chase is a large bank that offers a variety of lending products, such as mortgages, auto loans, and personal credit cards, but it does not offer personal loans. Chase also offers deposit accounts, including certificates of deposit (CDs), savings accounts, and checking accounts.
Chase offers a number of financing options for businesses and commercial clients.

Capital One

Capital One offers a number of different lending options for both individuals and businesses, even though it does not currently offer personal loans. There are numerous credit cards available to consumers that provide benefits like travel points or cash back. For those wishing to buy a car, Capital One also offers auto financing.
Capital One provides business credit cards and credit lines to help companies control costs and foster expansion.

Other Places to Get a Personal Loan

While some of the nation’s largest banks don’t provide personal loans, borrowers still have plenty of options for getting financing for their needs.

Tip:-
As you consider your choices, you can use a personal loan calculator to figure out your monthly payments and the total cost of the loan based on its APR and term.

Other Banks

Only their current clients are eligible for personal loans from certain banks and financial organizations. For example, before applying for a personal loan, applicants must have an active American Express Consumer Card.¹
American Express. “Use American Express Personal Loans to Get the Money You Need.”
Furthermore, personal loans may be available from smaller community or regional banks, but usually only after you’ve built a banking relationship with them.

Online Lenders

Personal loans are provided by numerous online lenders, many of whom target borrowers with subpar credit.
Online lenders are typically more accommodating than traditional banks, particularly when working with borrowers who have poor credit scores.
Some online lenders offer same-day deposits if you need money right away. For example, if you complete the application and sign the loan agreement by 1 p.m. ET on a business day, Rocket Loans will process an ACH transfer to your bank account.

Compare personal loan rates offered by different online lenders to find the best offer.

Credit Unions

Credit unions are member-owned, non-profit institutions that provide a range of banking services. Credit unions frequently offer lower interest rates than traditional banks if you’re looking for a personal loan. For instance, in Q3 2024, banks charged an average interest rate of 11.94% on a 36-month unsecured fixed-rate loan, whereas credit unions charged an average of 10.89%.
Usually, you have to join a credit union in order to apply for these loans. They may have state or federal charters. Finding the credit union that best meets your financial needs requires comparison shopping, just like with any lender.

FAQs

The Bottom Line

Although personal loans are not offered by all major banks, you still have excellent options. Examine offers from reputable online lenders, smaller banks, and credit unions. Selecting the best personal loan for your needs is made easier by pre-qualifying, which allows you to compare loan rates without lowering your credit score.