Eloan personal loan review: No prepayment or origination fees

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In a Nutshell

If you need cash for an expense and want to check your estimated loan interest rate without affecting your credit scores, a personal loan from Eloan might be a good fit. Eloan doesn’t charge prepayment, application or origination fees, but your interest rate may be high if you have less-than-perfect credit.

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Pros Cons
Ability to apply for prequalification with soft credit inquiry Potentially high interest rates
No prepayment, application or origination fees Low maximum loan amount
Considers applicants with a variety of credit histories Not available in Massachusetts

What you need to know about an Eloan personal loan

Eloan, a division of Banco Popular de Puerto Rico, is an online lender offering unsecured personal loans in the U.S. Its loans can be used for a variety of purposes, including paying for medical expenses, home improvements and debt consolidation. If you’re thinking about applying for a personal loan through Eloan, here are a few things to consider.

Application for prequalification available

Some personal loan lenders require you to complete a formal loan application — which results in a hard credit inquiry and can lower your credit scores by a few points — to get your financing terms. But Eloan has a simple prequalification application that lets you see whether you might qualify for a loan and what your estimated rate might be without affecting your credit scores.

Just remember, prequalification doesn’t guarantee the loan terms and approval — you’d have to submit a formal application for that.

No prepayment, application or origination fees

Lenders sometimes charge application or origination fees, which can eat into your loan funds before you even receive them. And some charge prepayment fees, too, which penalize you for paying down debt too quickly. Eloan doesn’t charge prepayment penalty, application or origination fees.

Works with different types of credit

Eloan doesn’t publish its loan eligibility requirements, including minimum credit scores, on its website. But it does note that it will work with applicants with a variety of credit histories. Eloan also considers multiple factors when making loan decisions, including debt-to-income ratio, repayment history and credit scores. And Eloan also notes that applicants with higher credit scores tend to have the highest approval rate.

Eloan has a rate and payment calculator on its website that shows monthly payment estimates for people with credit scores ranging from fair to excellent, which suggests you don’t need perfect credit to qualify for a loan.

Potentially high interest rates

If you have excellent credit, you may qualify for the lowest rates Eloan offers, which aren’t the best but are on par with many other lenders’ starting annual percentage rates.

But Eloan’s interest rates for those with fair credit can be high. If you can only qualify for Eloan’s highest rates, be sure to shop around.

Eloan personal loan details

If you’re considering applying for a loan with Eloan, here are some additional details to know.

  • Personal loans through Eloan are available to residents in every state except Massachusetts.
  • You must be at least 18 years old (19 in Alabama or Nebraska, or 21 in Colorado and Mississippi) to apply for a loan through Eloan.
  • Eloan offers loan amounts ranging from $2,000 to $35,000 (terms may be different if you apply through Credit Karma), and loan terms of 24 months to 60 months — so you can choose an option that fits your budget.
  • Eloan accepts applications only online, but there are customer service representatives available to help you with the process. If you prefer to complete your application over the phone or in a branch, you’ll need to work with a different lender.
  • If you’re approved, your loan funds may be deposited into your bank account as soon as the next business day.

Who an Eloan personal loan is good for

Eloan might be a good fit if you need money quickly, are comfortable with an online application experience and want the ability to check potential interest rates without affecting your credit scores.

Because there are no origination or application fees, an Eloan personal loan could also be a good choice for debt consolidation.

How to apply with Eloan

All loan applications must be submitted through the Eloan website, eloan.com. You’ll be prompted to “check your rates,” meaning Eloan will perform a soft credit check. From there, you may proceed with a full application.

If you decide to apply for a loan from Eloan, you’ll need to continue your application and may need to provide documentation to verify the information you gave.

Not sure if Eloan is right for you? Consider these alternatives.

If you want to explore other loan options before deciding whether a personal loan from Eloan is right for you, take a look at these lenders.

  • TD Bank: A personal loan from TD Bank could be ideal for someone who wants to borrow a larger amount of money.
  • LightStream: LightStream might be good for people who want to submit a joint application.

About the author: Jennifer Brozic is a freelance financial services writer with a bachelor’s degree in journalism from the University of Maryland and a master’s degree in communication management from Tow… Read more.