Regions Bank personal loan review: Several loan options to consider

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In a Nutshell

Regions Bank offers several personal loan options, including secured and unsecured loans. But it only operates in certain states, and some loans have a processing fee.

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Pros Cons
Secured and unsecured loans available Only available in certain states
No origination fees There may be a processing fee
Check your potential rate without hurting your credit scores Likely need strong credit to qualify

3 things to know about a Regions personal loan

Regions Bank is a traditional brick-and-mortar bank, with branch locations in the South, Midwest and Texas. It offers several types of personal loans, including secured and unsecured loans, but you’ll have to live in one of the 15 states where Regions operates.

Here’s a look at some of the main features you should know about if you’re considering a Regions personal loan.

1. Several types of loans

While some lenders only offer unsecured personal loans, Regions has both secured and unsecured personal loans.

  • Secured loans: Its deposit-secured loans can be backed by collateral from a certificate of deposit (CD), money market account or savings account. (Regions also offers secured installment loans for financing vehicles such as boats, motorcycles, trailers and light farm equipment.)
  • Unsecured loans: These loans don’t require collateral and have fixed terms and rates with monthly payments.
  • Personal lines of credit: Regions also offers secured and unsecured lines of credit, which could be a better fit if you want to borrow money over a period of time rather than receive a personal loan amount in a lump sum.

Regions’ online unsecured personal loan has a minimum loan amount of $2,000 and maximum of $35,000. You may be able to borrow up to $50,000 with an unsecured loan if you apply over the phone or at a branch. Its secured installment loans can go as high as $300,000 for RVs and motor homes.

2. No origination fee, but a potential processing fee

Some personal loan lenders charge an origination fee, which may range from 1% to 8% of the loan amount. Fortunately, Regions doesn’t have any origination fees on its personal loans and doesn’t charge a processing fee on its online unsecured personal loans, according to a customer service representative.

But there may be a processing fee of up to $150 on Regions’ secured loans and personal loans that are closed at a branch. You may prefer a flat fee if you plan to request a large loan amount, but keep in mind that there are lenders that offer personal loans without origination or processing fees.

3. Limited availability

One major drawback is that Regions Bank only offers personal loans in 15 states: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas.

You’ll also likely need strong credit to qualify for a loan from Regions Bank. You can try to prequalify with a soft credit inquiry (which doesn’t hurt your credit) to see if you’ll be approved and get an estimated offer. If Regions doesn’t approve your application, you may receive alternative offers from Avant.

A closer look at a Regions personal loan   

Comparing lenders and loan offers is important when you’re shopping for a personal loan. Here are a few more details you should consider when deciding if Regions is a good option for you.

  • In-branch visit required to finalize secured loans While you can complete the whole application process online for a loan that’s unsecured, you’ll need to visit a branch to close on a secured loan.
  • Late fee Regions charges a late payment fee that’s the lesser of 5% of the past-due amount or $100. Late fees are common on loans, and you can set up automatic payments to avoid accidental late payments. 
  • Small rate discount Regions offers a 0.25% to 0.50% interest rate discount on secured personal loans to customers who borrow $5,000 or more and sign up for automatic payments from their Regions checking account.
  • Potentially fast funding If you have a Regions bank account, Regions says you may be able to get the loan deposited into your account the same day — or often the next business day, depending on when your loan offer is “activated.”

Who is a Regions loan good for?

A secured personal loan from Regions may be a good fit for current bank customers who can qualify for an interest rate discount and want the loan funds quickly. Its unsecured loans are more widely available since you don’t need to be a bank customer, but there are still residency requirements that will limit eligibility.

And keep in mind that you also may need strong credit to qualify. If your credit is in good shape, you may be able to qualify for a personal loan from a variety of lenders — including others that don’t charge fees.

You should start by getting estimated offers from several lenders with a soft credit inquiry — the type that doesn’t affect your credit scores. Then, consider the loan amounts, rates, terms and fees on the offers before committing. Make sure repayments will fit into your budget.

How to apply with Regions

You can start a personal loan application online, at a Regions Bank branch or over the phone. 

If you’re applying for an unsecured personal loan online, the application begins with a prequalification form that asks basic questions about your personal and financial information, such as …

  • Name
  • Address/contact information
  • Income
  • Social Security number

Regions will pull your credit with a soft inquiry. If you’re approved, you’ll see your estimated loan rates and terms. You can then decide to complete an official application, which will result in a hard inquiry and may hurt your credit scores a bit temporarily.

Not sure if a Regions personal loan is right for you? Consider these alternatives.

  • SoFi personal loan: SoFi, an online lender, doesn’t charge an application or processing fees.
  • Marcus by Goldman Sachs: Marcus will send your loan funds directly to credit card companies if you’re using the money to consolidate credit card debt.

About the author: Louis DeNicola is a personal finance writer and has written for American Express, Discover and Nova Credit. In addition to being a contributing writer at Credit Karma, you can find his w… Read more.