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Borrowing

With a loan or line of credit from Santander Bank, you can be prepared for life's expenses, whenever they happen. Whether you're looking to consolidate higher interest rate debt, renovate your kitchen, or cover an unexpected repair, Santander Bank offers plenty of borrowing options that could fit the bill.

Santander Lines of Credit
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Help Me Decide

Choose Between Different Types of Loans and Lines of Credit

Sure, you have several options for borrowing money, but which one's right for you? Make a smart financial decision by learning the difference between a line of credit and a loan, and determine which one best meets your goals and preferences.

What's the Difference Between a Line of Credit and a Loan?

Both lines of credit and loans make it possible for you to get the funds you need – whether it’s for major projects or purchases, life events or to consolidate debt.

Dream big with a personal line of credit from Santander Bank.

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Types of Loans or Lines of Credit

Determining the best option for borrowing money can feel like a daunting task. That’s why we’re here to help you choose the option that’s right for you. We want you to make smart financial decisions by learning the difference between a line of credit and a loan, and determine which one best meets your goals and preferences.

What is the Difference Between a Line of Credit and a Loan?

Both lines of credit and loans make it possible for you to get the funds you need – whether it’s for major projects or purchases, life events or to consolidate debt.

What is a Line of Credit?

A line of credit is a predetermined amount of money that a financial institution has agreed to lend you with the understanding that you will pay interest on the amount you borrow. Flexibility is a key feature of a Line of Credit that allows you to access funds when you need them, as you need them, up to your available credit limit. That's why a line of credit is a great choice for unexpected expenses or ongoing projects.

A line of credit typically has a Draw Period and a Repayment Period. During the Draw Period, the borrower is responsible for monthly payments based on the amount borrowed and has access to use the line of credit. During the Repayment Period, access to funds ends and outstanding balances are paid back in monthly installments as per your agreement terms.

  • Interest is charged only on the amount you use.
  • Reuse your line as you repay it.

Learn more about line of credit options from Santander.

What is a Loan?

A loan is a preset amount of money given to another party in exchange for future repayment of the total value of loan, plus interest and/or other finance charges. Predictability is a key feature of a Loan. When you know exactly how much you need to finance, you can borrow a specific amount of money for your project or purchase.

  • Borrow a one–time lump sum*.
  • Enjoy a fixed interest rate and predictable monthly payment.

Learn more about loan options from Santander.

Types of Loans or Lines of Credit

What is the difference between a secured and an unsecured loan or line of credit? Here's a straightforward explanation of your options for borrowing money.

Questions to Ask

Now that you understand the basic differences between lines of credit and loans, here are a few questions to ask yourself:

  • How much do I need to borrow? Do I need a fixed amount or the flexibility to use up to a certain amount, as needed?
  • Do I have collateral that I can secure to a loan or line of credit? Do I want to use that collateral to borrow?
  • Am I more comfortable with a predictable monthly payment or a payment that varies based upon how I borrow?
  • What type of loan or line of credit best meets my needs?

* All loans subject to approval

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