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Frequently Asked Loan Questions

Loans are a popular borrowing option that offer competitive interest rates with a predictable monthly payment. If you’re considering applying for a Personal Loan from Santander Bank, start here if you have questions.

Loan Basics

How do loans work?

You must submit an application and receive approval from a lender to get a loan. After approval, you will receive a lump sum based on your approved amount. You will then repay the loan back, with interest, in equal monthly installments for the length of the loan.

How does interest work on a loan?

Paying interest is the cost of taking out a loan. Personal Loans have a simple, fixed interest rate on the principal of the loan. To calculate how much interest you will pay over time, multiply your loan principal by your annual interest rate and by the number of years it will take to pay off the loan. You will pay interest as part of your monthly payment. Use our monthly payment calculator to determine how much interest you will pay based on the interest rate and terms of your loan.

What is the difference between a loan and a line of credit?

A loan is an amount of money that you borrow for a specified length of time. You receive a one-time, lump sum that is paid down through fixed monthly payments with a fixed rate for a fixed term. A line of credit is a borrowing limit extended to you. The funds are available to you up to a pre-assigned credit limit and you have the ability to reuse your line of credit as you repay. Your monthly payment will be based on the amount of the line you have outstanding.


Learn more about the difference between a line of credit and a loan.

What are the benefits of an unsecured Personal Loan?

One of the benefits is that there is no asset (car, house, etc.) acting as collateral against the borrowed funds, which simplifies the application process. Whether you need to make necessary home or car repairs, purchase appliances, cover major life events (weddings, vacations, etc.) or have other major expenses, your personal loan is there to help make your plans a reality with funds in one lump sum.


Learn more about common Personal Loan uses.

How do I use a loan to consolidate debt?

A personal loan is a great option to consolidate multiple debts into a single monthly payment. First, identify all the debts that you are interested in consolidating. Then apply for the total sum, or more, if you would like to have some left over for another purpose, letting us know all the debts you would like to consolidate into your loan. Once you are approved, the Personal Loan funds can be used to pay off your higher interest debts and consolidate into one loan with a single monthly payment, often at a lower rate than your multiple debts.

How is a Personal Loan different from credit card debt?

Santander Personal Loans have a fixed repayment term with a fixed rate. Credit cards often have higher variable rates that may increase over time and have no set repayment term.


What is the difference between interest rate and APR?

The interest rate is the cost to borrow money from your line of credit. The APR (annual percentage rate) adds in some of the upfront costs of getting the line of credit in addition to the interest, including any lender fees. Santander does not have any upfront fees so the APR and the interest rate are the same.

Applying for a Loan

Am I eligible for a Personal Loan?

When reviewing your application information, a Consumer Lending underwriter at the bank reviews several factors to assess whether you qualify for the loan or line of credit, including your credit score and the amount of debt you have compared to your total income. You must be at least 18 years old and a resident of one of the following states to apply for a Santander Personal Loan: MA, RI, CT, NH, NJ, PA, NY, DE, ME, VT, MD, or DC.

How long does it take to apply for a loan?

Filling out a loan application online takes approximately 10-15 minutes to complete.

How long does it take to get a loan?

Loan approval and funding can occur in as little as two days for Santander checking customers who provide a valid email address at application.2

How much money can I borrow?

Santander offers personal loans in amounts ranging from $5,000 to $50,000.

How long can I borrow the money for?

You may choose a loan term ranging from two years (24 months) up to five years (60 months).

Do I need collateral for a Personal Loan?

No, personal loans at Santander Bank are unsecured and do not require collateral.

What documents do I need to apply for a loan?

You will need your social security number and basic employment and income information to apply for a loan. Once we receive the application, we will determine if any additional information is required.

Are there any origination or prepayment fees?

No, Santander Personal Lending products have no origination fees, closing costs, or prepayment penalties.

How will a personal loan impact my credit?

During the application process, an underwriter will make a credit inquiry with one of the three credit bureaus, which could impact your credit score for up to two years. This “hit” is usually small, sometimes less than 5 points, and depends on how many other inquiries have recently been made. Beyond the initial credit inquiry, your credit score should not be impacted as long as you make your payments on time.

How long will it take to get funds after my loan is approved?

Loan approval and funding can occur in as little as two days for Santander checking customers who provide a valid email address at application.


To speak with a Santander Bank representative for further information, call 1- 877-476-8562.

Maintaining a Loan

What is my monthly loan payment?

Your monthly payment is a combination of principal and interest divided evenly into monthly installments over the term of your loan. If you are unsure of what your payment amount is, it is available as part of your account details in your online or mobile banking profile. Your monthly payment will is also be on the first page of your signed loan agreement.

Can I set up automatic payments for my loan?

Yes, and you can receive a rate discount by setting up automatic payments from a Santander Bank checking account.

Can I access information about my loan history through online or mobile banking?

Yes, you can access a variety of information about your personal loan in both your online banking profile or your mobile banking app, including:

  • Principal Balance
  • Balance As of
  • Current Amount Due
  • Payment Amount
  • Next Payment Date
  • Total Interest Paid Year to Date
  • Interest Paid Last Year
  • Interest Rate

Can I pay off my loan early?

Yes, you can pay off a loan early by increasing your monthly payments or paying off your loan in a lump sum. Learn more about paying off a loan early. There are no penalties for paying off a Santander Personal Loan early.

What should I do if I am unable to make a loan payment on time?

If you are unable to make a loan payment on time, please contact a Santander representative as soon as possible at 877‑768‑2265.


*All loans subject to approval.

2Existing Santander checking customers who provide a valid checking account number and email address at application are eligible for two-day funding on a Personal Loan or Line of Credit. If income verification, payoffs of existing debt, and/or a counter-offer are required, or if a co-applicant is included on the application, customer is not eligible for two-day funding.