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In this article we’re diving into the world of personal loans offered by Santander Bank with a review of Santander personal loans. Santander is a Spanish multinational bank with a significant presence in the northeastern United States. If you live in one of the states they serve and are looking for a personal loan, whether to consolidate debt, fund a large purchase, or cover an unexpected expense, Santander might be worth considering. Here’s take a closer look.

Santander Personal Loan Details

Loan Amounts

Santander offers personal loans ranging from $5,000 to $50,000. This is a fairly standard range for personal loans. The amount you can qualify for will depend on your credit profile, income, and existing debt obligations. Remember, just because you can borrow a certain amount doesn’t mean you should. Only borrow what you truly need and have a plan for paying back.

Interest Rates

The lowest APR (Annual Percentage Rate) Santander advertises is 7.99%, with the highest being 25.24%. APR represents the total annual cost of borrowing, including interest and fees, expressed as a percentage. 

Behavorial finance note: Studies show that people often focus too much on the monthly payment and not enough on the total cost of borrowing. A lower APR can save you significant money over the life of the loan, even if the monthly payment is a bit higher. Always run the numbers on the total cost.

Autopay Discount

Here’s a simple way to lower that APR: sign up for autopay. Santander offers a 0.25% rate discount if you let them automatically withdraw your monthly payment from your bank account. Just make sure you always have enough in your account to cover the payment to avoid overdraft fees.

Loan Terms

Santander offers loan terms of 3 to 7 years. A longer term will lower your monthly payment, but result in paying more interest over the life of the loan. A shorter term means a higher monthly payment, but you’ll get out of debt faster and pay less interest overall. Choose the shortest term that you can comfortably afford.


Here’s some good news: Santander does not charge an origination fee on their personal loans. An origination fee is an upfront fee some lenders charge for processing the loan, often a percentage of the loan amount. Not having this fee saves you money right off the bat.

However, be aware of other potential fees. For example, if you miss a payment or pay late, there’s likely a late payment fee (Santander doesn’t specify the amount on their website). Avoid these fees by always paying on time.

Credit Score Requirements

Santander doesn’t state a minimum credit score requirement. However, their lowest advertised APR of 7.99% suggests they are targeting borrowers with good-to-excellent credit. A FICO score of at least 680 is likely a good benchmark. But remember, credit score is just one factor. Your income, existing debts, and other factors also play a role in the approval decision and the APR Santander offers you.

How to Apply for a Santander Personal Loan

To apply for a Santander personal loan, you’ll need to live in one of the states they serve: 

  • Connecticut
  • Delaware 
  • Massachusetts
  • New Hampshire
  • New Jersey
  • New York
  • Pennsylvania
  • Rhode Island

If you live in one of these states, you can apply online, by phone, or at a branch if you prefer in-person service. You’ll need to provide personal information, income verification, and authorize a credit check. 

Santander will do a soft pull on your credit to generate a prequalified offer. A soft pull doesn’t impact your credit score. If you decide to proceed with the application, they’ll do a hard pull, which can temporarily lower your score by a few points. This is standard practice for lenders.

Should You Get a Santander Personal Loan?

If you have good credit and live in one of the states Santander serves, they are certainly worth considering, especially given their lack of origination fees. However, as with any major financial decision, it’s crucial to shop around and compare offers from multiple lenders.

Every lender has their own unique underwriting model, so the rate you’re offered can vary significantly from one to the next, even with the same credit profile. Don’t just go with the first offer you receive.

One easy way to compare offers is via our marketplace page at The Yukon Project. With a single application, you can get prequalified offers from up to 40 lenders without impacting your credit score. It’s a great way to ensure you’re getting the best deal available for your situation.

Tips for Using Personal Loans to Consolidate Debt

If you’re considering a personal loan to consolidate debt, here are a few key tips:

  1. Have a plan. Consolidation only makes sense if you can secure a lower interest rate than your current debts and if you have a budget that allows you to comfortably make the new monthly payment.
  2. Don’t use it as an excuse to rack up more debt. Consolidation can provide relief and simplify your payments, but it’s not a magic bullet. If you don’t address the underlying spending habits that got you into debt in the first place, you could end up in an even worse position.
  3. Consider the total cost. A lower monthly payment isn’t always better if it’s due to a longer loan term. That lower payment could cost you much more in interest over time. Always look at the total cost of the loan, not just the monthly payment.
  4. Have an aggressive repayment plan. Paying just the minimum on your consolidation loan is better than defaulting, but not by much. Aim to pay more than the minimum whenever possible to get out of debt faster and save on interest.
  5. Celebrate milestones. Paying off debt is hard work. Set small milestones and reward yourself when you hit them. This can help keep you motivated on your debt-free journey.

Final Thoughts on taking a Santander Personal Loan

Santander offers competitive personal loans for qualified borrowers in the northeastern U.S. But they’re just one of many options out there. The key is to do your research, read the fine print, and choose the loan that best supports your financial goals. And remember, we’re here to help guide you on that journey.

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Jonathan Walker