Launched in 1997, Eloan has undergone several evolutions as an online lender, first offering mortgages, then auto loans, before moving to its current business model of unsecured personal loans. The company was acquired by Puerto Rico-based financial services conglomerate Popular, Inc. in 2005. Eloan now operates as a division of Banco Popular de Puerto Rico (another subsidiary of Popular, Inc.) and all of its loans are issued by Banco Populaire.
With Eloan, you can borrow up to $ 35,000 for a variety of purposes including debt consolidation, medical bills, home renovations, and more. The lender does not charge origination fees and does not impose prepayment penalties. And, it offers quick loan decisions and quick loan financing, making it a good choice if you’re in a rush and need cash quickly.
However, its eligibility requirements are unclear, and it does not allow co-signers or co-applicants, so borrowers with less than perfect credit may have to turn to another lender. Still, the fact that you can prequalify quickly without a serious credit check means that there is no major downside to checking out Eloan.
What to know before getting a personal loan
Personal loans can be useful tools if you need to finance a large expense or want to consolidate high interest debt. Rates and repayment terms may vary by lender and are based on your creditworthiness, but personal loans often have lower rates than credit cards. Personal loans also have fixed interest rates and fixed monthly payments, unlike credit cards.
Depending on the lender and your credit profile, you may be eligible for a secured or unsecured loan. Unsecured loans are made only on the basis of your credit and income, while secured loans require you to put up your property, such as a car, house, or other valuables, as collateral.
Before selecting a lender or submitting your loan application, be sure to read the loan terms carefully and see what fees apply. Some lenders charge origination fees, late fees, or prepayment penalties, which are added to the total cost of your loan. It is always a good idea to shop around and consider the options of several lenders before going ahead with the application process, in order to find the best rate.
Alternatives to personal loans
When you need quick cash, a personal loan can be worthwhile. But there are other options that may be more appropriate for your situation:
- Home Equity Loan or Home Equity Line of Credit (HELOC): If you are looking for lower rates or larger loan amounts and are ready to provide collateral, a home equity loan or HELOC may be better suited than a personal loan. If you have equity in your home, you can borrow against that equity to fund big expenses and have up to 30 years to pay off the home equity loan or HELOC. However, your home serves as collateral, so make sure you can comfortably afford the payments.
- Balance Transfer Credit Card: If you have high APR credit card balances, transferring your balance to a card with a 0% APR introductory offer could help you save money and pay off debt faster. Most 0% RPA introductory periods last from six to 21 months. Make sure you pay attention to balance transfer fees and have a plan to fully pay off the card before the introductory period is over so you don’t have to pay high credit card APRs on the remaining balance. .
- Save for your goals: For people with non-emergency expenses, like an upcoming wedding or planning a dream vacation, it probably makes more sense to save for your goal than to borrow the money. By reducing your expenses or choosing a side activity to increase your income, you can put money aside each month until you reach your goal.
- Free or low cost credit counseling: If you feel that your finances and debt are out of control, consider meeting with a nonprofit credit counselor. They can help you understand your situation, evaluate your options, create a budget, and develop a debt repayment plan. To find approved credit counseling agencies near you, visit the US Trustee program website.
Advantages and disadvantages of Eloan
Credit decisions in less than an hour
Quick loan disbursement
No origination fees or prepayment penalties
The loan process is done entirely online
15-day payment grace period
Does not issue loans in Massachusetts
No secured loan option
Co-signatories or co-applicants not accepted
No information available on eligibility conditions
Eloan compared to other lenders
|Current APR||8.99% to 21.49%||4.99% – 19.53% APR (includes 0.25% automatic payment discount)||5.99% to 35.99%|
|Loan term range||2 to 5 years||2-7 years||3 or 5 years|
|Amount of the loan||$ 2,000 to $ 35,000||$ 5,000 to $ 100,000||$ 2,000 to $ 50,000 (loan limit varies by state)|
|Credit score required||Unspecified||680||640|
|Penalty for early repayment||Nothing||Nothing||Nothing|
|Creation costs||Nothing||Nothing||0.99% to 5.99% of the loan amount|
|Unsecured or secured debt||Insecure||Insecure||Unsecured and secured loan options|
The above rates and loan information are accurate as of December 16, 2021. NextAdvisor’s editorial team regularly updates this information, although it is possible that APRs and other information have changed since the last one. updating the page. Some of the lower advertised rates may be for secured loans, which require collateral such as your house, car, or other property. In addition, some loan offers may be specific to your place of residence.
How to qualify for an Eloan loan
To qualify for an Eloan personal loan, you must be at least 18 years old (19 if you are a resident of Alabama or Nebraska, and 21 if you are a resident of Colorado or Mississippi). Massachusetts residents are not eligible for a loan because Banco Popular (the bank that originates the loans) is not licensed to make loans in the state.
Eloan does not specify a minimum credit score or income requirement on its website. A customer service representative said the company looks at your overall profile instead to determine your eligibility for a loan.
Customer service also said Eloan does not offer secured loans and does not allow borrowers to apply with a co-signer or co-applicant, so you will need to qualify for a loan based solely on your own income and credit history.
Who should get an Eloan loan
Eloan personal loans are best for borrowers who need quick cash for urgent expenses. With Eloan, you can receive a credit decision in under an hour and, if approved, receive the funds as early as the next business day.
Since Eloan does not publish its minimum credit score or income requirements, it is difficult to say whether Eloan is suitable for borrowers with low or average credit. Lenders who offer co-signed applications or secured loans tend to be better for people with less than perfect credit, as these options can improve their chances of qualifying for a loan. Eloan does not offer any of these options.
However, Eloan allows you to check your loan options without affecting your credit score, so there is no downside to submitting your information to verify your eligibility or to view potential rates.
If you find that you do not qualify for an electronic loan, you may consider applying from a lender that specializes in bad credit personal loans.
How to apply for an Eloan loan
To apply for a loan, follow these four steps:
- Fill out the prequalification form: Fill out the prequalification form to find out if you qualify for a loan and to see what rates are available to you. This step requires a smooth credit check, which will not affect your credit score.
- Review your options: Based on the information you provide, Eloan will list your loan options if you are eligible for a loan. You can choose a term and loan amount that meet your needs.
- Complete the request: Once you have selected the loan that you want, you can complete the application. Eloan will ask you to provide your social security number, address, employment information, and income. You will also need to agree to a serious credit investigation, which can have an impact on your credit.
- Wait for Eloan’s decision: Once your application is submitted, Eloan will review your information. The lender usually makes their decisions in an hour or less. If approved, you can receive your money as early as the next business day.
Is Eloan Good For Personal Loans?
For borrowers looking for a personal loan, Eloan can be a good choice when you need cash quickly. It offers fast loan decisions and cash disbursements, and it doesn’t charge any set-up fees or prepayment penalties. And, Eloan gives borrowers a 15-day grace period before incurring late fees.
What credit score do you need for an Eloan loan?
Eloan does not state his minimum credit score on its website, and a customer service representative said there is no minimum score. Eloan accepts applications from a variety of credit backgrounds and reviews several factors including credit rating, debt-to-income ratio, and payment history.
Can I get an Eloan personal loan with bad credit?
If your credit is poor, qualifying for an Eloan loan can be difficult. Eloan does not allow individuals to apply with co-signers, and it does not have a secured loan option. If your credit is on the lower end of the scale, you may be better off going with another lender that specializes in bad loans or authorizing co-signers and secured loans.
Is an Eloan loan bad for your credit?
When you apply for a loan from Eloan or any other personal lender, it can affect your credit score in the following ways:
- Additional credit inquiries: When you submit your request, Eloan will perform a serious credit investigation. Each credit check can result in a slight drop in your score.
- Improved credit mix: Creditors want to see that you can responsibly manage many forms of debt. Adding a personal loan to your credit report could increase your credit.
- Payment history: As you make payments for your loan, you can improve your payment history and increase your score. However, any missed payment can significantly damage your credit.