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Eloan Personal Loans Review 2022: Fast Approval and Funding, but Credit Score and Income Requirements Unclear

A photo to accompany a review of Eloan Illustration/NextAdvisor
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Launched in 1997, Eloan has gone through several evolutions in its time as an online lender — first offering mortgages and then auto loans, before transitioning into its current business model of unsecured personal loans. The company was acquired by the 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 originated by Banco Popular. 

Through Eloan, you can borrow up to $35,000 for a variety of purposes, including debt consolidation, medical expenses, home improvements, and more. The lender doesn’t charge origination fees, nor does it have prepayment penalties. And, it offers rapid loan decisions and quick loan funding, making it a good choice if you’re in a hurry and need cash fast. 

However, its eligibility requirements are unclear, and it doesn’t allow co-signers or joint applicants, so borrowers with less-than-perfect credit may have to turn to another lender. Still, the fact that you can quickly pre-qualify without a hard credit check means that there’s no significant downside to checking Eloan out. 

What to Know Before Getting a Personal Loan

Personal loans can be useful tools if you need to finance a significant expense or want to consolidate high-interest debt. Rates and repayment terms can 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 qualify for a loan that is either unsecured or secured. Unsecured loans are issued solely based on your credit and income, while secured loans require you to provide your property — such as a car, a house, or another valuable item — as collateral. 

Before selecting a lender or submitting your loan application, be sure to carefully read the loan terms and see what fees apply. Some lenders charge origination fees, late fees or prepayment penalties, adding to your total loan cost. It’s always a good idea to shop around and review options from multiple lenders before moving forward with the application process, in order to find the best rate. 

Alternatives to Personal Loans

When you need money quickly, a personal loan can be appealing. 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’re looking for lower rates or larger loan amounts and you’re willing to put up collateral, a home equity loan or HELOC may be a better fit than a personal loan. If you have equity in your house, you can borrow against that equity to finance big expenses and have up to 30 years to repay 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 credit card balances that are subject to high APRs, transferring your balance to a card with a 0% APR introductory offer could help you save money and pay off your debt faster. Most 0% APR introductory periods last anywhere from six to 21 months. Be sure to pay attention to balance transfer fees, and have a plan to pay off the card completely before the introductory period ends so you won’t have to pay high credit card APRs on the remaining balance. 
  • Save for your goals: For individuals with non-urgent expenses, such as an upcoming wedding or a plan for a dream vacation, it likely makes more sense to save for your goal instead of borrowing money. By cutting your expenses or picking up a side hustle to increase your income, you can set aside money each month until you reach your goal. 
  • Free or low-cost credit counseling: If you feel like your finances and debt are out of control, consider meeting with a non-profit 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 U.S. Trustee Program website

Pros and Cons of Eloan 

Pros

  • Credit decisions in as little as one hour

  • Quick loan disbursement

  • No origination fees or prepayment penalties

  • Loan process is completed entirely online

  • 15-day payment grace period

Cons

  • Does not issue loans in Massachusetts

  • No secured loan options

  • Co-signers or co-applicants not accepted

  • No information about eligibility requirements available

Eloan Compared to Other Lenders

EloanSoFiBest Egg
Loan Term Range2 to 5 years2 to 7 years3 or 5 years
Loan Amount$2,000 to $35,000$5,000 to $100,000$2,000 to $50,000 (loan limit varies by state)
Credit Score NeededNot specified680640
Prepayment PenaltyNoneNoneNone
Origination FeeNoneNone0.99%–5.99% of loan amount
Unsecured or Secured DebtUnsecuredUnsecuredUnsecured and secured loan options
The NextAdvisor editorial team updates this information regularly, though it is possible that certain loan and fee details have changed since this page was last updated. For the most up-to-date information about APRs, fees, and other loan details, check with the lender directly. Also, some loan offerings may vary depending on your location.

How to Qualify for an Eloan Loan

To qualify for a personal loan from Eloan, you must be at least 18 years old (19 if you’re a resident of Alabama or Nebraska, and 21 if you’re a resident of Colorado or Mississippi). Residents of Massachusetts are ineligible for a loan, as Banco Popular (the bank that originates the loans) isn’t licensed to originate loans within the state. 

Eloan does not specify a minimum credit score or income requirement on its website. A customer service representative said that the company looks at your overall profile instead to determine your eligibility for a loan. 

Customer support also said that Eloan does not offer secured loans, nor does it allow borrowers to apply with a co-signer or co-applicant, so you’ll have to qualify for a loan based solely on your own income and credit history. 

Who Should Get an Eloan Loan

Eloan’s personal loans are best for borrowers who need quick cash for urgent expenses. With Eloan, you can receive a credit decision in as little as one hour and, if approved, receive the funds as soon as the next business day. 

Because Eloan doesn’t publish its minimum credit score or income requirements, it’s difficult to tell if Eloan is a good fit for borrowers with poor or fair credit. Lenders that offer co-signed applications or secured loans tend to be better for individuals with less-than-perfect credit since those options can improve their chances of qualifying for a loan. Eloan offers neither of these options. 

However, Eloan does allow you to check your loan options without affecting your credit score, so there is no drawback to submitting your information to check your eligibility or to view potential rates. 

If you find that you’re ineligible for an E-loan loan, you may want to consider applying with 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: 

  1. Fill out the prequalification form: Fill out the prequalification form to find out if you’re eligible for a loan and to see what rates are available to you. This step requires a soft credit check, which won’t affect your credit score
  2. Review your options: Based on the information you provide, Eloan will list your loan options if you’re eligible for a loan. You can choose a loan term and amount that meets your needs. 
  3. Complete the application: Once you’ve selected the loan you want, you can complete the application. Eloan will ask you to provide your Social Security number, address, employment information, and income. You’ll also need to consent to a hard credit inquiry, which can impact your credit. 
  4. Wait for Eloan’s decision: Once you submit your application, Eloan will review your information. The lender typically makes its decisions in an hour or less. If approved, you can receive your money as soon as the next business day. 

Eloan FAQs

Is Eloan good for personal loans?

For borrowers shopping for a personal loan, Eloan can be a good choice when you need cash fast. It offers quick loan decisions and fund disbursements, and it doesn’t charge origination 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 doesn’t specify its minimum credit score on its website, and a customer service representative said there wasn’t a minimum score. Eloan accepts applications from a variety of credit backgrounds and looks at several factors, including credit score, debt-to-income ratio and payment history.

Can I get an Eloan personal loan with bad credit?

If you have poor credit, qualifying for a loan from Eloan may be challenging. Eloan doesn’t allow individuals to apply with co-signers, and it doesn’t have a secured loan option. If your credit is on the lower end of the scale, you may be better off with another lender that specializes in bad credit loans or allows co-signers and secured loans.

Does an Eloan loan hurt your credit?

When you apply for a loan from Eloan or any other personal loan lender, it can affect your credit score in the following ways:

  • Additional credit inquiries: When you submit your application, Eloan will perform a hard credit inquiry. Each credit inquiry can cause your score to drop slightly.
  • Improved credit mix: Creditors want to see that you can responsibly handle multiple forms of debt. Adding a personal loan to your credit report could boost your credit.
  • Payment history: As you make payments toward your loan, you can improve your payment history and increase your score. However, any missed payments can significantly damage your credit.