Santander Bank stopped accepting personal loan applications on May 12, 2025, closing off a product that once offered borrowers in 28 states loans up to $50,000 with same day funding.
What Santander Used to Offer Borrowers
Before it pulled the plug, Santander Bank ran a personal loan program aimed at customers in its northeastern footprint and Florida. Loan amounts ran from $5,000 to $50,000, with annual percentage rates between 7.99% and 24.99% and repayment terms stretching from 36 to 84 months. There was no origination fee, and the bank advertised a recommended minimum credit score of 680, though it did not publish hard minimum requirements for income or debt to income ratio. A late payment triggered a fee of 10% of the loan or $20, whichever came out higher.
The bank built its reputation on speed. Many applicants could get pre-approved with a soft credit check that left their credit score untouched, then move to a full application that took roughly 10 to 15 minutes. Approved borrowers sometimes saw funds land in their checking or savings account via ACH transfer the same day they applied, a turnaround that beat most traditional banks and rivaled online only lenders.
Why the Loans Disappeared
Santander's exit from personal lending fits a bank whose physical presence was always narrower than its lending footprint. The bank served 28 states plus the District of Columbia for loan purposes, but it operated brick and mortar branches in only nine states. That mismatch, a heavy reliance on digital applications paired with a shrinking branch network, may have made the personal loan line harder to justify as competition from fintech lenders and other banks intensified.
Santander's history in personal lending in the United States was also relatively brief. The bank, which traces its roots to Spain, began serving American customers under this footprint in 2013. Compared with lenders that have decades of consumer lending experience domestically, Santander was a newer entrant, and its customer satisfaction scores never caught up. The company held a rating of just 1.4 out of 5 on Trustpilot and 1.07 out of 5 with the Better Business Bureau, with complaints frequently citing slow responses from customer service agents. Some of those reviews came from customers outside the United States, so they may not fully reflect the domestic lending experience, but the pattern was consistent enough to weigh on the bank's overall reputation.
Regulatory history added to the picture. Santander faced enforcement action from the Consumer Financial Protection Bureau in 2016 and from the Federal Reserve in 2017. Both matters have since been resolved or terminated, but the bank continued to draw CFPB complaints tied to its lending products in more recent years.
Where to Look for a Personal Loan Now
With Santander out of the personal loan market, borrowers who liked its combination of low rates and fast funding need to look elsewhere. Two lenders worth comparing directly against what Santander used to offer are Citibank and LightStream, each with a different appeal depending on loan size and credit profile.
| Santander (discontinued) | Citibank | LightStream | |
|---|---|---|---|
| APR Range | 7.99% to 24.99% | 9.99% to 19.49% | 6.24% to 24.89% |
| Loan Amounts | $5,000 to $50,000 | $2,000 to $30,000 | $5,000 to $100,000 |
| Loan Terms | 36 to 84 months | 12 to 60 months | 24 to 240 months |
| Recommended Minimum Credit Score | 680 | No stated minimum | 680 |
| Origination Fee | None | None | None |
| Time to Receive Funds | Same day | 2 days | Same day |
LightStream stands out for borrowers who want a larger loan or a longer repayment window, with terms running as far out as 240 months and loan amounts reaching $100,000. Citibank doesn't publish a minimum credit score requirement, which could make it more approachable for borrowers whose credit is solid but not pristine, though its loan ceiling of $30,000 is considerably lower than what Santander or LightStream offer.
What Santander's Loans Were Used For and Who Qualified
When the program was active, Santander allowed borrowers to use personal loan funds for nearly any purpose except post secondary education costs. That included debt consolidation, home improvement projects, medical bills, unexpected repairs, and large purchases. Debt consolidation has consistently ranked as the top reason people take out personal loans generally, followed by home improvements and big ticket purchases, according to survey data on personal loan borrowers.
Eligibility required applicants to be at least 18 years old and to live in one of the states Santander served, or in Washington, D.C. The bank reviewed credit score, employment status, and debt to income ratio during underwriting, but it did not publish firm cutoffs for any of those factors. Notably, Santander did not allow co-signers or co-borrowers on its personal loans, and it did not offer a refinancing option for existing loans. The minimum loan amount of $5,000 was also higher than many competitors, some of which extend loans as small as $1,000 or less, which meant Santander was never a fit for borrowers who needed a smaller sum.
Does Santander Still Offer Other Banking Products?
Personal loans are gone, but Santander remains a full service bank for customers within its footprint. It continues to offer checking accounts, savings accounts, money market accounts, certificates of deposit, credit cards, investment accounts, and both small business and commercial banking services. Mortgages and home equity lines of credit are also still part of its lineup. Customers with questions about existing personal loans or other products can reach Santander by phone at 833 726 5626, Monday through Friday from 8 a.m. to 5 p.m., or visit one of its branches in the nine states where it maintains a physical presence.