Santander Personal Loans: Current Status and What to Know

If you are looking for a Santander personal loan in the United States, there is something important to know first: Santander Bank stopped accepting new personal loan applications in May 2025. The bank described the pause as temporary, but there is no confirmed date for applications to reopen.

In this article, you will see what this means for new applicants and existing borrowers, what Santander still offers and which alternatives you can compare if you need to borrow money now.

What changed with Santander personal loans

According to Santander’s official website, the bank is no longer accepting new personal loan applications beginning May 12, 2025. The bank said the decision was tied to economic conditions and to its plan to develop a new digital consumer lending platform.

Key points:

New applicants: cannot apply for a Santander personal loan at the moment.
Existing borrowers: continue with the same terms. Payments and servicing continue normally.
Credit cards: the bank said its credit card business was not affected by this decision.

Because the pause was described as temporary, check santanderbank.com for the latest information before making any decision.

About Santander in the United States

Santander is a large financial group based in Spain with operations in many countries. In the U.S., it operates Santander Bank, mainly in the Northeast, offering checking and savings accounts, credit cards and other services. A separate company, Santander Consumer USA, focuses on auto financing.

In recent years, Santander has narrowed its consumer lending in the U.S. In 2022, for example, it announced it would stop originating new mortgages and home equity loans.

If you already have a Santander personal loan

Keep paying on time to protect your credit score.
Use official channels to manage your loan, such as online banking or the phone number on your statements.
Ask about payoff options if you want to repay early, and check whether there are any prepayment fees in your contract.
Be careful with scams: if someone contacts you offering to “refinance your Santander loan,” verify the offer directly with the bank.

Alternatives to a Santander personal loan

If you need financing now, you can compare:

Other banks: some large banks offer personal loans, often with better conditions for existing customers.
Credit unions: they often have competitive rates and flexible requirements for members.
Online lenders: many allow you to check your rate with a soft credit inquiry, without affecting your score.
0% intro APR credit cards: an option for smaller expenses you can pay off before the promotional period ends.

What to compare before choosing a loan

APR: the most complete measure of the cost of a loan.
Fees: origination fees, late fees and prepayment penalties.
Loan amount and term: make sure the lender offers the amount you need and a term that fits your budget.
Funding speed: some lenders send the money within a few days.
Eligibility: credit score, income and debt-to-income requirements.

Tips to improve your chances of approval

Check your credit reports for free and correct any errors.
Pay down credit card balances to lower your credit utilization.
Avoid applying for several new credit accounts at the same time.
Have proof of income and identification ready.
Borrow only what you can repay comfortably.

How personal loans work

A personal loan is an installment loan: you receive a lump sum and repay it in fixed monthly payments over a set term, usually from one to several years. Most personal loans are unsecured, meaning they don't require collateral. Because of this, lenders rely heavily on credit history, income and existing debts to decide approval and interest rates. Common uses include consolidating credit card debt, paying for home repairs, covering medical expenses and financing large purchases.

Understanding the total cost

When comparing loans, look beyond the monthly payment:

APR: the annual percentage rate, which includes interest and certain fees.
Origination fee: a fee some lenders deduct from the loan amount, reducing the money you actually receive.
Term: longer terms lower monthly payments but increase total interest.
Total repayment: the full amount you will pay over the life of the loan.

Asking each lender for the total repayment amount makes comparisons clearer.

Prequalification: compare without hurting your credit

Many lenders allow you to check estimated rates through prequalification, which usually uses a soft credit inquiry that doesn't affect your score. Comparing several prequalified offers before submitting a full application is one of the best ways to find a good rate.

Credit unions as an alternative

Credit unions are member-owned financial institutions that often offer competitive rates on personal loans, especially for members with fair or good credit. Membership requirements vary, but many credit unions are open to people who live or work in a certain area or belong to specific groups.

Avoiding predatory lending

Be cautious with lenders that:

Guarantee approval regardless of credit.
Charge high upfront fees before approving a loan.
Pressure you to sign quickly.
Offer payday or title loans with extremely high costs.

If something seems wrong, check the lender's licensing with your state's financial regulator and look for complaints in the Consumer Financial Protection Bureau's database.

Building a stronger credit profile

Paying bills on time, keeping credit card balances low, avoiding many new credit applications at once and reviewing your credit reports regularly at AnnualCreditReport.com can improve the offers you receive over time.

Questions to ask before signing a loan

What is the APR, and is it fixed or variable?
What is the total amount I will repay?
Are there origination, late or prepayment fees?
Is there a discount for automatic payments?
How and when will I receive the money?
What happens if I have trouble making a payment?

Clear answers to these questions help you choose the loan that best fits your budget and avoid surprises later.

Related reading:

Conclusion

Right now, it is not possible to apply for a new Santander personal loan in the United States, although existing loans continue normally. If you need to borrow, compare offers from banks, credit unions and online lenders, focus on the APR and fees and always confirm current conditions on each institution’s official website.

ACCESS THE BANK HERE

Brasil Acima de Tudo is not affiliated with Santander. This article is for informational purposes only and is not financial advice. Check the official website for current terms and rates.