Launched in 1997, Eloan has seen many developments in its time as an online lender – first offering mortgages and then auto loans, before moving to the current business model of unsecured personal loans. The company was acquired by Popular, Inc. Financial Services based in Puerto Rico 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 Popular.
With Eloan, you can borrow up to $35,000 for a variety of purposes, including debt consolidation, medical expenses, home improvements, and more. The lender does not charge set-up fees, nor does it impose penalties for prepayment. It also provides quick loan decisions and quick loan financing, which makes it a good choice if you are in a hurry and need quick cash.
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. However, the fact that you can pre-qualify quickly without a fixed credit check means that there is not much downside to checking out Eloan.
What you need to know before getting a personal loan
Personal loans can be useful tools if you need to finance large expenses or want to consolidate high-interest debt. Repayment rates and terms can vary by lender and depend 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 either an unsecured or secured loan. Unsecured loans are issued based only on your credit and income, while secured loans require you to provide your possessions — such as a car, home, or other item of value — as security.
Before choosing a lender or submitting your loan application, be sure to read the loan terms carefully and know the applicable fees. Some lenders charge origination fees, late fees, or upfront payments, which add to the overall cost of the loan. It is always a good idea to shop and review options from multiple lenders before going ahead 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 attractive. 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 willing to provide collateral, a home equity loan or HELOC may be more suitable than a personal loan. If you have equity in your home, you can borrow against that property to finance large expenses and have up to 30 years to pay off a home equity loan or HELOC. However, your home acts 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 an introductory 0% APR may help you save money and pay off your debt faster. Most introductory periods for 0% APR last anywhere from six to 21 months. Make sure you pay attention to balance transfer fees, and have a plan to pay off the card in full before the introductory period ends so you don’t have to pay a high credit card APR on the remaining balance.
- Save for your goals: For individuals with non-urgent expenses, such as an upcoming wedding or a plan for their dream vacation, it probably makes more sense to save for your goal rather than borrow money. By cutting your expenses or doing side work to increase your income, you can set aside money each month until you reach your goal.
- Free or Low Cost Credit Advice: If you feel that your finances and debts 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 create a debt repayment plan. To find certified credit counseling agencies near you, visit the American Trustee Program website.
Pros and Cons of Eloan
Credit decisions in less than one hour
Quick disbursement of the loan
No setup fees or prepaid fines
The entire loan process is completed online
Grace period of up to 15 days on payment
Do not issue loans in Massachusetts
No secured loan options
Signature participants or applicants are not accepted
There is no information on eligibility requirements available
Eloan compared to other lenders
|current April||8.99% to 21.49%||4.99% APR to 19.53% (includes 0.25 automatic payment discount)||5.99% to 35.99%|
|Loan term range||2 to 5 years||From 2 to 7 years||3 or 5 years|
|loan amount||$2000 to $35,000||From $5,000 to $100,000||$2,000 to $50,000 (loan limit varies by state)|
|Credit score required||undefined||680||640|
|Origin fee||Nobody||Nobody||0.99% – 5.99% of the loan amount|
|Unsecured or secured debt||Unsecured||Unsecured||Unsecured and secured loan options|
Prices and information above are accurate as of December 16, 2021. The NextAdvisor editorial team regularly updates this information, although APR and other information may have changed since the page was last updated. Some of the lowest advertised rates may be for secured loans, which require collateral such as your home, car, or other assets. Also, some loan offers may be specific to where you live.
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 reside in Alabama or Nebraska, and 21 if you reside in Colorado or Mississippi). Massachusetts residents are not eligible for a loan, because Banco Popular (the bank that issues loans) is not authorized to create loans within the state.
Eloan does not specify a minimum credit score or income requirement on its website. One customer service representative said the company looks at your public 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 will have to qualify for a loan based only on your 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 get a credit decision in as little as one hour, and if approved, you can receive the funds as soon as the next business day.
Since Eloan does not publish minimum credit score or income requirements, it is difficult to know whether Eloan is a good fit for borrowers with bad or fair credit. Lenders that offer signed applications or secured loans tend to be better for individuals with less than perfect credit because these options can improve their chances of qualifying for a loan. Eloan offers none of these options.
However, Eloan allows you to check loan options without affecting your credit score, so there is no shame in submitting your information to verify eligibility or to view potential rates.
If you find that you do not qualify for an electronic loan, you may want to consider applying with a lender who 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 qualification form: Fill out the pre-qualification form to see if you qualify for a loan and find out what rates are available to you. This step requires a flexible 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 qualify for a loan. You can choose the loan term and amount that meets your needs.
- Complete the application: Once you select the loan you want, you can complete the application. Eloan will ask you to provide your Social Security number, address, employment and income information. You will also need to agree to a difficult credit inquiry, which could affect your credit.
- Wait for Elwan’s decision: Once you submit your application, Eloan will review your information. The lender usually makes its decisions within an hour or less. If approved, you can receive your money as soon as the next business day.
Questions and answers Eloan
Is Eloan Good for Personal Loans?
For borrowers who are shopping for a personal loan, Eloan can be a good option when you need cash quickly. Offers fast loan and fund disbursement decisions, no set-up fees or prepayment penalties. Eloan gives borrowers a 15-day grace period before late fees are incurred.
What credit score do you need for an Eloan loan?
Eloan did not specify its own minimum credit score on its website, and a customer service representative said there was no minimum score. Eloan accepts applications from diverse credit backgrounds and considers several factors, including credit score, debt-to-income ratio, and payment history.
Can I get a personal loan from Eloan with bad credit?
If you have poor credit, qualifying for an Eloan loan can be challenging. Eloan does not allow individuals to apply with co-signers, nor does it 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 may affect your credit score in the following ways:
- Additional credit inquiries: When you submit your application, Eloan will perform a challenging credit inquiry. Every credit inquiry can cause your score to drop a little bit.
- Enhanced credit mix: Creditors want to see that you can handle multiple forms of debt responsibly. Adding a personal loan to your credit report can increase your credit.
- Payment Date: As you make your loan payments, you can improve your payment history and increase your score. However, any missed payments can do significant damage to your balance.