With over 80 years of lending experience, Pentagon Federal Credit Union AKA PenFed serves more than 1.6 million members in all 50 states and military bases around the world.
PenFed offers loans up to $25,000 with rates as low as 6.49%. This military-focused credit union acknowledges that, sometimes, bad luck happens. When you enroll in its debt protection insurance plan, you’re covered. Find out more about PenFed personal loans: the good, the bad and my breakdown.
See the Student Loan Refinancing and Personal Loans bonus offers from Credible here and SoFi here.
About Personal Loans From PenFed
- No collateral required. Don’t own a house? It’s not going to be an issue here.
- Simple application process. Just head over to PenFed’s website and apply online (for members only).
- Joint applications. PenFed welcomes cosigners, so you can have a better chance of getting approved and qualifying for better rates!
- Quick funding. It can take as little as one business day, if approved.
- Flexible fund use. A personal loan through PenFed can be used for debt consolidation, home improvement, auto repair and travel.
- No origination fee. What you borrow is what you get.
- Competitive fixed rate. With excellent credit, your APR could be as low as 6.49%, and that won’t budge for the entire duration of your loan term.
- No prepayment penalty. So you can pay that loan of yours back as quick as possible!
- Live customer service 24/7. PenFed is available to their members worldwide, via web, seven days a week, twenty-four hours a day.
- Flexible loan repayment. You can also adjust the due date on your monthly payments once per year, terms apply.
- Debt protection option. In case of disability or death, PenFed’s Debt Protection insurance plan will pay off or cancel some or all of your loan payments.
- For PenFed customers only. Because PenFed is a credit union, you will be required to join in order to apply for a loan. Anyone is qualified for membership by joining Voices for America’s Troops ($14 in dues) or the National Military Family Association ($15 in dues).
- Loan terms vary by amount. You can borrow as little as $500 for a three-year term, $5,000 for a four-year term and $10,000 for five-year term.
- Hard credit check. This can affect your credit score. It pulls information from major credit bureaus and receives timely payment reports.
- Late payment fee. If your payment is more than 5 days late, you’ll be hit with a 20% fee.
- Returned check fee. If your payment is returned due to insufficient funds, it’ll cost you $30.
Eligibility Requirements
There are no minimum credit score, gross annual income or debt-to-income ratio requirements. Instead, PenFed will consider your entire financial situation during the underwriting process to evaluate your loan application.
PenFed Terms & Fees
| Loan Amounts | $500 – $25,000 |
| Loan Terms | 6 months to 5 years |
| Repayment Options | Monthly |
| Origination Fee | None |
| APR | 6.49% – 17.99% |
| Prepayment Fee | None |
| Late Payment Fee | 20% |
| NSF Payment Fee | $30 |
| Check Processing Fee | None |
The Breakdown
PenFed is a great choice for average credit borrowers or those with poor credit who can apply with a cosigner. You don’t need collateral and the application process is quick and easy. There are no origination or prepayment fees, and the rates are competitive with good credit. PenFed caters to their members with live 24/7 customer service, flexible loan repayment and debt protection.
Sample Loan
| Loan Size | $12,000 |
| Loan Term | 48 months |
| APR | 12.0% |
| Total Interest | $3,168.29 |
| Monthly Payment | $316.01 |
If you aren’t already a PenFed member, it’ll take you a few extra steps to apply. Loan terms vary by amount, so make sure to check what terms apply with your loan amount. You’ll be hit with a hard pull on your credit just to see if you qualify for a PenFed personal loan. Lastly, when you receive your funds, keep in mind the late and NSF payment fees.
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