Personal Loans FAQs

What can I use a personal loan for?

From covering unexpected expenses to paying for home improvements and more, a personal loan can be used for many miscellaneous needs that don’t have their own specific loan categories. They can provide flexibility and quick access to funds.

Can I use a personal loan for higher education?

No, a personal loan doesn’t cover education expenses. However, our student loans can help you pay for college or refinance your current student loans.

Do I need a co-applicant?

No, it isn’t necessary to have a co-applicant. But, depending on your situation, a co-applicant may help you meet the credit requirements necessary for loan approval. 

Can I get a personal loan if I have limited credit history?

Yes, but a co-applicant may be required, depending on the requested loan terms.

How is interest calculated on personal loans?

We calculate interest daily using the simple interest method. That means we calculate interest on the unpaid principal balance from the date of receipt of the last payment until the date of receipt of the current payment.

How are payments applied?

Each time a payment is received, we first pay off the interest that has accrued since the date of your last payment. The remaining amount goes toward your principal balance. So if you pay more than the minimum amount due, the funds reduce the loan balance and are applied as a partial payment toward the next regular payment.

Does Navy Federal offer small dollar loans?

We offer personal loans for as little as $250 and 6-month terms with no fees and a maximum of 18% APR, as an alternative to a small dollar loan program and payday loans.

Can I borrow more than $50,000 for a personal loan?

Yes! However, if the amount you need to borrow falls within the range of $50,001 to $150,000 for a personal expense loan, home improvement loan or debt consolidation, you'll need to apply at a branch or by calling us at 1-888-842-6328, and you'll need a qualifying co-applicant. There won't be collateral required and no change to the "as low as" rates advertised for a personal loan. Loans up to $50,000 can be applied for online or through our mobile app.^{Footnote 1}

What type of information do you collect when I apply for a personal loan?

We’ll need the following details for you and any co-applicant:

• contact information (phone number and email)
• current housing, employment and income information
• amount expected to finance
• length (term) of the desired loan

Does Navy Federal charge a fee to apply for a loan?

No, Navy Federal doesn’t charge a personal loan application fee.

If my personal loan application isn’t automatically approved, can I still sign my Promissory Note electronically?

Yes. Email notifications are sent with directions on how to electronically sign your Promissory Note.

What if I run out of time to sign the Promissory Note electronically?

If you’re unable to electronically sign your Promissory Note by the specified date, we’ll automatically mail paper loan documents to your address on record.

How long does it take to receive my funds?

Once your loan is approved, you’ll have same-day access to funds in most cases. 

When will my first payment be due?

Your first payment will be due on a date set by Navy Federal, 30 to 60 days from when the loan is finalized. You’ll find your first due date on your Promissory Note or loan contract.

Can I change my payment due date?

No, loan payment due dates cannot be modified.

What information is available in my monthly loan statement?

Your loan statement provides timely details about your account. You can get information about how much you owe and what you’ve already paid. Find out more to better understand your loan statement.

How do I set up automatic payments to my personal loan?

Sign in to your account and select Transfers. You can schedule transfers from your checking or savings accounts, or even an external account.

How do I add an external account so I can make my payments to Navy Federal?

You can set up an external account through our mobile app or online banking.

From the Mobile App:

• Sign in and tap on Transfers on the bottom navigation menu
• Tap View/Add Accounts
• Tap on + at the top right of the screen
• Tap External Financial Institution
• Provide information in all fields and tap Continue
• Confirm information and tap Add Account
• Retrieve confirmation code by email and tap Activate
• Tap Done

How do I view monthly statements for my personal loan?

You can access your monthly Consumer Loan Statements anytime by signing in to your account. Statements are available for up to 36 months and appear in PDF format, making it easy for you to print or save. You can also update your statement delivery preference so that you no longer receive paper statements. And, if you’ve signed up for automatic or recurring payments, you won’t receive paper statements. You can re-register for paper statements at any time.

How do I switch to paperless statements for my personal loan?

We make it simple. Get the guidance you need to make the switch.

Where can I get the payoff amount for my personal loan?

• Sign in to digital banking.
• Select Loans & Credit on your Accounts page.
• Select the Personal Loan link listed there.
• Choose the Additional Account Information drop-down.

How can I pay off my personal loan?

There are a few ways you can pay off your personal loan:

• Pay using digital banking
• Call a stateside member rep at 1-888-842-6328
• Visit a branch for in-person assistance

Will there be a penalty if I pay off my loan early?

No. If you pay off your loan early, there’s no penalty. Remember, before you apply a lump-sum payment to your loan’s principal balance to pay it off, you must pay all accrued unpaid interest, charges or fees that might be outstanding.

Can I designate a payment as a principal reduction payment?

No. Payments are applied first to unpaid interest, then to the principal balance. Payments more than the minimum amount due will reduce the loan balance but are a partial payment toward the next payment due.

It’s helpful to make extra payments to your loan anytime. That way, you’ll pay off the loan early and with less interest over the life of the loan.

What happens if I pay more than the minimum payment?

If you pay more than the amount due, we’ll count any extra funds as a partial payment toward your next payment due. Depending on how much extra you pay, your next due date could be a month or more in the future. Interest accrues daily, regardless of the due date, so you can save on interest by continuing to pay extra.

Where can I see how my payments are applied?

Using digital banking, view the Transaction Detail. Each payment shows the date the payment was applied, the amount applied to principal and the amount applied to interest. A printed version of the payment history can also be requested through member service channels.

What can I use a debt consolidation loan for?

You can use debt consolidation loans to merge several types of debt into one fixed monthly payment, including:

• auto loans
• credit cards
• medical debt
• payday loans
• personal loans

While a debt consolidation loan doesn’t erase your debt, using this kind of loan can make paying off your debt simpler and sometimes even less expensive. Managing one loan payment can help you to stay on top of your bills.

What is a savings secured loan?

A savings secured loan uses the value of your existing savings account to back your loan. It allows you to borrow money for most purposes while leaving the funds in your savings account in place, so it can earn dividends. Savings secured loans are also a great way to build credit.

Will Navy Federal pull my credit if I apply for a savings secured loan?

No. We don’t require a credit report check for a savings secured loan.

I see 2 balances. What do they mean?

Your savings account displays 2 balances: your current balance (how much is in your savings as of the previous day's close of business) and your available balance (how much is available for you to use at that time).

What happens after I'm approved for the loan?

After being approved for savings secured loan, a hold will be placed on the available balance in your savings account in the amount you’re applying for.

What will happen to my balance as I make payments?

As you make payments, your available balance will increase by your payment amount minus this payment’s interest due. Funds are released 24 to 48 hours after a payment is made.

Will I continue to earn dividends?

Yes, you’ll continue to earn dividends on the full current balance in your savings account.

What is a certificate secured loan?

A certificate secured loan uses the value of your existing certificates to back your loan. It allows you to borrow money for most purposes while leaving the funds in your certificate account in place where it can earn dividends. A certificate secured loan is also a great way to build credit. 

Will Navy Federal pull my credit for a certificate secured loan? 

No. We don’t require a credit report check for a certificate secured loan.