Citizens Bank loans

Through this regional bank, you can apply for most loans online without sacrificing the comfort of walking down to your local branch to meet with a representative in person. Its competitive interest rates and wide variety of financial services don’t hurt either. But customers aren’t always satisfied with their experience.

What types of loans does Citizens Bank offer?

Citizens Bank is a midsize regional bank that provides personal, student and small business loans. You can qualify for a personal loan or a student loan if you live anywhere in the country, thanks to its online branch, Citizens One.

However, you can’t take advantage of loyalty perks outside of Citizens Bank’s 11-state area, because you’re not eligible to open a bank account. Business loans are also not available through Citizens One, the result of a more involved application process.

Here’s a breakdown of what Citizens Banks can offer you.

Loan	Types offered	Who it’s for	What you can do with it	Amounts available
Personal loan	Fixed- and variable-rate term loans	US citizens and permanent residents with good credit	Cover any legitimate one-time personal expense	$5,000 – $15,000
Student loan	Student loans for undergrads, grads and parents Student loan refinancing	Undergraduates Graduate students Former students	Pay for educational expenses while you’re in school Refinance a private student loan	$1,000 – $295,000
Business loan	Lines of credit Term loans Equipment flex loans SBA loans Business mortgages	Small business owners in the Northeast and Midwest	Almost anything related to your business: Cover day-to-day expenses Pay for large, one-time expenses Buy equipment Purchase, renovate or refinance commercial real estate	$20,000 – $150,000

Citizens Bank has branches in:

Massachusetts, Connecticut, Delaware, Michigan, New Hampshire, New York, New Jersey, Ohio, Pennsylvania, Vermont and Rhode Island

Why should I consider taking out a loan with Citizens Bank?

Citizens Bank’s appeal goes beyond the financial. It offers the attractive features of a traditional financial institution, including:

• Discounts. Get a 0.50% reduction on your interest rate for personal and student loans if you open an account with Citizens Bank and set up autopay.
• In-person service. True, you can be approved for most loans without talking to another soul. But you can also call its customer service line — or walk over to a local branch, if you live in the right state.
• No prepayment fees. Pay off your total loan cost early to avoid paying unnecessary interest — without additional fees or penalties.
• Full suite of financial products. Citizens Bank could be a one-stop shop for your money-related needs. Take out a loan, open a bank account, get a credit card, set up a retirement plan, put together an investment portfolio, manage your wealth and more.
• Funding for nonprofits. Citizens Bank’s foundation provides financing for nonprofits and charitable organizations.
• Community involvement. Employees and executives alike are active members of their local communities, providing a deeper understanding of what those communities need.

Compare Citizens Bank to top loan providers

How much will it cost me to borrow with Citizens Bank?

Citizens Bank loans are relatively inexpensive: They come with few fees, and interest rates are competitive.

Here’s what you can expect for APRs and fees on personal, student and business loans:

	Personal loans	Student loans	Business loans
APR	6.78% – 16.24%	1.25% and up	4.75% and up
Fees related to getting your loan	None	None	Term loans — $295 documentation fee for loans up to $100,000; origination fee of 0.5% of your loan amount SBA loans — SBA guarantee fee equal to 0.25%–3.75% of your loan amount
Prepayment penalty fees	None	None	None
Annual or monthly fees	None	None	$50,000–$100,000 lines of credit — $150 annual fee $100,000–$1 million lines of credit — 0.30% annual fee
Late fees	5%–10% of your payment amount after a 15-day grace period	Determined by your loan amount	Percentage of the payment due determined by your loan amount
Returned check or nonsufficient funds fees	$15	Non-sufficient funds fee — but customer service wasn’t able to tell us how much	$39

Is it safe to take out a loan with Citizens Bank?

Generally, yes. The bank’s site uses SSL encryption to protect sensitive personal information like your Social Security number. But the site sometimes reverts to submitting your information unencrypted.

Avoid unwittingly submitting your information over an unencrypted page. Look for a padlock to the left of your page’s URL, which itself should start with “https,” indicating a secure site. Citizens Bank also suggests downloading IBM Security Trusteer Rapport software.

If you have any problems, call the customer service line, which you can easily find on any page. Our experience with customer service has been nothing but positive, but many online reviewers disagree. Your information might be safe, but Citizens Bank has a reputation for charging unexpected fees or double payments and being unresponsive when customers complain.

How to apply for a loan with Citizens Bank

The application process differs depending on the type of loan you’re looking for.

Here’s a general overview of the application process.

• Step 1: Go to the site.

  For personal and student loans, start on Citizens Bank’s website.

  For a business loan, you must call the banking assistance line at 800-862-6200 and set up a consultation at a nearby branch. If you live outside of Citizens Bank’s region, apply through Citizens One.

• Step 2: Select the type of financing you need.

  Once on the site, indicate the type of financing you’re interested in.

  You can prequalify for personal loans and student loans, which estimates your rates without a hard credit pull. Do this by clicking Get My Rate. Otherwise, click Apply Now to start your application.

• Step 3: Complete and submit your application.

  Fill in the required fields and read the terms and conditions before submitting your application. Citizens Bank pulls a hard credit check once it’s received your application, so you might see a temporary dip in your credit score.

• Step 4: Review your offers and submit your documents.

  Review your loan offers once Citizens Bank gets back to you — if you qualify.

  Look at the interest rate and monthly repayments to make sure it’s a loan you can afford to repay. Citizens Bank might ask for additional documentation, which you can upload to your application.

• Step 5: Read and sign the promissory note.

  Carefully read your loan’s promissory note, looking up any terms that are unfamiliar to you. Contact Citizens Bank if anything seems out of the ordinary or you have any questions.

  Once you’re confident that you know what you’re getting into, sign and submit the note.

• Step 6: Get your money.

  Citizens Bank generally disburses funds as soon as it receives your signed documents.

Eligibility requirements

Whether you qualify for a loan depends on the type of loan you want. All loans require you to be the age of majority in your state — usually 18 years old — and a US citizen or permanent resident as the bare minimum.

You also must be able to prove that you can afford to pay your loan back with some kind of income (it doesn’t have to be from an employer). Applicants with good credit have a better chance of approval.

Have the following information and documents on hand before starting your application:

• Your Social Security number
• Your personal contact information
• Proof of income

Should I borrow with Citizens Bank?

Bottom line

Chances are good that Citizens Bank offers the type of loan you’re looking for. And if you have good credit, it might check off many of your other financing needs. But its poor customer reviews online could compel you to look elsewhere.

Be sure to compare your borrowing options from banks and online lenders before settling on a loan — you won’t know if there’s something better out there for you if you don’t look.

Frequently asked questions

• Can I buy an iPhone through Citizens Bank?

  Yes. You can use a Citizens One Payment Plan loan to purchase an iPhone through Apple.

• Can I get a Citizens Bank loan with bad credit?

  You might be able to, but it’s not likely. While Citizens Bank has no hard credit requirements, the bank prefers applicants with a strong credit history.

• Can I apply for Citizens Bank loans over the phone?

  Yes. You don’t have to complete an online application if you’re uncomfortable with submitting personal information online (even with encryption).