Patelco Personal Loans Review

Patelco is best for potential rate reductions 

Patelco offers personal loans up to $100,000 and loan terms up to 84 months. These fixed-rate loans are available with no origination fees, and funds can be deposited into a Patelco account quickly. 

Customers who make their loan payments on time for 12 consecutive months are eligible for Patelco's LevelUp program. This program automatically lowers the loan's interest rate up to 0.50% per year, with a maximum of three rate reductions over the life of a loan.

Where Patelco personal loans stand out

• LevelUp program: Patelco's LevelUp program offers up to a 0.50% interest rate reduction for customers who make 12 consecutive, on-time monthly payments. Three interest rate reductions are available over the course of the loan.
• Lack of fees: There is no origination fee when obtaining a loan through Patelco.
• Variety of loan options: In addition to unsecured personal loans, Patelco offers secured loans and credit builder loans. 
• Payment protection program: Patelco's Payment Protection insurance will make personal loan payments in the event of a covered incident, such as becoming unemployed. 

Where Patelco personal loans fall short

• High minimum interest rate: Patelco's minimum interest rates currently range from 9.3% to 11.45% percent, depending on the loan's repayment term. 
• Only members can apply online: Online applications for certain Patelco loans are limited to only members. Non-members can apply over the phone or in person at a local Patelco branch.
• Vague timelines: Patelco says loans can be funded the same day as approval but does not provide information about how long the application review and approval process takes. The lender also does not specify how long it takes to provide funding to non-Patelco accounts. 
• No information online about borrower eligibility requirements: No clear eligibility criteria included on Patelco website for prospective borrowers.

How this lender compares

Patelco vs. LightStream

LightStream offers a lower minimum personal loan rate than Patelco, currently 6.49% compared to Patelco's 9.30%. In addition, LightStream is very transparent about its funding timeline, with loan funds available as quickly as the same business day. Both lenders minimize fees, although Patelco only skips an origination fee, while LightStream does not charge any fees. 

Patelco vs. SoFi

Patelco and SoFi have many similar features, including offering loans of up to $100,000. Neither lender charges an origination fee or a loan prepayment penalty. SoFi minimizes loan fees even further by not charging any late fees, while Patelco charges overdraft protection late fees and overdraft flat usage fees. Both lenders also promise same-day funding once a loan is approved.

Do you qualify for a Patelco personal loan?

You will be required to provide employment and income information to get approved for a Patelco loan. Additional eligibility requirements for a Patelco personal loan are not provided on the lender's website. For instance, Patelco does not list credit score requirements on its website or information about the minimum annual income needed as an applicant.

Patelco membership requirements

In order to qualify for certain Patelco loans, you must be a Patelco member. Becoming a member requires meeting one of the following criteria:

• Live, work or attend a school or church in the counties and cities serviced by Patelco. 
• Have a family member or roommate who has a Patelco account.
• Be an employee or pensioner of one of Patelco’s sponsor companies. 

To open a checking account with Patelco, you will need to provide the following information:

• Social Security number or a government-issued document showing your Tax Identification Number. 
• Driver’s license or government ID.
• Home address. 

If you're opening a Patelco account online, you will also be required to provide information about the external bank account being used to fund your new account.

How Bankrate rates this lender