Understanding Personal Loans: A Comprehensive Guide by First National Bank
Seeking insights into personal loans? First National Bank's comprehensive guide demystifies the world of personal loans. We provide clarity on terms, rates, and options to empower you in your financial journey. Though we don't issue loans, our expertise helps you make well-informed choices. Explore with us and take control of your financial future.
Zarina S
Editor
Zarina S
Update 04.09.2023
First National Bank Personal Loans Guide: Understand Your Options

What are First National Bank Personal Loans?

First National Bank offers a comprehensive and convenient personal loan solution designed to meet diverse financial needs. With their personal loans, customers can access a lump-sum distribution of loan proceeds, providing quick access to funds for various purposes. Whether you need to consolidate higher-interest debt, make essential home improvements, cover unexpected expenses, finance other personal projects, or invest in significant life events, this loan option can be a reliable choice.

As a reputable financial institution, First National Bank ensures transparent and manageable terms for their personal loans. Borrowers can benefit from flexible monthly repayment options, allowing them to tailor their loans to their financial capabilities and preferences. Throughout the loan term, borrowers can easily monitor their progress with the help of detailed bank statements accessible through their FNB account.

Managing monthly payments is made convenient with access to FNB ATMs, enabling customers to perform secure transactions and stay on top of their financial obligations effortlessly. Additionally, setting up a debit order provides added peace of mind, ensuring that monthly payments are made consistently and on time.

First National Bank's personal loans come with fixed amounts, providing borrowers with a predictable and stable loan structure. Customers can confidently plan their expenses and allocate funds for their intended purpose by receiving a specific amount upfront.

Furthermore, FNB's commitment to customer satisfaction is evident through the provision of smart card services. This innovative approach ensures that customers have easy access to their accounts and loan information, empowering them to control their finances.

Features

  1. Multiple Repayment Terms Available. Customers have the flexibility to choose from various repayment terms according to their financial capabilities and preferences. Whether you prefer a shorter repayment period to pay off the loan quickly or need a longer term for lower monthly installments, First National Bank offers options to suit your needs.
  2. Immediate Buying Power. Once approved, borrowers gain immediate buying power with access to the loan proceeds. Whether it's consolidating debts, covering unexpected expenses, or pursuing personal projects, you can put the funds to use promptly.
  3. Lump-Sum Distribution. The loan amount is disbursed as a one-time lump sum, making it convenient for borrowers to use the funds for their intended purposes.
  4. Fixed Repayment Schedule. First National Bank's personal loans come with a fixed repayment schedule. This means borrowers know the exact monthly installment amount, making budgeting and financial planning more manageable and predictable.
  5. Fixed Interest Rate. The FNB personal loans are available with a fixed interest rate, ensuring that the interest rate remains constant throughout the loan term. This stability protects borrowers from fluctuations in interest rates and provides added financial security.

    FNB Personal Loan Options

    Secured Installment Loan

    A Secured Installment Loan from FNB gives borrowers the borrowing power necessary to achieve their financial objectives. This loan option is secured, meaning you need to use your FNB Savings Account or Certificate of Deposit as collateral for the loan. By leveraging your assets as collateral, the bank can generally offer higher borrowing limits and lower interest rates than other forms of borrowing. With this loan, you can borrow up to $250,000.

    Key Features:

    • Secured with an FNB Savings Account or Certificate of Deposit.

    • Loan amount up to $250,000.

    • One-time, lump-sum distribution of loan proceeds.

    • Fixed repayment schedule, allowing for predictable monthly installments.

    • Available with a choice of a fixed or variable interest rate.

    • Flexible repayment terms, so you can find a suitable repayment plan that fits your financial situation and goals.

    Unsecured Installment Loan

    The Unsecured Installment Loan from FNB provides a convenient lump-sum distribution of loan proceeds without the need for collateral. This loan option is suitable for various purposes, such as consolidating higher-interest debt, financing home improvements, or meeting other financial objectives. Borrowers can access loan amounts ranging from $2,500 to $25,000.

    Key Features:

    • Unsecured loan, meaning no collateral is required.

    • Loan amount ranging from $2,500 to $25,000.

    • One-time, lump-sum distribution of loan proceeds for quick access to funds.

    • Fixed repayment schedule, providing stability in monthly repayments.

    • Available with a fixed interest rate, ensuring consistent payments throughout the loan term.

    • Interest rate discount available when setting up automatic monthly payments from an FNB Deposit account, incentivizing responsible repayment behavior.

    • Flexible repayment terms allowing borrowers to choose a repayment schedule that suits their financial needs and preferences.

    Pros and Cons

    Pros

    Flexible Borrowing Amounts. Borrowers can access a wide range of loan amounts based on their financial needs, from smaller amounts starting at $2,500 to larger loans up to $250,000 (secured loan).

    One-time Lump-Sum Distribution. Both loan types offer a lump-sum distribution of funds, providing quick access to the required funds for various financial objectives.

    Fixed Repayment Schedule. With a fixed repayment schedule, borrowers can plan and budget more effectively, knowing the exact amount they need to repay each month.

    Flexible Repayment Terms. Flexible repayment terms allow borrowers to choose a suitable loan duration, tailoring the loan to their financial capabilities and preferences.

    Fixed Interest Rate Option. Borrowers have the option to choose a fixed interest rate, ensuring stable and predictable monthly payments throughout the loan term.

    Interest Rate Discount (Unsecured Loan). For the unsecured loan, setting up automatic monthly payments from an FNB Deposit account qualifies borrowers for an interest rate discount, potentially saving money on interest payments.

    Cons

    Creditworthiness. Loan approval and interest rates are subject to creditworthiness, and individuals with less favorable credit histories may face higher interest rates or potential loan denials.

    Risk of Default. Failure to make timely repayments can lead to penalties, damage credit scores, and, in the case of secured loans, result in the loss of pledged assets.

    Potentially Higher Interest Rates. Unsecured loans may come with slightly higher interest rates than secured ones due to the lack of collateral, resulting in higher overall interest costs.

    Lack of Information. It's important to mention that no information about interest rates for First National Bank's installment loans is available on the website.

    How to Apply for a First National Bank Personal Loan?

    Apply For a Loan

    1. Visit the Website. Go to First National Bank's official website.

    2. Explore Personal Loans. Navigate to the "Personal" section on the website to learn more about the loan options available, including the features, benefits, and terms.

    3. Choose the Loan Type. Select the type of loan that best suits your needs, whether it's a Secured Installment Loan or an Unsecured Installment Loan.

    4. Add to Cart. Once you've decided on the loan type, click on the "Add to Cart" button to proceed with your loan application.

    5. Apply Online. You will be prompted to apply online after adding the loan to your cart. Click on the "Apply Online" button or a similar option to begin the application process.

    6. Provide Information. You will be asked to provide necessary personal and financial information as part of the application. This may include details such as your name, contact information, employment status, income, and other relevant financial details.

    7. Submit the Application. Review the application to ensure accuracy and completeness once you have completed filling out the required information. Afterward, submit the application electronically through the website.

    8. Await Approval. After submitting the application, First National Bank will review your information and assess your eligibility for the loan. The bank may conduct a credit check and evaluate your financial history during this process.

    9. Receive Decision. You will receive a decision on your loan application via email or phone call. If approved, you will be provided with the loan terms, including the loan amount, interest rate, and repayment schedule.

    10. Accept the Offer. If you agree with the loan terms provided, you can accept the loan offer by following the instructions provided by the bank.

    Requirements

    The bank uses credit score, employment history, monthly debt payments, and income, among other factors, when considering whether or not to approve your application.

    Required Identification:

    • A non-expired ID (driver’s license, state-issued ID, Military ID, passport, or Permanent Resident Card and visa). While you won't need this for your initial visit to start the application process, as we evaluate your application, we may ask you for additional pieces of information. You may be asked.

    • To verify your income.

    • To provide your bank statement.

    • To provide tax documents.

    Ways to Receive the Money

    First National Bank typically sends the borrowed amount to borrowers securely and conveniently. The specific disbursement process may vary depending on the loan type and individual circumstances. Here are common methods used by FNB to send the borrowed amount to borrowers.

    1. Electronic Funds Transfer (EFT). EFT is a standard method of transferring funds electronically between financial institutions. Once the loan is approved and the borrower accepts the loan offer, the funds are electronically transferred directly into the borrower's designated bank account. This quick and efficient process provides borrowers with immediate access to the borrowed amount.

    2. Check or Bank Draft. In some cases, borrowers may prefer to receive the borrowed amount as a physical check or bank draft. FNB may issue a check or draft for the approved loan amount, which can be deposited into the borrower's bank account or cashed at an FNB branch.

    How to Pay off a First National Bank Personal Loan?

    1. Review Loan Agreement. Firstly, review your loan agreement or contact the bank to confirm the outstanding loan balance, the interest rate, and the due date of the next payment.

    2. Choose a Payment Method. Decide on a payment method that is convenient for you. First National Bank offers various payment options, including online monthly payment option, in-person payments at branches, mail-in payments, and automatic deductions from your FNB deposit account.

    3. Online Payments. If you prefer to make online payments, log in to your First National Bank online banking account. Navigate to the "Payments" or "Transfers" section, and set up a one-time payment or recurring payments to cover the loan installment.

    4. In-Person Payments. If you prefer to pay in person, visit your nearest First National Bank branch with the necessary information, such as your loan account number and identification. A bank representative will assist you with the payment process.

    5. Automatic Deductions. You can set up automatic deductions from your FNB deposit account to avoid missing payments. This option ensures that your loan installment is paid on time each month without manual intervention.

    Things to Consider

    1. Application Process. The application process for a personal loan with First National Bank is straightforward, and you can easily apply online. Make sure to provide accurate and complete information during the application to facilitate a smooth evaluation process.

    2. Required Information. Be prepared to provide the required identification, income verification, bank statements, and any additional documents that may be requested during the application evaluation.

    3. Creditworthiness. When assessing loan applications, FNB considers various factors, including credit score, employment history, monthly debt payments, and income. Ensure your credit score is in good standing and maintain a stable employment history to improve your chances of loan approval.

    4. Loan Types. First National Bank offers both secured and unsecured installment loans. Carefully evaluate which loan type aligns better with your financial situation, preferences, and needs.

    5. Loan Amount. Determine the loan amount you need and borrow only what is necessary. Avoid borrowing more than required to prevent unnecessary debt burdens.

    6. Interest Rates. Be aware that the website may not provide specific information about interest rates. Contact the bank directly to inquire about current interest rates and how they could impact your loan repayment.

    7. Repayment Terms. Consider the repayment terms offered, such as the loan duration and monthly installments. Choose terms that fit your financial capabilities and align with your long-term financial goals.

    8. Funds Disbursement. Familiarize yourself with the available methods of funds disbursement, such as electronic transfer, checks, or cash disbursement at branches, to select the most suitable option for you.

    9. Formal Approval Timeline. Understand that the bank aims for formal approval within 10 business days of submitting your application. Be patient during the evaluation process and follow up with the bank if you don't receive a response within the specified time frame.

    Alternatives

    Credit Cards

    Apply For a Loan

    Credit cards provide a revolving line of credit that can be used for various purchases and expenses. Many financial institutions like Chase, Bank of America, and Citibank offer credit cards with different features and rewards programs.Chase

    Home Equity Loans or Lines of Credit

    Apply For a Loan

    Home equity loans and lines of credit allow homeowners to borrow against the equity they have in their homes. Companies like Wells Fargo and TD Bank are examples of lenders that offer home equity products.TD Bank

    Payday Loans or Cash Advances

    Apply For a Loan

    Payday loans or cash advances are short-term, high-interest loans typically designed to cover unexpected expenses. Companies like Advance America and Check Into Cash offer these types of loans, but it's essential to be cautious due to their high-interest rates.Advance America

    Peer-to-Peer Lending

    Apply For a Loan

    Peer-to-peer lending platforms like LendingClub and Prosper connect borrowers with individual investors willing to fund loans. This alternative may offer competitive rates and terms compared to traditional banks.LendingClub

    Credit Unions

    Apply For a Loan

    Credit unions, like Navy Federal Credit Union or Golden 1 Credit Union, often offer their members personal loans and other financial products at competitive rates.Golden 1 Credit Union

    Credit Card Balance Transfer

    Apply For a Loan

    A credit card balance transfer to a card with a lower interest rate might be an option for consolidating credit card debt. Many credit card issuers provide this service, including Discover and Capital One.Capital One

    Personal Lines of Credit

    Apply For a Loan

    Personal lines of credit, like those offered by US Bank or Regions Bank, function similarly to credit cards but with lower interest rates and higher borrowing limits.Regions Bank

    Editorial Opinion

    In today's fast-paced world, managing finances can be challenging, especially when unexpected life events or personal needs arise. That's where First National Bank's (FNB) range of personal loan products comes into play, offering a financial lifeline to customers seeking flexible terms, fixed interest rates, and tailored solutions for their unique requirements. A critical aspect that sets FNB apart is its commitment to customer protection. The availability of credit insurance ensures that borrowers and their families are safeguarded in unforeseen circumstances. This thoughtful inclusion offers an additional layer of security, allowing individuals to borrow money with confidence and focus on fulfilling their dreams. FNB's fixed interest rates offer stability and predictability throughout the loan term for customers with a good credit record. This feature allows borrowers to plan their monthly repayments accurately, ensuring they pay interest that aligns with their set period. Beyond the benefits of FNB's loan products, the bank's integration with their FNB account streamlines the borrowing process. With easy access to bank statements and financial data, borrowers can confidently manage their monthly payments and stay on top of their financial commitments. Whether it's financing a new car, investing in a home, or funding significant life events, First National Bank's equal housing lender status ensures that customers are treated fairly and equitably. The bank's transparent approach to fees and initiation fees further solidifies its commitment to customer satisfaction.

    Important

    Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

    Methodology

    At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

    In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

    At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

    Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

    Additional resources

    To learn more about personal loans and best practices, check out some of the following resources:

    Sources

    FAQ

    What credit score do you need for a First National Bank personal loan?

    How fast does First National Bank approve loans?

    Does First National Bank verify income?

    Other Loans