How To Get a Personal Loan With Navy Federal

Turbo Takeaways

The Navy Federal Credit Union (NFCU) offers personal loans to members who need to borrow small amounts for home improvement, big purchases, or debt consolidation. Since the credit union serves military members, you’ll need to have a membership to apply for a loan.

With low annual percentage rates (APRs), flexible repayment terms, and no origination or prepayment fees, Navy Federal personal loans are a good option to consider for members.

Keep reading to discover how to apply for a personal loan with Navy Federal and why it might be a smart borrowing option for your financial needs.

How Navy Federal Personal Loans Work

Personal loans from Navy Federal Credit Union are available to all members of the credit union who qualify. You can join as a member if you or a family member have served in the military. Department of Defense personnel are also eligible.

Fixed loan amounts and personal lines of credit vary from $250 to $50,000, with APRs as low as 8.99%, making it an affordable option. Interest rates vary based on loan terms and an applicant’s credit profile and FICO score. The loans also do not have a prepayment or origination fee.

Due to the low maximum interest rate, a Navy Federal debt consolidation loan is a great option for borrowers with high-interest credit cards or personal loan debt.

The credit union doesn’t state any minimum income or credit score requirements for their loans, but they do consider the member’s banking history and their current standing in the credit union to determine eligibility.

Benefits of Navy Federal Personal Loans

Navy Federal personal loans are a viable alternative if you need an unsecured loan for a wide range of purposes, with a flexible term length and loan amount. You can also get a secured personal loan at a lower interest rate using your NFCU certificate of deposit (CD) or a savings account as collateral.

“If you’re concerned about letting your debt rise above a level you’re comfortable with, it’s best to apply for a fixed-term personal loan because you won’t be tempted to take additional cash from your credit line once you pay off or pay down your original loan,” explains Brad Reichert, founder and managing director of Reichert Asset Management LLC. 

Personal Loan Rates

Navy Federal personal loans come with a tiered interest rate structure. A tiered interest rate structure refers to the method by which an interest rate is assigned to a borrower's loan by a lender. The interest rate designated by the lender depends largely on the borrower's credit; those borrowers with strong credit receive a lower interest rate than borrowers with poor to fair credit.  

When borrowing from NFCU, you can expect interest rates for fixed-term loans up to 36 months to range from 8.99% to 18%. Loans with terms of 37 to 60 months have an interest rate of 14.29%-18%.

However, if you’re borrowing via a personal loan that is secured by a new or existing savings account you own at NFCU, the interest rate is the current savings account rate plus 2%-3%. For loans secured by a certificate of deposit (a CD), you can expect to pay an interest rate of your current CD rate plus 2%.

Use the Navy Federal loan calculator to estimate how much you’ll pay each month based on the amount you borrow, interest rate, and repayment term.

Fees and Repayment Terms

Navy Federal keeps things pretty simple when it comes to fees and repayment terms. You won’t have to worry about extra charges like origination or prepayment fees, but late payments can cost you $29.

Repayment terms can range from 36 months for smaller loans to up to 180 months for larger home improvement loans, allowing you plenty of flexibility to fit your budget.

Navy Federal Personal Loans 

You can use a personal loan from Navy Federal to finance home improvements or repairs, to pay for unexpected expenses that may come up, or to consolidate your other debts. The credit union offers several different types of loans to choose from.

Personal Expense Loan

Navy Federal’s unsecured personal loans can help cover unexpected costs, major purchases, or even vacations. You can borrow between $250 and $50,000 with flexible repayment terms and competitive rates. Interest rates are primarily based on your credit profile, but also on the loan term you choose.

Home Improvement Loan

Home improvement loans are a great way to finance repairs, install energy efficiency and smart home upgrades, and, of course, general remodeling and maintenance. Because home improvement loans are typically unsecured, you won’t require any collateral to get approved.

The minimum loan amount you can borrow from Navy Federal for home improvements is $25,000 for terms of 61-84 months. For terms of 85-180 months, the minimum loan amount is $30,000.

Debt Consolidation Loan

If you have multiple credit cards, personal loans, and other unsecured debt, you can simplify your finances with a debt consolidation loan from Navy Federal. You can borrow with loan amounts from $250 to $50,000 to pay off your existing debts, so you’ll only have one affordable monthly payment.

Savings Secured Loan

If you have a Navy Federal savings account, a savings secured loan lets you borrow against your balance while still earning dividends. You'll get lower rates compared to unsecured loans, and once the loan is paid off, your funds become fully available again.

Certificate of Deposit-Secured Loan

A certificate-secured loan is another option for low-interest borrowing. You can borrow 100% of the certificate of deposit’s principal balance for terms of up to 60 months. The loan term cannot exceed the term of the certificate, meaning if your CD’s term to maturity is 48 months, the repayment term on your CD-secured loan cannot be longer than 48 months.

Eligibility Criteria for Navy Federal Personal Loans

Navy Federal has its own eligibility and underwriting requirements, like any other financial institution. To qualify for a personal loan, you’ll need to be a member of the credit union. Membership is limited to active-duty military members, veterans, retired service members, Department of Defense personnel, and their eligible family members.

Credit Score Requirements

There’s no specific minimum credit score requirement for getting a personal loan at Navy Federal. However, you may have a better chance of getting approval if you have a higher credit score.

Another option is to apply with a co-signer to improve your chances of qualifying and getting favorable terms.

Other Requirements

Navy Federal doesn’t disclose any minimum income requirements. However, it does take your ability to repay the loan into consideration. One way it does this is by taking a look at your banking history and your current standing at NFCU.

For this reason, it may be beneficial to become a Navy Federal member and establish a positive relationship for maybe 2-3 months before you apply for a loan.

How To Apply for a Navy Federal Personal Loan

Most Navy Federal personal loans can be applied for online, including personal expense loans. However, some loans — like secured or home improvement loans — may require you to apply in person or by phone. Here’s a step-by-step guide to the process:

1. Review the different types of Navy Federal personal loans and choose the one that best fits your needs.
2. Fill out the application online if you’re applying for a personal expense loan. Visit your local branch or call 1-888-842-6328 for any other type of loan.
3. Provide required documents, including a government-issued ID, proof of income and employment, and proof of residence (like a utility bill or voter registration card).
4. Submit your application and wait for a decision (usually within a few business days). Navy Federal may run a credit check to review your debts and FICO-based credit score.
5. Once approved, sign the loan agreement.
6. Receive your funds — Navy Federal offers same-day funding in many cases once your loan is finalized.

If you’re applying with a co-signer, they’ll need to submit the same documents and meet eligibility requirements. Having a co-signer with good credit could also help you qualify for better rates or higher loan amounts.

Improve Your Chances of Getting Approved

If you’re a member, getting a Navy Federal personal loan is fairly easy and straightforward. It’s also helpful to follow the tips below to improve the chances of approval:

• Get a copy of your credit reports before you apply to check your credit scores with each of the three major credit bureaus. This will give you the opportunity to fix any errors and ensure your credit score is good enough for loan approval.
• Use a loan calculator to estimate your monthly payments to ensure you’ll be able to repay the loan comfortably.
• Make sure your accounts with Navy Federal are in good standing, with no missed payments or overdrafts in the last few months.
• Gather relevant documents like your pay stubs, tax returns, identification proof, and proof of residence before you apply.
• Apply with a co-signer if you don’t think your application will be approved due to your income or credit history.

Should You Get a Personal Loan at Navy Federal?

With interest rates capped at 18%, Navy Federal Credit Union personal loans may be a great option for you if you’re unable to secure a lower rate elsewhere. 

If you’re using the funds for debt consolidation, carefully review the terms on your current debts. Check that the rate on your debt consolidation loan is at least a couple of percentage points lower than your current rate, ensuring you’ll save on interest throughout the process.

Even if you’re already a member of Navy Federal, it's best to compare loan options from multiple lenders to secure the lowest possible rate. Additionally, staying informed about the Navy Federal pay dates can help manage finances more effectively.

If a Navy Federal personal loan isn’t the right fit for you, TurboDebt® can help you explore other debt relief options. Whether you're considering consolidation, debt settlement, or finding the best repayment plan, our team is here to guide you toward a solution that works for your financial goals.