PenFed Credit Union isn’t a bank — and that’s exactly why its personal loans can beat what most banks offer. As a federal credit union, PenFed is legally capped on how high it can set its rates, which works in your favor. Here’s how to access it.
Rates, Amounts, and Terms
- Loan amounts: $600 to $50,000
- Repayment terms: 12 to 60 months
- APR range: 6.74% to 17.99%
- Fees: no origination fee, no prepayment penalty
That 17.99% ceiling isn’t a coincidence — federal credit unions are legally required to cap personal loan APRs at 18%. That means even borrowers with weaker credit tend to get a better worst-case rate here than at a typical bank or online lender.
The Step Most People Miss: You Have to Join
PenFed is a credit union, which means you need to be a member before you can get a loan — but membership is open to anyone and costs almost nothing to set up. You simply open a PenFed savings account with a minimum deposit of $5. There’s no military service or employer requirement despite the “Pentagon” in the name; it’s open to the general public.
Who Qualifies
- At least 18 years old
- U.S. citizen or permanent resident
- Valid Social Security number or Individual Taxpayer Identification Number
- A PenFed membership (savings account with $5 minimum deposit)
PenFed doesn’t publish a minimum credit score or income requirement, but your rate within the 6.74%–17.99% range will depend on your creditworthiness and how long you’ve been a member.
How to Apply
- Open a PenFed savings account ($5 minimum) to become a member, if you aren’t one already.
- Apply for the personal loan online.
- Provide your identification, income, and employment details.
- Review your fixed rate and term before accepting.
Frequently Asked Questions
Do I need to be in the military to join PenFed?
No. Despite its origins, PenFed membership is open to the general public — anyone can join by opening a savings account.
Why is the maximum rate capped at 17.99%?
Federal credit unions are legally required to cap personal loan APRs at 18%, which keeps PenFed’s worst-case rate lower than many banks.
Can I borrow a small amount?
Yes — PenFed’s minimum loan amount is just $600, one of the lowest on this list.
This article is for general information only and is not financial advice. Rates, amounts, and membership requirements are set by PenFed Credit Union and can change — confirm current details directly with PenFed before applying.