Laurel Road offers no-fee personal loans at competitive interest rates to applicants with good credit. In particular, resident doctors and dentists-in-training can take advantage of future earning potential to apply for personal loans with minimal repayment requirements during the first 24 months. Loans are unsecured and can be used for a wide range of purposes, including auto purchase, though fund intent can reduce the maximum loan amount. Loan funding can be slow, and repayment terms max out at five years for borrowers outside the medical field.
- Product Specifications
- Pros and Cons
- Company Overview
- APR Range 7.50%-24.25% for 3-year loans; 8.00%-24.75% for 4-year loans; 8.50%-24.75% for 5-year loans. More favorable rates apply for physician and dentist borrowers.
- Loan Amounts $5,000-$45,000; physicians and dentists can borrow up to $80,000
- Loan Terms 3, 4, or 5 years; up to 7 years for medical professionals and students
- Recommended Minimum Credit Score 700
Good customer service support
Ability to change payment due date
Special options for physicians and dentists
Slow funding time
Lowest rates aren’t the best
Good credit score recommended
Laurel Road charges zero origination fees or prepayment penalties. The late payment fee is $35.
Laurel Road began making student loans in 2013 and was acquired by KeyBank in 2019. Its current portfolio has expanded to include personal loans, in addition to student loans and mortgages. All loans are funded by KeyBank, which is listed on application and loan documents (as of April 1, 2019).
Pros of Laurel Road Loans
- Relationship discounts: If you have a student loan from Laurel Road, you can get cheaper rates on a personal loan, too.
- Good customer service support: Laurel Road’s call centers and online chat support are available seven days a week, with their phone service hours extending from 7 AM to 11 PM ET. What’s more, you don’t have to be a customer to access chat support, so it’s easier to ask real-time questions online if you’re still deciding on Laurel Road.
- Ability to change payment due date: Did your employer change your payday? Or do you just prefer a different payment date? You can change the day your payment is due by calling or emailing the company. Laurel Road only lets you do this once, however, so choose wisely.
- Special options for physicians and dentists: Residents and fellows can get access to personal loans with special payment plans of $25 per month while you finish school and during training. If you’re already a fully-fledged medical professional or close to it, you can get access to higher-than-normal loan amounts of $80,000 (versus the $35,000-$45,000 maximum for other borrowers).
Cons of Laurel Road Loans
- Slow funding time: Laurel Road says it funds most loans within seven business days, although it could take longer in some cases. By contrast, some other lenders can get you the cash the same day.
- Lowest rates aren’t the best: Laurel Road’s lowest APRs for three- to five-year loans range from 7.0% to 8.0%. Those aren’t bad rates, but if you’re a true low-rate-seeker, you'll want to look elsewhere.
- Good credit score recommended: To qualify for a personal loan from Laurel Road, you’ll need a good credit score (at least 700). If you don’t have that, you may be able to get a loan if you have a credit score of at least 660 and a co-signer for the loan with a score of 700 or greater.
Loan Rates & Terms
Laurel Road offers personal loans for a wide range of uses, although some of the exact details depend on what you’re using the money for.
- APR range: 7.00%-24.25% for 3-year loans, 7.50%-24.75% for 4-year loans, or 8.00%-24.75% for 5-year loans.
- Loan term length: 3, 4, or 5 years; 3, 5, or 7 years for medical professionals; 5 or 7 years for medical students/in-training.
- APR range for residents and fellows: 7.75%-23.50% for 5-year loans or 8.75%-24.75% for 7-year loans.
- APR range for physicians and dentists: 7.00%-24.25% for 3-year loans, 7.50%-24.70% for 5-year loans, or 8.00%-24.75% for 7-year loans.
Laurel Road does not charge an application fee for personal loans.
For most purposes, you can borrow $5,000-$45,000. For debt consolidation loans, home improvement loans, and certain other large purchases, the maximum loan size is $45,000. For vehicle purchase, business ventures, and miscellaneous purposes, the maximum loan is $35,000.
Special Loan Terms for Doctors and Dentists
If you’re a doctor or a dentist (or getting close to finishing schooling to be one), Laurel Road has some special options for you.
- Loan amounts for physicians and dentists: If you’re a practicing professional (or have a contract to join a practice), you can borrow up to $80,000.
- Loan amounts for training: If you’re in training but don’t yet have a contract to practice, you can borrow between $30,000 and $45,000, depending on what year you’re at in your training.
- Loan amounts for residency interviews: If you’re a fourth-year medical student, you can take out a special “Residency Interview” loan from $5,000-$15,000 to pay for interview-related expenses.
Students and residents qualify for a reduced payment plan of $25 per month until they’ve completed their schooling and/or training.
Laurel Road doesn’t charge any origination fees or prepayment penalties. If you make a late payment, the fee is $28 or 5% of the late payment, whichever is less.
How to Apply
Laurel Road’s personal loan application procedure is pretty much the same as you’ll find with most lenders. The only difference is that the company can be a bit slower to make deposits than other lenders, with an average funding time of seven days.
You also have three options for how your Laurel Road personal loan is paid out. You can get the money deposited directly into your bank account, you can have it sent directly to your existing creditor (for debt consolidation loans), or a mix of the two.
Laurel Road’s lowest personal loan rates aren’t the best out there for people without a Laurel Road student loan, but there are some reasons you might consider them if you’re looking to borrow money. Doctors and dentists may be particularly interested in the company’s loans, especially students and residents whose money might be a bit thin during training.
In addition, Laurel Road allows unsecured loans for things that traditionally need to be secured, specifically auto loans and business loans. There are a lot of pros and cons of unsecured loans for these types of assets; however, so make sure you weigh your options carefully before you apply.
We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores.
Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.