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M1 Personal Loan FAQ
Updated over a week ago

What is a Personal Loan?

A Personal Loan is cash that is borrowed for personal use such as debt consolidation, home improvements, medical expenses, moving or relocation, vacations, special occasions, or major purchases.

What types of Personal Loans does M1 offer?

M1 Personal Loans are fixed rate loans. M1’s ability to offer fixed rate loans can protect borrowers from significant fluctuations in monthly payments should interest rates rise.

How do I get started?

To apply for a Personal Loan from M1, you will need to apply here or on the M1 Android/iOS apps.

Can I complete the application electronically?

Yes, the Personal Loan application is only available electronically using our secure portal.

How can I use my M1 Personal Loan? Are there any restrictions?

Our Personal Loans can be used for debt consolidation, home improvements, medical expenses, moving or relocating, vacations, special occasions, and major purchases, such as furnishing your new home.

We’d love for our Personal Loans to accommodate all needs; however, our Personal Loans cannot be used for anything related to real estate, investments and securities, business, post-secondary education, and bridge financing.

Are M1 Personal Loans secured or unsecured?

The M1 Personal Loan is unsecured. Instead of relying on collateral to secure the loan, we approve unsecured Personal Loans based on the borrower’s creditworthiness.

What is the minimum and maximum I can borrow?

With M1's Personal Loan, the minimum amount you can borrow is $2,500 and the maximum amount you can borrow is $50,000. The exact amount you may borrow depends on what you qualify for based on your application information.

What are the M1 Personal Loan terms?

M1 Personal Loans have terms of 2-7 years and are amortized based upon a fixed APR.

What rates does M1 offer?

M1 Personal Loan annual percentage rates can vary between 7.99% APR* - 21.75% APR**.

Rates are based on a series of factors including the information on your credit report, your loan amount and term, and the details provided within your application.

You can view your rate on your Borrow account dashboard under “Annual Percentage Rate”.

**Rates are not guaranteed and are subject to change. Not all applicants qualify for the lowest available rate.

How is interest calculated?

Interest is calculated daily, also known as simple daily interest.

Can I have multiple Personal Loans with M1?

Great question! At this time, you can only have one Personal Loan with M1.

How is the M1 Personal Loan different from the M1 Margin Loan?

M1 offers Margin Loans where you can use margin to access a portfolio line of credit and borrow up to 50% of your portfolio’s value with rates as low as 7.25% with M1 Plus*. Keep in mind, Margin Loans are tied to a margin account, which is a type of taxable brokerage account that provides you with financial leverage. Margin lending allows for flexible repayment and does not impact your credit score. Learn more about Margin Loans here.

M1 Personal Loans can provide financial flexibility by permitting borrow amounts from $2,500 to $50,000 at a fixed rate without the need for collateral.

*All investing involves risk, including the risk of losing the money you invest. Borrowing on margin can add to these risks, and you should review the margin account risk disclosures before borrowing. M1 Margin Loan available on margin accounts with at least $2,000 invested per account. Not all securities are available for M1 Margin Loan and the amount that may be borrowed against a security is subject to change without notice. Available margin amount(s) of M1 Margin Loan may require greater than $2,000 per Invest account. Not available for M1 Traditional IRA, M1 Roth IRA, M1 SEP IRA, M1 Custodial Accounts, or M1Trust Accounts. Margin Loan rates may vary. Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.

How is the M1 Personal Loan different from credit card debt?

Borrowers can benefit from Personal Loans because they typically offer lower interest rates with fixed monthly payments. On the contrary, credit cards frequently have high variable rates, and no set repayment terms.

It is worth noting that credit card debt is a primary reason individuals take out Personal Loans. Credit card utilization impacts algorithms at the major three credit agencies.

Are there any fees associated with the M1 Personal Loan?

No, there are no fees associated with obtaining a Personal Loan with M1. In other words, there are no origination or prepayment fees.

M1 is not a bank. M1 Personal Loans are furnished by B2 Bank NA, Member FDIC and Equal Opportunity Lender, and serviced by M1 Spend LLC, a wholly-owned operating subsidiary of M1 Holdings, Inc.


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