How Goldman Sachs leaving personal loans affects your open loan

Marcus by Goldman Sachs, an online branch of the national Goldman Sachs Bank, has recently stopped offering personal loans in an effort to scale back its consumer lending business.

Those who have a Marcus savings account, credit card or pre-existing investment account as of now will be unaffected by the change. Those who have existing Marcus personal loans or have recently applied for one need to keep an eye out for new information as it comes.

Pre-existing Marcus personal loans to remain active

As of now, the company hasn’t made an announcement as to how existing loan accounts will be handled. However, this isn’t an indicator that the balances will be canceled; borrowers need to continue making their regularly scheduled payments until an official announcement is made.

At this time, all that’s been made public is that the bank will be halting personal loan originations in the coming months, confirmed by a December 2022 Bloomberg report.

Marcus to dial back amidst “uncertain economy” ahead

As interest rates continue to rise and economists predict a turbulent economic climate in 2023, Marcus has restructured its consumer business in response, the Bloomberg report read. However, “The bank is still committed to growing its other highly visible product – high-yield savings accounts that have helped attract consumer deposits.”

It’s reported that due to the restructure, the bank will be narrowing its scope on its other products – like credit cards – and may implement stricter eligibility requirements in 2023. The official restructuring plans for its other products are still being finalized and Marcus executives have yet to comment on the matter.

Where to find a personal loan

If you were planning to apply for a Marcus personal loan, there are plenty of online lenders, banks and credit unions that offer loans with similar requirements, rates and terms.

There are guides and resources available online that list out lenders, eligibility details and requirements, so you can spend more time applying and less time searching for the best loan for your financial need.

How to find the best personal loan

Check to see if your bank or credit union offers personal loans before turning to online lenders. Many banks offer member benefits and perks, like access to financial resources or a rate discount when you sign up for autopay. It could also help make the application and approval process easier, since you have an existing relationship with the institution. However, it’s still important to compare rates and terms with other lenders to make sure you’re offered a competitive rate.

When it comes to finding the best personal loan for your financial situation, shop around and compare rates that have similar APRs and credit requirements to Marcus.

Before applying, check to see if the lender offers prequalification, which allows you to see your predicted rates and eligibility odds. Not only will you save time in your search, but prequalifying doesn’t impact your credit so you’re saving your credit score from multiple hard checks and failed applications. Once you’ve prequalified, you can sift through your predicted rates and terms to find the lender that best suits your needs.