How to get a $1,000 loan

Photo of friends hugging after using a small $1,000 loan to throw a graduation celebration

April 24, 2024

3 min read

Most people would agree that access to an extra $1,000 would have a big impact on their finances. You work hard to keep your bills paid every month, but sometimes there are unexpected costs or big purchases that could improve your life. If you don’t have a savings fund set aside, you may need to borrow money for expenses like these. How can you get a loan for $1,000? In this article we’ll look at several options.

Here’s what we’re going to cover:

Can I get a $1,000 personal loan from a bank or credit union?
Should I try to borrow money from a friend or relative?
What are my other choices?
Oportun: Affordable lending options designed with you in mind

Key takeaways

Many banks prefer not to lend amounts as small as $1,000.
Credit unions, family and friends, or alternative lenders may be better choices for getting a $1,000 loan.
Whoever you borrow money from, be sure to read your loan agreement carefully and ask any questions before you sign.

Can I get a $1,000 loan from a bank or credit union?

A bank has to process the same amount of paperwork whether you’re borrowing $1,000 or $20,000, and larger loans are more profitable to the bank. Some banks are willing to make $1,000 loans, but others are not. You’ll have to ask your bank to find out.

Credit unions are financial institutions owned by their members. A credit union may agree to make you a loan for $1,000 even if a bank will not. In most cases you must be a member of the credit union in order to borrow money from them.

Should I try to borrow money from a friend or relative?

Friends and family members can be good options for small loans. They are not held to the same legal, regulatory, or business requirements as a financial institution, so they may charge less or no interest, and may be more flexible when it comes to a repayment schedule. But before you ask someone to lend you money, consider your relationship. Do you know the person well? Do they have extra money you can borrow? Will they trust you to pay it back on time?

If a friend or relative agrees to lend you the money you need, it’s a good idea to put your agreement in writing. Write down the amount you’re borrowing, the date when you will pay it back, and the interest you’re being charged, if any. This can prevent misunderstanding later on.

What are my other choices?

Fortunately, there are other lenders who specialize in small personal loans, like online lenders, Financial Tech (FinTech) companies, or nonprofit community organizations. Many FinTechs use technology to underwrite, or evaluate, a loan application in order to make a lending decision quickly. Nonprofit lenders will often provide more support than loan funds, such as financial advice, through the duration of the repayment term.

Payday loans are generally limited to smaller amounts, so you would have to take out several payday loans to reach $1,000. Full repayment is often due within two weeks, so payday loans are not a great option if that’s how much you’re looking for.

No matter who you borrow from, make sure to read the loan agreement carefully and ask any questions you may have before you sign.

Oportun: Affordable lending options designed with you in mind

Now that you have some ideas about getting a $1,000 loan, you can learn about how Oportun may be able to help you if you’re looking for affordable credit options. Visit our homepage to learn about: