Origination fees may only account for a small portion of a personal loan, but they result in an increased APR and an overall higher cost. These fees typically run from 1% to 10% of the total loan amount, depending on the lender and your creditworthiness.
Here’s how they work: If you take out a $10,000 loan with a 5% origination fee, you’ll only get $9,500 because the lender deducts $500 for the fee — but you still pay interest on the full $10,000.
However, not all lenders charge origination fees, and you shouldn’t have to pay them if you have good credit. Our list of no-fee lenders provides personal loans without application, origination or prepayment fees, so you can be sure interest is the only thing you’ll pay.
50+ personal loan lenders reviewed and rated by our team of experts
6+ types of personal loans analyzed
Evaluated under our unbiased rating system covering 9 categories
20+ years of combined experience covering financial topics
We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.
SoFi earns our best overall pick for its large loan amounts, streamlined application process and quick funding. It offers personal loans from $5,000 to $100,000 with repayment terms from two to seven years, a 0.25% autopay discount and member benefits.
But its eligibility requirements are a bit stricter than other lenders and you generally need a minimum credit score of 680 and a relatively high annual income to qualify. SoFi is one of the few lenders that never charges any fees — including prepayment penalties or late fees — but you can choose to pay an origination fee to qualify for a lower interest rate.
Min. credit score
680
APR
8.99% to 29.99% fixed APR
Loan amount
$5,000 to $100,000
Available in all states
SoFi earns our best overall pick for its large loan amounts, streamlined application process and quick funding. It offers personal loans from $5,000 to $100,000 with repayment terms from two to seven years, a 0.25% autopay discount and member benefits.
But its eligibility requirements are a bit stricter than other lenders and you generally need a minimum credit score of 680 and a relatively high annual income to qualify. SoFi is one of the few lenders that never charges any fees — including prepayment penalties or late fees — but you can choose to pay an origination fee to qualify for a lower interest rate.
Pros
Same-day funding possible
Pay creditors directly and get a 0.25% discount
Graduate students can secure a loan with a job offer letter
No late fees or prepayment penalties
Joint loans accepted
Cons
Joint loans can take longer to process
Excellent credit borrowers may get lower rates elsewhere
Self-employed borrowers need two years' income history
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
If you're looking for low rates, LightStream can't be beat — literally. Its Rate Beat Program will beat any competing rate from another lender as long as you meet the requirements. It also offers a generous 0.5% rate discount for setting up autopay, but this must be done before funding.
And unlike many lenders, LightStream doesn't charge any fees, including late fees or NSF fees. However, there's no prequalification process, so don't be surprised when it does a hard pull of your credit when you apply.
Min. credit score
Good to excellent credit
APR
6.94% to 25.29%
Loan amount
$5,000 to $100,000
Not available in: Iowa, West Virginia
If you're looking for low rates, LightStream can't be beat — literally. Its Rate Beat Program will beat any competing rate from another lender as long as you meet the requirements. It also offers a generous 0.5% rate discount for setting up autopay, but this must be done before funding.
And unlike many lenders, LightStream doesn't charge any fees, including late fees or NSF fees. However, there's no prequalification process, so don't be surprised when it does a hard pull of your credit when you apply.
Discover offers competitive rates, no origination fees and a simple debt consolidation process — earning it our best pick for this category. Loans start at a relatively low 7.99% APR for the best credit borrowers, with repayment terms ranging from 36 to 84 months.
Discover's personal loans come with a 30-day guarantee. If you find a better deal or change your mind within 30 days, you can return your funds without having to pay interest within that time frame. But there's no grace period for payments, and it charges a steep $39 late fee.
Min. credit score
660
APR
7.99% to 24.99%
Loan amount
$2,500 to $40,000
Available in all states
Discover offers competitive rates, no origination fees and a simple debt consolidation process — earning it our best pick for this category. Loans start at a relatively low 7.99% APR for the best credit borrowers, with repayment terms ranging from 36 to 84 months.
Discover's personal loans come with a 30-day guarantee. If you find a better deal or change your mind within 30 days, you can return your funds without having to pay interest within that time frame. But there's no grace period for payments, and it charges a steep $39 late fee.
Laurel Road works with all types of borrowers that have good to excellent credit — but offers loan products specifically customized for medical professionals. Doctors and dentists can borrow up to $80,000 — much higher than many other lenders — with a fixed interest rate.
Employed doctors, clinical professors, researchers and last-year residents with a signed work contract are eligible for Laurel Road's physician loans. It also offers a 0.25% autopay discount to help you save on your loan's interest payments.
Min. credit score
680
APR
7.99% to 23.25%
Loan amount
$5,000 to $80,000
Available in all states
Laurel Road works with all types of borrowers that have good to excellent credit — but offers loan products specifically customized for medical professionals. Doctors and dentists can borrow up to $80,000 — much higher than many other lenders — with a fixed interest rate.
Employed doctors, clinical professors, researchers and last-year residents with a signed work contract are eligible for Laurel Road's physician loans. It also offers a 0.25% autopay discount to help you save on your loan's interest payments.
Pros
Competitive fixed interest rates
Online application
Prequalification offered
Cons
Tougher eligibility requirements:Autopay must be set up before closing
If you're looking for a small loan of $1,000 or less, PenFed offers personal loans for as little as $600. And unlike many credit unions, anyone is eligible to join. All you need to do is open a savings account with a $5 deposit.
PenFed may be a good option if you prefer to work with a credit union as your lender — and customers give it good reviews online. The credit union's entire loan application is digital, but it may take up to two weeks to receive your loan funds.
Min. credit score
580
APR
8.99% to 17.99%
Loan amount
$600 to $50,000
Available in all states
If you're looking for a small loan of $1,000 or less, PenFed offers personal loans for as little as $600. And unlike many credit unions, anyone is eligible to join. All you need to do is open a savings account with a $5 deposit.
PenFed may be a good option if you prefer to work with a credit union as your lender — and customers give it good reviews online. The credit union's entire loan application is digital, but it may take up to two weeks to receive your loan funds.
Many lenders in the no-fee category don't allow coapplicants, but U.S. Bank is one of the few that do. It offers loans from $1,000 to $50,000, with APRs starting at 8.24%. U.S. Bank also offers a 0.5% discount when you set up autopay from either your U.S. Bank account or an external bank account.
It offers online prequalification so you can see rates without affecting your credit score. If approved, you may be able to close your loan online instead of having to go into a branch. Funds are typically available within one to four business days — although U.S. Bank customers could have funds within hours.
Min. credit score
660
APR
8.24% to 21.49%
Loan amount
$1,000 to $50,000
Available in: Arizona, Arkansas, California, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wisconsin, Wyoming
Many lenders in the no-fee category don't allow coapplicants, but U.S. Bank is one of the few that do. It offers loans from $1,000 to $50,000, with APRs starting at 8.24%. U.S. Bank also offers a 0.5% discount when you set up autopay from either your U.S. Bank account or an external bank account.
It offers online prequalification so you can see rates without affecting your credit score. If approved, you may be able to close your loan online instead of having to go into a branch. Funds are typically available within one to four business days — although U.S. Bank customers could have funds within hours.
Pros
Allows coapplicants
Flexible borrowing amounts
Don't need to be a U.S. Bank customer to borrow up to $25,000
Cons
Only available in select states
Must be a U.S. Bank customer to borrow more than $25,000
Non-U.S. bank customers need a minimum credit score of 720
Loan amount
$1,000 to $50,000
APR
8.24% to 21.49%
Interest Rate Type
Fixed
Min. credit score
660
Turnaround Time
As soon as same day
Loan Term
12 to 84 months
Min. credit score
660
APR
8.24% to 21.49%
Loan amount
$1,000 to $50,000
Methodology: How we picked the best no-origination-fee personal loans
Finder’s lending experts review 120+ personal loan lenders and weigh 16 key factors like origination fees, interest rates and eligibility requirements to narrow down the best loans across different categories:
Minimum APR
Maximum APR
Origination fees
Minimum loan amount
Maximum loan amount
Minimum loan term
Maximum loan term
Number of states served
Minimum credit score
Joint application availability
Turnaround time
Online application availability
Prequalification process
BBB ratings
Trustpilot ratings
Other features, such as rate discounts
We regularly review our top selections as lenders enter and leave the market and revise our picks to ensure they’re the best in their categories. See our Personal loans rating methodology for more information on how we rate lenders.
Other personal loan fees to consider
If a lender doesn’t charge application fees, origination fees or prepayment penalties, it’s considered a no-fee personal loan. However, most no-fee personal loans carry late or nonsufficient funds (NSF) fees if your autopayment doesn’t go through or a check bounces.
While these are technically fees, they aren’t set fees worked into the loan’s cost. Your lender may charge other fees as well.
How loan fees affect the APR you pay
Your annual percentage rate (APR) is an expression of the loan’s total cost after factoring in origination fees. The higher the fees, the higher the APR. But if the lender doesn’t charge any fees, your APR and interest rate are the same.
A loan with no fees but a high interest rate will cost you more than a loan with fees but a low overall APR. So, when shopping for a loan, always compare APRs — not the interest rate.
How to keep your personal loan costs low
To limit the amount you pay in interest on your personal loan:
Compare multiple lenders. Be sure to get at least three or four different quotes to find the best deal. Do a loan preapproval first to see your potential rates if possible.
Get a cosigner. If your credit score is below 670, having a personal loan with a cosigner can increase your chances of approval and help you secure a lower rate, too.
Look for rate discounts. Many lenders offer reduced rates of 0.25% to 0.5% if you set up autopay, send funds directly to your creditors, have a cosigner or show you have retirement savings.
Improve your credit score. Check your credit profile and clean up any errors that may be pulling your score down. Also, keep making your payments on time and don’t close out any debt accounts or take on any new debt before applying for a personal loan.
Choose the shortest term. Shorter term loans often have lower interest rates than longer term loans. To keep your interest costs down, always choose the shortest term with monthly payments you can afford.
Am I eligible for a personal loan with no origination fees?
No-fee personal loans are best for people with a good to excellent FICO score. In general, lenders that offer no fees cater to borrowers with credit scores of 670 and up — although having a creditworthy cosigner can increase your chances of approval.
While every lender is different, be prepared to meet the following requirements:
Minimum FICO credit score of 670
A debt-to-income ratio of 43% or less
Regular source of income
US citizen or permanent resident
At least 18 years old
No past bankruptcies or foreclosures
Factors considered by lenders
Understanding why lenders care about certain criteria can give you an edge when applying for a personal loan. It’s not just about ticking boxes — they’re evaluating how likely you are to repay the loan on time. By knowing what factors matter most, you can take steps to strengthen your application and improve your chances of getting approved.
Legal Residency
Most lenders require borrowers to be US citizens or permanent residents to qualify for a no-fee personal loan. Why? It all comes down to risk — knowing that you’re legally allowed to live and work in the United States means you’re more likely to repay your loan. It also means you’ve already established a credit history in the US, making it easier for lenders to evaluate your creditworthiness.
Your debt-to-income ratio measures the amount of debt you pay per month against how much you earn. Lenders want to be sure you can repay any loan you take out. To do this, they look for a maximum DTI of 43% — meaning you spend 43% of your monthly income repaying debts. A higher DTI indicates your finances are being stretched thin, and you may struggle to make loan payments.
Tip: To calculate your DTI, divide your monthly debt payments by your gross monthly income and multiply by 100.
Credit Score
Your credit score is a snapshot of your financial health, showing how well you’ve managed credit in the past. Most lenders that offer no-fee personal loans require borrowers to have a good credit score of at least 670. But that may not automatically disqualify you. You might still get approved for a loan if you have a low DTI, high income or a cosigner to make up for the low credit score.
Tip: Find out what your credit score is before applying for loans. Get a free copy of your credit report and dispute any errors to improve your chances of getting approved.
How to get a no-origination-fee personal loan
Follow these five steps to find and apply for a loan.
Compare lenders. Use our list of the top no-fee lenders to research and compare offers.
Get prequalified. Go to the lender’s website and do an online prequalification, if available, to see your potential rates. Doing a prequalification doesn’t hurt your credit score.
Submit an application. Once you’ve chosen a lender, complete a full application and upload any requested documents. Note: this process will result in a hard credit pull.
Sign for your loan. If approved for a loan, you’ll need to sign your loan documentation before the lender can release the funds to you.
Wait for your funds to arrive. Each lender is different, but you may have your funds in your bank account as soon as the same day, although one to three business days is more common.
Frequently asked questions
Do all personal loans charge origination fees?
No, not all lenders charge an origination fee on personal loans. Most do, but you can find a few exceptions if you do your research.
What is a normal loan origination fee?
Loan origination fees can range anywhere from 0.5% to 12%, but most lenders charge between 1% and 5%.
Is paying a loan origination fee worth it?
It all depends on what interest rates you’re offered. Paying a loan origination fee can be worth it if the APR is lower than what you’d get with a no-fee loan. Take time to compare APRs between loans to make sure you’re getting the best deal.
Can you avoid loan origination fees?
Yes, you can absolutely avoid loan origination fees. Several lenders (including those on this list) offer personal loans with no additional fees, including loan origination fees.
Christi Gorbett is a freelance writer with more than eight years of experience and a master's degree in English. She’s created a wide range of content for banks, financial product comparison sites, and marketing companies on topics like small business loans, credit cards, mortgages, retirement planning, lender reviews, and more.
As a former teacher, Christi excels at making complex financial topics accessible and easy to understand. Her interest in finance grew when she returned to the U.S. after living in South Korea for nearly a decade.
This shift was driven by several personal financial challenges: rebuilding her financial base after the move home, starting her own business, and catching up on retirement savings. These experiences deepened Christi’s practical understanding of finance and intensified her interest in the field. See full bio
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Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
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