5 best personal loans with no origination fee
If you’re buried in debt or need access to capital quickly, you might be shopping for personal loans.
Personal loans often come with a variety of upfront costs, but the one that really stings is the origination fee. It can easily tack hundreds to thousands of dollars onto your final balance.
Enter personal loans with no origination fee—a financing option that can save you money in extra charges, while still getting you the cash that you need.
Here are some of the best personal loans with no origination fees.
SoFi - Best for same-day funding
Sofi is a full-suite online bank that offers credit products, debt consolidation loans, personal loans, private student loans, and banking and investing services.
You can apply online for a personal loan between $5,000 - $10,000 and receive a decision in minutes. It offers funding as soon as the same day, which makes it an excellent candidate if you need money in a pinch.
We also like that SoFi doesn’t have a set credit score requirement and offers unemployment protection on its loan products to help protect your finances in the event of a job loss.
- APR: 8.99% - 25.81% (with Autopay discount)
- Loan amount: $5,000 - $10,000
- Credit score requirement: N/A
LightStream - Best for large large amounts
Another online option for a no-fee personal loan is Lightstream, which boasts personal loans with no origination fees, for up to $100,000.
It has lower APRs than many competitors, starting at 7.99% and going up to 25.49%, and an average FICO credit score requirement of 660. Lightstream may also fund your loan as soon as the same day, and also offers a rate match guarantee to ensure you get the lowest APR possible.
- APR: 7.99% - 25.49% (with Autopay discount)
- Loan amount: $5,000 - $10,000
- Credit score requirement: 660
PenFed - Best for small loans
PenFed is a national credit union that’s open to anyone who applies to become a member.
You don’t need to be a member to apply for a loan, but will need to if you’re approved and decide to move forward. We like that PenFed offers smaller loan amounts, though you might fare better with a 0% APR credit card offer.
We also like that it offers pre-approval, but you won’t receive your money as fast as other options. The soonest you’ll get your funds is the next day.
- APR: 7.99% - 17.99
- Loan amount: $600 - $50,000
- Credit score requirement: N/A
Discover- good online banking option
If you’d rather borrow money from an established bank, Discover might be a good fit.
This online bank’s personal loan offers relatively low APRs starting at 7.99%, repayment terms spanning 3 to 7 years, and no upfront fees or costs.
Its website offers a helpful loan payment calculator to help you find the right term, as well as a consolidation calculator to show you what you could save by moving credit card debt to a personal loan.
- APR: 7.99% - 24.99% (with Autopay discount)
- Loan amount: $2,500 - $40,000
- Credit score requirement: 660
Laurel Road - Best for fast online application
Laurel Road is a 100% online financial institution that offers personal loans and debt consolidation loans.
You’ll receive an Autopay discount and will typically need a credit score of 660. Though Laurel Road does not charge an origination fee, its APRs start slightly higher than its main competitors.
It's worth looking into if you can’t get approved at other banks—just know you may pay more in interest long-term.
- APR: 8.99% - 24.25% (with Autopay discount)
- Loan amount: $5,000 - $45,000
- Credit score requirement: 660
What is a personal loan origination fee?
A personal loan origination fee is a charge lenders may tack onto your loan to cover their processing fees. It’s typically charged as a percentage of the loan amount, and can be paid upfront or rolled into your loan balance.
Most lenders charge between 1% and 5% of the loan amount for the origination fee—but some can charge as much as 10% or even a flat-rate dollar amount.
If you apply for a $20,000 loan, for example, and the lender has a 3% origination fee, you’d be charged an additional $60 to borrow this money.
Sometimes the origination fee is rolled into the loan’s annual percentage rate (APR). The APR includes the interest rate of the loan and other fees as determined by your lender.
Why do some lenders charge an origination fee?
It takes time and money for lenders to process your loan application.
They have to run a credit check, verify your employment information, and ensure you’re a good candidate for a loan. An origination fee can help lenders offset these costs.
Many online lenders can offer personal loans without origination fees because these financial institutions do not have the extensive overhead costs that traditional brick-and-mortar banks have.
So they may be able to pass some of these savings along to you in the form of lower APRs or fewer fees.
Other personal loan fees to watch out for
In addition to an origination fee, lenders sometimes charge other fees for personal loans.
You might be charged a late fee if you miss a payment or pay past your due date. An insufficient funds fee may kick in if the lender tries to withdraw funds from your account and is unable to.
Lastly, you may owe a prepayment fee if you pay your loan off early, though this varies by lender.
How to find the best no fee personal loan for you
Banks, credit unions, and online financial institutions all offer personal loans.
The best personal loan will vary for everyone. To find the right one, consider how much money you need to borrow, your timeline for repayment, your credit score, and APRs.
Some banks may let you prequalify for a loan—which allows you to better compare APRs and terms, without hurting your credit score.
This can help you compare APR options so you can find a lender with the lowest APR and fees that best fits your needs.
How to apply for a personal loan
You can apply for a personal loan online, via a mobile app, or in person if the lender has a physical branch. You may also be able to apply by phone or mail, in some cases.
Here are the steps you’ll follow to apply for a personal loan:
- Fill out an application. You’ll need to provide some personal information like your legal name, address, and Social Security number.
- Attach any financial information. Your lender may require pay stubs, tax returns, or bank statements to help verify your income.
- Submit your request. If you’re applying online or in person, you may find out if you’re approved in minutes — though sometimes it can take longer.
- If approved, set up Autopay. If your personal loan request is approved, it’s a good idea to connect your bank account to your loan account to schedule automatic payments.