Borrowers may get the entire amount of a personal loan even though there are no origination fees with these types of loans. This helps save money on the ultimate cost of the loan. When comparing personal loans, searching for loans that do not charge an origination fee is important to locate the most affordable option.
SoFi
SoFi does not charge any origination costs, has high loan amounts available (up to $100,000), which may support bigger home renovation projects, and has loan durations that can be as long as seven years.
Pros
- Free of charge.
- Option for a joint loan.
- Discount on the monthly fee for using autopay.
- Borrowers experiencing hardship are eligible for the program.
- Mobile app to handle the loan.
Cons
- There is no possibility of picking the date of the first payment.
- A significant minimum amount of the loan.
LightStream
LightStream stands out because there are no origination costs or other expenses besides affordable prices. Having a solid credit history is necessary, but you may boost your chances of being accepted by adding a co-applicant. When utilized to fund home modifications, the loan amounts offered by LightStream go up to $100,000, and the payback periods may be extended for up to 12 years.
Pros
- Free of charge.
- Discount on the monthly fee for using autopay.
- Home renovation loans come with longer payback periods.
- A program that will beat your rate and guarantee a good experience.
Cons
- There needs to be a pre-qualification option on their website.
- Requires a credit history that is at least a few years old.
- With debt consolidation loans, no payment is made directly to the creditors.
Marcus by Goldman Sachs
Marcus does not impose any fees for the loan's origination, late payments, overdrafts, or prepayments. Because Marcus allows customers to directly make payments to their creditors, the company may be used as a debt consolidation alternative.
Pros
- Free of charge.
- Discount on the monthly fee for using autopay.
- The choice to prequalify with just a little check of credit history.
- With debt consolidation loans, payments are sent directly to the various creditors.
Cons
- There is neither a co-signer nor a joint loan option.
Discover Personal Loans
Personal loans from Discover start at $2,500, do not charge any origination fees and come with a one-of-a-kind money-back guarantee.
Pros
- There is no origination fee.
- The choice to prequalify with just a little check of credit history.
- Fast funding.
- Mobile app to handle the loan.
Cons
- Could impose a fee for being late.
- There is neither a co-signer nor a joint loan option.
- There is no rate discount.
Laurel Road Personal Loan
Personal loans from Laurel Road are available with no origination fee. They are an excellent choice for borrowers with excellent credit who are eligible for a low-interest rate or borrowers with fair credit who may add a co-signer to the loan.
Pros
- Options for joint loans and co-signing loans are available.
- There is no origination fee.
- Discount on the monthly fee for using autopay.
- With debt consolidation loans, payments are sent directly to the various creditors.
Cons
- A fee for being late.
- A significant minimum amount of the loan.
What Is A Loan Origination Fee?
The costs incurred by the lender in processing the personal loan are covered by an origination fee, which is determined as a percentage of the total loan amount and normally ranges from 1% to 10%. The fee is often deducted upfront from the total amount that is loaned by the loan; however, it may also be rolled into the balance.
Consider the possibility of an origination fee of 5% attached to a personal loan of $20,000. You can either pay the 5% origination fee, which is $1,000 or reduce the amount of your loan by the same amount, which would result in you receiving $19,000 instead.
Be important to study the fee information provided by your lender to gain a complete picture of your costs since the annual percentage rate (APR) on loan will sometimes include the origination fee. Find a lender that provides personal loans with no origination fee so that you may save money or get the entire amount of the loan you requested.
How to Find the Best Personal Loan
Personal loans are available from various financial institutions, including banks, credit unions, and trustworthy internet lenders, and they may be used for either short-term or long-term financial needs. Borrowers need to research various lenders to get not only the loan with the lowest interest rate but also the payment plan that is most suitable for their financial situation. Being pre-approved for a personal loan will assist you in analyzing prospective loan conditions and APRs to choose the most suitable lender.
