Best Personal Loans With No Origination Fees

kate_sept2004 / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

A personal loan can help you consolidate your debts, cover an emergency or even pay for something fun like a wedding or vacation. But origination fees can eat into the final amount you receive, since they are usually deducted from the loan money.

Fortunately, you can find loans with no origination fees, keeping more money in your pocket for whatever you need. Read on to learn more.

Best for Borrowers With Excellent Credit: LightStream

If you have a good-to-excellent credit profile, you may qualify for a personal loan with no origination fee and a low interest rate from LightStream.

The best-qualified borrowers can snag an interest rate as low as 7.99%, and rates go as high as 25.79%. However, these loans also come with an autopay discount, which amounts to 0.50% off your interest rate.

Loan terms range from 24 to 240 months, and there are no fees associated with the loan. If you can pay it off before the term ends, you won’t pay any prepayment penalties and might save significantly on interest costs.

You can apply online, and if accepted, you may receive money deposited into your bank account on the same business day.

But one downside of LightStream is that you cannot change the due date or add autopay for the rate discount after your loan has been funded.

• Loan amount: $5,000 to $100,000
• Interest rate: 7.49% to 25.29% after discount
• Loan terms: 24 to 240 months, depending on use
• Minimum credit score: Not disclosed
• Time to fund: As soon as the same business day

Best Overall: SoFi®

SoFi is an online financial services provider and bank offering high-interest savings accounts, credit cards, insurance, loans and much more. With SoFi, you can borrow money for home improvement projects, debt consolidation, family planning, travel, weddings or virtually any other need.

Loan amounts vary from $5,000 to $100,000, with terms ranging from two to seven years. If approved, funds are often available the same day you sign the loan. There are no loan origination fees, prepayment penalties or late fees, either.

Rates range from 8.99% to 35.49%, not including the 0.25% discount for autopay and the 0.25% discount for using direct deposit. The average median interest rate is 14.83% on a SoFi personal loan with a five-year term, according to the website.

• Loan amount: $5,000 to $100,000
• Interest rate: 8.99% to 35.49% with discounts
• Loan terms: 2 to 7 years
• Minimum credit score: 610
• Time to fund: As soon as the same day

Best for Smaller Loan Amounts: Discover

Discover®, Member FDIC, loans are available for $2,500 up to $40,000, with interest rates from 7.99% to 24.99%. You’ll need exceptional credit and a short loan term to qualify for the lowest rate. Discover offers personal loans with no origination fees and no closing costs for the loan. You should be aware that you might be subject to late fees, however, if you miss a payment or pay late.

You can choose loan terms from 36 to 84 months. Many borrowers who qualify receive a decision the same day and can have funds deposited into their bank account as soon as they accept the terms. 

• Loan amount: $2,500 to $40,000
• Interest rate: 7.99% to 24.99%
• Loan terms: 36 to 84 months
• Minimum credit score: 660
• Time to fund: As soon as the same day

Credit Union Option: PenFed

Credit unions often offer low interest rates on personal loans to their members. PenFed Credit Union is one of the few credit unions providing loans with no origination fees. There’s also no prepayment penalty and no hidden costs. Loan terms can extend to 60 months, and you can borrow as much as $50,000.

Typically, funds will be deposited into your account within one to two business days after approval.

Unlike many credit unions, which have membership requirements, PenFed is available to anyone in the U.S. with a Social Security number or Tax ID number. You’ll need an initial deposit of $5 to open a PenFed account, which will qualify you to apply for a personal loan as a member of the credit union.

• Loan amount: $600 to $50,000
• Interest rate: 8.99% to 17.99%
• Loan terms: Up to 60 months
• Minimum credit score: 580
• Time to fund: As soon as the next day

How To Choose a Personal Loan

Finding personal loans with no origination fees can put more cash in your pocket to pay for whatever you need. But it’s not the only consideration when you are choosing a loan. Here are other factors to keep in mind.

Interest Rate and APR

The interest rate on your loan can mean a difference of thousands of dollars over the life of your loan. The interest is the money you pay to the lender for the ability to borrow money. But there’s an even more important number to consider: the annual percentage rate.

The APR takes into account any fees — including loan origination fees — associated with the loan. When you’re comparing loans, make sure to compare the APR, as this is the total annual cost of the loan.

Loan Amounts

Some lenders, such as SoFi, allow you to borrow up to $100,000, making it ideal for larger home improvement projects, debt consolidation and other pricey purchases. Others, like Discover, cap loan amounts at $40,000. Before you shop around for a loan, it’s a good idea to know exactly how much you want to borrow for the issue at hand.

Credit Score Required To Qualify

The best loans with no origination fees are typically only available to borrowers with good-to-excellent credit. If you don’t qualify for one of these loans, consider a loan for borrowers with bad credit. Some lenders will allow borrowers with a credit score as low as 600 to qualify for a loan. These lenders usually take other factors, like income and steady employment, under consideration. 

The downside of getting a bad credit loan is that you’ll likely face higher interest rates. If possible, consider working to improve your credit score before you decide to move forward with a personal loan to help you lock in the best rates.

Final Take

If you have good-to-excellent credit, it can make sense to borrow money for a large purchase. That way, you can leave other money in investment accounts where it can work for you. Other times, you don’t have access to cash and need to borrow money to cover desired expenses. You may also want to consolidate high-interest credit card debt into a low-cost personal loan.

In any of these cases, if you have good credit, you’ll have more options to borrow money. It helps to look for a loan with low interest rates, flexible choices in low terms and no fees.

Daria Uhlig and Sarah Sharkey contributed to the reporting for this article.

Data is accurate as of Oct. 3, 2024, and is subject to change.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Fixed rates from 8.99% APR to 35.49% 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 04/24/25 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.

To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

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.

Share This Article: