Fees may only account for a small portion of your loan, but they result in an increased APR — and an overall higher cost. These lenders offer personal loans without application, origination or prepayment fees so you can be sure interest is the only thing you’ll pay.
What’s changed in 2020?
We narrowed down our list of top lenders to highlight which ones offered the best deals beyond no origination fees. And to help make the comparison process easier, we have also included an additional list of lenders.
Top 6 personal loans with no fees
Best for young professionals: SoFi personal loans
680
Min. Credit Score
5.99%
Starting APR
$100,000
Max Loan Amount
SoFi is one of the few lenders that doesn’t charge any fees at all. And it could be particularly helpful if you’re still climbing the career ladder since offers several career development and networking resources that you won’t find with another lender. But it isn’t a quick option. Some borrowers have complained about turnaround times of up to 30 days.
- No fees — including late and NSF fees
- Competitive maximum APR of 16.19%
- Career coaching and investment tools available
- High starting amount of $5,000
- Potentially long turnaround
- Mixed online reviews
| Loan Amount | $5,000 – $100,000 |
|---|
| APR | 5.99% to 19.63% |
|---|
| Interest Rate Type | Fixed |
|---|
| Min. Credit Score | 680 |
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| Min term | 24 months |
|---|
| Max term | 84 months |
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| Turnaround Time | Up to 30 days |
|---|
Disclaimer
Fixed rates from 5.99% APR to 19.63% APR (with AutoPay). SoFi rate ranges are current as of July 30, 2021 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. 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. See APR examples and terms. 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.
Best for home improvements: LightStream personal loans
Good to excellent credit
Min. Credit Score
Competitive
Starting APR
$100,000
Max Loan Amount
LightStream doesn’t charge any fees, including late fees or NSF fees. And it has a Rate Beat Program — if you receive a qualifying offer from another lender, LightStream cuts 1% off its APR. However, there’s no prequalification process, so don’t be surprised when it does a hard pull of your credit when you apply.
- Loan terms up to 12 years for home improvement
- Autopay APR discount of 0.5%
- Beats competitor rates by 0.1%
- High starting amount of $5,000
- No preapproval process
- Good to excellent credit required
| Loan Amount | $5,000 – $100,000 |
|---|
| APR | Competitive |
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| Interest Rate Type | Fixed |
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| Turnaround Time | Varies |
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Disclaimer
*Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of 3 years would result in 36 monthly payments of $303.99.Truist Bank is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust, Truist, LightStream, the LightStream logo, and the SunTrust logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Best for members of the military: Marcus by Goldman Sachs personal loans
660
Min. Credit Score
6.99%
Starting APR
$40,000
Max Loan Amount
Marcus by Goldman Sachs isn’t geared specifically for the military, but qualified military members could score a low 4% APR. There are also some rewards for on-time payments. However, late payments result in added interest — not just fees — that can increase the total cost of your loan.
- Military members may qualify for 4% APR
- Rewards for on-time payments
- Decent loan terms up to six years
- Low maximum loan amount of $40,000
- Extra interest for late payments
- Good to excellent credit required
| Loan Amount | $3,500 – $40,000 |
|---|
| APR | 6.99% to 19.99% |
|---|
| Interest Rate Type | Fixed |
|---|
| Min. Credit Score | 660 |
|---|
| Min term | 36 months |
|---|
| Max term | 72 months |
|---|
Disclaimer
Marcus By Goldman Sachs® Offer Terms and Conditions
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Best for debt consolidation: Discover personal loans
Varies
Min. Credit Score
6.99%
Starting APR
$35,000
Max Loan Amount
Discover offers no-fee personal loans in addition to its credit cards. Each loan comes 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. Just be sure to pay your bill on time to avoid the $39 late fee.
- 30-day return period
- Low starting amount of $2,500
- Free access to credit score
| Loan Amount | $2,500 – $35,000 |
|---|
| APR | 6.99% |
|---|
| Interest Rate Type | Variable |
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| Min term | 36 months |
|---|
| Max term | 84 months |
|---|
| Turnaround Time | 1 to 7 days |
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Best for smaller loans: PenFed Credit Union personal loans
650
Min. Credit Score
6.49%
Starting APR
$35,000
Max Loan Amount
PenFed is one of the largest credit unions in the US. You don’t need to be a member of the military to join, but you will need to join an eligible military-related organization like Voices for America’s Troops. The entire loan application is online, but it may take up to two weeks to receive your loan funds — and you’ll only be eligible for up to $20,000.
- Rates as low as 6.49%
- Extremely low starting amount of $600
- Loan terms as short as one year
- Must qualify for membership
- Low maximum loan amount of $20,000
- Turnaround up to two weeks
| Loan Amount | $600 – $35,000 |
|---|
| Interest Rate Type | Fixed |
|---|
| Min. Credit Score | 650 |
|---|
| Min term | 12 months |
|---|
| Max term | 60 months |
|---|
| Turnaround Time | As soon as the next business day |
|---|
Disclaimer
Insured by NCUA.
Best for borrowing with a coapplicant: Wells Fargo personal loans
Varies
Min. Credit Score
5.99%
Starting APR
$100,000
Max Loan Amount
Wells Fargo offers relatively low starting rates for its no-fee personal loans, but borrowers with average credit could face an APR up to 20.24%. A coapplicant can help you score a lower rate, and so can autopay — Wells Fargo offers a competitive 0.5% discount when you use an eligible Wells Fargo checking account. But its late fee is high, and even borrowers with good credit may not get the best interest.
- Rates as low as 5.74%
- Autopay APR discount up to 0.5%
- Accepts coapplicants
- High maximum APR of 20.24%
- High late fee of $39
- Good to excellent credit required
| Loan Amount | $3,000 – $100,000 |
|---|
| Interest Rate Type | Fixed |
|---|
| Min term | 12 months |
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| Max term | 84 months |
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| Turnaround Time | As soon as 1 business day |
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What is a no-fee personal loan?
If a lender doesn’t charge application fees, origination fees or prepayment penalties, it is typically considered to have no fees. Not only can application and origination fees add to your loan’s cost, they can make applying for a loan itself more complicated. That’s because lenders often subtract your origination fee from your loan amount before you get your money. For example, if you take out a $10,000 loan with a 5% origination fee, you’ll only get $9,500 instead of the $10,000 you applied for — but you’ll still be paying interest for that $10,000.
Many of the no-fee personal loans we list in this article come with late or nonsufficient funds (NSF) fees if an automatic payment doesn’t go through or a check bounces. While these are technically fees, they aren’t set fees worked into the cost of the loan.
Your lender may charge other fees as well. See our list of the most common personal loan fees to ensure you aren’t overpaying for your loan.
How do loan fees affect my APR?
Your annual percentage rate (APR) is an expression of the total cost of your loan, including interest and set fees. It’s the easiest way to tell how much your loan will cost you over time — the lower the APR, the less expensive it’ll be. If your lender doesn’t charge any fees, your APR and interest rate will be the same. With loans that charge fees, your loan’s interest rate is usually lower than its APR.
Why does this matter? A loan with no fees but a high interest rate will cost you more than a loan with fees but a low overall APR. When shopping for a loan, compare APR. Even if there are fees involved, you may end up paying less if your total APR is lower than the interest rate offered by other lenders.
Compare more personal loan lenders
Bottom line
A personal loan with no fees can be less expensive than personal loans that charge application, origination and prepayment penalties. However, that’s not always the case. Loans with lower APRs are less expensive, regardless of whether they charge fees or not. To compare a full range of lenders, see our guide to personal loans.
Frequently asked questions
Will a lender charge a closing cost fee for my loan?
Closing costs on personal loans aren’t typical. Instead, lenders charge origination fees. These typically range from 1% to 8% of the total loan amount and are meant to cover the cost of processing your loan.
Which type of loan will have the lowest APR?
Generally, secured loans have lower rates than unsecured personal loans. While this doesn’t mean you won’t pay any fees, it does mean you may be able to score a more affordable APR.
