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No origination fee personal loans

Lower your APR by avoiding the origination fees that many lenders charge.

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 anywhere from 1% to 10% of the total loan amount, depending on the lender and your creditworthiness.

However, not all lenders charge origination fees, and importantly – you shouldn’t have to pay them if you have good credit. Our list of no fee lenders offer personal loans without application, origination or prepayment fees, so you can be sure interest is the only thing you’ll pay on your loan.

​​What is an origination fee?

A personal loan origination fee is a flat fee charged by some lenders to cover the costs of processing a loan. The fee also helps to compensate for the risk from lending to bad to fair credit borrowers.

Origination fees are typically between 1% to 10% of the total loan amount. 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 still pay interest on the full $10,000.

If you have good to excellent credit, go with a lender that doesn’t charge origination fees. Our list is a great place to start.

Top 7 personal loans with no origination fees

LightStream: Best for low rates

LightStream personal loans

Finder Rating: 4.83 / 5 ★★★★★

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.

  • Available in all states
*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.

Sofi: Best for young professionals

SoFi personal loans

Finder Rating: 4.45 / 5 ★★★★★

SoFi is a personal loan lender that offers personal loans plus student loan refinancing – with lower rates than their personal loans. And it's one of the few lenders that doesn't charge any fees at all – not even late fees. This can help you save on costs as you pay back your loan.

The company also has several career development and networking resources that you won't find with other lenders. But it isn't a quick option if you're looking for a fast turnaround. Some borrowers have complained about funding times of up to 30 days.

  • Not available in: Mississippi
Fixed rates from 7.99% APR to 22.73% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 6/15/22 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.

Discover: Best for debt consolidation

Discover personal loans

Finder Rating: 4 / 5 ★★★★★

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 5.99% 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.

  • Available in all states

Laurel Road: Best for medical professionals

Laurel Road personal loans

Finder Rating: 4.2 / 5 ★★★★★

Laurel Road works with all types of borrowers that have good to excellent credit – but offers customized loan products 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 and last year residents with a signed work contract are eligible for Laurel Road's physician loans. It also offers an .025% autopay discount to help you save on your loan's interest payments.

  • Available in all states

Marcus by Goldman Sachs: Best for military members

Marcus by Goldman Sachs personal loans

Finder Rating: 3.8 / 5 ★★★★★

Marcus by Goldman Sachs isn't geared specifically for the military, but qualified military members could score an APR as low as 4% – which is extremely competitive for a personal loan in 2022. Its regular rates for non-military start at 6.99% APR.

And it rewards on-time payments: After you've made 12 consecutive on-time payments, you can defer one payment for a month with no interest. But you'll be stuck with a higher APR if you make a late payment.

  • Available in all states

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, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. 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. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

PenFed: Best for smaller loans

PenFed Credit Union personal loans

Finder Rating: 3.6 / 5 ★★★★★

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.

  • Available in all states
Insured by NCUA.

U.S. Bank: Best for borrowing with a coapplicant

U.S. Bank Premier Loans

Finder Rating: 3.15 / 5 ★★★★★

Many lenders in the no fee category don't allow coapplicants, but U.S. Bank is one of the few that does. However, you need to live in a state where U.S. Bank has branches to get a personal loan. That's because you need to go in to sign your loan documents.

It offers loans from $1,000 to $50,000 with APRs 8.24% from 21.49% . U.S. Bank also offers a 0.5% discount when you set up autopay with your U.S. Bank or other external bank account. And it offers online prequalification so you can see your potential rates without affecting your credit score.

  • Available in all states

Methodology: How we picked the best no origination fee personal loans

Our team of loan experts looked at 120+ personal loan lenders and weighed key factors like origination fees, interest rates and eligibility requirements. The best personal loans offer no origination fees, low APRs, a range of borrowing amounts and underwriting flexibility.

We also regularly revise our selections to make sure our picks are the best in their categories.

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 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 loan fees affect the APR you pay

Your annual percentage rate (APR) is an expression of the total cost of your loan after origination fees are factored in. 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 the lender offers it.
  • Get a cosigner. Not all lenders allow cosigners, but if your credit score is below 670, having one 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, have a cosigner or show that you have retirement savings to reduce their risk.
  • 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, 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.

Compare more personal loan lenders

1 - 6 of 6
Name Product Filter Values APR Minimum credit score Loan amount
Best Egg personal loans
8.99% to 35.99%
$2,000 to $50,000
A prime online lending platform with multiple repayment methods.
Upstart personal loans
6.5% to 35.99%
$1,000 to $50,000
This service looks beyond your credit score to get you a competitive-rate personal loan.
4.98% to 35.99%
Poor to excellent credit
$1,500 to $100,000
Achieve personal loans
7.99% to 29.99%
$1,000 to $50,000
Consolidate debt and more with these low-interest loans. Cosigners welcome.
Upgrade personal loans
7.96% to 35.97%
$1,000 to $50,000
Affordable loans with two simple repayment terms and no prepayment penalties.
LightStream personal loans
5.99% to 23.99%
Good to excellent credit
$5,000 to $100,000
Borrow up to $100,000 with low rates and no fees.

Compare up to 4 providers

Am I eligible for a personal loan with no origination fees?

No fee personal loans are best for people who have 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

5 steps to get a no origination fee personal loan

  1. Compare lenders. Use our list of the top 7 no fee lenders to research and compare offers.
  2. 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.
  3. Submit an application. Once you’ve chosen a lender you want to work with, do a full application and upload any requested documents. This will result in a hard credit pull.
  4. Sign for your loan. If approved for loan, you’ll need to sign your loan documentation so the funds can be released to you.
  5. 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.

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