Borrowers seeking lower interest rates and a minimal fee structure will align with SoFi personal loans. The lender also boasts a faster funding timeline, delivering funds in a few days compared to LendingClub’s week turnaround. LendingClub may support those seeking smaller purchases, but SoFi’s competitive rates and fee transparency make it a strong contender.
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. 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 and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of 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 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: 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. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
SoFi vs. LendingClub: Which is better?
SoFi and LendingClub both provide personal loans, each catering to a different type of borrower. SoFi is likely suited for people with good to excellent credit profiles who don’t want to pay fees and seek higher maximum loan amounts. SoFi also offers investing advice to strengthen other areas of your finances. LendingClub, on the other hand, is an accessible option for those with fair credit scores who need smaller loans.
When to consider SoFi
SoFi may work best for your needs if you:
Want lower rates: SoFi offers competitive rates, making it a good choice for individuals seeking lower interest rates than LendingClub.
Need higher loan amounts: SoFi shines in providing higher maximum loan amounts ranging from $5,000 to $100,000.
Prefer fixed rates: SoFi only offers fixed rates. You can learn what rate you qualify for in as little as a minute.
Need your money fast: While neither lender offers next-day financing, SoFi only takes a few days to get your funding. LendingClub can take as long as a week.
When to consider LendingClub
While SoFi offers lower rates, LendingClub could be your best bet in these scenarios:
You want to use your loan for debt consolidation: LendingClub allows you to pay different creditors directly using a single loan. You have a lower credit score: LendingClub is available to borrowers with credit scores as low as 600. You want a joint loan: You can bring on a cosigner to increase your chances of being eligible for a loan.
The similarities
Both lenders have flexible eligibility requirements compared to other lenders, making them accessible to a wide range of borrowers. They are also highly rated, both holding an excellent 4.6 rating from Trustpilot as of November 2023. Each offers solid personal loans suitable for various financial needs, such as debt consolidation, home improvements and other purposes.
Alternatives to SoFi and LendingClub:
Here are three alternatives to SoFi and LendingClub:
Upgrade: Upgrade offers fixed-interest loan products also up to $50,000. Depending on the lender’s set terms, you may have up to seven years to repay your loan. There is also a hardship program available to help with repayments.
Best Egg: Best Egg offers personal loans with APRs starting from 8.99% and offers loan amounts up to $50,000 with a variety of repayment methods. It was ranked the number-one company in 2021 by Best Company, a consumer review site.
Prosper: Prosper serves borrowers who may not have perfect credit. Provided you have a score of at least 640, you may qualify for a loan.
Compare other personal loans
Tap compare for up to four personal loan lenders to see how your options stack up side by side.
Can I still get a loan from LendingClub if it’s not fully funded by investors?
Yes, you may still get a partially funded loan. If investors don’t fully back your loan, you aren’t required to accept it and can cancel it without affecting your credit score.
Since investors fund LendingClub’s personal loans, what institution issues them?
WebBank is the financial institution that issues loans for LendingClub.
Can I change my payment date with LendingClub or SoFi?
Yes. Both lenders allow you to change your payment date. You can either change it in your online dashboard or call customer service.
Dhara Singh is a freelance personal finance writer at Finder specializing in loans. Formerly she was a top 10 journalist at Yahoo Finance with more than 38+ million content views where she covered retirement and mortgages. She has also written for Bankrate, and CNET and continues to write for a variety of outlets, such as Investopedia and Worth magazine. Her articles focus on equipping readers with the right information and data so they can make the most informed decisions related to their finances.
Dhara previously worked as an insights analyst for Finder’s PR team, where she started the Deadliest Cities to Drive series in 2018, connecting interesting data analysis to a suite of car insurance products. When she’s not writing, Dhara coaches small business owners through her Stories to Sales programs and empowers them to use their life experiences to help other people. She has also self-published a poetry book on Amazon called Tell her She’s Lovely.
Dhara holds a B.S. in Finance and Supply Chain Management from Rutgers University and a M.S. in Journalism from Columbia University.
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