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Best No-Fee Personal Loans for Your Wallet

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A personal loan with no origination fee can be a helpful way for you to save money if you find yourself needing to take on debt. These types of loans are known as no-fee personal loans, and, aside from potentially cutting down on your borrowing costs, these types of loans also offer you the full amount you applied for. Here’s what you need to know about our top picks for no-fee personal loans.

Best personal loans with no origination fee

Lender APR rate Terms Minimum credit score Loan amounts
Discover Bank 5.99% to 24.99% 36 to 84 months Not specified $2,500 – $35,000
LightStream 5.74% to 19.99% 24 to 144 months Not specified $5,000 – $100,000
Marcus by Goldman Sachs® 6.99% to 24.99% 36 to 72 months 720 $3,500 – $40,000
SoFi Bank, N.A 7.99% to 23.43% 24 to 84 months 680 $5,000 – $100,000

Discover Bank: Best for small loans

APR Loan amount Terms Origination fee Prepayment fee Late fee
5.99% to 24.99% $2,500 – $35,000 36 to 84 months No origination fee None $39 if payment is not received in full by the due date

While Discover Bank offers personal loans online without origination fees, the company does still charge late payment fees. To qualify, you must have a minimum household income of $25,000 per year.

Similar to the terms offered through fellow featured lender LightStream, you may receive funds as soon as the same day you apply. If you plan to consolidate debt with your personal loan, you have the option to pay off creditors directly, a perk few competitors offer. Plus, if for any reason you need to return the funds, no interest is incurred if you do so within 30 days.

Read our full review

LightStream: Best for long-term loans

APR Loan amount Terms Origination fee Prepayment fee Late fee
5.74% to 19.99% $5,000 – $100,000 24 to 144 months No origination fee None None

Online lender LightStream offers no-fee personal loans through a fast paperless process — plus, borrowers may receive funds directly in their bank account as quickly as the same day they apply.

This online lender doesn’t charge any fees or prepayment penalties. Unfortunately, though, Lightstream doesn’t offer soft-credit inquiries to see your loan options. As such, it’ll pull a hard credit inquiry from TransUnion or Equifax to determine your credit score, requiring good or excellent credit to ultimately qualify.

In addition to offering a much higher amount of funds and longer repayment term than any of the other lenders on this list, it also offers several other unique perks:

  • $100 loan experience guarantee within 30 days of receiving the loan after completing questionnaire
  • Rate beat program — it’ll beat competitor interest rates by 0.10 percentage points, provided all criteria are met by the borrower
  • Donation of a tree for every funded loan through their partnership with the American Forests conservation organization

Read our full review

Marcus by Goldman Sachs®: Best for debt consolidation

APR Loan amount Terms Origination fee Prepayment fee Late fee
6.99% to 24.99% $3,500 – $40,000 36 to 72 months No origination fee None None

Marcus by Goldman Sachs is a bank that provides personal loans with no origination fees, prepayment fees or even late charges. Consumers must be over the age of 18 to apply; the exceptions are Alabama (where they must be 19), as well as Puerto Rico and Mississippi (where they must be 21).

Unlike with LightStream, it could take between 1 to 3 business days for this lender to deposit the funds in your bank account once your application has been accepted online.

Unlike other lenders, Marcus offers a reward for consistent on-time payment. After 12 months of on-time monthly payments made in full, borrowers may choose to defer a payment for one month without penalty.

Another unique feature is that you can customize your due date during the course of your loan. However, this loan could cost you more in the long run, as its maximum APR is much higher — meanwhile, the amount of funds available for borrowing are less than other lenders on this list.

Read our full review

SoFi Bank, N.A: Best for large loans

APR Loan amount Terms Origination fee Prepayment fee Late fee
7.99% to 23.43% $5,000 – $100,000 24 to 84 months No origination fee None None

Like with Lightstream and Marcus Goldman Sachs, SoFi personal loan borrowers can avoid not only origination fees, but prepayment and late fees as well. Aside from having no fees, SoFi personal loan borrowers can also save money by signing up for autopay and receiving a 0.25% discount.

Another offering that comes with a SoFi no-fee personal loan that borrowers may be eligible for unemployment protection — borrowers can not only receive assistance in finding a new job, but their loan payments can also be postponed.

SoFi may also be a good choice for borrowers seeking longer loan terms as this company offers repayment terms up to 84 months. This may be a good option for borrowers who are looking to take out larger no-fee personal loans.

Read our full review

What you should know about no-fee personal loans

A no-fee personal loan could mean one of two things:

  • No origination fee loans, which involve no upfront fees including application, prepayment or origination fees. These terms can reduce the overall cost of your loan, while also ensuring you get the exact amount of funds you applied for and qualify for.
  • No-fee loans, which mean absolutely zero fees, including any penalties for late payments or non-sufficient funds fees. If you’re able to make your monthly payments in full and on time, you likely wouldn’t have to worry about these fees, however.

It’s also worth noting that no-fee personal loans are harder to qualify for, whether they’re free of all fees or just the origination fee. Applying for this type of loan will require strong credit — that’s because lenders want to ensure you’re a low-risk borrower, especially since no collateral is being used to secure the loan.

Read the fine print

One of the best ways to avoid paying extra fees when taking out a personal loan is to be sure to pay attention to details. If the lender doesn’t explicitly state that it charges no origination fees (or any other types of fees), there’s a chance that the lender may still carry fees. If you can’t find that information anywhere, you can reach out to the lender and ask for more details.

Aside from fees, when searching for no-fee personal loans, you’ll also want to pay attention to credit requirements, APR rates, terms and how much the lender is willing to offer you. Factors like APR rates can sometimes depend on what you plan to use the loan for, like debt consolidation versus paying off credit card debt.

Methodology

Lenders were selected from LendingTree’s personal loan marketplace. The top four lenders by minimum APR were selected for this article. Other factors, such as prepayment fees, late fees, terms and loan amounts, were also taken into account. Only lenders with no origination fee were considered.

 

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