Best Personal Loans With No Origination Fee in 2025

Skip origination fees with these lenders

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Written by
Carol Pope
Updated December 30, 2024
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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No-fee personal loan lenders at a glance

Best no-fee loans for superior borrower experience

7.99% to 24.99%

36 to 84 months

$2,500 to $40,000

720

Pros
  • Repayment options in case you have trouble making payments
  • Customer service available seven days a week
  • Can pay creditors directly
  • See rates without affecting credit
Cons
  • $39 late payment fee
  • Highest credit score requirement on our list (720)
  • Can't apply for a loan with another person

What to know

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LendingTree users have given Discover personal loans a nearly perfect customer satisfaction score, with 4.9 stars out of 5. Furthermore, Discover has three repayment assistance options, which might come in handy in case of financial hardship. Its customer service department is also open seven days a week.

As long as you make on-time payments, Discover personal loans come with no fees. But if you pay late, Discover may charge you an extra $39.

How to qualify

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You’ll need to meet these eligibility criteria to get a Discover loan:

  • Age: Be at least 18
  • Citizenship: Have a Social Security number
  • Administrative: Have a physical address, email address and internet access
  • Income: Minimum income of $40,000 (individually or as a household)
  • Credit score: 720+
See Personalized Results Read Our Expert Review

Best no-fee loans for doctors, dentists and residents

8.99% to 24.25% (with autopay)

36 to 60 months

$5,000 to $45,000

Not specified

Pros
  • Available to anyone, but doctors, dentists and residents can get more money, longer terms and lower rates than the ones listed here
  • 0.25% discount for signing up for autopay
  • See rates without impacting credit
Cons
  • Charges late fees
  • Doesn’t specify minimum credit score
  • Not good for very small loans

What to know

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All Laurel Road personal loans come with low starting rates and competitive terms, but this online bank offers even better rates and terms for doctors and dentists. The rates and terms listed here are available to everyone, but eligible medical professionals may qualify for even lower rates. This can come in handy when you’re starting your practice.

You’ll need to look elsewhere for a small loan, since Laurel Bank requires that you take out at least $5,000. Like most other lenders, Laurel Bank does charge a late fee, so make sure to stay on top of your payments.

How to qualify

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Laurel Road doesn’t provide much insight into how it evaluates personal loan applications, but you must be at least the age of majority in your state (typically 18 or 19).

While Laurel Road doesn’t specify a minimum credit score, it does state that it offers low rates because it works with creditworthy borrowers. The lender may assess this creditworthiness by evaluating your debt-to-income ratio, employment, income and credit history.

See Personalized Results Read Our Expert Review

Best no-fee loans for excellent credit

6.49% to 25.29% (with autopay)

24 to 84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000 to $100,000

Not specified

Pros
  • Very low starting rates for borrowers with excellent credit
  • No late payment fees
  • Large loans with long repayment terms
  • Offers a satisfaction guarantee and rate matching
Cons
  • Not available if you have bad credit
  • Not good for small loans
  • Must take a credit hit to see rates

What to know

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Borrowers with excellent credit could save on interest rates with LightStream’s low starting rates and its Rate Beat program. Plus, unlike most lenders, LightStream doesn’t charge a late payment fee, making their loans truly fee-free.

If you have poor credit, you’ll need to look elsewhere. LightStream doesn’t disclose its exact requirements, but it only approves borrowers with good to excellent credit. It also doesn’t allow you to check rates without taking a small, temporary hit to your credit with a hard credit pull.

How to qualify

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LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:

  • At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
  • Stable income and the ability to handle paying their current debt obligations
  • Savings, whether in a bank account, investment account or retirement account
See Personalized Results Read Our Expert Review

Best small no-fee loans

8.99% to 17.99%

12 to 60 months

$600 to $50,000

Not specified

Pros
  • Offers some of the smallest loans on the market
  • Check rates without impacting your score or becoming a member
  • Joint personal loans available
Cons
  • Must join credit union to get loan
  • Cannot pay your creditors directly
  • $29 late payment fee

What to know

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PenFed’s small loans with short repayment terms are an affordable alternative to payday loans with high APRs. It’s worth your time to check your interest rates with PenFed, since its APRs are capped at 17.99%.

PenFed charges a $29 fee if your payment is more than five days late. It also won’t pay your creditors directly, which could be inconvenient if you need a debt consolidation loan.

How to qualify

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To qualify for a PenFed loan, you must meet the following requirements:

  • Membership: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with $5 deposit; may need to submit documents to verify your identity and income
See Personalized Results Read Our Expert Review

Best no-fee loans with interest rate discounts

8.99% to 29.99% (with discounts)

SoFi Pricing Disclosure

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 09/18/2024 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 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.

24 to 84 months

$5,000 to $100,000

680

Pros
  • APR discounts for autopay and direct deposit
  • No late payment fees
  • Same-day funding available
Cons
  • Not good for small loans
  • May need to pay an optional origination fee for the lowest APRs
  • Must have good credit or better

What to know

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SoFi offers a 0.25% interest rate discount for signing up for autopay and a 0.25% interest rate discount for using direct deposit with an eligible SoFi account.

While not required, you can opt to pay an origination fee to get SoFi’s lowest APRs. Keep this extra expense in mind when you’re comparing rates between lenders.

How to qualify

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You must meet the requirements below in order to get a loan from SoFi:

  • Age: Be the age of majority in your state (typically 18)
  • Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a DACA recipient or asylum-seeker, for instance)
  • Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
  • Credit score: 680+
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What is a loan origination fee?

A personal loan provides a lump sum of funds that you can use for almost anything. Some lenders will charge an origination fee during the process.

Generally, an origination fee is a percentage of your total loan amount. Origination fees typically range from 1% to 6%, although some can exceed 10%. If your lender charges an origination fee, the lender will usually deduct the fee from your loan before it is sent to you.

While origination fees are referred to as “upfront fees,” you don’t typically have to pay them out of pocket before you get your loan.

How a loan origination fee works

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Imagine that a lender approves you for a $50,000 personal loan that has a 5% origination fee. Your origination fee would be $2,500 (or 5% of $50,000). That means you will receive $47,500 (assuming your loan doesn’t have any other upfront fees).

Why do I have to pay an origination fee?

Lenders sometimes charge an origination fee to help cover the cost of providing a loan. For example, a lender might put your origination fee toward ordering your credit report or processing your loan application.

You might also have to pay an origination fee if you have bad credit. Lenders prefer to work with good-credit borrowers since they are more likely to make on-time payments.

Other personal loan fees

Origination fees aren’t the only ones associated with personal loans. On top of your APR (which measures the total cost of your loan, including your interest rate and fees), your loan may have:

Prepayment penalties

The longer your loan is active, the more you’ll pay in interest. For this reason, some lenders will charge a prepayment penalty, or a fee for paying your loan off before your term ends. Prepayment penalties aren’t common on personal loans, so if your loan offer has one, consider moving on to a different lender.

Late payment fees

A missed payment can drop your credit score by as much as 180 points, and your lender might charge a fee, too. Ask your lender about its late payment procedure and whether it offers a grace period before a fee applies.

How to avoid personal loan origination fees

Some lenders charge an origination fee on every loan. Others only charge loan processing fees to borrowers with poor credit.

The simplest way to avoid personal loan origination fees is to stick with no-fee lenders. Still, there are ways to avoid origination fees, even when the lender you’re targeting sometimes charges them.

Improve your credit score

Improving your credit score isn’t an overnight fix, but the effort is worth it. Having a good credit score can help you qualify for lower APRs, and lenders are less likely to charge origination fees to borrowers with good or excellent credit.

Apply with banks and credit unions

Bank loans and credit union loans usually come with lower APRs and no origination fees. They aren’t ideal for emergency loans, though, since banks and credit unions can take longer than online lenders to deposit your loan money.

Get a joint loan

Taking out a joint loan with a creditworthy family member or friend could help you qualify for a no-fee loan. Joint loans come with added risk. Both you and your co-borrower have equal responsibility (and access to the loan). If one of you makes a late payment, both of your credit scores will be affected.

How to find a no-fee personal loan with LendingTree

  1. Check your credit. Borrowers with good or excellent credit are more likely to qualify for loans with no origination fees. You can check your score for free with LendingTree Spring.
  2. Fill out a form. Answer a few questions about your identity and the type of loan you need, and we’ll do the loan shopping for you.
  3. Review your offers. We’ll match you with up to five lenders from the nation’s largest network of lending partners. You can review your offers and choose the one that works best for you. Review personal loan statistics to see how your offer compares to others in your same credit bracket.
  4. Get your money. You’ll submit a formal application with the lender you choose. Once you’re approved, it will send you the money, typically via direct deposit.

How we chose the best personal loans with no origination fee

We reviewed more than 30 lenders to determine the overall best personal loans with no origination fee. To make our list, lenders must offer personal loans with no origination fee that also carry competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, such as free wealth coaching.

According to our standardized rating and review process, the best personal loans with no origination fee come from Discover, Laurel Road, LightStream, PenFed Credit Union and SoFi.

Frequently asked questions

The best origination fee for a personal loan is none at all. If you must pay an origination fee, aim for one between 1% and 5%. Borrowers with fair or bad credit will likely need to pay higher fees.

No. Even if you need a bad credit loan, steer clear of loans with upfront fees (aside from origination fees, which may be unavoidable). Other out-of-pocket fees are a common sign of predatory lending.

Maybe. Some lenders — SoFi, for instance — allow some borrowers to pay an origination fee in exchange for lower rates.