People take out personal loans for many reasons, including debt consolidation, home improvements, or making a large purchase. Sometimes fees associated with these loans can reduce the amount of money you receive after you're approved. Origination fees, for instance, are deducted from your proceeds.
We've rounded up the best no origination fee personal loans for people in a range of financial situations, with an emphasis on finding those that offer low APRs. None of the companies we've listed charge origination fees, saving you on the overall cost of your loan.
Best No Origination Fee Personal Loans
- Best for low rates: LightStream Personal Loan
- Best credit union: PenFed Credit Union Personal Loan
- Best for high loan amount: SoFi® Personal Loan
- Best for the military community: USAA Personal Loan
- Best brick-and-mortar lender: Wells Fargo Personal Loan
Apply for a No Origination Fee Personal Loan
Best No Origination Fee Personal Loan for Low Rates
6.49% to 25.29% (with AutoPay discount, rates vary by loan purpose)
$5,000 to $100,000
660
- Competitive APR
- Approval decisions should come shortly after applying
- Loans can be funded the same day
- Wide range of borrowing amounts and terms
- No fees
- Only available to people with good credit
- No pre-approval option
LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
LightStream Personal Loan- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 12 years
- Apply online and you'll receive a response shortly during business hours.
- Receive your funds as soon as the same day
- Loans are made by Truist Bank, member FDIC
Why LightStream stands out: LightStream offers personal loans for things like home remodeling and medical debt. You can also use them as debt consolidation loans. LightStream is the best option for those with excellent credit because its lowest APR is the best of every lender on our list.
Look out for: High credit score requirements. LightStream's minimum credit requirement for a personal loan is 660, so this lender might not be the best choice for all credit types.
Best No Origination Fee Personal Loan for High Loan amounts
8.99% - 29.99% fixed (with all discounts)
$5,000 to $100,000
680
- High maximum loan limit
- No fees required
- Competitive APR
- High minimum credit score requirement
- High minimum loan amount
- No in-person support
SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
SoFi- Loan amounts range from $5,000 to $100,000
- Loan term lengths range from 2 to 7 years
- Usually receive your money in a few business days after your application is approved
- Loans are made by SoFi Lending Corp.
Why SoFi stands out: SoFi®'s personal loans have a minimum credit score requirement of 680, at the lower end of what's considered a good credit score. It also has a loan maximum of $100,000, perfect for borrowers who need a large amount of money to finance an expense.
Look out for: A relatively high minimum income for approval. According to loan comparison site Credible, less than 1% of borrowers approved for personal loans through SoFi earn less than $50,000 per year, and the majority make more than $100,000.
Best No Origination Fee Personal Loan for Brick-and-Mortar Lender
6.99% to 24.49% (with relationship discount)
$3,000 to $100,000
Undisclosed
- Large maximum loan amounts
- Discounts for current customers
- Established brick-and-mortar lender
- No origination fee or prepayment penalty
- Significant late fees
- History of mismanaging customer information
- No online applications for non-customers
Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.
Wells Fargo personal loan- Loan amounts range from $3,000 to $100,000
- Term lengths range from 1 to 7 years
- Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
- Non-customers must apply by visiting a branch and talking with a banker
- Loans made by Wells Fargo, member FDIC
Why Wells Fargo stands out: Wells Fargo 's personal loans offer low interest rates, smaller minimum borrowing amounts, and shorter terms than others. Borrowers who want to get their debt under control quickly might find that Wells Fargo's personal loans are flexible enough to tackle debt consolidation.
Look out for: It's worth noting Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues associated with creating fake accounts several years ago.
Best No Origination Fee Personal Loan from a Credit Union
8.99% to 17.99%
$600 to $50,000
580
- Wide range of loan amounts
- Low minimum APR
- No origination fees or prepayment penalties
- Coborrowers allowed
- Need to be a member to get a loan
- Late fee
For borrowers with excellent credit, PenFed Credit Union has great minimum interest rates on its personal loans. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
PenFed Credit Union Personal Loan- Loan amounts range from $600 to $50,000
- Term lengths between one to five years
- Loans originated by Pentagon Federal Credit Union
Why PenFed stands out: For borrowers looking to take out a small amount of money, PenFed Credit Union offers loans as small as $600. This could make the credit union an attractive alternative to a payday loan.
Look out for: Membership requirements. You don't need to be a member of the credit union to apply for a personal loan, but you'll have to be a member to get one. If you've served in the military or work at qualifying associations or organizations, you'll qualify.
However, you have a pretty easy workaround if that doesn't apply. You can join by opening a savings account with a $5 minimum deposit.
Best No Origination Fee Personal Loan for the Military Community
9.99% to 18.51%
$1,000 to $100,000
Undisclosed
Why USAA stands out: The lender has fast funding — if you need your money fast, you can get it as soon as the next day depending on when your loan is approved.
Look out for: Membership requirements. You're only able to become a member of USAA is if you're a part of the military community or a family member of that group, so these personal loans might not be accessible for all borrowers.
Compare Today's Rates
Secure the Best No Origination Fee Personal Loans
Understanding Origination Fees
Origination fees are what lenders charge to cover the administrative costs of providing loans. For personal loans, origination fees can amount to 1% to 8% of your loan amount. And they're taken up front from the proceeds of your loan. So say you borrow $10,000 with a 5% origination fee. You'll only receive $9,500 cash when the loan is funded.
The percentage that you're charged for a personal loan origination fee depends on several factors, including your credit score, income, loan amount, loan length, and whether you need a co-signer.
Where to Find the Best No-Fee Personal Loans
However, some lenders don't charge origination fees. You're likely to them available through sources including:
Online Lenders
Because they don't have the same kind of overhead costs as their brick-and-mortar counterparts, the best online lenders may waive origination fees to save borrowers money up front and make their loan offering more competitive.
Credit Unions
Credit unions, which are owned by their members, often offer lower-cost personal loans than traditional financial institutions such as banks. The best credit union personal loans often have no origination fees and competitive interest rates.
Peer-to-Peer Lending Platforms
Peer-to-peer lenders connect borrowers directly with individual investors who lend them money. This can often result in favorable loan features, including no origination fees. However, it's important to remember that peer-to-peer lenders aren't subject to the same level of regulation and oversight as traditional financial institutions.
Beyond Fees: Finding the Overall Best Loan
Remember, fees are just part of what determines the total cost of your loan. To select the best personal loan for you, look at all the factors that are most important to you and compare personal loans with no fees.
Interest Rates Matter
Most borrowers look for the lowest interest rate when shopping for a personal loan. They're a critical consideration because, in combination with the term length, they play the biggest role in determining the total amount you will pay to borrow money. The lower the interest rate, the less you'll pay each month, and over the life of the loan.
Loan Terms and Flexibility
The amount of time you have to repay a personal loan, known as the term, is a key factor in determining how high or low your monthly payment will be. You may get a lower payment with a longer term, but you'll pay more in total interest. With a shorter term, you'll pay more each month but ultimately pay less interest over the life of the loan. Make sure you find a lender that offers a term length that's right for you.
Lender Reputation
Whether you're considering applying for a $5,000 loan or a $100,000 loan, finding a reputable lender can help with your loan approval experience. The Better Business Bureau, a non-profit organization focused on consumer protection and trust, evaluates businesses using factors like their responsiveness to consumer complaints, honesty in advertising, and clarity about business practices. Here is each lender's score:
| Lender | BBB Grade |
| LightStream Personal Loan | A |
| SoFi Personal Loan | A+ |
| Wells Fargo Personal Loan | F |
| PenFed Personal Loan | A+ |
| USAA Personal Loan | A+ |
All of our top picks, except Wells Fargo, are rated A or higher by the BBB. Keep in mind that a high BBB score does not ensure a positive relationship with a lender. You should also do a lot of research on your own, and talk with others who have used the company to get the most comprehensive information possible.
The BBB gives Wells Fargo an F rating because of the bank's failure to respond to 27 complaints and government actions against it. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.
If this history makes you uncomfortable, you may want to consider using one of the other personal loan lenders on our list.
Why You Should Trust Us: How We Chose the Best Personal Loans Without Origination Fees
In our reviews and guides, we rate all personal loan products on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, including interest rates, fees, and term lengths, some of which are judged more heavily than others.
For the best personal loans without origination fees specifically, we looked for companies that wouldn't tack on extra penalties to your loan and increase your borrowing costs. When choosing between companies with no origination fees, we looked for lenders offering the best rates and widest range of term lengths.
See our full ratings methodology for personal loans »
Best No Origination Fee Personal Loans FAQs
Why is there an origination fee for personal loans?
Lenders charge origination fees to cover the administrative costs associated with processing and approving the loan. This includes evaluating the borrower's creditworthiness, verifying income and employment, and preparing documents.
How can I avoid personal loan origination fees?
You can avoid origination fees by applying for loans from lenders that don't charge them. Other lenders that normally charge origination fees may not charge them for borrowers with great credit.
Can I negotiate a personal loan origination fee?
Depending on the lender, you may be able to negotiate your loan's origination fee. It may benefit you to apply for a loan from multiple companies and leverage one offer against another.
How do I find reputable no-fee personal loan lenders?
In addition to our guide to the best personal loans with no origination fees, you can check on a lender's reputation using loan comparison sites and customer reviews on platforms like the Better Business Bureau. Also, be cautious of lending scams, which often include unrealistic promises such as "guaranteed approval" or an urgency to apply immediately for a limited-time offer.
What is a normal origination fee for a personal loan?
The origination fee on a personal loan can vary widely, but generally, a fee between 1% and 5% is standard, while anything in the double digits is high.
Our Experts for This Guide
We consulted personal loan and financial experts to give their insights into finding the best personal loans with no origination fees.
- Markia Brown, certified financial education instructor and registered financial associate at Money Plug, LLC
- Sean August, CEO at The August Wealth Management Group
- Ryan Wangman, former loans reporter at Business Insider
Our Experts' Advice for Choosing the Best Personal Loan With No Origination Fee
How does an origination fee impact the total cost of a loan?
Sean August:
"An origination fee is a charge that a lender may apply to a loan to cover the costs of processing and approving the loan application. This fee is typically a percentage of the loan amount, and it can vary depending on the lender and the type of loan."
Markia Brown:
"The impact of an origination fee on the total cost of a loan can be significant, as it adds to the overall amount of money that the borrower must repay. For example, if a borrower takes out a $10,000 loan with a 5% origination fee, they will have to repay $10,500."
Ryan Wangman:
"Think of it like a tax on the total amount you borrow — if you want to take out $3,500, but the lender charges an origination fee of 10%, you'd have to borrow $3,850 just to get the amount you initially requested."
Why does it matter if my loan has an origination fee?
August:
"It matters if your loan has an origination fee because it can significantly impact the total cost of your loan. If you are not aware of the origination fee and how it will affect your loan payments, you may end up paying more than you anticipated."
Brown:
"Loans with no origination fees may be a better option for borrowers looking to minimize the overall cost of borrowing. By avoiding an origination fee, borrowers can reduce the amount they need to repay and potentially save hundreds or even thousands of dollars over the life of the loan."
Wangman:
"An origination fee will increase the overall cost of your borrowing. Depending on the origination fee you're charged, you could end up paying hundreds or thousands of dollars more than if you borrow from a lender without an origination fee. Many lenders, like the ones in this guide, don't charge origination fees."
SoFi Personal Loan Disclosures: Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. 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. 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 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
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.
Terms and conditions apply. Offer good for personal loan customers with credit cards and personal loans in their name only and subject to lender approval. To receive the offer, you must: (1) register and/or apply through this landing page; (2) complete a loan application with SoFi within 90 days of your application submit date; (3) meet SoFi's underwriting criteria; (4) apply 50% or more of your loan proceeds directly to your lenders/creditors. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.25% rate discount. SoFi reserves the right to change or terminate the Direct Pay Rate Discount Program to unenrolled participants at any time with or without notice. It takes about 3 business days for your creditor/lender to receive payment after your loan is signed. You will be responsible for making all required payments to avoid credit card and other loan fees.
