Personal Loans

4 Best No-Fee Personal Loans for Your Wallet

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Whether you’re facing some unexpected expenses, considering home renovations or looking at consolidating your debt, taking out a personal loan could be a viable solution.

Although some loan companies charge fees on top of interest charges, we’ve identified a few no-fee personal loans from among our partners that you might want to consider.

What is a no-fee personal loan? An important distinction

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 your overall cost of the loan to you while also ensuring you get the exact amount of funds you applied and qualify for.
  • No-fee loans, which mean absolutely zero fees, including any penalties for late payments or non-sufficient funds fees. If you are 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.

Additionally, lenders like Santander Bank may only offer loans to residents of certain states or preferred interest rates to existing customers, while lenders like LightStream may choose not to provide loans to those who work in the cannabis industry.

4 best personal loans with no origination fee

  1. LightStream
  2. Santander Bank
  3. Discover Personal Loans
  4. Marcus by Goldman Sachs

1. LightStream

APR Loan amount Terms Origination fee
3.99% to 19.99% $5,000 to $100,000 24 to 144 months No origination fee

 

LightStream is the national online consumer lending division of SunTrust Bank. It offers no-fee personal loans through a fast paperless process; 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. It requires excellent or good credit to qualify and will pull a hard credit inquiry from TransUnion or Equifax to determine your credit score. 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
  • Rate beat program, where it will 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

2. Santander Bank, N.A

APR Loan amount Terms Origination fee
6.99% to 16.99% $5,000 to $50,000 24 to 60 months No origination fee

 

Santander Bank services the northeast United States and has more than 575 brick-and-mortar locations. Although this lender is limited to borrowers in the below states, if you meet the criteria, you could benefit from the lowest APRs compared to lenders such as Marcus by Goldman Sachs.

  • State residency requirement: Massachusetts, Maryland, Rhode Island, Connecticut, New Hampshire, New Jersey, Maine, Pennsylvania, New York, Delaware, Vermont or Washington, D.C.

If you don’t have a Santander Bank checking account with autopay setup for personal loan payments, your APR will be 0.25 percentage points higher.

3. Discover Bank

APR Loan amount Terms Origination fee
6.99% to 24.99% $2,500–$35,000 36 to 84 months No origination fee

 

Discover Personal Loans offers personal loans online without origination fees. (However, there is a late payment fee.) To qualify, you must have a minimum household income of $25,000 per year.

Similar to the terms offered through 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. If you’re able to return the funds within 30 days, no interest is incurred.

4. Marcus by Goldman Sachs®

APR Loan amount Terms Origination fee
6.99% to 19.99% $3,500 to $40,000 36 to 72 months No origination fee

 

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, with the exception of Alabama where they must be 19, and Puerto Rico and Mississippi where they must be 21. Unlike with LightStream, it could take between one to four 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 may change your due date up to three times over the course of your loan. However, it could cost you more in the long run as its maximum APR is much higher, while the amount of funds available for borrowing are less than other lenders on this list.

Methodology

Lenders were selected from MagnifyMoney’s personal loan marketplace assuming a credit score of 720-850, minimum loan amount of $5,000 and zip code 11220. The top four lenders by minimum APR were selected for this article. Only lenders with no origination fee were considered. MagnifyMoney is owned by LendingTree.

 

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