An origination fee is a one-time upfront fee a lender may charge to process your personal loan application. The cost of this fee varies, but some lenders charge up to 10% of the loan amount.
A disadvantage of this fee is that it doesn’t allow you to borrow the full loan amount. Plus, it increases your overall borrowing costs.
A few lenders offer no-origination-fee personal loans. If you can qualify for one, you might save money. To help with your search, we’ve compiled a list of lenders that don’t charge this fee.
Lenders offering personal loans with no origination fees
Taking out a no-origination fee personal loan can help you:
- Borrow the full loan amount
- Lower your total borrowing costs
You can get this type of personal loan from several places, including banks, online lenders and credit unions.
Below are two lenders we recommend that don’t charge origination fees. We also recommend two marketplaces that partner with some personal loan companies that don’t charge origination fees. Credible or LendingTree can help you compare multiple lenders at one time.
You’re more likely to qualify for a no-fee personal loan if you have good to excellent credit.
Credible – Best marketplace
- Compare multiple lenders in one spot
- No hard credit check to compare offers
- No fee to use Credible service
Credible stands out for giving borrowers the ability to compare loan offers from various lenders in one place. It provides real prequalified rates, which include not only the interest rates but also any origination fees lenders may charge, giving a clearer picture of the loan’s true cost before any commitment.
This transparency in disclosing origination fees helps borrowers avoid surprises and select the best option based on total loan cost, not just the advertised interest rate.
Credible’s platform also personalizes loan recommendations according to your specific financial situation, taking into account factors such as potential origination fees to find the best fit.
LightStream – Best for excellent credit
- Offers competitive rates for individuals with excellent credit
- Maintains a zero-fee policy
- Rewards strong credit histories
- Longer repayment terms available
- Autopay discount may be available
LightStream is the go-to for borrowers with FICO scores of 740 and better. It offers competitive interest rates and stands out for its no-fees policy, which includes no origination fees. This can result in significant savings, making LightStream’s loans even more attractive to those who qualify.
The absence of origination fees, combined with no prepayment penalties, positions LightStream as a cost-effective choice for borrowers. The quick approval and funding offer a streamlined loan experience.
SoFi – Best for good credit
- Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2025 was around $32K. Based on loans funded from 1/1/2025-12/31/2025. Information current as of 10/02/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
- Fixed rates from 6.99% APR to 35.49% APR. APR reflect the 0.25% autopay interest rate discount and a 0.25% member rate discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, operating from its Delaware branch, 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 10/02/26 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/eligibilitycriteria/#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.
- Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to make monthly payments using SoFi’s automatic monthly deduction from a savings or checking account. The discount will discontinue and be lost when you do not have autopay enabled. You’re not required to set up autopay to obtain this loan.
- Member Rate Discount: To be eligible for an additional 0.25% interest rate reduction on a Personal Loan, you must, within 31 days of loan funding, either (1) meet SoFi Plus eligibility criteria, (2) receive an Eligible Direct Deposit into a SoFi Checking or Savings account, or (3) receive at least $5,000 in Qualifying Deposits into a SoFi Checking or Savings account. You must continue to meet at least one of the above eligibility criteria every 31 days to maintain the discount. See the SoFi Plus terms for details on SoFi Plus subscription. For more details on Eligible Direct Deposit or Qualifying Deposits, please see https://www.sofi.com/legal/banking-rate-sheet. Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan.
- No fees required
- Apply for a personal loan, check your balance and manage payments in the SoFi app
- Membership benefits include discounts on additional SoFi products and services, and invitations to exclusive events
SoFi is an excellent option for borrowers with FICO credit scores of 670 and up. It offers competitive rates, and its no-fees-required policy includes origination fees. This can make a substantial difference in the total cost of the loan, rendering SoFi a more accessible and economical option.
SoFi provides additional benefits that enhance the value of its loans. Borrowers have access to referral bonuses, personalized financial planning, and travel discounts. These services benefit individuals looking to improve their financial health beyond just the immediate needs of a loan. This holistic approach to financial services, combined with competitive rates and lack of fees, makes SoFi a compelling option for those eligible for its products.
How do you know if a lender charges an origination fee?
Most lenders disclose whether they charge origination fees on their websites. You can usually find this information at the bottom of the lender’s personal loan homepage.
Some lenders charge origination fees on all their personal loans, while others only charge origination fees on some. Many lenders allow you to prequalify online to preview the rates and fees they might charge after you submit a complete application.
Lenders often advertise that they don’t charge origination fees as a benefit on their websites.
Why do lenders charge origination fees?
Some lenders charge origination fees to cover the costs of processing a loan, such as underwriting and administrative expenses.
Lenders charge this fee as a way to lower their risks or increase their profits from the loan. Those that don’t charge origination fees have a different business model and pay for the costs of administering the loan in other ways. Plus, they may not charge origination fees to attract potential borrowers.
How can a no-origination-fee personal loan save me money?
No origination fee can reduce your annual percentage rate (APR) compared to a personal loan with a similar interest rate and origination fee. The APR includes interest and any upfront fees the lender charges, including origination fees.
For example, say you prequalify for two $10,000 loans, both with a three-year term and an 8.5% interest rate. However, one has a 5% origination fee.
In that case, the loan with an origination fee would have higher total borrowing costs. The table below breaks down the cost of each loan.
| Orig. fee | Rate | Total loan costs | |
| No orig. fee | $0 | 8.5% simple interest 8.5% APR | $11,364 |
| With orig. fee | $500 | 8.5% simple interest 12.031% APR | $11,864.31 |
If the APR of a personal loan with an origination fee is lower than that of a no-origination-fee personal loan, it could be cheaper. When comparing offers, pay attention to the estimated APR.
About our contributors
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Written by Jerry Brown, CFEI®Jerry Brown is a freelance personal finance writer and Certified Financial Education Instructor℠ (CFEI®) who lives in New Orleans. He covers a range of personal finance topics, including credit, personal loans, and student loans.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their pack of senior rescue dogs. She has edited and written personal finance content since 2015.
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Reviewed by Erin Kinkade, CFP®Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families.