SoFi Personal Loans Review
- November 3, 2016
- Posted by: Jeff Gitlen
- Category: Personal Loans
Starting up relatively early in 2011, founder Mike Cagney and others began Social Finance (SoFi for short) as an online lender marketplace.
For the past several years, SoFi has grown to become one of the most popular lending solutions for many borrowers in the student loan marketplace. It is one of the prime non-bank alternatives for borrowing loans.
SoFi offers loans for many different purposes. One of the more common services is student loan refinancing, but SoFi personal loans are another service to be reckoned with. These online personal loans come with many of the benefits of borrowing from SoFi; in fact, there are some unique features that are not offered with any other personal loan.
SoFi's Personal Loan Offerings
4.77% - 10.87%
5.17% - 15.96%
5.70% - 14.24%
2.29% - 36.00%
3 - 7 years
2 - 7 years
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True to its name, a personal loan can be borrowed for numerous reasons, and SoFi does not break any trends in this respect. The personal loan homepage lists out several different valid reasons for obtaining a personal loan.
Loans are approved for debt consolidation purposes which helps indebted borrowers pay off debt at a lower interest rate. Moving expenses is an accepted reason. Home improvement costs are applicable, and medical expenses are a perfect reason for applying to SoFi for a personal loan.
There is one key difference between a SoFi personal loan and other competitor counterparts including Pave and USAA. While many personal loans can be put towards educational expenses, a SoFi personal loan cannot be used for education costs. This is mainly due to SoFi's other products; for instance, student loans are a key feature of the company. This means that there is no reason to offer a personal loan for education expenses.
SoFi offers one of the most flexible and enticing personal loan packages on the market. Borrowers can apply for a loan ranging from $5,000 to $100,000. This is considerable range, but the minimum is slightly higher than average compared to the competition.
Both fixed and variable annual percentage rates (APR) are offered. Fixed APR ranges from 5.70% to 14.24%. Variable APR ranges from 4.77% to 10.87%. These annual percentage rates are much lower than competitor rates, and there is much more flexibility with the choice between fixed or variable APR.
There are five different payment plans available to borrowers: 3 years, 4 years, 5 years, 6 years or 7 years. Longer plans generally have lower annual percentage rates while shorter plans usually come with higher APRs.
There are no hidden application fees for borrowing personal loans from SoFi. Borrowers do not need to worry about any origination fees or prepayment penalties of any sort.
There are plenty of benefits for borrowers with a personal loan from SoFi. One of the first benefits that deserves mentioning is the choice between fixed or variable interest rates. These rates let applicants pick out which deal works best. This benefit pairs well with the already low rates offered on personal loans.
There is an opportunity to receive a annual percentage rate discount. Any borrower with automatic payments set up receives this discount of 0.25%. Having automatic payments is the only way to receive the minimum APR.
One significant strength of a SoFi personal loan is the application process. It is simple and quick, and an instant approval notice is sent out after submission. On top of this, customer support can be reached seven days out of the week. Overall, the online experience is a positive aspect of borrowing from SoFi.
It does not end there, there is one benefit that is not offered by any other personal lender. If a borrower loses his or her job, personal loan payments are temporarily put on hold. SoFi even helps the borrower find a new source of income. This is an unexpected benefit that is extremely helpful to a borrower in a pinch.
There is a page that deals with commonly asked questions. This page has tons of information regarding anything about personal loans, student loans, and many other services from SoFi. It helps borrowers understand just what they may be signing on for.
SoFi is a proven excellent source for loans of any sort, and it certainly does not drop the ball when it comes to personal loans. The options provided to its borrowers are nothing short of flexible, and borrowers have access to rates unavailable at other competitor lenders.
SoFi personal loans come solid annual percentage rate options. Both fixed and variable APRs are available, and borrowers can qualify for some of the lowest rates on the market. While these rates are heavily dependent on credit history and payment plan, borrowers can receive a 0.25% discount on APR for simply opting for the automatic monthly payment option.
The only major drawback of a SoFi personal loan is the minimum loan amount. This minimum is set at $5,000, so this screens out the portion of borrowers in need of a small loan. This is a drawback to anyone in need of short-term funds since they are forced to look elsewhere with different APR and payment plans.
Overall, there are more positive than negative aspects of borrowing from SoFi. Its personal loans come with benefits and rates that make it a distinctive competitive lender in the personal loan marketplace.
on SoFi's secure site