Best Personal Loans With No Origination Fee

What is a loan origination fee?

A personal loan origination fee covers the lender’s processing cost and is calculated as a percentage of the loan amount, typically between 1% and 10%. Lenders most often deduct the fee upfront from the loan proceeds, but it can also be rolled into the balance.

For example, a $20,000 personal loan with a 5% (or $1,000) origination fee means you receive $19,000 instead of the full loan amount. You’ll still repay $20,000, plus interest.

The annual percentage rate on a loan will include the origination fee, so be sure to read the fee details from your lender to get a clear picture of your costs. To save money or get your entire loan amount, identify lenders that offer no-origination fees on personal loans.

» COMPARE: Current average rates for personal loans

Bank personal loans with no origination fee

Most banks offer personal loans with no origination fee. Consider a bank loan if your bank offers lower rates or other benefits for existing customers.

Here are banks that charge no origination fee on personal loans:

• American Express offers personal loans solely to existing cardholders who receive pre-approval.

• Citibank promises no fees of any kind and the ability to qualify for multiple rate discounts, which lowers the amount of interest you pay. 

• PNC offers a rate discount for customers who sign up for automatic payments from a PNC checking account. The lender also accepts co-applicants.

• TD Bank offers fast approval and funding time but is only available in a limited number of states. 

• Truist Bank offers fast funding and the option to add a co-borrower, which can help you qualify for a personal loan.

• U.S. Bank is best for existing bank account holders, offering personal loans with same-day funding once you’re approved.

• Wells Fargo loans are a good fit if you’re an existing customer, and it offers the ability to pre-qualify with a soft credit check.

» COMPARE: Best unsecured personal loans

Other personal loan fees and charges

Here are other costs, besides the origination fee, to keep in mind when comparing personal loans:

Annual percentage rate: The annual percentage rate, or APR, is the sum of the loan’s interest rate plus all upfront costs, including the origination fee. Lenders are required to disclose APR and fees under the Truth in Lending Act. Use APRs to compare the actual annual borrowing costs between lenders.

Use our personal loan calculator to see estimated APRs and payments for a personal loan based on loan amount, rate and term.

Late fee: This common fee is charged when you’ve missed a payment due date, although some lenders allow a grace period before charging it.

To avoid late fees, consider setting up payment reminders or automatic payments via ACH debit, which authorizes lenders to deduct the loan payment directly from your bank account. Lenders may also waive a late fee if you request it.

Insufficient funds fee: Also called an overdraft fee, this may be charged (on top of a late fee) if you’ve signed up for autopay but don’t have enough cash in your bank account to cover the loan payment. Consider setting up an alert with your bank if your balance falls below the monthly payment amount.

How to get a personal loan with no origination fee

1. Research lenders: Start by compiling a list of a few lenders that don’t charge origination fees. Sites like NerdWallet are a good place to start, though you can also check with your bank and your local credit union. Most lenders clearly list origination fees — or lack thereof — on their website. 

2. Pre-qualify if possible: Pre-qualification involves a soft credit check and allows you to compare different loan options with no impact to your credit score. Banks and credit unions are less likely to offer pre-qualification than online lenders. If the lenders you’re considering don’t offer pre-qualification, look for eligibility requirements listed on the lender’s website (like minimum credit score or minimum income) before applying. 

3. Submit your application: Once you’ve settled on the best lender for your needs, it’s time to submit your application. Most applications can be submitted online and require personal details, including your Social Security number and proof of identity and income, as well as details about the loan you want, such as loan amount, desired repayment term and loan purpose.

4. Get funded: Once you’re approved for a personal loan, lenders can typically deposit the funds in your account within a few days, though some online lenders offer same-day funding.