Finding a personal loan that doesn’t charge an origination fee can help you save money upfront—especially if you’re borrowing a large amount. Origination fees are often deducted from your loan amount before it reaches your bank account, which means you might end up with less money than expected.
Fortunately, several top lenders in 2025 offer personal loans with no origination fees, making them a great option if you’re looking to cut unnecessary costs.
Below is a closer look at some of the best personal loan providers offering no-fee loans, plus helpful tips for keeping borrowing costs low.
Top Personal Loans With No Origination Fees
1. LightStream – Best Overall Personal Loan Option
- Credible Rating: ★ 4.9
- Loan Amount: $5,000 to $100,000
- Estimated APR: 6.49% – 25.29%
- Minimum Credit Score: 700
Why Choose LightStream?
LightStream stands out as the top pick for borrowers who want high loan amounts, low interest rates, and zero origination fees. They offer one of the most competitive ranges of APRs in the market and don’t charge any extra fees for application, origination, or prepayment. It’s especially ideal for people with excellent credit scores.
2. SoFi – Best for Optional Origination Fees
- Credible Rating: ★ 4.8
- Loan Amount: $5,000 – $100,000
- Estimated APR: 8.99% – 35.49%
- Minimum Credit Score: Not disclosed
Why Choose SoFi?
SoFi is flexible when it comes to fees. While they may charge an origination fee, they also give you the option to choose a loan with no fees depending on your credit profile.
SoFi loans are known for offering extra benefits like career coaching, unemployment protection, and member rewards—making it a strong choice for qualified borrowers.
3. Citibank – Best for Borrowers With Very Good Credit
- Credible Rating: ★ 4.2
- Loan Amount: $2,000 to $30,000
- Estimated APR: 8.99% – 19.49%
- Minimum Credit Score: 740
Why Choose Citi?
If you have a high credit score, Citibank could be a great fit. They offer loans with no origination fees and very competitive rates for qualified applicants. However, the maximum loan amount is lower compared to other lenders.
4. Discover – Best No-Fee Loans With Quick Funding
Discover offers personal loans without any origination fees, and borrowers can receive funds as soon as the next business day. To qualify, you need an annual income of at least $40,000 and a minimum credit score of 660. However, Discover does not allow cosigners and may not be ideal for applicants with poor credit.
Highlights:
- Low APRs
- Terms up to 7 years
- No Social Security number required for prequalification
- Funds often disbursed quickly
5. PenFed – Best Credit Union Option
PenFed Credit Union provides personal loans with no origination fees and low interest rates. While you’ll need to become a member, membership is open to everyone. They offer smaller loan amounts and accept joint applications with cosigners—something many lenders don’t allow.
Key Benefits:
- No income minimum
- Entirely online application
- Live chat support
- Cosigner option helps those with low credit qualify
What Is an Origination Fee on a Personal Loan?
An origination fee is a one-time charge that some lenders apply when you take out a loan. It’s used to cover processing and administrative costs. However, not all lenders charge this fee, especially if you have good or excellent credit.
How Much Is It Usually?
Origination fees typically range from less than 1% to as high as 12% of the loan amount, depending on the lender and your credit risk.
Example:
If you’re approved for a $10,000 loan with a 5% origination fee, you’ll only receive $9,500—but you’ll still owe the full $10,000 plus interest.
How Origination Fees Work
Lenders calculate the origination fee based on factors like:
- Your credit score
- The size of the loan
- Your repayment term
- The loan’s purpose
This fee is usually deducted from your loan amount upfront. So even though the amount you receive is lower, you still owe the full loan principal.
How to Adjust for the Origination Fee
If your lender charges an origination fee and you need to receive a specific amount, you’ll have to borrow a bit more to account for the fee.
Estimate Method
If you need $10,000 and the origination fee is 5%, borrow $10,500. But note—5% of $10,500 is actually $525, so you’ll receive $9,975.
Exact Formula
Use this formula:Needed Amount ÷ (1 - Origination Fee as Decimal)
E.g., $10,000 ÷ 0.95 = $10,526.32
You’d receive exactly $10,000 after the $526.32 fee is deducted.
— Meredith Mangan, Senior Personal Loans Editor, Credible
Why Do Some Lenders Charge Origination Fees?
Origination fees help lenders cover the costs of processing applications, running credit checks, and managing loans—especially when dealing with applicants who have lower credit scores. If you have excellent credit, you may not be charged a fee at all, or you can qualify for a lender that doesn’t charge one.
Keep in mind, though, that lenders who don’t charge origination fees may expect you to meet higher credit standards.
Other Personal Loan Fees You Might Encounter
Even if there’s no origination fee, other charges can apply:
- Late Payment Fees: Charged if you miss a due date.
- Returned Payment Fees: If your payment bounces due to insufficient funds.
- Prepayment Penalties: Rare, but some lenders may charge you for paying off a loan early (Credible’s partner lenders don’t charge this).
Tips to Avoid Paying Origination Fees
Here’s how you can steer clear of origination fees on personal loans:
- Pick the Right Lender: Choose lenders like LightStream or Discover that clearly state they don’t charge origination fees.
- Improve Your Credit Score: A higher score can make you eligible for no-fee options.
- Compare Offers: Use prequalification tools to compare lenders without impacting your credit score.
- Negotiate: If you have a strong credit history or an existing relationship with the lender, ask them to waive the fee.
Good to Know:
Prequalification uses a soft credit check, which doesn’t hurt your credit score. But applying for a loan results in a hard inquiry, which may lower your score slightly.
Smart Ways to Keep Your Loan Costs Low
- Choose a Shorter Loan Term: A shorter term means less interest paid over time.
- Pay More Than the Minimum: Extra payments reduce your balance and interest.
- Avoid Extra Fees: Always read the loan terms to understand what fees you could face.
- Ask About Discounts: Some lenders lower your rate if you sign up for autopay or use the loan to pay off existing debt directly.
Conclusion
Avoiding origination fees is a smart way to save money when borrowing. Whether you’re seeking a large personal loan or just need a small amount for a short-term expense, choosing the right lender is key.
In 2025, top lenders like LightStream, SoFi, Discover, Citi, and PenFed offer strong options with competitive APRs and no origination fees—making them ideal choices for budget-conscious borrowers.
Take time to compare, prequalify, and apply with the lender that best fits your financial situation. With a little planning, you can borrow wisely and avoid unnecessary charges.
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