Best personal loans with no origination fee of 2024

Written by: Dori Zinn
• Updated •6 min read
This date may not reflect recent changes in individual terms.
Man standing outside in a city, smiling as he reads on his phone about the best personal loans with no origination feeImage: Man standing outside in a city, smiling as he reads on his phone about the best personal loans with no origination fee

In a Nutshell

Some personal loans may come with an origination fee, which is the upfront cost you’ll pay for the lender to process your loan and disburse the funds to you if you’re approved. If you’re looking for a personal loan with no origination fee, we’ve rounded up our picks for some personal loan options to consider.
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If you’re considering applying for a personal loan, you’ll find some lenders charge an origination fee, which is an upfront fee to process your loan.

If you’re hoping to skip the fee, you’re in luck — there are personal loans with no origination fee. Check out a few of the options we think are most notable, organized by the features that makes these loans stand out.

Best for borrowing small amounts: PNC

Why PNC stands out: Not all personal loan lenders offer small-dollar loans, but PNC does. You can apply for a personal loan with a loan amount starting at just $1,000, which might be a good alternative to a payday loan.

  • Co-applicants allowed: If you don’t have perfect credit, you can apply for a loan with a co-applicant, which might help you qualify for a loan or lower your interest rate.
  • No option to apply for prequalification: PNC doesn’t offer a prequalification application to let you preview potential terms. Instead, you’ll need to complete a formal application to see if you’re approved for a loan.
  • Personal lines of credit available: PNC also offers personal lines of credit if you’d rather have access to revolving credit. Just remember that PNC’s personal loans have fixed rates while its lines of credit have variable rates.

Read reviews of PNC personal loans to learn more.

Best for large loan amounts: Wells Fargo

Why Wells Fargo stands out: Wells Fargo offers unsecured loans, with maximum loan amounts higher than what you’ll find at some other personal loan lenders. Wells Fargo offers unsecured personal loans up to $100,000.

  • Customers only: You’ll have to be a Wells Fargo customer for at least 12 months to apply for a personal loan.
  • Available for a variety of uses: You can use a Wells Fargo personal loan to consolidate debt, fund home improvements, pay for a medical bill or another large expense.
  • Same-day decision: You can check your rates before you apply, and for most people, Wells Fargo will provide a loan decision on the same day you apply.

Read reviews of Wells Fargo personal loans to learn more.

Best for debt consolidation: Discover

Why Discover stands out: If you’re using your loan for debt consolidation, Discover can send your loan funds directly to your creditors, saving you some time and energy during the loan process.

  • Competitive loan rates: Discover’s starting rates are on par with some of the lowest rates offered by other lenders.
  • Access to credit score: If you have a personal loan through Discover, you can get free access to your FICO® score based on your TransUnion credit report.
  • Fast funding: Discover says it can send your loans as quickly as the next business day after approval.

Read more about Discover personal loans.

Best for low rates: LightStream

Why LightStream stands out: For unsecured personal loans, LightStream says it will beat the lowest rate you’re offered by another lender by 0.1 percentage points if you meet certain conditions. If you have a solid credit history and are confident you’ll be approved through LightStream, this is one of the best opportunities available for a lower rate on a personal loan.

  • Same-day funding possible: LightStream says it can fund your loan as soon as the same day you apply. Depending on your bank, it may take a bit longer before you see your funds in your account.
  • No prepayment penalties: You can pay off your LightStream loan early without having to worry about being charged a fee for doing so.
  • Strict approval requirements: You’ll likely only be approved for a LightStream loan if you meet its high approval standards, which include having good credit, demonstrable assets and “sufficient” income.

Learn more about LightStream personal loans.

Best for credit union benefits: PenFed

Why PenFed stands out: Membership with PenFed is open to anybody, and having access to a credit union can provide you with a number of benefits. PenFed offers checking and savings accounts and a variety of loans — plus, members can receive discounts on certain products and services.

  • Prequalification option: You can apply for prequalification to check your rate without negatively affecting your credit score.
  • Reasonable rates: PenFed’s highest APR is lower than what many other lenders offer. So if you qualify for a loan with the credit union, you could save a lot in interest compared to what you’d pay with another lender.
  • No prepayment penalties: Paying off your PenFed loan early won’t result in a fee.

Learn more about PenFed personal loans.

What is a personal loan origination fee?

A personal loan origination fee is a fee that lenders charge upfront when you take out your loan. The fee covers the cost of processing your application and financing the loan.

A personal loan with no origination fee can save you from having to pay a fee just to have your application processed. But that doesn’t mean a loan with no origination fee is automatically your best bet.

When you compare loan options, you want to zero in on the proposed APR. Your APR gives you a better sense of the true cost of your loan because it includes fees plus the interest rate. If you have a competitive APR offer, an origination fee might be worth it for you.

You’ll also want to keep in mind that the origination fee might be taken from your loan proceeds, meaning you won’t get the full amount you asked for. If you get a $10,000 loan with a 2% origination fee, you’ll actually receive $9,800 if the fee is taken from your loan amount.

Consider all fees when you calculate how much you want to borrow.

Additional personal loan fees to know

Origination fees are just one potential charge that comes with taking out a personal loan. Here are a few others to be aware of.

  • Late fee — If you miss a payment or pay late, many lenders will charge you a late fee. You’ll probably also see a negative hit to your credit.
  • Prepayment penalty — Also known as an early payment penalty or fee, some lenders charge prepayment penalties if you pay off your loan before the agreed-upon loan term that you signed when taking out the loan. If you plan on paying off your loan early, look for a lender that doesn’t charge prepayment penalties.
  • Documentation fee — This is a fee that lenders charge to process your loan paperwork.

How we picked these loans

After reviewing more than a dozen personal loan lenders that don’t charge origination fees, we  considered several things to help complete this list: availability, fees, repayment options, ability to add a co-applicant, prequalification option, loan amounts and other lender perks.

FAQs about personal loans with no origination fees

Are there any personal loans without an origination fee?

Yes, there are personal loans without an origination fee. Some of the available options for lenders that offer personal loans with no origination fees include Discover, LightStream, PenFed Credit Union, PNC and Wells Fargo.

How can I avoid loan origination fees?

Before applying for a loan, check to see whether a lender charges origination fees (other upfront loan fees to look out for are application fees or loan processing fees). And before you sign any loan agreement, read through the terms of your loan to be sure you’re aware of any fees the lender is charging you — or may charge you in the future. For example, if you miss a payment you may be charged a late payment fee, and if you pay off a loan early you may be charged a prepayment (or “early payment”) penalty.

What is a typical origination fee for a personal loan?

Personal loan origination fees typically range from 1% to 8% of the loan amount.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

About the author: Dori Zinn is a personal finance journalist based in Fort Lauderdale, Florida. She enjoys helping people find ways to better manage their money. Her work can be found on numerous websites, including Bankrate, FinanceBu… Read more.