SoFi Personal Loans Review: Low Rates and No Fees Required

Not only does SoFi Personal Loans offer an easy-to-use application, but it is also famous for its no-fee loan products and consumer-centric business model. Read our in-depth SoFi personal loan review to decide if it's the right loan company for you.

This personal loan is a good fit for: Borrowers with good credit in search of a no-fees-required personal loan.

Top perks

Low loan interest rates: SoFi's low rates are a standout that can go toe to toe with some of the most competitive lenders in the industry. SoFi (short for Social Finance) keeps rates low with its strict lending standards, such as good credit and an appropriate balance of income and expense. The low rates make a SoFi loan a great option for people looking for ways to consolidate and pay off higher interest credit card debt.

No fees required: SoFi -- like several of our top lenders -- offers no-fee loans. That means there are no origination fees or late fees required. If you decide to pay a SoFi no-fee loan off early, you won't have to worry about a nasty prepayment penalty. Even if a competitor offers you a slightly lower personal loan rate, you might save money by going with SoFi.

Autopay discount: You can secure a 0.25% rate discount if you set up automatic loan payments from your bank account.

Large loan amounts: SoFi's loan amounts range from $5,000 to $100,000. This is at least double the maximum loan amount available from most of SoFi's competition.

Paused payments for unemployment: SoFi will allow you to pause your monthly payments if you lose your job. This unemployment protection is capped in three-month increments for a total of 12 months over the life of your loan. If a global pandemic has taught us anything, it's that financial emergencies can strike at any time.

Check rates without affecting your credit score: Like many online lenders, SoFi can use a soft credit check that does not hurt your credit score to show you what rates you prequalify for. It's not until you decide to accept SoFi's offer that the lender runs a hard credit check to verify your information.

Same-day funding: At SoFi, most typical personal loan applications made before 7 p.m. on business days are funded the same day.

Easy-to-use mobile app: SoFi makes it easy to do business wherever and whenever you want by offering an advanced, user-friendly mobile app that lets you borrow, invest, and save. You can use it to check your rate and apply for a loan, as well as manage your SoFi Invest account and SoFi checking, savings, and loan accounts.

Access to member benefits: SoFi calls its customers members. You get more than a loan when you borrow from SoFi. As a member you also get free access to special perks like career coaching and financial planning, plus discounts off estate planning services. SoFi also plans member experiences and access to the Member Lounge at SoFi Stadium.

Co-borrowers are allowed: SoFi allows co-applicants on personal loan applications, as long as they live at the same address as the primary applicant. A creditworthy co-borrower can increase your likelihood of approval for a loan in the amount you need.

What could be improved

More diverse loan amounts: SoFi could be a more versatile loan provider if it offered loans to borrowers looking for less than $5,000. If you need a loan to repair broken water pipes or replace a few windows, you're probably not looking for a $5,000 loan.

You'll generally need the following to qualify for a SoFi personal loan:

• Good credit, or a FICO? Score of 680 or higher. The average SoFi borrower has a credit score of 730.
• An acceptable debt-to-income ratio (DTI). If your monthly debt obligations already take up a large chunk of your paycheck, it is a red flag for lenders.
• Higher education and a strong work record. SoFi considers these good predictors of borrowers' future ability to pay.
• High income. The average SoFi customer has a six-figure annual income.

As you can see, SoFi's loan approval is based on more than just your current income and credit score. The company prides itself on its unique approach to underwriting and considers factors such as the borrower's education, professional history, and more.

If you qualify for a SoFi personal loan, you should receive the funds within a few business days. Most typical loans fund the same day or the next business day.

You can use the money in a number of different ways:

• Credit card consolidation loan
• Home improvement loan
• Family planning expenses
• Medical expenses
• Wedding expenses
• Travel or vacation loan
• Relocation or moving loan
• Funeral expenses

You can't use a personal loan for just anything. All lenders impose some restrictions on how the proceeds may be used. If you need money for real estate, business purposes, investments, purchases of securities, post-secondary education, or short-term bridge financing, you can't use a SoFi loan.

If you already have a SoFi loan, you are eligible to apply for a second loan after you've made three consecutive scheduled payments on your first loan, as long as your total outstanding balances don't exceed the $100,000 limit. Michigan residents may only have one SoFi loan at a time.

Applicants who don't qualify may reapply with a co-borrower, so long as that person lives at the same address. If approved, both co-borrowers will be fully liable for the debt. Co-borrowers may not be removed from a loan. To get someone's name off the loan, you need to pay it off or refinance it with a new loan in your name only.

For applicants who don't qualify for a SoFi loan, there are other options to consider. You could try one of our other top personal lenders, and if you have below-average credit history, we've rounded up a list of reputable lenders who will consider applications from borrowers with bad credit (including applicants with a credit score as low as 580).

SoFi's personal loan application process

SoFi's application process is pretty straightforward.

• Fill in your basic information online. As with many other personal lenders, you can prequalify for a SoFi loan and check your interest rates in just minutes.
• If you decide to apply, complete your application. The form is pretty simple, and any documentation requests are made in a timely manner. You may need to provide a photo ID, proof of address, proof of income, and other documents.
• If you're approved, sign your loan documents. In all, SoFi says your personal loan will be funded within a week of when you start the application. Most loans fund the same day or the next business day.

SoFi is an excellent choice for many consumers in need of personal loans. However, that doesn't mean it's the best personal loan for everyone. Here are some alternatives that might suit you better.

• Upstart prides itself on its unconventional approach for borrowers with little to no credit history. Plus, Upstart's minimum loan amount is just $1,000, which might better meet the needs of borrowers looking for lower amounts.
• If you need a loan for bad credit, Avant may be the lender you're looking for. You don't need excellent credit here. Avant considers loan applications with credit scores as low as 580. Avant also offers loans for as little as $2,000.

Upstart and Avant both offer a loan term up to 60 months, where SoFi offers a repayment term of three to seven years.

• You're seeking a no-fees-required personal loan with competitive interest rates.
• You have good credit, a high income, and a college degree.
• You use, or are willing to use, other SoFi financial products to maximize your discounts.
• You need to borrow more than $50,000, in which case SoFi may be one of your only options.

Need a loan? Check out The Ascent's guide on how to apply for a personal loan.