Best Personal Loans With No Origination Fees 2024

The best personal loans with no origination fees are from First Tech, earning a MoneyGeek score of 98 out of 100 due to its lack of fees, competitive rates and excellent customer service.

Updated: November 21, 2024

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MoneyGeek picked First Tech as the best overall provider of personal loans with no origination fees, awarding it a MoneyGeek score of 98 out of 100 for its lack of fees and quality customer service. Following close behind is PenFed, which secured a MoneyGeek score of 96 out of 100 for its excellent reputation and competitive rates.

Lenders commonly charge an origination fee — which can range from 1% to 10% of the loan amount — to cover the costs of processing a new loan application. Opting for a loan without an origination fee can make the loan more affordable. We evaluated various lenders based on several criteria, including interest rates, fees, loan terms and customer service quality, to identify the best no-origination-fee options for you.

MoneyGeek’s personal loan scoring system analyzed each lender's performance in areas that matter most to borrowers. We scored lenders based on whether specific desirable features were present or absent across important categories. We filtered our analysis to exclude personal loan lenders that charge origination fees.

Best Overall Personal Loan With No Origination Fee

First Tech

98MG Score
8.94% to 18.00%APR Range
UndisclosedMinimum Credit Score
$500 to $50,000Loan Amount Range
6 to 84 monthsRepayment Terms

Overall, First Tech Federal Credit Union offers the best personal loan with no origination fees, earning a MoneyGeek score of 98 out of 100. It allows its members to borrow as little as $500 or as much as $50,000, which can be paid off in six to 84 months. First Tech doesn’t charge origination fees, application fees or prepayment penalties. It also offers the option to defer the first loan payment for up to 45 days from the date the loan is funded.

Pros

$500 minimum loan amount
No prepayment penalties
Defer first payment for up to 45 days

Cons

Membership required to apply
No interest rate discounts
Doesn’t disclose eligibility criteria

Runner-Up Best Personal Loan With No Origination Fee

PenFed

96MG Score
7.99% to 17.99%APR Range
UndisclosedMinimum Credit Score
Up to $50,000Loan Amount Range
Up to 60 monthsRepayment Terms

PenFed received a MoneyGeek score of 96 out of 100, making it the runner-up for the best personal loan with no origination fees. It offers loans up to $50,000 with repayment options extending up to 60 months. While PenFed does not charge origination fees or prepayment penalties, it imposes a $29 late fee and a $30 fee for returned payments, whether by check or ACH. Interested borrowers don’t need to be members to apply for a loan. However, if you decide to proceed with your loan application, PenFed will initiate membership.

Pros

Doesn’t charge prepayment penalties
Allows co-borrowers on loans
Performs soft credit inquiries

Cons

Has a $29 late fee
Has a $30 returned loan payment, check or ACH fee
$50,000 borrowing limit

Other No-Origination-Fee Personal Loan Options

For you to do proper comparison shopping, we’ve provided some other lender options that don’t charge origination fees, including MoneyGeek’s take on what makes them worth considering.

Lender Review	Loan Amount	APR Range	Repayment Terms
Truist	From $3,500	8.74% to 17.39%	24 to 60 months
Alliant Credit Union	$1,000 to $100,000	10.99% to 13.99%	12 to 60 months
PNC	$1,000 to $20,000	12.59% to 30.00%	Six to 60 months
Fifth Third Bank	$2,000 to $50,000	8.74% to 21.74%	12 to 60 months
Laurel Road	$5,000 to $45,000	9.49% to 24.50%	36 to 60 months
Discover	Up to $40,000	7.99% to 24.99%	36 to 84 months

PREPAYMENT PENALTIES

Some lenders charge a prepayment penalty on personal loans. This is a fee that lenders charge if you pay off your personal loan before the agreed-upon term. Some charge by a specific percentage of the remaining balance or have a sliding scale that decreases over time.

Before you borrow, review your loan agreement to determine whether this penalty is charged and, if so, the specific amount you’d have to pay.

— Alvin Yam, CFP

How to Choose the Best No-Origination-Fee Loan for You

While origination fees are a significant consideration when shopping for personal loans, they aren't the only factor to consider. To find the best personal loan with no origination fees that meets your needs, you should also examine other key elements of your loan offers, such as:

Interest Rates

Interest rates determine the cost of borrowing money, directly impacting the total amount you will repay over the life of the loan. A lower interest rate can significantly reduce your monthly payments and overall financial burden.

Loan Amount

The amount you can borrow impacts whether the loan can cover your needs, whether it’s for consolidating debt or financing a large purchase. Ensure the maximum loan amount meets your requirements without compelling you to borrow more than necessary.

Additional Fees

Beyond origination fees, other personal loan fees can affect the cost of your loan. These include prepayment penalties (charged if you pay off your loan early), late fees (incurred for missing payment deadlines) and returned payment fees (applied if your bank rejects the loan payment, which can happen with insufficient funds or bank errors).

Repayment Terms

The length of the loan term affects both your monthly payment size and the total interest paid. Shorter terms generally mean higher monthly payments but lower interest costs overall, while longer terms spread out payments but increase total interest.

Eligibility requirements

Lenders have specific criteria for approving loan applications, which may include credit score minimums, income levels and employment status. Understanding these requirements will help you determine if you qualify or need to improve your financial standing before applying.

HIGHER INTEREST RATES FOR RISKY BORROWERS

Lenders may offset a lack of origination fees by charging higher interest rates to borrowers with lower credit scores or higher-risk profiles. This can increase total borrowing costs, especially if you have a bad credit history.

— Alvin Yam, CFP

Use MoneyGeek’s monthly payment calculator to experiment with different interest rates and terms to see what you can afford. Remember: only borrow what you can commit to repay. Missed payments stack up quickly and can affect future opportunities for other loans.

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Updated: Dec 30, 2024

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FAQ: Personal Loans With No Origination Fees

We compiled a list of frequently asked questions about personal loans with no origination fees to help you in finding the best option that reduces your initial costs.

What is an origination fee?

An origination fee is a charge that some lenders impose to cover the cost of processing a new loan application. It is typically a percentage of the loan amount. Loans without origination fees can save borrowers significant upfront costs, making borrowing more economical.

How do I qualify for a no-origination-fee personal loan?

To qualify for a no-origination-fee personal loan, you generally need a good credit score and a stable income. Lenders will also evaluate your debt-to-income ratio to ensure you can afford additional debt. Each lender has specific criteria, so review these requirements before applying.

Can I still get competitive interest rates on loans without origination fees?

Yes, many lenders offer competitive interest rates on loans without origination fees. As always, compare offers from multiple lenders to ensure you get the best rate possible based on your credit profile and financial situation.

What impact does a no-origination-fee loan have on my total loan cost?

Removing the origination fee can significantly reduce the total cost of your loan. For example, on a $10,000 loan with a 5% origination fee, you would save $500 in fees right at the start. This allows more of your payments to go directly towards reducing the principal balance.

How long does it take to get funding for a no-origination-fee personal loan?

The funding timeline varies by lender, but typically, you can receive funds as soon as the same day you apply to within a few business days. Some lenders might take longer, so it's a good idea to ask about timelines if you need the money by a specific date.

Can I use a no-origination-fee personal loan for any purpose?

Yes, personal loans are typically unsecured and can be used for almost any purpose, including debt consolidation, home improvements, medical expenses, or covering emergency costs. However, some lenders may have restrictions, so it’s worth checking their terms.

How does my credit score affect my ability to get a no-origination-fee loan?

A higher credit score generally improves your chances of qualifying for any personal loan, including those without origination fees. It also helps secure lower interest rates. You might still qualify if your credit score is lower but with higher rates or additional conditions.

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About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.