Personal Loans With No Origination Fee: Who Offers Them and When They Cost Less
Bills Bottom Line
Some banks and credit unions offer personal loans with no origination fee. But a no-fee loan with a higher interest rate may cost more than a loan with a fee and lower rate. Lenders that charge an origination fee usually deduct it from your loan proceeds. The APR includes the fee.
Table of Contents
- Which lenders offer personal loans with no origination fee?
- What is a personal loan origination fee?
- Is a personal loan with no origination fee always cheaper?
- How to get a personal loan with no origination fee
- What other fees can a no-origination-fee personal loan charge?
- Where the origination fee appears in a loan offer
- Bills Action Plan
- Key Terms
Comparing offers can be tricky: one lender may advertise no fee, while another charges several hundred dollars but offers a lower rate. The cheapest option depends on the total cost of the loan.
In addition, fee policies vary. Some lenders charge every borrower, some charge only certain borrowers, and others never charge a fee.
Start by checking lenders with no-fee loans, then compare the total cost of each offer.
Which lenders offer personal loans with no origination fee?
These 18 lenders either charge no origination fee or publish a fee range that starts at zero. Each policy is based on information from the lender’s website as of October 2026.
| Lender | Type of lender | Origination fee | Who can apply |
|---|---|---|---|
| American Express | Bank | None | Card Members who receive an offer |
| Citi | Bank | None | Anyone, with one exception† |
| Discover | Bank | None | State restrictions may apply |
| Happen Bank | Bank | 0% to 8%* | Anyone can apply |
| KeyBank | Bank | None | Residents of 15 states† |
| PNC Bank | Bank | None | Not offered in Florida; PNC checking account needed to apply online |
| Regions Bank | Bank | None | Regions deposits customers of at least six months |
| SoFi | Bank | 0% to 7%** | State restrictions may apply |
| TD Bank | Bank | None | Residents of 15 states and Washington, D.C.† |
| Truist (LightStream) | Bank | None | Anyone can apply |
| U.S. Bank | Bank | None | Anyone can apply |
| Wells Fargo | Bank | None | Wells Fargo customers of at least 12 months |
| BECU | Credit union | None | Members: Washington state, parts of Oregon and Idaho |
| Digital Federal Credit Union | Credit union | None | Members only |
| Golden 1 | Credit union | None | Members: people who live or work in California |
| Navy Federal | Credit union | None | Members: armed forces, Department of Defense, veterans, and their families |
| PenFed | Credit union | None | Anyone can apply, you join during the application |
| SchoolsFirst Federal Credit Union | Credit union | None | Members: school employees and their families |
Fee policies checked October 9, 2026.
* Happen Bank sets the fee when you apply. Some borrowers pay a fee.
** SoFi lets you choose a loan with or without an origination fee, and your choice affects your interest rate. Ask SoFi for your rate both ways.
† Who can apply:
- Citi: The exception is a Citi credit card customer with less than 12 months of Citi credit card history who has no Citi deposit account.
- KeyBank states: Alaska, Colorado, Connecticut, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont, and Washington.
- TD Bank states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, and Virginia, plus Washington, D.C.
Fee policies change, and the lender's own offer is the final word. This table isn't a ranking. Bills.com's picks, with full reviews, are a separate list: best personal loans.
What is a personal loan origination fee?
A personal loan origination fee is a one-time charge a lender makes for processing your loan. The fee pays for work such as reviewing your application, pulling your credit report, and verifying your documents. The basics of the loan itself are in what a personal loan is and how it works.
The fee is usually a percentage of the amount you borrow. Some lenders charge none, and others charge up to 10% of the loan amount.
Lenders usually deduct the fee from the loan before sending your money. When that happens, you receive less than you borrowed. You pay interest on the full amount you borrowed, fee included.
Some lenders add the fee to your balance, while others charge it up front. Your loan agreement says which method applies.
A deducted fee changes how much to ask for. If you need a set amount in hand, the loan must be larger than that amount to cover the fee.
Example: how much to borrow
- Amount you need in hand: $10,000
- Origination fee: 5% of the loan
- Amount to borrow: $10,000 ÷ 0.95 (1 minus the fee rate) = $10,526.32, rounded up to $10,530
- Amount you receive: $10,530 minus the $526.50 fee, or $10,003.50
With no fee, the amount to borrow is the amount you need.
Is a personal loan with no origination fee always cheaper?
No. A loan with no origination fee and a higher interest rate can cost more over time than a fee loan with a lower rate and an origination fee.
Here is an example of two offers to borrow $15,000 at fixed rates, each priced over three years and five years.
| No-fee offer | Fee offer | |
|---|---|---|
| Interest rate | 12% | 10% |
| Origination fee | $0 | $750 (5%) |
| Money received | $15,000 | $14,250 |
| Monthly payment, three-year term | $498.21 | $484.01 |
| Monthly payment, five-year term | $333.67 | $318.71 |
| Total interest cost, three-year term | $2,936 | $3,174 |
| 3-year APR | 12% | 13.56% |
| Total interest cost, five-year term | $5,020 | $4,873 |
| 5-year APR | 12% | 12.24% |
Total cost is interest plus the fee. On the three-year term, the no-fee offer costs about $240 less. On the five-year term, the fee offer costs about $150 less.
The fee is a fixed sum you pay once, at the start. Interest works differently: the higher the rate, the more you pay over the life of the loan. Over three years, the lower rate doesn't save enough to cover the $750 fee. Over five years, it does.
The fee offer also sends you $750 less. To receive the full $15,000 from the fee offer, you'd borrow $15,790, and its five-year cost would rise to about $5,129. The no-fee offer's five-year cost is $5,020.
In this example, two things decide which offer costs less: the length of the term, and how much money you need in hand.
It's the annual percentage rate that matters
One figure on each offer counts both the rate and the fee: the APR. APR (annual percentage rate) is a measure of the cost of credit shown as a yearly rate. It reflects the interest rate plus certain fees (such as origination charges and points). It is not the total dollar amount you will repay over the life of the loan, and it is usually higher than the interest rate alone. In the example fee offer, the APR over three or five years is higher on the loan that has the lower interest rate, because it includes the $750 fee.
To turn a rate, a fee, and a term into an APR, use the personal loan APR calculator.
Can fees be refunded if you pay a loan off early?
Lenders differ on whether any of the fee comes back when you pay a loan off early. Check your loan terms or ask your lender.
Bottom line
Compare the term, whether the rate is fixed or variable, and eligibility too. How to compare personal loans covers those topics.
How to get a personal loan with no origination fee
To get a personal loan with no origination fee, pick a lender that states on its own website that it charges none.
Lenders put the fee statement in different places. The statement can sit in the loan page's main text, in a footnote at the bottom, or on a separate rates and fees page. Read down to the small print before you decide a lender has no fee.
Check who the lender accepts loan applications from while you're on its site. Some lenders in the table lend only to their own customers, to members, or to residents of certain states.
Look for the lender's APR range as well. Some lenders show it on the same page as the fee statement. The lowest rate in the range may require good to excellent credit. Compare the range with current personal loan rates.
What other fees can a no-origination-fee personal loan charge?
A personal loan with no origination fee can still carry other fees. Lenders with no origination fee differ: some charge no other fees, and some charge a late fee or a returned payment fee. These are the fees to check for:
- Late fee. A flat charge or a percentage of the amount you owe, charged when a payment is late.
- Returned payment fee. One of the fees a personal loan offer can carry. Your loan agreement could also include a bounced check fee.
- Prepayment penalty. Charged by some lenders when you repay the loan before the term ends.
- Application, documentation, or processing fee. An application fee is a one-time upfront charge for processing your application, and a documentation fee pays for processing the paperwork. Some lenders fold these costs into the origination fee, and others bill them separately.
- Credit insurance or disability insurance. Both are common charges on personal loans, and both are generally optional.
Federal rules require your loan disclosure to show any late payment charges. On a loan where interest is charged on the balance you still owe, the disclosure must also state whether paying early can carry a penalty. For the rest, ask each lender for a list of all its fees before you apply.
Where the origination fee appears in a loan offer
The origination fee appears in your Truth in Lending disclosure, a written statement of the loan's costs. The amount you receive is on a separate list that comes with the disclosure, and you may need to ask for that list. Your lender must give you the disclosure before you sign the loan contract. You can insist on getting it earlier, so you have time to read it.
A number of lenders let you prequalify first to receive an estimate of your loan amount, interest rate, and term. Prequalification is an estimate, not an offer. Your amount, rate, and term can change once you formally apply and get approved for a personal loan. Ask the lender whether their estimate includes an origination fee and how much money you'd receive.
On the disclosure, find four figures:
- Annual percentage rate: the cost of your credit as a yearly rate.
- Finance charge: the dollar cost of your credit, loan fees and interest together.
- Amount financed: your loan amount minus any fee the lender withholds.
- Total of payments: the amount you'll have paid after every scheduled payment.
The fee itself may carry another name. Federal rules call a fee withheld from your loan a prepaid finance charge, and lenders may use their own labels. A separate list, breaking down the amount financed, shows the prepaid finance charge and the loan proceeds paid directly to you. If your lender doesn't provide you with the itemization, you have the right to request it.
Make sure the disclosure matches what the lender advertised and told you, including "no origination fee." If the two don't match, ask the lender why before you sign. Ask about anything else you don't understand, too. You can also file a complaint with the Consumer Financial Protection Bureau if they fail to answer.
Bills Action Plan
- Collect offers. Prequalify with several lenders, including at least one from the no-fee lender table, so you have real figures to compare. Prequalification typically uses a soft inquiry; a formal application uses a hard inquiry. A soft inquiry (soft pull) does not affect your credit score. A hard inquiry, made when you formally apply for credit, can lower your score by a few points temporarily.
- Compare apples to apples. Set the offers side by side. Compare APR with APR, never APR with an interest rate. Then compare the finance charge.
- Confirm before signing. Find the fee and the amount paid to you in the Truth in Lending disclosure, and ask for the itemization if you weren't given one. If a fee leaves you short, raise the loan amount and check the new payment. You don't have to accept an approved offer you're unhappy with.
Key Terms
Origination fee: A one-time fee a lender charges to cover the cost of processing your loan, generally set as a percentage of the amount you borrow.
APR: APR (annual percentage rate) is a measure of the cost of credit expressed as a yearly rate. It reflects the interest rate plus certain fees (such as origination charges and points).
Loan proceeds: The loan money a lender pays directly to you, as cash or a check, or into an account. When a fee is deducted, the proceeds you receive are less than the amount you borrowed.
Prequalification: An informal estimate of the amount, rate, and term you might get, based on what you tell the lender and a soft credit check.
Are personal loan origination fees negotiable?
Most origination fees are negotiable, and good credit helps. Before you accept an offer, ask the lender whether it can reduce the fee and what happens to your rate and term. A lender that lowers the fee may raise your interest rate or lengthen your term, and either change can make the loan cost more.
Is a 2% origination fee high?
A 2% origination fee sits toward the low end of the 0% to 10% that lenders charge. The percentage alone doesn't settle which loan costs less. A loan with a higher fee and a lower interest rate can cost less than one with a lower fee and a higher rate.