Is a SoFi Personal Loan Right for You?
More personal loans were made in the US in 2018 than in any year before. That comes after strong growth, year after year, for the past five years.
Part of the growth has been driven by new, online lenders. Companies that didn’t exist a decade ago have burst onto the scene and funded billions of dollars in personal loans. SoFi is a personal loan company that started making student loans before expanding.
SoFi has created a personal loan product that targets a specific market of financially solid customers and adds features that create community and build customer loyalty.
SoFi Isn’t for Everyone
SoFi doesn’t aim to provide personal loans to everyone. They aim for very well qualified borrowers, with the majority of their customers having credit scores over 700 and high income, too.
SoFi personal loans are available online. The personal loan interest rates are competitively priced, at the low end of the market, and checking out your options and applying are a simple and fast process. SoFi claims that it takes two minutes to find out your loan options, with no commitment and no effect on your credit
While SoFi works hard to differentiate itself from other personal loan lenders, SoFI personal loans are often used for the same purposes as loans from other lenders. Debt consolidation is one popular loan purpose. Even well-off people can benefit from a low-interest loan to pay off high-interest credit card debt.
Home improvement loans are another common reason borrowers take out a SoFi personal loan SoFi makes loans from $5,000 to $100,000. Most online lenders have smaller maximum loan amounts. SoFi’s higher loan amounts offer borrowers the ability to fund major remodeling.
SoFi loans can’t be used for whatever you want. Prohibited uses include investments, real estate, business purposes, and investments.
SoFi Rates. Terms, and Fees
As of May 2019, SoFi personal loans are available with interest rates if 5.99% – 16.99% for fixed rate loans (the rate reflects a .25% reduction for paying the monthly payment with autopay).
Interestingly, SoFi is a rare lender that also offers unsecured personal loans with adjustable rates. The May 2019 interest rates on adjustable rate loans are 5.74% – 14.70% (the rate reflects a .25% reduction for paying the monthly payment with autopay).
Choose carefully. SoFi has customer care consultants available to discuss the options and help you make the best choice.
Also take time to compare offers from other lenders. Too many people take the first offer they receive, costing themselves money for lack of a few minutes of effort. You can use the Personal Loan Rate Table, immediately below, and compare offers from multiple lenders.
SoFi offers loan repayment terms run from 2 to 7 years. The shorter the term, the lower the interest rate.
SoFi charges no fees for its loans: no origination fees, no pre-payment fees, no late fees (though late payments past 30 days will hit your credit report and harm your score).
SoFi Eligibility Requirements
In addition to demonstrating sufficient financial qualifications (credit score, debt-to-income ratio, employment) you must:
Be a US citizen, permanent resident or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1) 18 years or older, and provide the documents SoFi requests to prove this.
Reside in a state in which SoFi does business. (As of May 2019, SoFi offers personal loans in every state other than Mississippi.)
You are at legally old enough to enter into contracts in your state of residence.
Added Benefits of a SoFi Personal Loan
- SoFi loans have some unique features SoFi calls ‘Member Benefits.’ Here are some of the benefits that can be of great value.
- Job loss- If you lose your job, let SoFI know ASAP. They offer an Unemployment Protection benefit that allows you to suspend payments for 12 months. Interest accrues during this time and you have to renew the status in 3 month periods, which are small costs to avoid default. You also need to work with their Career Strategy team and show that you are looking for work.
- Co applicants now allowed. A co-applicant can help improve the loan applications chances of approval, There are restrictions on who can apply as a co-applicant the co-applicants must live at the same residence.
Community events- Happy hours, educational events, and get togethers.
- Financial Advice- Fees are waived for investing in SoFi Wealth, if you have borrowed from SoFI.
SoFi is an example of a FinTech lender that’s made a big impact on the personal loan market. SoFi started making student loan consolidation loans, and doing it differently. They’ve created a company that offers mortgage loans, student loans, personal loans, but SoFi is more than loans. They’ve built a community. And the special features they offer, along with the low interest rates, makes them a unique personal loan lender.
If you have strong income and high FICO scores and seek a personal loan of $5,000 or more, then check out what SoFi has to offer and compare to a few other lenders that serve the prime borrowers.