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Social Finance Inc., commonly known as SoFi, is a non-traditional lender that offers a range of loan products, including student loans, mortgage loans and personal loans. Recently it has started to offer investment products and life insurance as well.
SoFi personal loans tend to come with low interest rates, quick application turnaround, highly-respected customer support, no hidden fees and exclusive member benefits. If you’re seeking a loan, all of those are attractive perks.
Here’s a look at how SoFi personal loans work:
SoFi personal loans can be used for a variety of reasons. That includes consolidating expensive credit card debt, doing remodels or home improvement projects, paying for a wedding or other special event, taking a vacation or paying medical bills.
With SoFi, you repay your personal loan by making fixed monthly payments plus interest. The APR range for SoFi is between 5.49% and 14.24%, very competitive compared to other personal loan offers.
If you make SoFi loan payments electronically via ACH, you save money by getting a 0.25% discount on your interest rate, which is reflected in the rates listed above.
You can also make payments using your bank’s online bill pay or send a paper check. And if you have a loan in good standing, you can change your payment date, if needed.
Rate quotes and funding
SoFi offers a quick online process for rate quotes. If you’re approved, you choose the loan option that works best and complete your application with an electronic signature.
After that, your funds are wired into your account — the entire process can take less than a week.
Getting Approved for SoFi Personal Loans
Jim Posser, VP of Communication and Policy for SoFi, says, “On average, SoFi personal loan borrowers earn more than $100,000 in income and have a credit score over 700, but SoFi looks beyond just the headline numbers.”
Posser says that cash flow, which is income minus debts and living expenses, is one variable SoFi uses to evaluate potential borrowers. They want to know that you have enough disposable income to keep up with monthly personal loan payments.
Loan eligibility also depends on other factors, such as a responsible financial history and your professional experience. You must be a U.S. citizen or permanent resident who is age 18 or older and live in one of SoFi’s eligible states. Personal loans from SoFi currently aren’t available to residents of Mississippi or Nevada.
Facts about SoFi personal loans
Here are some facts about SoFi personal loans can make them a great choice for borrowers:
1. Lower interest rates
SoFi personal loans offer low, fixed interest rates that can make monthly payments more affordable. If you have loans or credit cards that charge more than 10%, it may make sense to pay them off using a lower-rate loan to save money. Plus, paying down credit card debt can help increase your credit score.
2. High loan amounts
SoFi offers personal loans from $5,000 to $100,000 that you can use for any personal reason or expense. You choose either a 3-, 5- or 7-year repayment term that fits your financial needs.
3. No collateral is required
SoFi personal loans are unsecured, which means that you do not need to provide collateral to qualify for a loan.
4. No fees or penalties
When you apply for a personal loan, watch out for fees and penalties. Some lenders charge an upfront origination fee to process your loan, more fees at closing and a prepayment penalty if you decide to pay off a loan early. But SoFi doesn’t charge any of these fees, making their personal loans more affordable for borrowers.
5. Pre-approvals never affect your credit
You can get pre-approved instantly for a SoFi personal loan with no fee or obligation. There’s just a soft inquiry on your credit, which never shows up in your credit history or affects your credit scores in any way.
6. Borrowers get member benefits
SoFi personal loan borrowers are called members, and they get access to unique benefits. In addition to customer support, seven days a week, SoFi offers members career counseling and financial advising. Members can also attend exclusive social events and dinners throughout the country. Plus, members receive unemployment protection that allows you to temporarily stop making loan payments if you lose your job.