SoFi Personal Loans Review – All you need to know before applying

SoFi Securities LLC offers no-fee and low-interest rates personal loans to borrowers in the United States (except Mississippi) with a credit score of at least 670. The higher your credit, the cheaper the interest rate and loan term you will receive.

Borrow from $5,000 up to $100,000 without collateral at a fixed interest rate starting from 4.99% APR to 19.63% APR. Use this loan to finance your home improvement projects, consolidate your credit card debts, travel, weddings, family planning, and more.

Here is a quick overview of SoFi Personal Loans.

Brief About SoFi Securities LLC

SoFi, also known as Social Finance Inc, was founded in 2011. By 2015 they started offering unsecured personal loans to US citizens and legal residents. The personal loans from SoFi are from their branch called SoFi Lending Corp, which the Department of Business Oversight licenses. 

Is SoFi a legit lender? The simple answer is YES. SoFi is an SEC-registered broker-dealer and a proud member of FINRA/SIPC. They have been around since 2011 and have funded over $50 billion to US borrowers who needed financial assistance. They have over 2,000,000 happy members on their platform, and the number keeps increasing.

Although SoFi is a legit lender, they are not an actual bank. But when it comes to lending you money when you need it the most, they are one of the best go-to lenders.

Who is SoFi Personal Loans suitable for?

This personal loan is available if you are a US citizen living in the US, a US permanent resident, or a 2years valid visa holder (J-1, H-1B, E-2, O-1, or TN).

SoFi personal loans are one of the best options if you have a credit score of above 670 and require at least $5000 unsecured private loans. If you are looking for a cheaper personal loan that comes with many goodies, SoFi is the right place to consider.

SoFi is one of the best options when it comes to No-Fees Personal Loans. You don’t need to worry about origination, application, prepayment penalty, and late fees. The only two things to focus on are the principal amount you need and the interest rates.

This lender is also a better option if you have more expensive projects to finance. You can borrow up to $100,000 without providing any collateral to renovate your home. But to get this amount, you must have an excellent credit score and a substantial stable income.

Essential features and benefits to know about SoFi Personal Loans.

Available Amount and Terms of This Loan 

With SoFi personal loans, you can borrow from $5,000 to $100,000 without collateral. The loan term is between 24 – 84 months to repay the loan in full. But you should know that the longer the loan term, the more interest you pay. Nevertheless, their longer loan term is still very attractive to most borrowers.

Cost of SoFi Private Loans

The interest rate starts as low as 4.99% APR and goes as high as 19.63% APR (Annual Percentage Rate). Compared to most personal loan lenders like Lending Club or Discover Personal Loan, SoFi is the cheapest when it comes to interest rates.

Unlike Lending Club, SoFi does not charge any origination fee. Most personal loan lenders will charge you from 3% right up to 10% origination fee, making your loan more expensive. But such fees do not exist in SoFi loans. 

In addition to No origination fee, there are no application fees, early repayment fees, or late fees involved. 

Additional Features

SoFi has an interest rate reduction of 0.25% if you set automatic payment for repaying your loan. Of course, you can still get a personal loan from SoFi without AutoPay. Besides this interest rate reduction, you also have the ability to change the payment dates once a year.

SoFi Lending usually has different promotions and incentives just by checking your rate on their website. At the time of writing this review article, SoFi offers a $10 incentive for checking loan rates.

One of the most remarkable features of SoFi Personal loans is the Unemployment Protection. If you lose your job, SoFi will temporarily pause your payments and help you find a new job. This kind gesture by SoFi makes them a consumer-centric company. They have your best interest at heart.

Although SoFi loans come with many benefits, they fall short regarding the minimum loan amount. If you don’t need up to $5000, you might want to consider other options like Marcus By Goldman Sachs, which starts at $3500.

SoFi Personal Loans Requirements

Now that you know the unique features of SoFi Personal loans, you might be wondering what it takes to apply and get approval. Let’s see what you need to fulfill before applying for this loan.

Age of Majority: You are at least 18 years or older. The minimum required age is 19 years in states like Alabama, while Puerto Rico is 21 years.

Legal Residence Status: You are either a US citizen, permanent resident, or a visa holder of one of these categories; E-2, E-3, H-1B, J-1, L-1, or O-1. If you are a visa holder, your visa must be valid for at least 2 years.

Current Residence: Your current address must be in one of the US states except for Mississippi. SoFi does not have coverage for Mississippi residents.

Your Financial Situation: You must be either employed, have sufficient income, or have an employment offer that starts within the next 90 days.

Minimum Amount To Borrow: The minimum loan amount you need is $5000.

Credit Score: Your credit score is at least 670. In some cases, your application can be approved if your credit score is not at this level. But it depends on other factors like your monthly income and your debt-to-income ratio. You can also add a cosigner or co-applicant if you don’t meet these requirements.

How is the process for getting SoFi Personal Loans?

Pre-qualify Stage:

Before starting the application process, you need to meet at least 90% of the requirements. Then start the application by completing the online pre-qualification form, which takes less than 2 minutes to fill out and submit.

Receive and review loan offers:

SoFi will conduct a soft credit check after submitting the pre-qualification form. This soft credit check won’t have any effect on your credit history. Based on the information you submitted in the pre-qualification form and your credit report, you will receive tailored personal loan offers to review. Once reviewed, you can choose the more suitable loan offer. 

Choose a suitable offer and complete your application:

Once you have chosen a suitable loan offer, you will receive a link to complete the application online or through the SoFi app. You will also have access to a consultant who will guide you through the application process. 

Receive your funds:

On completing the application, SoFi will send you the loan agreement to review and sign. Your requested amount will be transferred into your bank account. 

Start making repayments:

Start making your loan repayment on the due date to avoid destroying your credit. You can also set an AutoPay to receive a 0.25% discount.

Frequently Asked Questions About SoFi Personal Loans

How long does it take for SoFi to fund a personal loan? 

The entire process could take 3days at most. For sure, you will receive funds within 24hours after they approve your loan application.

Is it hard to get a personal loan with SoFi? 

It depends on whether you meet the requirements or not. If you meet the requirements, you can quickly get this loan hassle-free. But if you don’t meet the criteria, you can add a cosigner or a co-applicant with a good credit score.

Does SoFi require proof of income? 

Yes! You will need to submit either your bank statement or payslip. If you don’t have either of these, you can also submit your employment contract, which they will verify with your employer.

Bottom-Line

SoFi personal loans are an excellent and cheaper means of financing the things you don’t have the cash to fund at the moment. The easy application process, low fixed interest rates, unemployment protection, and flexible repayment make SoFi a better option to consider.

However, failure to repay any personal loan will lead to damaging your credit score. Only borrow what you need, and don’t get enticed by the amount you can borrow, no matter how good your credit score is.