US Personal Loans
Personal Loan Origination Fees Explained: What They Cost and How to Compare
A fee deducted at funding means you borrow $10,000 and receive $9,400 while repaying all $10,000.
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- Typical range
- 1%-8% of principal
- On $10,000 at 6%
- $600, deducted at funding
- Cash received
- $9,400
- Repaid
- The full $10,000 plus interest
The fee is taken before you see the money
Origination is usually netted from the disbursement. The interest still accrues on the gross principal, so you pay for money you never received.
Convert it to an APR before comparing
A 6% fee on a 3-year loan adds roughly 4 percentage points to the APR. That is the figure to hold against a no-fee offer.
Fee-free does not mean cheap
Some lenders drop the fee and raise the rate instead. Compare APR both ways - the cheapest total is what matters, not the presence of a fee.
Negotiate and shop
Fees vary by lender for identical profiles. Getting three quotes costs three inquiries and frequently moves the number.
FAQ
Can the fee be financed?▾
Sometimes, which raises the balance and the interest.
Is it refundable?▾
Rarely, and usually only within a short cancellation window.
Do credit unions charge it?▾
Less often than online lenders.
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