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Online Loans Terms and Conditions

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Online Loans Terms and Conditions
Don't sign on the dotted line for any personal loan until you've read the fine print. In case you need help, though, we've combed through the specifics for several popular lenders.
Here's what we found:

Avant

The Basics: Avant offers access to debt consolidation, home improvement and emergency loans and is geared toward borrowers with at least a 580 FICO score. Since it targets people with less than stellar credit, Avant’s APR is higher than other lending options — ranging from 9.95% to 35.99%. You can borrow anywhere from $2,000 to $35,000 and set up automatic payments or pay by check (bonus: there’s no check processing fee). Avant also offers a courtesy due date adjustment if you have trouble making payments. Call customer service to find out if you’re eligible.
 
What’s in the Fine Print:
  • Fixed-rate loan
  • Rates, terms and loan availability vary by state
  • 9.95% to 35.99% APR
  • Borrow anywhere from $2,000 to $35,000
  • Receive a loan as quickly as the next business day
  • 2 to 5-year loan terms
  • No prepayment penalty
  • No balloon payment at the end of the loan
  • $25 late fee (most states)
  • Late forgiveness feature: borrowers who miss a payment get refunded the late fee if they make their following three payments on time

Best Egg

The Basics: Starting at 5.99%, Best Egg offers a lower APR than many of its online and brick and mortar competitors, but you’ll have to pay a .99% to 4.99% origination fee that will be deducted from your loan. The way it works is simple: get approved for a $5,000 loan with a 4.99% origination fee, for example, and you actually get a $4,750.50 loan. Borrowers should keep this in mind when requesting funds.
 
What’s in the Fine Print:
  • Fixed-rate loan
  • Next-business day financing
  • 5.99% to 29.99% APR, which may include an origination fee between .99% and 4.99%.
  • APR based on application information, credit score, credit history, loan amount and term
  • Borrow anywhere from $2,000 to $35,000
  • No prepayment penalty
  • Only 3-year or 5-year loan terms
  • .99% to 4.99% origination fee
  • Live in Massachusetts? The minimum loan amount is $6,000. In Georgia, it’s $3,000.
  • Origination fee on all 5-year loans is 4.99%
  • $15 late fee and $15 fee for returned payments

Discover 

The Basics: You’ll need a minimum income of at least $25,000 to be eligible for a Discover personal loan. Loans are fixed rate and amounts range from $2,500 to $30,000. Discover also offers a 30-day money back guarantee that allows borrowers — who’ve either changed their minds or found a better rate with another lender — to return the funds with zero interest within 30 days.
 
What’s in the Fine Print:

  • Fixed-rate loan
  • 6.99% to 29.99% APR
  • Borrowers can be unemployed and still qualify
  • Borrow anywhere from $2,500 to $30,000
  • Funding as early as the next business day
  • 3-year to 7-year loan terms
  • 6.99% APR not available for 7-year term
  • 19.99% to 29.99% APR not available for 6-year or 7-year loan terms and loan amounts above $25,000
  • No origination fees, prepayment penalty or closing costs
  • However, there’s no refund on interest charges already paid if you pay off the loan early
  • $39 late fee if full monthly installment isn’t paid by due date
  • Return loan funds via check within 30 days and pay no interest

Lending Club

The Basics: Technology has made peer-to-peer lending a viable alternative to banks, and Lending Club is probably the most recognizable name in the industry. Lending Club assesses each borrower and assigns a credit rating and interest rate based on creditworthiness and risk. Borrowers receive multiple loan offers and choose one that meets their needs, then investors provide funding for the loan.
 
What’s in the Fine Print:

  • Fixed-rate loan
  • Lending Club assigns a grade of A to G for each loan, with different interest rates, APRs and origination fees. Grade A loans have the most favorable terms, with interest rates ranging from 5.32% to 7.89% and an origination fee as low as 1%.
  • Borrow anywhere from $1,000 to $35,000
  • 2-year, 3-year and 5-year loan terms
  • No prepayment penalty
  • 5.99% to 32.99% APR
  • Origination fee ranging from 1 to 5%, depending on loan grade. Fee is deducted from the requested loan amount.
  • Once loan is approved and funded, borrowers receive money within four business days
  • 15-day grace period after your due date to make payments without a penalty and impact to your credit score
  • Late fee of $15 or 5% of your unpaid monthly balance, whichever is greater
  • $15 unsuccessful payment fee if your bank rejects a payment. Lending Club will try to process your payment up to three times and will charge the fee for each unsuccessful attempt.
  • $7 check processing fee per payment
  • Automatic payment option and no fee for paying via direct debit

SoFi

The Basics: With loan amounts as high as $100,000, SoFi is a good option for borrowers who need to pay off high-interest rate debt or plunk down a large sum to start a business or pay for college expenses. It offers a 0.25% AutoPay interest rate reduction for borrowers who pay their monthly installment automatically from their savings or checking account. Lose your job and can’t make a payment? SoFi has an unemployment protection feature that lets borrowers temporarily suspend their payments in three-month increments, for up to a year. The lender also offers job placement assistance if you become unemployed after taking out a loan.
 
What’s in the Fine Print:

  • Fixed-rate loan
  • 5.95% to 11.74% APR
  • You must be employed to qualify
  • Borrow anywhere from $5,000 to $100,000
  • Arizona, Massachusetts and New Hampshire residents are subject to a minimum loan amount of $10,001. Minimum loan amount for Kentucky residents in $15,0001. For all other borrowers, the minimum is $5,000
  • No origination fees or prepayment penalties
  • 15-day grace period for late payments
  • Late fee of $5 or 4% of the payment due, whichever is lesser
  • Illinois, Mississippi and Nevada residents aren’t eligible for SoFi loans
  • Arkansas, New Hampshire, Oklahoma, Texas and Wyoming residents are subject to a maximum 9.99% APR
  • SoFi offers job placement assistance and unemployment protection to temporarily pause payments, provided borrowers show proof of eligibility for unemployment insurance.
Read more: Which personal loans are best for your situation?

Prosper

The Basics: Another lender in the peer-to-peer lending space, Prosper offers borrowers with good credit a potential APR starting at 5.99%. Prosper assigns a rating — and interest rate — based on each borrower’s credit history, credit score and debt-to-income ratio. APRs go as high as 36% and borrowers must pay a non-refundable origination fee that ranges from 1% to 5% based on their Prosper rating.
 
What’s in the Fine Print:
  • Fixed-rate loan
  • 5.99% to 36.00% APR
  • 3-year or 5-year loan terms
  • Borrow anywhere from $2,000 to $35,000
  • Minimum FICO score of 640
  • No prepayment penalty or check processing fees
  • Origination fee of 1% to 5% that is deducted from the loan amount
  • Origination fee is part of loan principal and is subject to interest
  • Late fee of $15 or 5% of the monthly payment, whichever is greater
  • Vermont, Pennsylvania, Iowa, Maine and North Dakota residents aren’t eligible for Prosper loans
  • Prospect may report payment delinquencies of more than 30 days to credit bureaus
 

 

Avant

 

The Basics: Avant offers debt consolidation, home improvement and emergency loans and is geared toward borrowers with at least a 580 FICO score. Since it targets people with less than stellar credit, Avant’s APR is higher than other lenders — ranging from 9.95% to 36%. You can borrow anywhere from $1,000 to $35,000 and set up automatic payments or pay by check (bonus: there’s no check processing fee). Avant also offers a courtesy due date adjustment if you have trouble making payments. Call customer service to find out if you’re eligible.

 

What’s in the Fine Print:

 

     Fixed-rate loan

     Rates, terms and loan availability vary by state

     9.95% to 36% APR

     Borrow anywhere from $1,000 to $35,000

     Receive a loan as quickly as the same day you apply

     2 to 5-year loan terms

     No origination fee on unsecured loans

     No prepayment penalty

     No balloon payment at the end of the loan

     $25 late fee

     Late forgiveness feature: borrowers who miss a payment get refunded the late fee if they make their following three payments on time.

 

Best Egg

 

The Basics: Starting at 5.99%, Best Egg offers a lower APR than many of its online and brick and mortar competitors, but you’ll have to pay a .99% to 4.99% origination fee that will be deducted from your loan. The way it works is simple: get approved for a $5,000 loan with a 4.99% origination fee, for example, and you actually get a $4,750.50 loan. Borrowers should keep this in mind when requesting funds.

 

What’s in the Fine Print:

 

     Fixed-rate loan

     Next-business day financing

     5.99% to 29.99% APR, which may include an origination fee between .99% and 4.99%.

     APR based on application information, credit score, credit history, loan amount and term

     Borrow anywhere from $2,000 to $35,000

     No prepayment penalty

     Only 3-year or 5-year loan terms

     .99% to 4.99% origination fee

     Live in Massachusetts? The minimum loan amount is $6,000. In Georgia, it’s $3,000.

     Origination fee on all 5-year loans is 4.99%

     $15 late fee and $15 fee for returned payments

 

Discover

 

The Basics: You’ll need a minimum income of at least $25,000 to be eligible for a Discover personal loan. Loans are fixed rate and amounts range from $2,500 to $30,000. Discover also offers a 30-day money back guarantee that allows borrowers — who’ve either changed their minds or found a better rate with another lender — to return the funds with zero interest within 30 days.

 

What’s in the Fine Print:

 

     Fixed-rate loan

     6.99% to 29.99% APR

     Borrowers can be unemployed and still qualify

     Borrow anywhere from $2,500 to $30,000

     Funding as early as the next business day

     3-year to 7-year loan terms

     6.99% APR not available for 7-year term

     19.99% to 29.99% APR not available for 6-year or 7-year loan terms and loan amounts above $25,000

     No origination fees, prepayment penalty or closing costs

     However, there’s no refund on interest charges already paid if you pay off the loan early

     $39 late fee if full monthly installment isn’t paid by due date

     Return loan funds via check within 30 days and pay no interest

 

Lending Club

 

The Basics: Technology has made peer-to-peer lending a viable alternative to banks, and Lending Club is probably the most recognizable name in the industry. Lending Club assesses each borrower and assigns a credit rating and interest rate based on creditworthiness and risk. Borrowers receive multiple loan offers and choose one that meets their needs, then investors provide funding for the loan.

 

What’s in the Fine Print:

     Fixed-rate loan

     Lending Club assigns a grade of A to G for each loan, with different interest rates, APRs and origination fees. Grade A loans have the most favorable terms, with interest rates ranging from 5.32% to 7.89% and an origination fee as low as 1%.

     Borrow anywhere from $1,000 to $35,000

     2-year, 3-year and 5-year loan terms

     No prepayment penalty

     5.99% to 32.99% APR

     Origination fee ranging from 1 to 5%, depending on loan grade. Fee is deducted from the requested loan amount.

     Once loan is approved and funded, borrowers receive money within four business days

     15-day grace period after your due date to make payments without a penalty and impact to your credit score

     Late fee of $15 or 5% of your unpaid monthly balance, whichever is greater

     $15 unsuccessful payment fee if your bank rejects a payment. Lending Club will try to process your payment up to three times and will charge the fee for each unsuccessful attempt.

     $7 check processing fee per payment

     Automatic payment option and no fee for paying via direct debit

 

SoFi

 

The Basics: With loan amounts as high as $100,000, SoFi is a good option for borrowers who need to pay off high-interest rate debt or plunk down a large sum to start a business or pay for college expenses. It offers a 0.25% AutoPay interest rate reduction for borrowers who pay their monthly installment automatically from their savings or checking account. Lose your job and can’t make a payment? SoFi has an unemployment protection feature that lets borrowers temporarily suspend their payments in three-month increments, for up to a year. The lender also offers job placement assistance if you become unemployed after taking out a loan.

 

What’s in the Fine Print:

 

     Fixed-rate loan

     5.95% to 11.74% APR

     You must be employed to qualify

     Borrow anywhere from $5,000 to $100,000

     Arizona, Massachusetts and New Hampshire residents are subject to a minimum loan amount of $10,001. Minimum loan amount for Kentucky residents in $15,0001. For all other borrowers, the minimum is $5,000

     No origination fees or prepayment penalties

     15-day grace period for late payments

     Late fee of $5 or 4% of the payment due, whichever is lesser

     Illinois, Mississippi and Nevada residents aren’t eligible for SoFi loans

     Arkansas, New Hampshire, Oklahoma, Texas and Wyoming residents are subject to a maximum 9.99% APR

     SoFi offers job placement assistance and unemployment protection to temporarily pause payments, provided borrowers show proof of eligibility for unemployment insurance

 

 

Prosper

 

The Basics: Another lender in the peer-to-peer lending space, Prosper offers borrowers with good credit a potential APR starting at 5.99%. Prosper assigns a rating — and interest rate — based on each borrower’s credit history, credit score and debt-to-income ratio. APRs go as high as 36% and borrowers must pay a non-refundable origination fee that ranges from 1% to 5% based on their Prosper rating.

 

What’s in the Fine Print:

 

     Fixed-rate loan

     5.99% to 36.00% APR

     3-year or 5-year loan terms

     Borrow anywhere from $2,000 to $35,000

     Minimum FICO score of 640

     No prepayment penalty or check processing fees

     Origination fee of 1% to 5% that is deducted from the loan amount

     Origination fee is part of loan principal and is subject to interest

     Late fee of $15 or 5% of the monthly payment, whichever is greater

     Vermont, Pennsylvania, Iowa, Maine and North Dakota residents aren’t eligible for Prosper loans

     Prospect may report payment delinquencies of more than 30 days to credit bureaus

 

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