SoFi personal loan review

SoFi overview

SoFi is a private company that provides student loans, mortgages, and personal loans. The company is based in San Francisco and started in 2011. The customer service teams are based out of California and Utah. Originally focused on student loans, the company has expanded into mortgages and personal loans.

Unlike, many online lenders SoFi underwrites their own loans. This means they are lending their money and not a bank partner's money. This gives SoFi more control over their lending requirements. SoFi considers factors like estimated cash flow, career, and education in addition to credit scores and debt-to-income ratios when making loan decisions, so some people qualify for a SoFi loan even if they don't meet traditional credit/income-based underwriting standards.

Product overview

SoFi offers fixed- and variable-rate personal loans between $5,000 and $100,000. The minimum loan amount may be higher in specific states due to legal requirements. The loan terms can be from two to seven years.

SoFi fees

APR

The fixed rates range from 5.99% APR to 20.01% APR (with AutoPay) and variable rates from 6.49% APR to 14.70% APR (with AutoPay). These rates are as of November 15, 2019, and are subject to change without notice. Actual rates may vary by state, so check SoFi’s website for the latest rates.

The AutoPay program provides a 0.25% interest rate reduction if the monthly principal and interest payments are automatically deducted from a savings or checking account. You’ll lose this benefit during periods in which autopay is disabled.

Late payment fees

SoFi does not charge late fees.

Minimum eligibility

SoFi personal loans require at a minimum that

• you are a US citizen, permanent resident or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1),
• you are 18 years or older,
• reside in a state where SoFi Lending Corporation is authorized to lend,
• you are at least the age of majority (the age at which you are considered an adult and responsible for your actions in the legal sense) in your state, and
• you are employed and have sufficient income or have an offer of employment to start within the next 90 days.

If you are a permanent resident, you must show an image (scans are acceptable) of your permanent residency card (Green Card), and your Green Card must have a total validity (from issuance to expiry) of more than 2 years. If you are a visa holder, you must show an image of your valid visa and proof of an approved application for a Green Card, including either an I-140 approval notice (Immigrant Petition for Alien Worker), or receipt or approval of an I-485 (application to register for permanent residence).

Complete loan eligibility depends on a number of additional factors, including your financial history, credit score, career experience, income, and expenses.

Checking for eligibility and accepting a loan with SoFi has the same impact on your credit score as with most online personal loan providers. Specifically, you can check rates with SoFi without impacting your credit score. However, if you choose a product and continue your application, SoFi will do a hard pull on your bureau file which will impact your credit score.

SoFi loans, once approved, are funded and available within a few days.

Eligibility for another loan

For applicants with existing SoFi personal loans, you must have made at least three payments and your most recent three payments must have been made on time for each loan in order to be considered eligible for another personal loan. Michigan residents can only have one SoFi personal loan at any given time.

Unemployment Protection Program

SoFi stands out from other lenders with its Unemployment Protection Program. Under this program, if you lose your job, they will pause payment requirements until you find a job. Interest will continue to be charged but your loan will not go into default.

SoFi personal loans are eligible for Unemployment Protection if the loan is current and historically has been operating within the terms of the loan agreement. To apply for this assistance you must:

• Be a current SoFi member
• Have an eligible loan that is in good standing
• Certify that you have lost your job through no fault of your own
• Actively work with SoFi’s Career Team to look for new employment

Checkout SoFi's website for more information on this unique program.