When you’re looking to finance a significant purchase or consolidate debt, understanding personal loan rates is crucial. SoFi is one provider in the market, and it’s important to compare their rates to see if they fit your financial needs. Let’s break down SoFi’s personal loan rate structure to help you make an informed decision.
SoFi advertises fixed personal loan rates starting from 8.99% APR up to 29.99% APR. It’s important to note that these advertised rates already include potential discounts. Specifically, the lowest rates are based on a 0.25% interest rate reduction for enrolling in autopay and an additional 0.25% reduction for setting up direct deposit. These rate ranges were current as of February 6, 2024, and are subject to change, so always verify the latest rates directly with SoFi.
Keep in mind that not every applicant will qualify for the lowest advertised rates. SoFi reserves its best rates for borrowers with the strongest credit profiles. Your actual interest rate will fall within the stated range and is determined by several factors. These include the loan term you choose, your creditworthiness as evaluated by SoFi, your income, and other financial considerations. SoFi offers personal loan amounts ranging from $5,000 to $100,000, giving borrowers flexibility in how much they borrow.
The APR, or Annual Percentage Rate, is a critical figure to consider when comparing personal loan rates. It represents the total cost of borrowing money over a year, including both the interest rate and any fees. For SoFi personal loans, the APR calculation includes an origination fee that can range from 0% to 7% of the loan amount. This fee is deducted directly from the loan proceeds you receive, so factor this into your borrowing calculations.
SoFi offers interest rate discounts for borrowers who enroll in autopay, which means setting up automatic monthly payments from a savings or checking account. By enrolling in autopay, you can receive a 0.25% interest rate reduction. However, this discount is contingent on maintaining autopay. If you stop using automatic payments, the discount will be removed. It’s worth noting that autopay is not a mandatory requirement to get a personal loan from SoFi, but it can lower your rate.
Similarly, SoFi offers another potential 0.25% interest rate reduction for setting up direct deposit. To qualify, you need to establish direct deposit into a SoFi Checking and Savings account or enroll in SoFi Plus (which may involve a subscription fee) within 30 days of your loan being funded. Maintaining direct deposit or paying the SoFi Plus subscription fee is necessary to keep this discount. If you discontinue direct deposit or stop paying the subscription, the discount will be lost. Again, direct deposit or SoFi Plus is not required to obtain a SoFi personal loan, but it’s an option to potentially lower your interest rate.
When comparing personal loan rates, remember to look beyond just the advertised lowest rate. Consider the APR, potential fees, and any conditions for discounts, like autopay and direct deposit, to accurately assess the overall cost of borrowing. Comparing offers from multiple lenders, including SoFi, will help you find the most favorable terms for your personal loan.
