This page provides a detailed overview of all SoFi Loans lending terms, interest rates and customer reviews. Compare offers and choose the best loan product for your needs.
Editor
Zarina S
Update 28.08.2024
SoFi, short for Social Finance, Inc., stands as a beacon in the finance industry, offering a wide array of financial solutions tailored to meet the diverse needs of over 7.5 million members. Based in San Franciscoand founded with the vision to provide innovative and inclusive financial products, SoFi has grown into a one-stop financial hub, supporting individuals across various stages of life—be it for education, family planning, home buying, or retirement. With its member-centric approach, SoFi not only aims to offer financial products but also to empower its members to manage and grow their finances confidently.
Pros and Cons
Pros
Member benefits. Refinancing with SoFi gives you member benefits to help you pursue your careers, such as career coaching and a referral program if you invite others to join SoFi.
Discounts on additional SoFi loans. If you are a SoFi member with one loan, you can get a 125% discount on an additional SoFi loan. It will help to get cheaper personal loans or private student loans.
AutoPay discount. One of SoFi's benefits you can obtain as a client is a 0.25% AutoPay discount if you use automatic loan payments.
Protection against unemployment. If a SoFi borrower loses his source of income, they can suspend monthly payments for a while. There is also a SoFi career services team that can help unemployed clients find new jobs.
No hidden fees. For personal loans, SoFi advertises no origination fees, no prepayment penalties, which is part of their appeal to consumers looking for straightforward, transparent lending options.
Unsecured loans. For personal loans, such as those offered by SoFi, no collateral is required. These unsecured loans are granted based on factors such as creditworthiness, income, and financial history.
Cons
Eligibility criteria can be stringent. SoFi often targets borrowers with good to excellent credit scores, which means individuals with poor or even average credit history might find it challenging to qualify for some of their financial products.
Investment products risks. While SoFi offers a range of investment opportunities, including stocks, ETFs, and cryptocurrencies, these markets can be volatile. Investors may face the risk of losing capital, and the platform's ease of use might encourage inexperienced users to make high-risk investments without proper understanding.
High loan amounts minimums. Some of SoFi's loan products have relatively high minimum borrowing limits compared to other lenders. This might not be ideal for individuals who need smaller loans and want to avoid borrowing more than necessary.
Customer service concerns. Like many large companies, SoFi receives mixed reviews on customer service. Some users report difficulties in getting timely support or resolving specific issues through their customer service channels.
Product availability variations. Not all SoFi products and services are available in every state. Potential customers may find certain offers or rates advertised by SoFi are not accessible to them based on geographic restrictions.
How to Apply for a SoFi Loan?
Visit the SoFi website. Go to website and browse through the available financial products under the "Products" menu. SoFi offers a wide range of services including loans, investing, banking, and insurance.
Choose your product. Select the financial product you are interested in. SoFi provides detailed information on each product, including benefits, eligibility criteria, and rates.
Check your rates. For loan-related products, SoFi often allows you to check your rates without impacting your credit score. This involves entering some basic information to receive a preliminary offer.
Complete the application. If you decide to proceed, complete the application by providing the required information. This may include personal details, financial information, and specific documentation related to the product you're applying for.
Submit documentation. Depending on the product, you might need to upload documents such as proof of income, identification, and other relevant paperwork. The specific requirements will be listed during the application process.
Review and sign. Once your application is complete and you've submitted all required documents, review your offer. If everything meets your satisfaction, you'll need to sign the agreement electronically.
Verification and approval. SoFi will verify the information and documents you've submitted. This process's length can vary based on the product and the completeness of your application.
Funding or activation. Once approved, the next steps will depend on the product. For loans, SoFi will disburse total funding amount to your account or pay off your existing loans directly, according to the type of loan you've taken. For investment or banking products, you may need to fund your new account to activate it. For insurance products, your coverage details will be finalized, and you'll receive information on how to manage your policy.
Conditions and Requirements
Conditions
Eligibility. Applicants must meet SoFi's eligibility criteria, which often include age, residency, and citizenship or legal residency status in the United States.
Interest rates. SoFi Personal Loans offer fixed rates ranging from 8.99% APR to 29.49% APR, inclusive of autopay and direct deposit discounts. Rates are subject to change, and not all applicants qualify for the lowest rate. Average funded amount in 2022 was around $30,000. Actual rate depends on creditworthiness, income, and other factors.
Payment terms. Payment terms for SoFi Personal Loans are flexible, with loan amounts ranging from $5,000 to $100,000. These loans offer a versatile solution for various expenses, including consolidating high-interest credit card debt or financing major purchases. The repayment periods vary from 2 to 7 years, allowing borrowers to choose a term that aligns with their financial goals and budget.
Creditworthiness. For most lending products, SoFi will assess your credit score, credit history, and other financial information to determine eligibility and interest rates.
Income verification. Applicants may need to provide proof of income or employment status to qualify for certain products, particularly loans and refinancing options.
Requirements
Credit score. SoFi typically requires a minimum credit score of 680 to qualify for a loan, although the specific requirements may vary depending on the type of loan you're applying for.
Employment status. SoFi typically requires borrowers to be employed or have a job offer with a start date within 90 days to qualify for a loan. Self-employed borrowers may also be eligible but will need to provide additional documentation.
Income. SoFi typically requires borrowers to have a minimum revenue of $45,000 per year to qualify for a loan. The specific income requirements may vary depending on the type of loan you're applying for.
Citizenship. SoFi loans are only available to U.S. citizens, permanent residents, and visa holders with valid U.S. Social Security numbers.
Application submission. Complete an online application on the SoFi website, providing all necessary personal, financial, and, if applicable, educational information.
Documentation. Submit any required documents, such as government-issued identification, proof of income, academic records for student-related products, and investment history for investment accounts.
Account setup. For banking and investment services, set up a SoFi account, which may include linking external bank accounts, setting up direct deposits, or transferring funds.
Credit check. Consent to a soft or hard credit inquiry, as required, depending on the product. A soft inquiry typically does not affect your credit score, while a hard inquiry might.
Regulatory compliance. Ensure compliance with all relevant financial regulations, which may involve providing additional information for identity verification under KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations.
Editorial Opinion
SoFi emerges as a reputable and innovative financial technology company, offering a range of services including personal loans with flexible repayment terms, membership benefits, and investment opportunities. With a strong reputation bolstered by positive customer reviews and endorsements from notable organizations, SoFi demonstrates commitment to transparency and consumer protection through affiliations with regulatory bodies such as the US Securities and Exchange Commission and the Financial Industry Regulatory Authority. While providing accessible financial solutions, SoFi's emphasis on technological advancements and customer-centric approach positions it as a leading player in the industry, facilitating financial empowerment and stability for its members.
Important
Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.
How to Choose a Lender
Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
Carefully review all the terms and conditions of your payday loan contract.
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
SoFi offers a variety of loan products, including personal loans, student loans, student loan refinancing, mortgage loans, mortgage refinancing, and auto loan refinancing. Each loan type caters to different financial needs and goals.
How can I manage my SoFi loan after it is funded?
You can manage your SoFi loan through SoFi's online portal or mobile app. This allows you to make payments, view your loan balance, update personal information, and access member benefits. SoFi's customer service team is also available to assist with any questions or concerns you may have about your loan.
How quickly can I receive funds from a SoFi loan?
For most SoFi loans, the application process can be completed online in a few minutes, and you can receive a decision within a few days. Once approved, funds are typically disbursed quickly, often within a few business days, depending on the loan type.
