Personal loans can also be referred as unsecured loans. Thus kind of a loan is granted for personal needs by either a bank or other lending institutions. Unlike other loans, a personal loan is not secured against any personal assets such as a house. [http://www.moneysense.gov.sg/Understanding-Financial-Products/Credit-and-Loans/Types-of-Loans/Secured-and-Unsecured-Loan.aspx]
Once the loan is granted, the borrower is expected to repay it over a given period that is specified by the particular lending institution; it is repaid through fixed amount installments. Different banks and lending institutions have clear repayment criteria and conditions. The individual taking the loan decides on the amount of money he/she would like to borrow, and specify the period of which the total loan amount will be repaid.
SoFi is one example of a lending institution that offers personal loans to the individuals that are in need. This loan is best suited for people who have outstanding credit scores, and SoFi sets its minimum credit score at 660. Moreover, the company requires the loan takers to have an income of at least $106,000 per annum.
In addition, the company does not have a minimum requirement for the numbers of years of credit history. This means that even new loan takers are considered eligible to obtain a personal loan. The company even offers incentives to the borrowers; for instance, if a borrower becomes unemployment while still paying the loan, the institution halts the individual’s payments and assists them to acquire employment elsewhere.
Pros of personal loans
Getting a SoFi personal loan is quite advantageous to the borrower; for starters, the loan does not need any collateral, and it is available even to students who may have just concluded their studies and have limited capital. [https://studentaid.ed.gov/sa/types/loans/federal-vs-private]
Some of its advantages include:
Personal loans are normally processed within a short period, and therefore a borrower can easily and efficiently gain access to cash for emergency expenses. Their quick processing is because they need little paperwork, and the protocols aren’t as strict.
Personal loans are also more preferable because they have lower interest rates as compared to other types of loans, and they are normally fixed. Their rates are also set their interest rates depending on the borrower’s financial capability.
- They are flexible
Flexibility is yet another advantage of personal loans. Their use is not limited to specific intentions, rather, individuals can utilize personal loans for whatever reasonable thing they need.
- Have planned repayment
Because they have fixed interest rates and terms of repayment, one is aware ahead of time when the loan repayment will be complete.
Application procedure for SoFi Personal Loans
To apply, the borrower must complete an application on the company’s website. A login is created in a process where the applicant must provide his or her education and employment details. From there, one can select the loan conditions that are best suited for one’s needs. The next step entails uploading the documents for SoFi to ascertain one’s identity and income; the company then processes the application for approval.
Conditions for Lending
The company offers either fixed or variable rates which vary between 5% and 15%; the minimum loan a borrower could request for at SoFi is $5,000 while the maximum amount lies at $100,000. The period for repayment of SoFi’s personal loan lies at a maximum of 7years, and a minimum of 3 years. Moreover, the funds are processed within ten days.
Fees and penalties
SoFi’s personal loan does not have a prepayment, personal-check processing, and origination fee. However, they charge for late fees with their rates standing at $5 or 4% of the payment due. It is imperative to note that the penalties mostly occur after a 15-day moratorium.
Why opt for a SoFi personal loan?
The company offers excellent savings to loan takers who have significantly high incomes as well as cash flows. The personal loan that they offer is quite an affordable and low-cost way through which an individual can access funding. [https://www.usa.gov/credit]
Moreover, SoFi issues several financing options, whether it is student loan refinancing or for mortgages. The company is there to issue you with the cash you require ranging from $5k to $100k at a very low cost. Moreover, it is a quick and efficient way to access funding.