Is SoFi good for personal loans?

Everybody is aware of Sofi. It’s an online lending platform where customers can avail of personal, student, home equity loans, etc. It provides online personal loans between $5000 and $100000 for a period between two to seven years. Applicants have to meet some criteria to qualify for the loan. Applicants should have a credit score of over 650 to be eligible for the loan. They should also have an annual income of more than $45000. They also allow the co-applicant facility for those applicants whose credit score is not up to the mark. There are specific pros and cons associated with this.

Applicants have complained that qualification standards are very tough. One of the significant parameters for availing of this loan is a credit score should be a minimum of 650. But sometimes, even after meeting this parameter, there is no guarantee that a loan application would be approved as the SoFi apart from this credit score requirement also looks at other factors like income, liability, and other expenses. They need applicants to have an annual revenue of more than $45,000. They would look into the cash flow of the applicants after their monthly payments. They will also examine if the applicant is availing of any other loan currently.

In case, your credit score is not as per requirements, they also provide the option for a co-applicant,t, but the co-applicant should reside in the same address as the first applicant. They do not offer any opportunity for co-signer i.e., you can apply as a co-applicant if you are not living at the same address as the applicant. Loans cannot be availed for real estate, business purposes, investments, post-secondary education, purchase of securities, etc. It can be used for credit card consolidations, home improvements, medical treatments, and relocation expenses.

One of the significant positives is the quick application process. The loan once approved, will be disbursed within a few days. Also, loans are given for a long duration at lesser interest rates. They also provide high loan amounts.

Also, they don’t charge any late fees, although if you make a late payment, interest will be increased. There is no pre-payment penalty. Borrowers can close the loan by pre-paying the amount without any charges. They also have flexible payment dates, meaning borrowers can change the payment date once a year depending on their financial planning. They also provide unemployment protection. Borrowers, in this case, should agree to work with SoFi career strategy service while looking for a job.

In approved cases, they get to pause their loan for 3-12 months. But still, interest will be accruing during this time on the loan balance. So overall, I feel Sofi is pretty good for those who require a minimum of $5000 and those with a credit score.

Featured Image Credit: NerdWallet

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