SoFi Personal Loans Reviewed in Depth

SoFi Personal Loans

SoFi is a bank that offers personal loans, student loans, mortgages, and debt consolidation loans. They also do investment accounts and insurance, so they’re a full-service financial institution. The company has a good reputation in the lending space, but its approval standards are high, so applicants need a good credit score to qualify.

Who is SoFi Personal Loans?

SoFi is an abbreviation of “Social Finance Inc.,” which was founded in 2011 by four Stanford graduate students. Their goal was to provide more affordable student loan options for individuals looking to fund their education. The company grew rapidly and eventually went public on June 1, 2021. The stock went through a rough patch in 2022 but has done well in 2023. 

Pros

  • Flexible loan terms
  • Investment accounts with free trading
  • Little or no fees
  • Fully digital experience 
  • Available in All Fifty States

Cons

  • Strict approval criteria
  • High minimum loan amounts
  • Need an account to check rates

Services Offered by SoFi Personal Loans

SoFi offers personal loans, student loans, mortgages, debt consolidation loans, investment accounts, and insurance. Their fees are low and interest rates are competitive, making SoFi a popular choice for loan refinancing and debt consolidation. Customers are required to open an account with SoFi to take advantage of any of these services.       

Customer Details

Customer Qualifications to Work with SoFi Personal Loans

SoFi is Looking for high-end consumers

SoFi targets borrowers with good to excellent credit. They’re not a “poor credit lender” like many of the company’s competitors. Customers are also required to open a checking account with SoFi so that loan payments can be debited directly. There’s no minimum balance requirement for opening an account, but the account balance may influence loan approval.

How Much Debt Do SoFi Personal Loans Clients Have?

There’s no “minimum debt” requirement to work with SoFi Personal Loans. SoFi is a bank, not a credit counseling service, and they’re not looking for borrowers with poor credit histories. They do have loan officers on staff who can assist with selecting a specific loan, but most of their customer service is done online through their digital app.

What SoFi Personal Loans Won’t Cover

SoFi personal loans can be used for anything the borrower chooses to use them for, provided it’s not illegal. Other types of loans, like mortgages and student loans, are earmarked for specific purposes. As a full-service bank, SoFi offers several of these secured and unsecured loan options, along with checking, savings, and investment accounts.

How SoFi Lending Works

SoFi offers unsecured personal installment loans with fixed rates of interest that are comparable to traditional banks and credit unions. Prospective borrowers can fill out an online application that should produce a fast approval or disapproval within a few minutes. Funds can be transferred within 24 hours, provided the customer opens a SoFi account.

Do You Need a Hardship to Work with SoFi?

Hardship circumstances are not required to do business with SoFi. Their primary focus is on doing business with consumers who have good to excellent credit scores, so they’re not looking for hardship cases. Consumers looking for debt consolidation or refinancing need to be in good financial shape before they can do business with SoFi.

Working

Customer Timeline When Working with SoFi Personal Loans

SoFi is a digital bank, so approvals and transactions happen quickly. Customers are required to open a checking or savings account before getting approved for a personal loan. Once that’s done, any fund transfers can be done instantly because their going from SoFi to a SoFi account. Debits for repayment also happen instantly, so make sure you keep money in your account.

Overall
4.8
Kevin D. Flynn

Kevin D. Flynn

Kevin D. Flynn is a former financial professional, business coach, and freelance financial writer. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and ten wonderful grandchildren. When he’s not working, you’ll find him at the golf course or on his back porch reading classic sci-fi novels.

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