SoFi Review

SoFi is a private company that provides student loans, mortgages, and personal loans. The company is based in San Franciso and was started in 2011. The customer service teams are based out of California and Utah. Originally, focused on student loans the company has expanded into mortgages and personal loans.

Unlike, many online lenders SoFi underwrites their own loans. This means they are lending their money not a bank partner's money. This gives SoFi more control over their lending requirements. SoFi considers factors like estimated cashflow, career, and education in addition to credit scores and debt-to-income ratios when making loan decisions so some people qualify for a SoFi loan even if they don't meet traditional credit/income-based underwriting standards. They claim, "their unique underwriting process helps ensure its members have a high likelihood of making their payments."

Personal Loans

Personal loans have a minimum loan amount of $5,000 and a maximum of $100,000. The minimum loan amount may be higher in specific states due to legal requirements. The loan terms can be from two to seven years.

Personal loan fixed rates range from 5.99% APR to 20.01% APR (with AutoPay) and variable rates from 6.49% APR to 14.70% APR (with AutoPay). These rates are as of November 15, 2019, and are subject to change without notice. Actual rates may vary by state so do check their website for latest rate information. The AutoPay program provides a 0.25% interest rate reduction if the monthly principal and interest payments are automatically deducted from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. SoFi does not charge late fees.

Checking for eligibility and accepting a loan with SoFi has the same impact on your credit score as with most online personal loan providers. Specifically, you can check rates with SoFi without impacting your credit score. However, if you choose a product and continue your application, they will do a hard pull on your bureau file which will impact your credit score.

SoFi loans once approved, are funded and available within a few days.

Minimum Eligibility

SoFi personal loans require, at a minimum that,

• You are a US citizen, permanent resident or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1);
• You are 18 years or older;
• You reside in a state where SoFi Lending Corporation is authorized to lend;
• You are at least the age of majority in your state (yhe age of majority is the age at which you are considered an adult and responsible for your actions in the legal sense);
• You must be employed and have sufficient income or have an offer of employment to start within the next 90 days.

If you are a permanent resident, you must be able to show an image or scan of your permanent residency card (Green Card), and your Green Card must have a total validity (from issuance to expiry) of more than 2 years. If you are a visa holder, you must be able to show an image or scan of your valid visa and proof of an approved application for a Green Card, including either an I-140 approval notice (Immigrant Petition for Alien Worker), or receipt or approval of an I-485 (Application for application to register permanent Residence).

Complete loan eligibility depends on a number of additional factors, including your financial history, credit score, career experience, income, and expenses.

For applicants with existing SoFi personal loans, you must have made at least three payments, as well as the most recent three payments on-time, on each loan in order to be considered eligible for an additional personal loan. Michigan residents can only have one SoFi Personal Loan at any given time.

SoFi personal Loans are not available to residents of MS. SoFi holds consumer lending licenses in 29 states and the District of Columbia. It is unclear from their website how they offer loans in the states they are not licensed. We assume they are exporting state laws.

Unemployment Protection Program

SoFi stands out from other lenders with their Unemployment Protection Program. Basically, if you lose your job they will pause payment requirements until you find a job. Interest will continue to be charged but your loan will not go into default will in the program.

SoFi personal loans are eligible for Unemployment Protection if the loan is current and historically has been operating within the terms of the loan agreement. To apply for this assistance you must:

• Be a current SoFi member
• Have an eligible loan that is in good standing
• Certify that you have lost your job through no fault of your own
• Actively work with our Career Team to look for new employment

Checkout SoFi's website for more information on this cool program.

Conclusion

SoFi offers competitive rates and is state licensed in most states it offers personal loans. They have a unique underwriting process and employment protection program. We think they are a great for a personal loan if you need to borrow money.