Personal Loan Fees Explained

Interest rates aren’t the only cost to consider when taking out a personal loan. Fees can significantly impact how much you actually pay over time.

Origination fees

An origination fee is a one-time charge for processing the loan. It’s often deducted from the loan amount before you receive the funds.

Late payment fees

Missing a payment can trigger a late fee and may negatively affect your credit score. Some lenders offer short grace periods.

Prepayment penalties

Some loans charge a fee if you pay off the loan early. Always check whether prepayment penalties apply.

How fees affect total cost

Even small fees can increase the total amount you repay. Comparing total loan cost—not just monthly payments—helps you make better decisions.