What is LoanMe?
Founded in 2013, this California-based lender offers personal loans to those who live in a few select states, including Arizona, California, Delaware, Idaho, Kentucky, Missouri, New Mexico, South Carolina and Utah. Each state has a different set of terms and requirements. The loans are generally available to a wide range of borrowers, including those who don’t have great credit. And, as with most lenders, the lowest rates and highest loan amounts are often reserved for those with excellent credit.
According to the lender, most of the loans are made to consolidate debts or to fund one-time purchases; however, the funds can be used for any purpose. The company also offers small-business loans. In this review, we’ll focus on the various requirements, terms and fees associated with a LoanMe personal loan.
LoanMe personal loan highlights
- No prepayment fees: There aren’t any penalties for paying off your loan early, which is useful for those who expect to be able to pay off their loan within three years and want to cut costs.
- Subprime borrowers OK: While many lenders have a higher minimum credit score requirement, LoanMe makes funding available to those with a FICO Score below 645. However, those loans are limited to certain states and may be subject to other requirements.
- Extremely high costs of borrowing: The APR and loan fees for this product can be quite steep, depending on your location and the loan type. For example, if a California borrower were to take out a $7,600 loan, that would carry a 89% rate, plus a loan fee of 33%. That’s pretty extreme when compared to other personal loans; this review will also address cheaper personal loan alternatives.
- Minimum credit requirement: Varies by location
- Terms: 180 months
- Fees: Vary
LoanMe Personal Loan Details
LoanMe product details
These personal loans are disbursed directly to the borrower’s checking accounts, making it quick and easy to access that cash. Like many other lenders nowadays, LoanMe offers prequalification to prospective applicants. That means you can see if you likely qualify without hurting your credit score. Those who are interested in more advantageous or original perks, however, will likely feel short-changed by the bare-bones offerings provided by this product.
- Minimum credit score: Depends on location
- Minimum credit history: LoanMe offers subprime loans for certain borrowers
- Maximum debt-to-income ratio: Not specified
To qualify for a LoanMe personal loan, applicants must be at least 18 years old, be able to access online banking and have a valid ID as well as a checking account. And, as mentioned above, these loans are only available to those who live in certain states.
Applying for a personal loan from LoanMe
LoanMe says the application process takes five minutes to complete and can be done online or over the phone. You’ll need to provide basic personal information such as your name, address and monthly gross income. If you get a conditional approval, you will also have to provide proof of income and a bank statement to be officially approved for a loan. (There may also be paperless submission options available, but that isn’t a given.)
Depending on your circumstances, LoanMe may request additional information, such as proof of self-employment, a recent pay stub or a voided check.
Once all documents have been received, your application has been approved and you’ve accepted the loan, funding can appear in your checking account within three to four hours, as long as all documentation is received by 1 p.m. PST on a business day. Applicants should also be aware that these loans are only deposited on weekdays.
Pros and Cons of a LoanMe Personal Loan
Who’s the best fit for a LoanMe personal loan?
If you live in California and need a quick chunk of cash that you can repay within seven days, this is ideal since you’d basically have a consequence-free loan thanks to the “no-worry guarantee.” But if you’re anyone else, the extremely high APR and loan fees can quickly turn a personal loan into a monthly financial burden.
On the plus side, the lack of a prepayment penalty does offer a bit of relief for those who don’t need to borrow the full amount that LoanMe requires (there’s a $2,600 minimum for subprime loans and $7,500 for prime loans). And the fact that LoanMe accepts borrowers with subprime credit scores and can make the funds available the same day does make LoanMe somewhat of an anomaly in the personal loan space. But, overall, these loans are extremely expensive and the trade-off between cost and speed may not be enough to make it a good option for those who need fast cash.
Alternative personal loan options
- APR range: 9.95% – 35.99%
- Credit requirements: Varies
- Terms: 24 to 60 months
- Origination fee: Administrative fee of Up to 4.75%
Like LoanMe, online lender Avant offers borrowers who have lower credit scores access to fast cash — approved applicants can get their cash as fast as the next day. And, as with most lenders, the best rates are reserved for those with better credit. Even so, the high end of the APR range is still much lower than the rates for LoanMe’s subprime rates. It also offers prequalification and there is no prepayment fee. There is, however, an administrative fee, but that may be lower than LoanMe’s loan fee, which can be in the 23% to 33% range. Avant branded credit products are issued by WebBank, member FDIC.
- APR range: 16.05% – 35.99%
- Credit requirements: Varies
- Terms: 24 to 60 months
- Origination fee: Varies
OneMain Financial (which has existed under other names since 1912) is a brick-and-mortar bank offering personal loans with flexible payment options to those with fair credit. OneMain Financial is also available in 44 states, making it more accessible to average consumer. Though the rates are still relatively high for personal loans (those with better credit scores should look elsewhere), they are considerably lower than the subprime options available to LoanMe customers.
Affinity Federal Credit Union
- APR range: 9.75% – 18.00%
- Credit requirements: 525
- Terms: 60 months
- Origination fee: No origination fee
If you can qualify, Affinity Federal Credit Union’s personal loans are a cheaper alternative to LoanMe’s offerings, with lower a APR range and no origination fee. The New-Jersey based credit union has over 160,000 members and offers a wide array of financial services and products. But its personal loans are capped at $15,000 and require credit union membership to qualify. So if you need more or you aren’t eligible for membership, you should keep looking.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.75% – 16.24%1||$5,000 - $100,000|
|7.69% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|