SoFi vs. LendingClub: Which Has the Better Personal Loan?

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.

sofi vs. lendingclub: which has the better personal loan?

We’ve got your back! Student Loan Hero is a completely free website 100% focused on helping student loan borrowers get the answers they need. Read more

How do we make money? It’s actually pretty simple. If you choose to check out and become a customer of any of the loan providers featured on our site, we get compensated for sending you their way. This helps pay for our amazing staff of writers (many of which are paying back student loans of their own!).

Bottom line: We’re here for you. So please learn all you can, email us with any questions, and feel free to visit or not visit any of the loan providers on our site. Read less

As leaders in the personal loan space, SoFi and LendingClub offer competitive rates and easy online applications.

But when it comes to SoFi personal loans versus LendingClub personal loans, does one lender come out ahead of the other?

Well, it comes down to your personal needs, including how much you want to borrow and what repayment terms you’d like.

Let’s take a closer look at SoFi and LendingClub personal loans so that you can decide which lender would be better for you.

SoFi vs. LendingClub personal loans: The basics

SoFi and LendingClub are online companies that offer personal loans to borrowers with strong credit, but they do so in different ways.

SoFi is a direct lender, while LendingClub is a peer-to-peer lender. When it comes to peer-to-peer lending, individual investors decide whether they want to fulfill your loan request, and then they provide the funds.

That said, your experience as a borrower will be similar with both SoFi and LendingClub. But the various personal loans these companies offer have some key differences.

Check out this chart for the full details of SoFi versus LendingClub personal loans.

SoFi personal loans

LendingClub personal loans

Loan amount

$5,000 – $100,000

$1,000 – $40,000

APR range

6.26% – 14.87%

6.95% – 35.89%

Repayment terms

3, 5, 6, or 7 years

3 or 5 years

Rate type

Fixed or variable, depending on where you live

Fixed rate only

Origination fee


1% – 6%

Allows joint applications



Instant pre-qualification



Residency requirements

Lends everywhere but Mississippi

Lends everywhere but Iowa, Guam, and Puerto Rico

Extra benefits

Unemployment protection

Changing your due date; natural disaster support

SoFi and LendingClub offer competitive rates and flexible terms, but other features of their personal loans differ. Read on for a closer look at who would benefit from a SoFi personal loan and who would be better off sticking with LendingClub.

Choose SoFi if you can qualify for the lowest rates

SoFi personal loans have one clear advantage over LendingClub ones: They could come with lower interest rates. But not everyone will qualify for a low APR. Here are four circumstances when a SoFi personal loan might be the better option.

1. You have strong credit and can qualify for low rates

SoFi could offer you lower rates on a personal loan than LendingClub. Even its maximum APR is less than half that of a LendingClub personal loan as of June 18, 2018.

But you must have strong credit to qualify for a low rate. Otherwise, you might end up on the higher end of the range, which could cost you a lot in interest over the life of your loan.

For example, let’s say you took out $10,000 on a three-year repayment term. With a 6.00% rate, you would pay $952 in total interest. But if you had a 12.00% rate, you’d pay $1,957 in interest.

SoFi could potentially save you money with a lower rate, as well as no origination fee, compared to LendingClub. But you’d have to qualify for the low rate in the first place, so make sure to do a pre-qualification rate check with both lenders before assuming SoFi is the cheaper option.

2. You need to borrow more than $40,000

SoFi has another potential advantage over LendingClub when it comes to borrowing limits. While LendingClub caps its personal loans at $40,000, SoFi lets you borrow up to $100,000.

This could be useful if you’re financing a big expense or consolidating a great deal of debt. Of course, anyone should think twice before taking on a lot of debt.

Before borrowing such a large personal loan, make sure you’ve planned out the details of repayment. You can estimate your monthly payments with our personal loan calculator. This tool also reveals how much interest you’ll pay over the life of your loan.

Crunching the numbers before you borrow will help you avoid taking on more debt than you can manage.

3. You want a repayment term longer than 5 years

Besides having higher borrowing amounts, SoFi also allows for a longer repayment term of up to seven years. With a longer repayment term, you can lower your monthly bills.

For example, that $10,000 personal loan at a 6.00% rate would cost you $304 a month on a three-year plan. But on a seven-year plan, your monthly bills would go down to $146.

But you’ll also be in debt for longer. If you can pay the debt back faster, you’ll save money on interest.

Since SoFi doesn’t have any prepayment penalties, you could pay off your debt ahead of schedule, even if you initially choose a long term.

4. You want to be protected in case you lose your job

One unique benefit SoFi offers to borrowers is unemployment protection. If you lose your income, SoFi will pause your payments.

You can pause payments in three-month increments for up to a year. To qualify for this benefit, you must show that you applied for unemployment compensation.

You’ll also be expected to work with SoFi’s career coaching team to find a new position. This benefit could be a huge help if you run into financial hardship.

If you’re already worried about losing your job, you might want to avoid borrowing a personal loan until your income is more stable.

Visit SoFi

Choose LendingClub if you need a small personal loan and have a stable income

Although SoFi is useful for those looking to borrow a large personal loan, it doesn’t offer personal loans for less than $5,000. That’s why LendingClub would be better if you’re looking for a small loan. Here are three main reasons LendingClub might be best for you.

1. You want to borrow between $1,000 and $40,000

LendingClub lets you borrow a personal loan as small as $1,000 and as big as $40,000. This could be useful if you’re using a personal loan to pay for moving or a small home renovation.

Although LendingClub charges an origination fee, this charge might be minor if you’re not borrowing much. For instance, a 1% origination fee on a personal loan of $1,000 would only add $10 to your balance.

Since LendingClub is a peer-to-peer lender, you’ll likely see a variety of offers if you get approved. You’ll get funding in a few days after you select an offer.

2. You don’t need longer than 5 years to pay back your loan

A maximum repayment term of five years is typical for many personal loan lenders, and LendingClub is no different.

You can’t choose a longer term, but you can pay your loan off ahead of schedule with no penalty.

If you don’t need a term longer than five years, LendingClub could be a good option. If you’re borrowing a small loan, chances are you won’t need to extend your terms past five years anyway.

3. You’re not worried about losing your job

Unlike SoFi, LendingClub doesn’t offer forbearance if you lose your income. It does allow you to temporarily or permanently change your payment due date, but you’ll only be able to move it to a different day of the month.

LendingClub will also help if you’ve experienced a natural disaster. In this case, it will hold off on late-payment fees for at least 30 days. The lender will also notify the credit bureaus of your situation, so your credit shouldn’t be affected if you fall behind on your loan.

Apart from this support, LendingClub doesn’t offer protections for unemployment. Before choosing a LendingClub loan, consider whether you have a reliable source of income for paying it back.

Visit LendingClub

What to know before choosing a personal loan company

Although SoFi and LendingClub are great options for taking out a personal loan, they’re not the only lenders that could meet your needs. Before choosing one or the other, make sure to shop around and compare your rates.

Other companies, such as Upstart and Avant, also let you check your personal loan rates with no impact on your credit score. That way, you can compare your pre-qualification offers to see which has the lowest costs of borrowing.

Besides interest rates, watch out for any extra fees or eligibility requirements. You should also check out customer reviews to learn about firsthand experiences with the lender.

Finally, search for benefits, such as SoFi’s unemployment protection. These extra perks might be the deciding factor when it comes to choosing one lender over another.

SoFi vs. LendingClub personal loans: Which one is right for you?

In the contest between SoFi and LendingClub, there’s no clear winner. Both offer competitive rates to borrowers with strong credit. Plus, both let you apply with a co-borrower, which could boost your chances of qualifying if your credit is subpar.

Because SoFi and LendingClub are both good choices, choosing one comes down to your needs as a borrower.

If you’re looking to borrow a large personal loan with the option of a long payoff term, SoFi might be the right decision. But if you need less than $5,000, LendingClub could be the better option.

Your state of residency might also be a factor, as SoFi doesn’t lend in Mississippi, while LendingClub doesn’t operate in Iowa.

Either way, you should check your rates with both lenders and compare preliminary offers. Once you find the right one, you can submit a full application to get your loan.

Then you’ll be well on your way to using the best personal loans for meeting your financial goals, whether you’re looking to consolidate debt or finally start that renovation project to complete your dream home.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderAPR RangeLoan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal Loans: Fixed rates from 6.990% APR to 14.865% APR (with AutoPay). Variable rates from 6.255% APR to 12.555% APR (with AutoPay). SoFi rate ranges are current as of September 1, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.255% APR assumes current index rate derived from the 1-month LIBOR of 2.08% plus 4.425% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction 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.

    To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.See Consumer Licenses.
  2. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  3. SoFi Personal Loans are not available to residents of MS. Maximum interest rate on loans for residents of AK and WY is 9.99% APR, for residents of IL with loans over $40,000 is 8.99% APR, for residents of TX is 9.99% APR on terms greater than 5 years, for residents of CO, CT, HI, VA, SC is 11.99% APR, and for residents of ME is 12.24% APR. Personal loans not available to residents of MI who already have a student loan with SoFi. Personal Loans minimum loan amount is $5,000. Residents of AZ, MA, and NH have a minimum loan amount of $10,001. Residents of KY have a minimum loan amount of $15,001. Residents of PA have a minimum loan amount of $25,001. Variable rates not available to residents of AK, TX, VA, WY, or for residents of IL for loans greater than $40,000.
  4. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (

2 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.

3 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 4.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan of $15,000 with a term of 24 months, and qualify for at least two of the following discounts: (1) add a co-borrower who has sufficient income; (2) use at least fifty percent of the loan proceeds to directly pay off existing debt; or (3) show proof of having at least forty-thousand dollars in retirement savings – contact FreedomPlus for further details.

4 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

5 Important Disclosures for LendingPoint.

LendingPoint Disclosures

  • Loan approval is not guaranteed. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary based upon LendingPoint’s proprietary scoring and underwriting system’s review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees from 0% to 6% may apply depending upon your state of residence. Upon LendingPoint’s final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. LendingPoint makes loan offers from $2,000 to $25,000, at rates ranging from a low of 15.49% APR to a high of 34.49% APR, with terms from 24 to 48 months. The loan offer(s) shown reflect a 28 day payment cycle which is being offered as a courtesy as many of our customers are paid on a biweekly schedule and thus this may better align the loan payment dates with your actual income receipt schedule.

6 Important Disclosures for LendingClub.

LendingClub Disclosures

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 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

**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.

Earnest Disclosures

  1. Earnest does not lend in Alabama, Delaware, Kentucky, Nevada, or Rhode Island.

8 Important Disclosures for Avant.

Avant Disclosures

* 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

* Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from you bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. All loans made by WebBank, member FDIC. Please refer to Upgrade’s Terms of Use and Borrower Agreement for all terms, conditions and requirements.

** 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.

7.73% – 29.99%$1,000 - $50,000

Visit Upstart

6.26% – 14.87%1$5,000 - $100,000

Visit SoFi

6.99% – 35.97%*$1,000 - $50,000

Visit Upgrade

5.99% – 24.99%2$5,000 - $35,000

Visit Payoff

4.99% – 29.99%3$10,000 - $35,000

Visit FreedomPlus

5.99% – 18.99%4$5,000 - $50,000

Visit Citizens

15.49% – 34.49%5$2,000 - $25,000

Visit LendingPoint

6.95% – 35.89%6$1,000 - $40,000

Visit LendingClub

6.99% – 18.24%7$5,000 - $75,000

Visit Earnest

9.95% – 35.99%8$2,000 - $35,000

Visit Avant

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.