How to Get a Personal Loan Without Paying Processing Fees? | Rupeezo

By Rupeezo | 27th, Feb, 2023

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Personal loans are the best solutions to deal with unexpected expenses, consolidate debts, and medical expenses, or get funds for your big purchase.

These types of loans are easy to avail of as they do not require a complex documentation process. Also, availing of an unsecured personal loan is easier since they do not need collateral.

However, processing fees on personal loans can increase the amount of loan repayment. This makes obtaining a personal loan more expensive than it needs to be.

But you don’t have to worry about the processing fees as there are some ways to avoid them.

Below are some ways you can get a personal loan without processing fee.

Look for Lenders That Don’t Charge Processing Fees

To get a loan without processing fee, you can research and may find lenders that do not charge such processing fees.

Some work on your part is needed to list out lenders that do not include processing fees while giving loans to their customers. You can begin your search by online searching banks or lenders that do not charge processing fees.

Compare and contrast the different rates, interest rates, repayment terms, foreclosure fees, and other charges offered by the lenders to find the best deal for you. However, instant loan without processing fee is not always a win-win situation; the lenders can charge other fees such as documentation charges or legal fees that can significantly add up to the borrowing amount.

Improve Your Credit Score to Get a Personal Loan

Credit score plays a crucial no matter what kind of loan or what benefits on the loan you are looking for. This numerical representation of your creditworthiness decides whether you qualify for a personal loan, the amount you can borrow, the interest rate you will pay, etc. With a low credit score, it’s hard to get an online loan without processing fee and have the processing fee waivered.

For a better credit score, you need to make corrections in your credit report, timely repay your bills, and avoid taking more credits or paying down high balances on your credit cards.

Ask the Lender to Waive Off Processing Fee

If you cannot find a lender or loan that excludes processing fee, then one way to avoid is through using your negotiating skills. The majority of lenders will oblige to your request if you have a good credit score and strong repayment history. When negotiating, have a firm yet polite tone, and give the lenders logical reasons as to why they should waive the processing fee. If they still do not agree to waive the processing fee, then you can ask them to provide other concessions such as low-interest rates or longer tenure for repayment. The negotiating is surely going to help you get a quick loan without processing fee or will help lower the overall borrowing charges in some way or the other.

Apply for a Personal Loan With a Co-applicant

Applying with a co-applicant for your personal can also help exclude the processing fee. A co-applicant or a co-signer is the individual that agrees to take the responsibility of repaying the loan along with you. With a co-applicant, the risk of failure of repayment reduces for the lender, and thus, you may get a loan without processing fee. If the co-applicant has a solid credit or repayment history, then it further increases your chances to get a waiver on the processing fee.

Consider Credit Unions to Get a Loan Without Processing Fee

Credit unions are non-profit financial institutions that are owned and operated by their members. These institutions have lower interest rates and other charges when compared with commercial banks. They are not driven by profit, and that’s the reason there are credit unions that provide personal loan without processing fee. However, you have to first join a credit union by fulfilling certain requirements, before you can get a loan from there. This may not be a viable option for those looking for a quick disbursal of their loan, but they can avoid the processing fee.

See if There Are Any Promotional Offers

If you search around enough, you may find lenders that are giving promotions or offers on personal loans. New lenders in the market offer promotions, offers, or other incentives on the loans in order to capture more customers. These offers may include instant loan without processing fee, low-interest rates, gift vouchers, or cash back. Be aware when such offers come up so you can grab the opportunity. You can also find online lenders that provide offer incentives on personal loans. You may not get the processing fee waived, but there are chances of getting benefits other than that. Compare the different promotional offers by lenders to find an ideal deal to get your personal loan. 

Opt for a Secured Loan

If waiving off processing is extremely important for you to get a personal loan, then consider a secured loan. It’s not easy to get an unsecured personal loan without a processing fee, and thus, secured loans are the other option. Since secured loans require you to put collateral, make sure you are willing to pledge your car, home, or any other property against a secured loan. Some lenders can provide online loan without processing fee, and give other concessions such as low-interest rates. However, the risk of losing the collateral persists throughout your loan tenure in case you fail to repay the secured loan.

Conclusion

The processing fee charged on personal loans can be high if you are seeking a huge loan amount. So it’s wise to look for ways to waive the processing fee or find lenders that give a quick loan without processing fee. However, while aiming for no processing fee do not blind yourself to the other factors such as the interest rate, repayment charges, foreclosure or partial closure charges, etc.

Rupeezo is an Instant Loan Provider that offers most reasonable deals on personal loans. To know more about various personal loan offers, connect with us.