Explain SoFi Loans Pros and Cons?
Sofi provides online personal loans between $5000 and $100000 for a period ranging between two to seven years. To avail of the loan, applicants must meet some of their requirements. People with a credit score of over 650 will be eligible for the loan. Applicant should also have an annual income of more than $45000. They also allow co-applicant facilities for those applicants whose credit score is not up to the mark. There are specific pros and cons associated with this.
Applicants have advised that qualification standards are very tough. One of the parameters for availing of this loan is a credit score should be a minimum of 650. But even after meeting this parameter, there is no guarantee that the loan application would be approved as the SoFi, apart from this credit score requirement, would look at other factors like income, liability, and other expenses. It needs applicants to have an annual revenue of more than $45,000.
They would look into the cash flow of the applicants after their monthly payments. They will also examine if the applicant is currently availing of any other loan. If your credit score is not as per requirements, they provide the option for co-applicants, but the co-applicant should be living at the same address as the first applicant. They do not offer any opportunity for a co-signer, i.e., you can apply as a co-applicant if you are not residing in the same address as the applicant.
Loans cannot be availed for real estate, business purposes, investments, post–secondary education, purchase of securities, etc. It can be used for credit card consolidations, home improvements, medical treatments, and relocation expenses.
One of the significant pros is the quick application process. The loan, once approved, will be disbursed within a few days. Also, loans are given for a long duration at lesser interest rates. They also provide high loan amounts. Also, they don’t charge any late fees, although interest will be increased if you make a late payment. There is no pre-payment penalty. Borrowers can close the loan by pre-paying the amount without any charges.
They also have flexible payment, meaning borrowers can change the payment date once a year, depending on their financial planning. They also provide unemployment protection. Borrowers, in this case, should agree to work with SoFi career strategy service while looking for a job. In approved cases, they get to pause their loan for 3-12 months. But still, interest will be accruing during this time on the loan balance.
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