Private Loan Fees

Be Aware:

In addition to the interest you are charged for a loan, lenders may also charge you various fees at different times. These fees should be taken into consideration along with the interest rate when determining the actual cost of a loan.

Up-Front Fees:

Back-End Fees:

Up-front fees, such as origination fees, are charged immediately when the loan is made.

For example: say the lender charges a 1.5% origination fee. if you have a $10,000 loan, this 1.5% fee (equal to $150) is subtracted from the amount of the loan. this means you'll actually receive $9,850, but will have to repay the original $10,000 amount plus all accrued interest.

Back-end fees, such as repayment fees, are charged prior to when you begin repayment.

For example: say the lender charges a 3% repayment fee. If you have a $10,000 loan, this 3% fee (equal to $300) is added to the principal balance of the loan before you begin repayment. this means you'll be repaying $10,300 plis all accrued interest.