LoanMe personal loan review: An online lender with little rate transparency

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In a Nutshell

LoanMe is an online lender with a wide range of loan amounts and the potential for fast funding. But LoanMe can be expensive, and you may find better rates elsewhere.
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Pros Cons
Large range of loan amounts Loans not available in most states
Option to prequalify without affecting credit scores Not transparent about loan rates
May receive funds quickly May face an origination fee

What you need to know about a LoanMe personal loan

Founded in 2019, LoanMe offers installment loans through CC Connect, which is part of Capital Community Bank. While the Anaheim, California–based online lender offers both personal loans and small-business loans, this review will focus on the company’s personal loans.

Also good to know upfront: LoanMe offers personal loans in just a handful of states.

Wide range of personal loan amounts

LoanMe offers personal loans ranging from small amounts of $600 up to $100,000 for large purchases. You may apply to prequalify without affecting your credit, and the lender says you could potentially receive the money in as little as four hours. (But keep in mind that depending on your bank, there may be a wait before you can access your cash.)

LoanMe says people use its loans for things like car repairs, debt consolidation and medical bills. With the wide range of funding amounts available, LoanMe personal loans may help borrowers with solving a variety of financial challenges.

Potential for same-day funding

You may be able to receive loan funds on the same day if you can finalize the loan approval and paperwork by 5 p.m. Eastern time. But as noted above, the exact timing will depend on your bank. Still, if you’re in a time crunch for money, this can make LoanMe worth a look.

High rates and limited transparency

Overall, LoanMe makes it very difficult to gauge what interest rate you may get unless you apply for prequalification. For instance, it doesn’t disclose any rate details on its home page or its FAQs.

You’ll have to visit the company’s licenses and disclosures page (linked to at the bottom of its site) and select the state where you live to get an idea of what your rates could be — but note that not all states list rates as part of their disclosures.

For the states that do list rates, the APRs are high — in the triple-digits in some states for certain loan amounts. This is much higher than the maximum rate of 36% that many consumer advocates consider reasonable for small loans.

If you apply for prequalification with LoanMe and are offered a high interest rate, you should shop around elsewhere for a personal loan.

Possible high origination fee

Depending on where you apply, you also may be subject to double-digit loan origination fees. Those are much higher than origination fees you may find at other lenders.

A closer look at a LoanMe personal loan

Here are some additional details to consider before applying for a LoanMe personal loan.

  • Loan funding seven days per week — LoanMe offers loan funding during business days and weekends for eligible borrowers.
  • No prepayment penalties — You may pay off your LoanMe personal loan early without extra fees to save money on interest. That’s a good idea if your loan has a high APR.   
  • Possible fees for late or returned payments — Depending on where you live, you may need to watch for late fees and returned payment fees.

Should I get a LoanMe loan?

We recommend working with lenders that are upfront about their interest rates. LoanMe is not — and therefore it shouldn’t be your first choice. If you live in a state where LoanMe offers loans, there’s no harm in seeing what loan terms you may prequalify for since LoanMe uses a soft credit inquiry. But you should shop around and carefully compare any terms you’re offered to those of other lenders. 

While a personal loan from LoanMe may seem safer than putting your vehicle at risk with a title loan, there may be other lenders to choose from. Depending on where you live, LoanMe may not offer the most competitive loan, and you may find a lower origination fee and APR elsewhere.

If you need to borrow a small amount, you should also consider applying for a payday alternative loan from a federal credit union. The application fee for this type of loan can’t be more than $20, and interest rates are capped at 28% — likely making it much less costly than a LoanMe loan.

How to apply with LoanMe

To apply for a LoanMe personal loan, you must be at least 18 years old with a valid checking account and proof of income.

LoanMe allows you to prequalify to estimate your possible loan terms without affecting your credit. If you prequalify and submit your loan application, there will be a hard credit inquiry, which may temporarily hurt your credit. Keep in mind that even if you prequalify, your final approval or loan terms may change.

You may fill out an online application or apply by phone. To apply for prequalification, you must provide your …

  • Name
  • Address
  • Date of birth
  • Phone number
  • Email address
  • Monthly income before taxes

If you prequalify and want to proceed, LoanMe will ask for more details.

While it may be convenient to apply for an online personal loan, you should always shop around for the best rates and terms. It’s possible you also may have lending options through your current bank or credit union.

Not sure if LoanMe is right for you? Consider these alternatives.

  • Upstart: If you have less-than-perfect credit, an Upstart unsecured personal loan may be worth considering and could come with APRs that are lower than what LoanMe may offer.
  • Avant: You may like an Avant personal loan if you’re looking for a number of different repayment options.

About the author: Kate Dore is a Nashville-based personal finance writer and Candidate for CERTIFIED FINANCIAL PLANNER™ Certification. She teaches financial literacy with Junior Achievement and writes for Business Insider, Investopedia… Read more.