Loans & Debt · Glossary
Origination fee
An upfront fee a lender charges for making a loan, usually a percent of the amount. It's often taken out of the money you receive and raises the loan's APR.
On personal loans the fee is usually deducted from the proceeds: borrow $10,000 with a 5% fee and $9,500 reaches your account, while you repay all $10,000 with interest. Some lenders add it to the balance instead.
Because the fee is a finance charge, it's included in the APR, which is why a loan's APR can be well above its interest rate. Compare offers by APR, not rate alone.
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Disclaimer: Definitions are general education, not financial, tax, or legal advice. Figures are for the 2026 tax year unless noted.