To be eligible for a SoLo Funds account, you must meet these criteria:
- Be at least 18 years old
- Be a U.S. citizen or permanent resident with an unconditional 10-year card
- Have a bank account with a debit card supported by SoLo Funds
When you apply for an account, SoLo Funds also runs a soft credit check, which does not damage your credit. Although your credit score does not affect your eligibility, it does feed into your SoLo score. This is an exclusive in-app credit score that SoLo Funds creates to help other lender users decide whether they are comfortable lending you money or not.
The minimum loan amount is $20. When you first create an account, the maximum you can borrow is $100. If you repay this loan on time and your SoLo score is high enough, your borrowing limit can increase to a maximum of $575.
Interest and fees
SoLo charges no interest on its loans. Instead, you control how much you pay for the loan. You will have two options that will dictate your loan costs:
- Point. You set an optional amount between 0% and 15% which will go entirely to your lender.
- Don. You set an optional amount that goes to the SoLo Funds platform to support its operational costs. SoLo Funds donates a portion of this revenue to a non-profit organization.
Both of these fees are completely optional. If you don’t set a tip and donation amount, you’ll get an interest-free loan. However, lenders can see your tip amount in your funding application, and if you set a higher tip, you might be more likely to attract a lender willing to fund your loan.
Late payment or delinquent loan fees
You have 35 days after disbursement of the loan to repay it. After that, you will owe a 10% late fee to your lender. You will also incur a transaction fee to cover the cost of collections, calculated using the following formula: 2 x (0.9% of loan amount + $0.70). For example, if you are late on a $100 loan, you will owe a total of $29.40 in late fees and transaction fees.