Some lenders charge an origination fee as a way to make money on a loan that they see as riskier than loans to clients with good credit. The lending network PersonalLoans.com stipulates that its lenders typically charge an origination fee or other fees. Federal law requires that all fees and other important loan information be disclosed before a borrower accepts a loan offer. An origination fee is meant to cover a lender’s costs for processing a loan. The fee is usually a percentage of the loan amount. If an origination fee is charged, it will come from the lender and not the lending network. Ask your lender if you’ll be charged this fee. Because a small personal loan is an unsecured loan, meaning you don’t need collateral to get the loan, an origination fee may be one way for a legitimate lender to charge you more as a way to have you put some skin in the game. Paying such upfront fees requires a commitment in accepting the loan. No, personal loans aren’t secured loans. They don’t require collateral, such as your car for an auto loan or car title loan.