origination fee

American  

[aw-rij-uh-ney-shuhn fee, o-rij‐] / ɔˌrɪdʒ əˈneɪ ʃən ˈfi, ɒˌrɪdʒ‐ /

noun

Finance.

1. a fee charged by a lender for evaluating and processing a loan application, typically a one-time fee taken out up-front as a percentage of the face value of the loan.

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Etymology

Origin of origination fee

First recorded in 1960–65

Example Sentences

WSJ | Buy Side: Some personal loans charge no origination fee, but compare interest rates and other terms to get a good deal.

From The Wall Street Journal • Apr. 1, 2026

But yeah, the bankers, they got a big origination fee.

From Slate • Jul. 12, 2022

Personal loans don’t usually require an application or prepayment fee, but some do come with an origination fee of somewhere between 1% and 10% of your loan amount.

From Seattle Times • Apr. 4, 2022

In Arizona, Springleaf pushed draft legislation two years ago that doubled the maximum origination fee, to $150 from $75, and applied the state’s maximum 36 percent rate to a greater number of loans.

From New York Times • Sep. 6, 2016

That loan had an effective rate—including interest, a $2,520 guarantee fee, a $750 origination fee, a $500 OnDeck platform fee, and a $387 servicing fee—of around 110 percent.

From BusinessWeek • Nov. 13, 2014