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In Canada, there are ten provinces that make up the nation. One of the provinces is called Alberta and there are several types and kinds of loans in Alberta. Borrowers have put all these loans under one umbrella which they call ‘Alberta loans’.
This description gives borrowers the convenience of searching for all kinds as well as types of loans online. One of the major types of loans common to most people in Alberta is Personal loans though there are a lot of options to choose from.
Personal loans in Alberta is quite popular with the inhabitants because you can take the loan and use it for whatever reason necessitated the need for the money.
For mortgages and car loans, you take a loan from traditional lenders or alternative lenders and use the money to purchase a house or buy a car as stated in the agreement. This is totally different from personal loans, where you take the loan for your own specific need.
To get Alberta loans, there are several financial institutions that you can approach to help get you with the kind of loan that best suits you. There are traditional lenders, alternative lenders, and private lenders. Under each of these major branches (traditional, alternative and private lenders) are several other types of loans.
We will talk about what these three major branches are and then a few of the types of loans that can be found under each branch to give a better understanding of them.
What are traditional lenders?
The bank is the first place that comes to mind when you think of getting a loan. This is because it has been the place we all go to for loans for so many years.
Be it going for a loan for personal loans to help you to sort out car issues or medical bills or for business loans to help you start a business or boost your business.
Getting loans from traditional lenders in Alberta such as banks, non-bank financial institutions, credit unions, microfinance companies, etc. gives the borrower a sense of trust because of their longevity in the business.
Not only do borrowers trust the traditional lenders because of how long they have been in the business, but also they are regulated by law. And also they typically operate using the four C’s (capacity, capital, character, and collateral) theory.
Every loan that is taken from traditional lenders in Alberta usually has standardized procedures.
Because lenders will either check your credit history, your business plan or ask if you have collateral.
They do this to make sure they are lending to the right people and that their monies will be paid back.
Loans from these traditional financial lenders are also relatively cheaper in terms of their rates and fees as compared to other types of lenders.
Alternative lenders in Alberta
Normally any other loan that is taken outside of the traditional lending bracket is referred to as alternative lending.
Alternative lenders can, therefore, be described as lenders who give loans to borrowers but are not traditional lenders.
Most of the clients of the alternative lenders are individuals or businesses who have been rejected by traditional lenders due to one reason or the other. Under alternative lending we have several types of loans you can get that are similar to that of traditional loans but the process of acquiring these loans are what differentiates them from each other.
You get alternative lenders concentrating on collaterals that traditional lenders do not accept, ignored or disregarded. Examples of such collaterals are invoices that are outstanding or real estates.
As stated earlier their processes with regards to giving out loans are much different from traditional lenders. Alternative lenders have more flexible procedures and their application forms are also much simpler, same as their repayment plans compared to traditional lenders.
You will get a loan much faster in Alberta if you use alternative lenders because they do not have long processes or a lot of departments to go through before granting a loan.
With that said, alternative lenders are very well organized and have dedicated staff who work at bringing out the best services for their institutions in the community.
To give out loans alternative lenders usually concentrate on an individual or business’s ability to pay back the loan that on their credit scores.
Private lending in Alberta
Private lenders have carved a niche for themselves as non-official institutions or individuals who give out short term loans to companies or individuals. They are sometimes known as the hard money lenders in Alberta. The money they give as loans are used by the individuals or companies who go for them as quick fixes.
A quick fix can be a renovation of a home, car repairs, emergency hospital bills, rent payment, etc. There are three categories of private lenders who give out loans to individuals and businesses.
In all of these categories, the lending is based on the relationship the individual has with the lender. We have the primary circle and in this category is where we have family friends.
The secondary circle is where we place the personal and professional acquaintances as well as colleagues at work.
And the third and final category is the third party circle where these individuals or companies that give private loans are known as hard money lenders and some of them are accredited.
Why Alberta loans?
Alberta loans are loans that can be found in the western Canadian province called Alberta. As compared to other provinces, Alberta has a smaller population so getting a loan is much easier.
There are about four million three hundred people living in Alberta, but so many options of lenders can be found. With the types of loans in Alberta, you can get a loan even if you have a bad credit history personally or if your business has bad credit scores.
It is quite normal for individuals or businesses to run into some financial problems once in their lifetime. When these financial problems come up you will try and find solutions to these problems and Alberta loans then comes in handy.
No matter the financial issue you find yourself in, there’s always a loan in Alberta that will best suit your need and help you out of that situation.
Online loans in Alberta
Online loans are simply described as loans that are applied for online and money transferred directly to one’s bank account. Recently a lot of lenders are migrating online or if not migrating have a presence online since it has become the common way for borrowers to search for lenders.
One way to get money quickly or fast is to get an online loan in Alberta because online loans offer the fastest way to get money. Application for an online loan is simple and straight to the point. So easy to fill that you do not need help with it.
The number of papers or documentation needed for online applications is so little it makes it very convenient to apply anywhere you find yourself. Fortunately for most online loans, borrowers are given a positive response to their request.
Due to the interest of borrowers to online loans, there has been a rise in online lenders and this is an advantage to borrowers. This is because, with the increase in numbers of online lenders, borrowers are able to choose the best loan that suits all their needs with regards to repayment schedules, interest rate, etc.
Since emergencies are something that we can never plan for, the need for money quickly in an emergency situation is very crucial and online loans in Alberta are just what you need.
What to look for in online loans in Alberta before choosing
It is very important to note that choosing a lender for your loan is one of the most important decisions you can make in your financial life with the simple fact that it can either make you or break you.
You will have to consider a lot of things because taking a loan is supposed to help you out of a situation and not plunge you further into debt.
Below are a few things to consider before choosing a lender :
1. Make sure their reputation is intact. Do some research on the lender through reviews given by people both on their website as well as from independent review sites. It is also quite reassuring to know that someone you know personally has used that lender. They can give you an unbiased review of the lender.
2. You should also be aware of the time it takes to get the money from the time the request is made. It is very typical of online lenders to get you the money you request for within the same hour the request is made. The latest time it takes for online lenders in Alberta to get you the money is twenty-four hours.
3. Every lender has their requirements for accepting an application for a loan. Although most of these requirements are similar to all online loans, there are some differences you should look out for.
The basic ones like being eighteen and above, being a resident of Alberta and having steady income runs through almost all the requirements by lenders. However, there are some fees and charges that are unique to specific lenders and you must be very careful about them so as not to be overcharged for a loan.
4. Make sure that you read all information of lenders with regards to any loan you are interested in. Not all information about the lenders are boldly written out, this is done to make borrowers skip that information.
These lenders hide some charges in these small prints. So before you agree to any loan make sure all terms and conditions are properly understood.
Profits of online lending
Unlike traditional lenders who are quite stuck in their ways of borrowing, online lenders have determined to make borrowing very easy and convenient.
Loans are unsecured
Generally, online loans do not require collaterals because they are unsecured loans.
This is a good thing for borrowers because your property or asset is not stuck with a lender for as long as your loan is not fully paid for.
Though no borrower sets out to default on his or her loan repayments, it cannot be fully ruled out because anything can happen.
In this case when it happens your asset is sold by the lender to make up for the money borrowed. The borrower then loses his or her property in this instance.
Borrowing without placing collateral as security and defaulting will affect your credit scores but your property will be intact.
More approval as compared to the rejection
Traditional banks, credit unions, and non-bank financial institutions have become wary when it comes to giving loans.
They want to avoid all the risk they can afford to avoid when giving out loans due to the defaulting rate of borrowers in recent times. With traditional lenders, it’s much easier getting a loan if you have collateral or you have a very good credit history.
Online lenders, on the other hand, are more lenient when it comes to giving loans. Having a bad credit score does not deter online lenders from approving a loan so far as you are able to prove that you have a steady income and employment.
If you are able to prove to online lenders beyond any reasonable doubt that you are capable of paying back the loan, your application is likely to be approved.
You can shop around for better rates
There are so many lenders online you can choose from. The trick is to make sure the lender you settle on will give you better rates than all the others. Taking your time and checking the rates, fees, and charges of a lender help you to save money in the end.
If you get a lender who is giving you a loan at 12 percent as against one that was giving you a loan at 14 percent, you are able to save money from the 2 percent you cut out.
Be vigilant in your search as some lenders will give loans at low-interest rates and yet small charges and fees attached to the loan will end up shooting up the repayment.
When this happens the main aim of saving money will be lost and you end up paying for more than you bargained for and this can push you into defaulting on payments.
If you are fortunate enough, you can bargain for better rates from online lenders in Alberta and get lower rates.
Approval is quick
Online lenders do not have departments that your application must pass through before it is approved like that of traditional lenders so the approval is much quicker.
The process your application for loans pass through is simple and straight forward. Lenders of online loans can, therefore, tell in a matter of minutes if your application will be approved.
Your amount you requested for is also not automatically approved but your income, the interest, and tenure of the loan is considered in determining how much you can take.
What are payday loans?
In Alberta just like other provinces in Canada, some online lenders give pay day loans. Payday loans are loans given to borrowers and repayment is expected at the end of the month when you are given your pay cheque.
All payday loans are typically short term loans which last for a couple of days to weeks. Because of how quick it is to get payday loans, most people who need money as quickly as possible opt for payday loans.
Lenders of payday loans make sure they confirm your income and your bank account because they are two of the major things they need.
The income confirmation is to make sure you can pay back the loan that is given to you. While the bank account is important because when your loan is given it will be transferred into your bank account.
Post dated cheques are also requested from borrowers so that the lender will be authorized to take money from your account usually at the end of the month or as agreed.
Giving the online lender the post-dated cheque is way used by the lenders to cut out chasing borrowers for repayment of the loans. In as much as borrowers are not too enthused about giving posted dated cheques to the lenders, they will rather endure that than having to bring the credit scores or lenders checking their credit history.
Most people who go for payday loans are borrowers who have been rejected by traditional lenders or other lenders as well. The rejection is due to the fact that they have a very bad credit history or their scores are on the low.
But fortunately for them (borrowers) payday loan lenders do not bother with borrowers credit history so are able to get the money they need.
The downside of payday loans in Alberta
Payday loans give a lot of relief to those who go for it especially for the short term. However, payday loans in the long term can become a burden to the one who goes for it.
Especially if he or she is not able to pay back the money borrowed because of the short period given for repayment. Sometimes the interest which is so high on payday loans makes borrowers dip deep into their pockets to pay back the loan.
In the end, the money available for the rest of the month is not enough so has to go back for another loan, this can easily become a cycle which becomes difficult to get out of.
What most borrowers forget is that taking the payday loan was because there was an urgent need but no money for that need. However, the few days or weeks given for the loan to be repaid is not enough to get money to pay back the loan plus the huge interest rate.
When it comes to the collection of payments from those who have defaulted from paying back their payday loans, lenders are very ruthless. This is also part of the reason why borrowers of payday loans become repeated borrowers or fall into a cycle of borrowing over and over again.
They want to avoid the stress of going through all the drama from payday lenders when it’s time for collections.
Alberta loans are basically all types of loans that can be found in the Canadian province called Alberta. These loans include but not limited to personal loans, mortgage loans, car loans, students loans, installment loans, payday loans and all kinds of loans available in Alberta.
These loans have been helping individuals and businesses for so many years. Without Alberta loans, the populace living in Alberta will have found themselves in all kinds of problems such as rent issues, medical bills not being paid, etc.
Loans are a necessity in the society we live in now, however not going for the right kind of loan can cause you more harm than good. It is therefore very important to do a lot of research before you decide that this is the loan which best suits me.
To avoid any form of loans so as to stay away from paying lenders huge interest rates and charges, you must start saving and this must become part of you. With the way things are it is quite difficult saving but you will have to sacrifice since you know it is for a good cause.
Another thing you can do to help save is to avoid buying things that you don’t need. And selling off some stuff you have at home that you do not use can also fetch you extra cash that you can save for future use.
If all of these fail, Alberta loans are available for you to pick from to make your life comfortable. The only thing is that you will take the loan at a price.
Apply for Alberta loans at After Loans Canada
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.