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Personal loans Canada
There are a lot of lenders for personal loans in Canada. Canada is not as large as the United States of America but has several lenders who are willing to give out personal loans Canada as searched by some borrowers.
To be eligible for this kind of personal loans in Canada you don’t need to have a good credit history. But the truth is having an appalling credit score and applying for personal loans in Canada can be an almost impossible task if you do not meet the right lenders.
This is because most traditional banks, financial institutions as well as other lenders in Canada and all over the world will dismiss your loan application to cut down on risk or avoid risk completely.
The traditional banks and other financial institutions are set up as profit-making organizations so when they lend they make sure to cut out all the risks as much as possible.
Fortunately, there are online companies which give bad credit loans to people with bad credit history. Though this is a way to help out borrowers with bad credit, it’s also a way by which these lenders to make extra cash of these desperate borrowers.
The good news is, the internet has become a global community so borrowers are able to identify and have access to these lenders easily.With a lot more people needing money, more private lenders are coming up and most of them transact business online.
Qualifying for personal loans in Canada
Basically, all you need is to have an internet connection on your phone or on your computer and you are good to go. The questions asked on the applications for personal loans in Canada is not difficult to answer.
Very easy questions are asked so as to allow everybody who can provide the requirements stated access to ‘personal loans Canada’. Straightforward questions such as your basic information and also some financial details such as your bank account details.
Having a good credit history helps a borrower have several options to choose from as compared to a borrower with a bad credit history.
Though the requirements for personal loans Canada are not that much, it is the duty of the borrower to search for lenders that grant loans that will meet their specific need.
The process for personal loans in Canada is very fast, so if you qualify for the loan, some lenders can boast of same day approval and paying monies within a few days.
No restrictions on the money borrowed
“Personal loans Canada” as most lenders search for online has no restrictions attached to its use as compared to mortgage loans or car loans. With personal loans Canada, you have the flexibility of using the money borrowed for anything that you wish.
The only issue you will have is when you borrow and don’t use it profitably, paying back will be a problem especially if you don’t see the use of the money borrowed and yet have to pay back with interest.
Using the borrowed money for what it is intended for such as home improvement, starting a small business etc. encourages the borrower when its time to pay because he or she can see the benefit of the loan. The importance of personal loans in Canada in a borrowers life is so immense and very fulfilling because you take it for your personal use.
Remember that, interest rates on the personal loans in Canada by some lenders can be on the high side. Therefore you should choose wisely the lenders you get loans from so that you can pay off the loans without hitches or even if there are, they will be minimal.
Private lenders in Canada
A private lender is an individual as well as an establishment that grants loans or gives money to individuals. However, these loans are high-interest rate loans than what you will get from traditional financial institutions or banks. Private lending is considered one of the oldest forms of lending. Going to a private lender provides a considerable flexibility in getting a loan.
Private lenders are less rigorous in assessing loan applications, compared to financial institutions. This makes it possible to get the money faster.
Though the banks have a wider range when it comes to the amount of money they can give a borrower, the restrictions are many therefore makes it difficult for them to accept all applications.
Fortunately for the private lenders, the restrictions that are applied to the traditional banks or financial institutions do not apply to them. This helps to give them more range when it comes to the kinds of people they can lend to. The processing time for private lenders too is considerably shorter because the requirements are not as stringent as the banks, making them a more preferred choice.
The processes in traditional banks and financial institutions are long because the application must go through several departments and each department takes time to go through the application. Whereas the private lenders don’t go through all these processes. Typically personal loans in Canada can take just a couple of days or even just a day to get to you.
Private lending and personal loans in Canada
Banks and other financial institutions are not able to give the loans that they want to because they have policies that restricts their ability to give these loans to borrowers. Whereas a private lender don’t have that kind of restrictions in giving personal loans to Canadian borrowers who need them. This enables them to give more loans to those who need them hence giving them more power in lending. Private lenders give personal loans quicker same way you receive your money at the quickest possible time. This is just because assessing loan from them is easy and faster due to their flexible and less stringent processes
We are talking a few days from approval to completion. You can also choose a private lender when you don’t want to borrow from a friend or relative. Often there are lots of excuses from friends and relatives when you try borrowing from them. With private lending, you don’t have to go through the stress of getting excuses.
What exactly is a private loan?
A private loan is a normal loan just like the loans from banks and other financial institutions. The only difference with a private loan is that it is given by private lenders hence the name private loans. The private lender does not work like the traditional banks, their structures are totally different from each other. Their modus operandi is also not the same.
The kind of departments in a bank or financial institution can not be found in a private lender due to the fact that most of them are online businesses.
Getting a loan from lenders when you have a good credit history is not a problem. However, with a bad credit history, it is another story altogether. But for private lenders, borrowers with bad credit would have been left without loans.
Private lenders do give personal loans Canada, (the most searched for phrase) to borrowers with good or bad credit history. The only difference is that with a bad credit history, the interest rates are higher because of the risk attached to such loans.
Conditions for these loans vary from lender to lender. A borrower should opt for the lender that gives the best options suitable for him or her and meets the exact need why the loan was applied for in the first place.
Do lenders who give personal loans take advantage of vulnerable people?
It is sometimes that lenders of personal loans in Canada take advantage of vulnerable people. This is because the borrowers are desperate for a loan after being refused a loan from their banks or financial institutions. The bad credit loan borrowers sometimes seek help from private lenders.
One of the familiar or regular worries for most Canadians is how to get credit. This is an issue for most people in Canada because of the issues people have with their credit history. In as much as there are several financial institutions who grant loans, they won’t grant the loan if the person who has requested for the loan is considered a high risk to the institution.
And this is where the lenders of personal loans come in. Finding one in Canada is not a herculean task. Lenders are very cautious when they have to lend to people with bad credit history because they are considered as very risky clients. Private lenders then take the risk of lending to these high-risk borrowers because of the money they make off them.
Come to think of it, why will a lender give money to a borrower who is obviously a risk to the company if not to take advantage of the fact that these borrowers are desperate. So its very easy to take advantage and make enough profit off them. Borrowers in this situation tend to overlook the interest rates attached to these loans because of the emergency or need of the money.
What happens, in the end, is that borrowers are made to make high repayments which eventually they are not able to keep up with and then default in payment.
Personal loans in Canada
Simply put- personal loans are unsecured loans. Unsecured can be explained as something which is not tightly fastened, tied or put together. In relation to loans any loan that is not tied to any form of security, for example, any form of asset owned by the borrower is an unsecured loan. Basically unsecured loans do not require any form of collateral or guarantee.
Personal loans are granted to salaried workers and individuals who can afford to pay the loan. Interest rates on these loans are very high and rightly so because there is no guarantee or security for such loans. Processing fees are also charged for applying for the loan by some lenders. Information on this is usually made clear to the borrower in the loan documents and on the websites of lenders.
Charging processing fees is a normal practice with most unsecured loans. The amount of personal loan that is granted to you is based on your monthly income and your capacity to pay. Equated monthly installments also known as EMI’s are the payment schedule for the repayment of the personal loans. From the view point of the lenders, if you have a steady income the probability of you defaulting in payments is very minimal. Considering your income is steady and meets the EMI’s.
Personal loans Canada continued
A borrowers area of residence in Canada can also determine whether you can afford repayment of a personal loan when granted. Very interesting but true and it’s all because going for a personal loan usually helps keep your standard of living. Before going for a personal loan ask yourself if it’s essential and if the approval time is good enough to meet your exact need.
Another thing to consider is, will the money left after the repayment of the loan be enough to sustain me till the end of the month? Make sure you have thought through all of these before you sign on the doted lines. Contemplate on all the ins and outs of a personal loan agreement before you sign up for it.
Getting a loan with a credit history which is considered as good is hustle free so far as the borrower meets all the other criteria by the lender they are borrowing from.
But on the other hand, having a credit score which is bad can cause a lot of problems for the one holding it. And is sure to be rejected by most lenders, especially the traditional banks and financial institutions.
Alternative lenders have realized there are a lot of borrowers being rejected by the traditional banks and have come up with strategies to help these borrowers out of their financial problems as well as make profit.
Some advantages of personal loans in Canada
Here we go with some of the benefits of private lending of personal loans Canada.
Loans are Slackened/Lax –
Not providing any form of collateral or guarantee before a personal loan is granted to you is one of the best advantages you can find in a loan.
A personal loan is reliable to fall on when you are hard up. Personal loans in Canada do not have any specific agreement as to what the loan should be used for.
A borrower is, therefore, free to use personal loans in Canada how he or she wishes. When meeting some targets financially during the month it can prove a tad bit difficult. Thus, personal loans Canada ,as borrowers will say, is the best type of loan to consider.
Easily acquired –
Paperwork and validation processes are minimum especially when the lender is online. And this, in turn, makes processing time short and straightforward. Making them a favored choice of most loan seeking individuals.
Loans can be used for different purposes
When you apply for the personal loan from a personal lender in Canada, it is not mandatory or you are not obliged to state exactly what the loan is for.
Compared to a housing loan where u are required to use the loan granted specifically for building or procuring a building as you have stated in the agreements.
The same applies to car/automobile loans. However, personal loans can be used for different purposes. Common purchases made by borrowers who get personal loans are appliances, home enhancement, renovation, electrical gadgets, and other luxuries.
Every advantage has its disadvantage and getting a personal loan from a private lender isn’t different.
Below are a couple of disadvantages personal loans in Canada
High interest can’t be avoided –
As stated above these personal loans are unsecured. Therefore high-interest rates are a mechanism put together by the private lenders to cushion themselves from high-risk borrowers. Hence the term high-risk loans.
There is nothing like payment infractions –
To avoid this kind of situations is why EMI’s (Equated monthly installments) are part of the agreement. You agree to this before the loan is granted. You are therefore obliged to pay off the loan for the entire term agreed including interest. Making it a very expensive type of loan to go for.
You are tied to this arrangement
When you append your signature to the agreement of a personal loan there is no escape until you have paid everything you owe plus the interest. The private lenders expect their money regardless of whether you lose your job or in a tight fix during the loan tenure.
Don’t borrow from a private lender to offset another loan –
Caution to borrowers, never take a personal loan from a private lender to pay off credit card debts or stock market investment. Neither should you try to lend to others to make extra cash? This can easily backfire and plunge you into serious debt which can lead to other misfortunes.
Getting a personal loan in Canada is very attractive or better still enticing. Before you go for one be totally sure you are ready for it. Since it will have a lot of impact on your finances. Apart from paying off your loan every month as scheduled, there are other needs that have to be met.
And if all of that is not taken into consideration, after the monthly payment is deducted what you will be left with will be inadequate for the rest of the month.
And this will defeat the purpose of taking the loan which was to improve your life and not make it worse. Taking a loan for a luxury you can easily live without is not a smart idea. Living within your means is also a brilliant way of avoiding these personal loans.
These private lenders can easily take advantage of your desperation to lure you into signing very mouth watering agreements (that is how it will seem at that moment). But on hindsight, you will realize a personal loan is not what you need after all.
However, if taking a personal loan from a private lender is absolutely necessary, make sure to look out for the best deals online and go for it.
Click on Apply Now anywhere on the website to apply for personal loans.
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.You can borrow up to $20000. 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.