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Private Lenders For Personal Loans Canada
Loans have become part of our lives and as individuals and it is helpful in different ways and forms.
Private lenders for personal loans (Canada) offers this service to borrowers because it is easier to give personal loans than giving mortgages for instance.
There so many private lenders giving personal loans in Canada. Some give short term loans whiles others give long term loans to their clients.
Knowing who a private lender is and their role in the financial market will help you in making up your mind whether to take a personal loan from a private lender or not.
Who are private lenders?
When we talk of loans the first place that comes to mind for most people is the traditional banks, non-bank financial institutions, credit unions etc.
But there are other people or organizations that grant loans to individuals and companies known as private lenders.
These private lenders have a more relaxed way of giving loans and also the process of granting loans are much faster as compared to the traditional lenders.
Flexibility in the processes and requirements of loans are more profound in private lenders for personal loans in Canada than anywhere else.
Traditional banks and other traditional lenders have very strict measures and processes they have to follow in granting loans because they are mandated by law to do so.
With private lenders, this does not apply to them as they give the loans out on their own terms and conditions and normally to people they are familiar with or better still have a relationship with.
Processing time for private lenders who give personal loans in Canada is always a step or two ahead of the time traditional banks take to process a loan hence borrowers preferring private lenders over traditional lenders.
Personal loans, what are they?
Just like the name implies personal loans are taken by individuals or companies and are used for what they wish instead of having a tag on it like car loans.
Personal loans are typically unsecured loans and by unsecured loans it means you don’t need to bring collateral which will be used as security for your loan by the lender.
Taking such a loan (personal loans) gives you the liberty to use the money as you want.
Some take personal loans to use for holidays, to pay medical bills, rent and other bills or even for weddings , home improvement and the list goes on and on.
If you have a specific reason for a loan such as a home mortgage or buying a car then you can go for a car loan or mortgage loan which will have better conditions for those specific needs.
However if you need money to take care of some personal needs , then private lenders for personal loans in Canada will serve a better purpose because you will get the loan faster than applying to traditional lenders.
Their terms and conditions are much flexible and more negotiable to suit your needs than a loan from the banks where one rule applies to all.
Requirements for private lenders are also not strict, so many more borrowers will qualify for personal loans from them than form the banks or credit unions.
Fixed repayment schedules are typical of personal loans
As we have stated above, personal loans are taken without any specific use attached to them and the borrower can use it as he or she pleases.
The rest such as the repayment of the loan are all scheduled and this schedule is agreed on by the lender and borrower of the loan.
There are different repayment schedules when it comes to personal loans and the lender and borrower works with one that will suit the amount to be repaid as against the borrowers salary.
The catch is that the higher amount to be paid means the loan will have a shorter tenure as against a smaller repayment amount.
Usually the repayment schedule starts from twelve months to as long as sixty months or sometimes more.
It is very necessary to note that though you can have a smaller repayment amount which means you will have a longer tenure for the loan.
But it also means you will be paying more in interest on the personal loan and vice versa if you pay back the loan using a shorter tenure.
It will be beneficial to a borrower to borrow a loan at a shorter period so he or she can pay back the loan earlier in order to be able to take other loans.
Having a loan you are servicing reduces your chance of qualifying for other loans.
So the earlier you pay of the personal loan, the better your chances of getting other loans without a lot of stress.
Defaulting in paying back your personal loans attracts some charges from private lenders.
Whiles being able to pay back your loans helps repair your credit history if you have bad credit history and builds your credit history if it is already good.
Why choose private lenders overs traditional lenders?
One known facts about private lenders is that they give personal loans at high interest rates compared to traditional lenders.
However, there are so many other benefits of taking personal loans with private lenders that the high interest rate does not affect the decision taken by most borrowers when taking the loan.
With traditional lenders your credit history is a very important factor when it comes to what they look out for.
When you have a good credit score, you are easily considered for a loan with traditional lenders.
And having a bad credit scores immediately means you do not qualify for a loan with traditional lenders.
This is not the case with private lenders. Though you may have a bad credit score, private lenders will consider you as a potential client so far as you able to prove to them that you can pay back the loan.
You can increase your eligibility for a loan with private lenders by showing you have a verifiable source of income. Additionally, you should have an employment which has also been steady for at least six months.
Applying for personal loans through a private lender is simple and also straightforward or straight to the point.
They cut out all the tiring processes you have to go through when you apply via a traditional lender.
To make it even more easy for borrowers applying for personal loans from them (private lenders), they have also gone online where processes on there are much more simpler and faster.
Click Here to apply for personal loans from 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.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.