Installment loans in Canada

Installment loans are a simple, quick, and easy way to get a loan in Canada. Installment loans are a great financing option if you are behind on your bills or need to make an emergency home repair.
Obtaining an installment loan through Get Payday Loans is simple. Simply fill out the simple application form on our website, wait for approval, and your money will be deposited into your account in less than 24 hours.

What exactly are Installment Loans?

Installment loans are personal and commercial loans that the borrower repays in regular installments and at predetermined amounts. Borrowing amounts range from $300 to $3,000, with a maximum of $25,000. These loans range in duration from 6 months to 3 years (5 years). They are unsecured, which means no collateral is required to secure them.

In Canada, what exactly are installment loans?

Unlike a line of credit, the borrower receives a lump sum of money upon approval of an installment loan in Canada. The borrower is then required to make biweekly or monthly payments. Before signing the loan, the lender and borrower must agree on an amount.

What are Installment Loans used for in Canada?

Canadian installment loans, like other loans, are used to balance financial obligations. As a result, installment loans are often used to cover emergency expenses, medical bills, car repairs, debt consolidation, utility bills, appliance purchases, vehicle financing, moving costs, home modifications, and more. increase.

What are the prerequisites for applying for an installment loan?

You will need the following documents to apply for an installment loan in Canada:

your government identification
proof of income (tax slip, employer verification letter)
a checking account

Element of decision

Take the time to investigate the various installment loan options available from lenders. By conducting this research, you will be able to locate a lender who best meets your financial needs and ability to pay. These five factors should help you decide whether to take out an installment loan from a lender.

1. Principal amount

Whatever you require the installment loan for, it is best to first manage your finances with your savings or income. When compared to borrowing the entire amount from the lender, it will save you from paying high interest rates. You should be aware that the principal attracts interest the moment you withdraw it.

2. Length of loan

The overall cost of the loan is determined by the type of installment loan you choose and the length of the repayment term. Since installment loans have different terms, it is best to consult your lender before proceeding.
It should be noted that low repayments come with a long repayment period. However, this attracts higher interest rates, which increases the overall cost of the loan. On the other hand, larger repayments attract lower interest rates, which reduces the overall cost of the loan. You may find it difficult to make monthly payments with large repayment plans. So evaluate your options and decide which one will work best for you.

3. Disbursement

How long will it take to get your money after your installment loan has been approved? If you want your loan disbursed the same day, the fees will be higher. Most installment loan lenders charge lower fees for the standard one-week period. So, critically evaluate your situation to see if you have time to wait.

4. Interest rates

Examine the interest rates you’ll be paying on your installment loan. To get the best deal, shop around and compare the rates offered by different lenders. Look for a loan with a low interest rate, as the higher the interest rate, the greater the burden.

5. Fees

Even if you find competitive interest rates, be wary of hidden fees. Origination fees, administration fees, appraisal fees, processing fees, underwriting fees, and credit report fees are all examples of these. They will increase your monthly repayments by adding to them. Instead of paying large monthly installments or upfront fees, you can choose a slightly higher interest rate to avoid sneaky hidden fees.

The Most Important Advantages of Installment Loans in Canada

An online installment loan may not be the best option for a personal loan. It does, however, have some advantages, which include:

Speed

Installment loans in Canada are easier to obtain than other types of personal loans. Because these loans are online, approval takes less than an hour, and funds are credited to your account in less than 24 hours.

With bad credit, this option is available

Installment loans are available in Canada to people with bad credit as long as they demonstrate the ability to repay. It differs from traditional loans in that the borrower must have a good credit score.

Repayment options that are manageable and flexible

Payday loans must be paid in full on your next pay date, every time. However, installment loans are structured similarly to personal loans. As a result, a borrower can select the loan term and, in some cases, the loan repayment frequency (either bi-weekly or monthly). Learn more about the differences between payday loans and installment loans.

Higher loan amount

Canadian installment loans offer higher loan amounts. Even in the event of a more costly emergency, you have the means to handle the situation comfortably. Combined with manageable repayment options, it reduces the risk of taking out multiple loans to have enough funds to deal with emergencies.

Apply in 1 day

While traditional lenders are open during business hours, installment loans are open 24/7. As a borrower, you can submit your loan application online at any time and don’t have to wait for the bank to open in the morning to fill out your application. All you need to apply for a loan is a computer and an internet connection.

In Canada, there are alternatives to installment loans

Installment loans have a high interest rate because they are unsecured, and the lender must bear the risk. However, there are alternative loans available to borrowers.

Loans that are guaranteed

Borrowers must have collateral for these types of guaranteed loans. In the event of a default, the lender can recoup their money by selling the collateral. These loans have lower interest rates and are approved quickly by lenders.

Property equity

You can borrow money if you own a home and have equity in it.

Credit cooperatives

Credit unions offer lower loan rates than traditional financial institutions. If you have a credit union checking account, you can enjoy even lower interest rates.

Is applying for installment loans common in Canada?

According to a PwC survey, 42% of millennials have used “quick cash” loans like payday loans. They primarily used these loans to pay off student debt. Although data on installment loans is limited, the trend is similar to that of fast cash loans.
Please do not hesitate to contact us if you have any further questions!

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Provinces Served | Installment Loans

Ontario

Alberta

British Columbia

Canada Installment Loans Frequently Asked Questions

An installment loan is any loan where you borrow a lump sum of money and repay a fixed amount of some time. Types of these loans include personal term loans, car loans, typical mortgages, among others.

Yes, you can. Installment loans for bad credit are available, however, fewer lenders are willing to offer you money. This means you also pay higher interest rates compared to borrowers with good credit.

Interest rates will largely depend on your credit score. The other factor will be your lender. With traditional financial institutions like banks, if you have a good credit score and collateral, they will loan you at 4-7%. However, the process is slow and has more scrutiny.
If you want a quick, less judgmental route, then alternative lenders will do. Their interest rates vary from 6%-13%. In case you have bad credit, the interest rates can go as high as 40%.

The main difference between these two loans is the terms of repayment. With a payday loan, the borrower has to repay on their next payday. The repayment period is between 2 weeks or a month and rarely goes above this period in Canada.
As for installment loans, the repayments are usually monthly, drawn over months, or sometimes years.

Yes, Installment loans with no credit checks are available. However, be sure to research the lenders’ no credit check installment loans since lenders have different meanings to this term.

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