While you may try your best to live within your budget, sometimes you will need instant cash for emergencies. Installment loans Canada is one of the solutions in such situations.
What are installment loans?
As the name suggests installment loans Canada are the loans that involve taking a certain amount of money from a lender and then paying it back in equal intervals known as installments. The time between the intervals and the amount to be paid in each installment is agreed upon by the lender and the borrower. The payment intervals are usually monthly, weekly or bi-weekly.
These loans are almost similar to payday loans. However, unlike the payday loans, they have a higher limit allowing you to borrow larger amounts of money and have longer payment periods. They also have lower interest rates than the payday loans. Though installment loans may require a certain credit rating of the applicant, some are designed for people with bad credit, allowing little or no credit check. However, applying for the installment loans with a credit score that is above average allows you to get a quick approval and lower interest rate making the loan more affordable for you.
Types of installment loans Canada
Applicants for the installment loans may get approval for either unsecured or the secured loans. With the secured installment loans, the applicants are required to provide collateral to be attached as security for the loan. This is a property that can be retained by the lender if you fail to repay the loan. The unsecured installment loan, on the other hand, does not require the applicant to provide any collateral for the loan instead they have a higher interest rate.
What are the sources of installment loans in Canada?
There are several sources from which you can obtain these kinds of loans. Some of these sources include direct online lenders, banks, financing companies, credit card issuers as well as friends and family members.
Factors to consider when taking these loans
The following are some of the factors to consider when applying for installment loans.
- Loan amount- It is good to check if the amounts offered by the lender are able to meet your needs. You should also take a reasonable amount, one that you will be able to pay without much struggle.
- Terms and conditions of the loan- Loans may be paid in either long or short-term plan. Long-term loans may seem favorable but you may end up spending more money on interests. It is good to consider short-term loans since they are cheaper in terms of the interest rate.
- Turnaround time – One of the most frustrating things is waiting around for a loan approval. It is even worse when you need the money for an emergency. A good loan is one available to you within the shortest time possible.
- Additional charges- Always go for a loan with the least or no additional charges.
- Interest rates- Before applying for the loan, always consider the interest rate as it is the main determiner of whether you can afford a loan or not.
Why installment loans are a good option?
- These loans involve a quick and convenient application process. All you need is access to online platforms provided by various lenders all over Canada.
- Once your loan application is approved, it takes a short time for the money to be disbursed to your account.
- These types of loans have convenient time allowance for ease of repayment.
Installment loans Canada can, therefore, be a quick and easy option to get finances for many Canadians. Working with us guarantees a reliable assistance. We consider your financial situation to provide you with the most appropriate loan option for you. We help you understand the loan structure as well as the application process. Do not hesitate to contact Bonsai Finance for assistance.