What is a personal loan?

A personal loan is usually an unsecured, installment loan that can used to fund necessary expenses consolidate debt. Sometimes they come with a down payment and/or “origination fee” in exchange for the ability to repay over a period of time.

How long are the terms of a personal loan?

This varies. Some are as short as 12 or 24 months. Others may be as long as 6 years or more, depending on the size of the loan. For example, a loan for a small boat may have shorter terms than a large recreational vehicle.

Who is eligible for a personal loan?

Anyone who has a steady source of income. This includes self-employed individuals. All eligibility is subject to approval.

What is the difference between a personal loan and a credit card?

A big difference is that the loan is taken out in a lump sum and repaid over time in fixed monthly installments. With a card, interest is charged based on the mount utilized only.

Can I repay the loan early?

Yes. Some rebates are available in doing so, in compliance with the Consumer Credit Act.

Why might I be turned down for a loan?

Credit history is reason most often cited. It pays to know your credit and make sure it is accurate and free of red flags. Reports of late, skipped or defaulted payments with prior creditors can negatively impact your ability to borrow.

Can I sign for a loan with someone else?

Yes. You can sign for a loan with a co-signer (often a relative) to provide extra security for the bank. The co-signer will need the same paperwork as the primary signee.