Personal Loans & Private Lending

A personal loan in Canada is a type of loan for individuals for any consumer purpose. Such a loan can be provided by banks, credit unions or online lenders (microfinance companies). Key features:

To characterize the loan, let's consider its main features:

• Unsecured: most credit organizations do not require collateral for the loan. However, there are secured loans on the consumer lending market. By providing collateral to the bank, you can count on a lower interest rate, a larger loan amount, etc.
• Purpose: borrowers can use the funds for a wide variety of needs - debt consolidation, home or car repairs, treatment or medical expenses, etc.
• Loan amount: banks and credit companies offer various consumer credit programs, the amount can range from $500 to $50,000.
• Interest rates on consumer unsecured loans are usually higher than on other targeted loans (car loans, mortgages). Interest rates will be higher for borrowers with bad credit and vary by program and borrower. Rates can be both fixed and variable
• The credit term can be from 1 to 7 years

To obtain a personal loan, you can submit an online application via the Internet or contact a branch of a bank or microfinance organization. The credit organization may require proof of income, and will check the borrower's employment.