If you are planning to get for a personal loan for the first time, there will be plenty of questions and concerns in your mind. It is important to find answers to these questions and clear all your confusions before applying. Here are some of the most common questions people have in their minds.
I. Where to get these loans?
In Canada, many banks and other financial institutes offer loans. Apart from them, you can also contact private lenders or lending. Banks tend to have strict requirements and policies while private lenders can be a little flexible with their terms and conditions; hence, many people, in Canada, have now started to rely on them for getting their applications approved.
II. What are the factors that affect the rate of interest in Canada?
There are numerous factors that affect the rate of interest in loans. These include the credit score and history of the borrower, duration and amount of loan etc.
Furthermore, the rate of interest can also vary depending on the company you have selected. Some lenders charge a greater rate of interest if you have a bad credit score. However, with a little effort, you can find a reputed and reliable lender who offers funds on easy terms and feasible interest rate.
III. Are personal loans short-term or long-term?
A personal loan, typically, is a short-term loan. However, depending on the requirement of the borrower and the willingness of the lender, its duration can be prolonged as well.
IV. How to pay back?
The most common way to pay back is in the form of installments. An installment plan is set for the borrower, which they have to follow in order to repay the loan amount. It is important for the borrower to follow this plan and not miss a single payment otherwise their credit score and history can be impacted adversely.
V. How can I use the money?
The loan can be applied for different purposes. If you want to renovate your home or office, have some bills to pay or want to buy an expensive commodity, you can the money however you want.
VI. How can one apply for a loan?
The process is simple and straightforward. All you have to do is to find a reputed lender/company, go through their terms and conditions, and apply. The lender will then verify your details, put your application into processing, and upon approval, lend you the money. This type of loan can be obtained within a few days.