Are you a Canadian who wants to take a loan for some reason? Read below to know the various loan types available in Canada and then choose the loan which best suits your requirement.
Personal Loan: This loan is of two types, unsecured and secured. In unsecured loan, you need not provide any security. So the rate of interest here is higher compared to the secured one and the loan amount is also small. In case the lender asks your credit score, you need to provide it and you might need to pay an even higher interest for low score. For secured loan, please remember that you are providing a security and in case of non- payment of loan, the security is collected by the lender.
Payday Loan: Go for payday loans only when you need some extra money immediately. Though this loan has to be repaid as soon as you get your next salary, you have the option of extending the repayment date by paying additional fee. This loan charges extremely high interest rate and so try to repay the loan amount as early as possible. Above all, know your lender. Use a well known, reliable lender such as My Canada Payday that has a physical location instead of some fly by night operation that exists only on the internet. If your private information is misused, you won’t be able to do much if the company you entrusted it to can’t be located.
Consolidated Loan: Use the consolidated loan to bring all your different debts under one umbrella. The rate of interest here might be less than the interest rate charged by credit cards and this fact makes it an attractive one. Just make sure that the repayment installment amount is within your budget. Students who are intending to pay off their different student loans, should make an extensive study of different choices provided by Canadian government and then decide on the lender.
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