What is Personal Loan?
There are mainly two types of personal loan, secured and unsecured.
In secured personal loans, you have to keep some asset as a guarantee with bank. And in unsecured loan
you don’t have to keep any asset as a guarantee.
In secure Loan you get lower interest rate which is secured by your valuable asset like home. It gives you
higher credit limit for big purchases like home improvements , office renovations and family trips.
An unsecured is a loan offered without keeping any asset, personal loan can be a great option to pay off your other debts for a fixed monthly payment at a lower rate. But interest rates and other terms can vary greatly based on credit risk. If you have paid all payments of an earlier loan on time and have paid off all your credit card bills on time, you are counted as a low risk credit.
Personal loan interest rate is allocated according to the customer's salary – if a customer will be able to repay the loan, the amount being borrowed and other criteria like credit history.
The repayment time period for a personal loan is fixed and ranges from 1 year to 5 years.
It doesn’t require paper work , it is fax less procedure, and the loan is approved within 24hours of submitting an online application.
In Canada the range of personal loan varies from $1000 to $100000 with interest rate varies from 4.25% to 36%, (These are general approx figures based on data available on internet, Actual figures may vary).
Who can apply?
Any salaried, self employed or professional Canadian citizen is eligible for a personal loan. According to the criteria set by banks and other financial institutions, you:
Should have been working with your current organization or been involved in your business for at least three consecutive months.
Should have some monthly repaying capacity. The required minimum salary is $1000 at least.
Must qualify the age bracket defined by the government.
PayPowerLoan finance assistants will help you find the loan that meets all your requirements, and helps you to grow.
personal loan rates canada
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