Introduction
Installment loans are a popular form of borrowing in Canada, and many banks offer such loans to their customers. When it comes to choosing a bank for an installment loan, it’s important to consider factors such as interest rates, repayment terms, and customer service. In this article, we will explore the top 10 banks in Canada for installment loans, what they offer, and what sets them apart from other lenders.
What is Installment Loan?
An installment loan, also known as a term loan, is a type of loan with a fixed term that reduces every month, as payments are made by the borrower. The entire loan amount is borrowed up front, and until it is fully repaid, a fixed, recurring payment is made.
Installment loans are a type of unsecured personal loan offered by online lenders, and they often have more lenient eligibility criteria than conventional personal loans, so you can apply for them and get approved with bad credit
Benefits of Installment Loan in Canada
There are several benefits to taking out an installment loan in Canada, including:
- Predictable payments: With installment loans, borrowers know exactly how much they need to pay each month, making it easier to budget and plan for future expenses.
- Flexible repayment terms: Installment loans often come with flexible repayment terms, allowing borrowers to choose the length of time they need to repay the loan based on their financial situation.
- Lower interest rates: Compared to credit cards or payday loans, installment loans typically have lower interest rates, which can save borrowers money over the life of the loan.
- Accessible: Many lenders offer installment loans online, making them accessible to borrowers who may not have access to traditional banking services.
- Improve credit score: Consistently making on-time payments on an installment loan can help improve a borrower’s credit score, which can make it easier to secure loans and credit in the future.
- Consolidate debt: Installment loans can be used to consolidate high-interest debt, such as credit card debt, into one lower monthly payment, which can help borrowers save money on interest and pay off debt faster.
Top 10 Banks in Canada For Installment Loans
1. LoanConnect
LoanConnect is a Canadian online lending platform that connects borrowers with a network of over 50 lenders, including banks, credit unions, and alternative lenders, to offer installment loans. The platform offers a quick and simple application process, with loan amounts ranging from $500 to $50,000 and repayment terms of up to 60 months.
One of the main advantages of using LoanConnect for installment loans is the ability to compare multiple loan offers from different lenders. This allows borrowers to find the best rates and terms for their financial situation. LoanConnect also offers a pre-approval process, which allows borrowers to check their eligibility for a loan without impacting their credit score.
Website: www.loanconnect.ca
2. goPeer
goPeer is a Canadian peer-to-peer lending platform that offers installment loans to borrowers across the country. Unlike traditional banks and lenders, goPeer connects borrowers directly with individual investors who are looking to earn a return on their investment. This means that borrowers can often get more flexible terms and lower interest rates than they would through a traditional lender.
The funds are normally put into the borrower’s bank account within one to two business days after the application is approved. goPeer offers loans ranging from $1,000 to $25,000, with repayment terms of up to 60 months.
Website: www.gopeer.ca
3. FriendlyLender
FriendlyLender is a Canadian online lender that offers installment loans to people who need fast access to cash. The company’s mission is to provide a friendly and straightforward borrowing experience to its customers. FriendlyLender offers loan amounts ranging from $1,000 to $15,000, with repayment terms of up to 60 months.
One of the main advantages of borrowing from FriendlyLender is the company’s focus on customer service. The company has a team of friendly and knowledgeable loan specialists who are available to answer questions and provide guidance throughout the borrowing process. FriendlyLender also offers flexible repayment options, including the ability to make early payments without penalty fees.
Website: www.friendlylender.ca
4. SkyCap Financial
SkyCap Financial is a Canadian lender that provides alternative financing, including short-term installment loans. The lender is based in Kingston, Ontario and was founded in 2013. SkyCap Financial’s goal is to provide fast and easy loans to all Canadians, regardless of their credit history, and they offer loan amounts ranging from $500 to $15,000 with flexible repayment terms between 9-60 months. Customers can receive an instant decision and official approval in as little as 24 hours. SkyCap Financial also allows early repayment of loans.
Website: www.skycapfinancial.com
5. FlexMoney
FlexMoney provides installment loans in Canada with loan amounts ranging from $500 to $15,000 and terms that range between 6 months to 5 years. These loans are available to borrowers for any of their financial needs, including debt consolidation, moving, renovations, or emergency medical expenses. To qualify for a FlexMoney installment loan, borrowers need to actively receive a net income of $2000 per month or greater for at least three months and have an open and active bank account with a Canadian financial institution showing at least three months of transaction and banking history. The application process can be completed entirely online and offers quick approvals and fast funding.
Website: www.flexmoney.ca
6. Loanz
Loanz is an online lender in Canada that offers installment loans, allowing borrowers to complete the entire process online or even from their phones. According to their website, borrowers can get approved for up to $15,000 in less than 3 minutes, with funds available in as little as 15 minutes. These loans are ideal for a variety of purposes, such as a car or auto repairs, unexpected emergencies or debt consolidation.
Loanz offers installment loans, which are a type of unsecured personal loan. These loans have more lenient eligibility criteria than conventional personal loans, so borrowers can apply and get approved even if they have bad credit. However, borrowers should be aware that the convenience of these loans comes at a cost in the form of higher interest rates.
Website: www.loanz.com
7. Fairstone Financial Inc
Fairstone Financial Inc is a leading non-bank lender of personal loans in Canada, offering installment loans with fixed interest rates and terms that do not increase as long as payments are made on time. Customers can borrow up to $50,000 from Fairstone to cover unexpected expenses, consolidate debt, and more, with the amount they can borrow depending on factors like their credit score and homeownership status.
Fairstone offers both secured and unsecured personal loans, with secured loans providing access to more money, lower interest rates, and lower payments, while unsecured loans offer quick access to money, manageable payments, and no pre-payment penalties.
Website: www.fairstone.ca
8. Smarter Loans
Smarter Loans is a Canadian online lending platform that connects borrowers with a wide range of lenders offering installment loans. The platform offers a variety of personal loan products, including home renovation loans, car loans, debt consolidation loans, and more. Smarter Loans works with a network of reputable lenders that offer flexible loan terms and competitive interest rates.
The application process for a loan through Smarter Loans is simple. You can complete an online application form, and then receive multiple loan offers from different lenders. This allows you to compare loan options and choose the one that best suits your needs. Smarter Loans’ network of lenders offers loan amounts ranging from $500 to $50,000, with repayment terms ranging from 6 to 60 months, depending on the type of loan you choose. Interest rates vary depending on your credit score, income, and other factors.
9. Money Mart
Money Mart offers installment loans in Canada ranging from $1,000 to $15,000, which can be funded on the same day you apply. These loans can have repayment terms of 12 to 60 months and a variety of payment frequencies, including weekly, bi-weekly, monthly, and semi-monthly. Your bank account will be automatically debited for payments.
To apply, you can fill out an application online in just a few minutes. However, these loans are not available in Yukon, Northwest Territories, or Nunavut. Additionally, Money Mart offers a $100 loyalty bonus with installment loans.
Website: www.moneymart.ca
10. Loans Canada
Loans Canada is a financial service provider that offers installment loans in Canada. They work with multiple lenders to match borrowers with the best loan options available based on their credit profile and financial needs. Loans Canada offers both secured and unsecured installment loans, with terms ranging from 3 to 60 months, and loan amounts ranging from $500 to $300,000. These loans can be used for a range of things, like home improvements, debt relief, and unexpected costs.
Loans Canada also offers various repayment options, such as weekly, bi-weekly, and monthly payments, and flexible payment schedules. Borrowers can also benefit from early payment without any penalty fees. Applying for a loan is done online and can take as little as five minutes, with funds being available as soon as the same day or within 48 hours, depending on the lender.
Website: www.loanscanada.ca
Conclusion
In conclusion, there are many options available for those looking for installment loans in Canada. The top 10 banks for installment loans offer a range of loan products with competitive interest rates, flexible repayment terms, and excellent customer service. It’s important to compare the offerings from different banks and choose the one that best suits your needs and financial situation. Whether you need a personal loan, car loan, home renovation loan or debt consolidation loan, these top 10 banks provide a reliable and convenient way to secure the funds you need.
