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Unemployment Loans In Canada

An unemployment loan is a loan offered at a high-interest rate to those that aren’t employed or their source of income is not sustainable. People choose unemployment loans due to the fact that banks don’t offer loans when you have no income. There are different institutions that offer unemployment loans in Canada and this enables you to pay for your monthly expenses and miscellaneous bills. This article discusses unemployment loans you can obtain in Canada and how to know which loan is best for you.

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Written by: Big Piggyy

Rating

3.3/5

Loan Term

14 days -60 months

Est. APR

% 390 - 445

Loan Amount

$100 - 15,000

Rating

3.3/5

Loan Term

14 days - 60 months

Est. APR

% 173.81 - 495.36

Loan Amount

$50 - $10,000

Rating

3.9/5

Loan Term

12 - 60 months

Est. APR

% 46.93

Loan Amount

$100 - $15,000

Rating

4.3/5

Loan Term

90 -150 days

Est. APR

% 26

Loan Amount

$500 - $850

Rating

4.8/5

Loan Term

6 - 60 months

Est. APR

% 19.99 - 36.99

Loan Amount

$500 - $15,000

How Does Unemployment Loan Works

Unemployment loans work the same way as other loans work too. One major factor about the unemployment loan is that the borrower applies for a loan using their monthly payment as a source of income. You can apply for unemployment loans in Canada between $100 to $1500. 

You must consider the following when applying for legitimate unemployment loans in Canada. They include:

 

  • You must meet the minimum requirement as a borrower. Make sure you meet the speculated requirements before you begin the application.
  • Lenders can only give out just one loan at a time. If anyone says otherwise, know that it isn’t legit. 

 

Also, unemployment loans aren’t much money. It is relatively a small amount of money that you can pay back as at when due. Lenders approve this kind of loan on time, especially when you’re borrowing just a small amount of money. Lenders often deal with a low amount of money compared to banks and other traditional lenders.

 

It is also important to know that loan applicants are enforced to pay their loans concerning the repayment period. Every lender offers a two weeks ultimatum or the next paycheck. Although, some lenders might increase the payback rate. It all depends on the initial agreement or the amount of the fast loan.

You must also notify the lender when you feel you might fall behind on payment or you need more time to pay back your easy loan. You should notify your lender as soon as possible so as not to harm your credit score.

 

Unemployment Loan Providers In Canada

It is pertinent to look out for the following key things when applying for an unemployment loan. They are possible fees, interest rates, and repayment term length. Note that this section explains lending platforms that source for the best loans from a network of lenders as well as specific lenders. They include:

 

LoanConnect

LoanConnect is a lending platform that grants you access to varieties of lenders. This lending platform doesn’t require employment verification. The only criteria by which they give out loans is to check the age of the majority and the province or citizenship of the borrower.

 

The interest rate of this platform ranges between 10% to 46.96%and this is based on your personal credit. The approval time doesn’t take long. You can be approved within 5 minutes and get your loan within 24 hours. 

 

LoansCanada

Loans Canada is a lending platform that has a wide variety of lenders with each having a different interest rate and loan requirements. It is one of the largest loan lending platforms in Canada. You can borrow between $500 to $300k. The repayment period is long because you can repay between 3 to 60 months. 

 

Also, the interest rate ranges between 3% to 46.96%. Within 24 hours, you can get your loans approved and in a rare case, it could take as long as 2 days. The interest rate depends on the lender.

 

LendingMate

LendingMate is a platform that offers loans to borrowers with bad credit. This loan lending platform is controlled by an individual lender. Before you are offered a loan, you must have a guarantor that should be responsible to pay your loans if you can’t meet up. You are offered your loan 24 hours after your guarantor has been approved. 

 

Also, there are requirements that your guarantor must meet up. Your qualified guarantor must be a Canadian citizen between 17 and 95 years old with a good credit score and he may also be a homeowner. The borrower can borrow between $2000 to $10000.  As a lender, you must be cautious of this lending platform because it has a high APR of 43% in British Columbia and Ontario and 34.9% in Quebec.  LendingMate doesn’t add additional fees so you should only choose this platform when you don’t have anywhere else to lend your money.

 

How To Know The Right Platform You Can Borrow From

To select the right platform, you have to consider their interest rate. Know that this lending platform operates on an interest basis and they make their profit through the interest you pay from getting their loans. So, choose a platform that has an affordable interest rate so you would be able to pay their interest as at when due. 

Know their policies before applying for their loans. Some lenders might need you to make early repayment or late repayments. Some might require you to have a guarantor or secure the loan with collateral. Watch out and know their terms of lending out loans.

Also, before you find a good and reputable platform, do a thorough research to know if you can trust them or otherwise. Don’t be in a hurry to sign the application document; make sure you agree with their rules and basis of lending money. 

 

Beware, some lenders are predatory and they might worsen your financial situation in the long run. 

 

Conclusion

An unemployment loan is a sure-fire way to cover up some unforeseen circumstances that might come up along the way. It’s pertinent to know how unemployed loans work in Canada so you can maximize them to your best advantage when the need arises.

 

However, you can well understand how to get unemployment loans in Canada by simply learning about interest rates and repayment terms, to make sure your unemployment doesn’t hinder your finances.

Big Piggyy

"Show me the MONEY!!!" – Jerry Maguire

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