Do you have a big bill to pay that requires a few extra thousand dollars to cover, but your bank account is a bit short? If so, a small $2,500 personal loan might help, no matter what you need the extra money for.
Read on to find out how to get a $2,500 loan in Canada, and all the loan options you have to choose from to customize your loan.
Can You Get A $2,500 Loan With A Bank?
If you’re in need of a $2,500 loan, your first thought may be to look to your bank. But while these traditional financial institutions offer personal loans, they usually don’t deal with smaller loan amounts. Instead, banks generally loan out loan amounts of no less than $3,000 to $5,000.
Further, banks typically deal with borrowers with good to excellent credit, which means you’d need a credit score of at least 660 or more to get approved. If you have poor credit, you’ll likely be turned down for a loan with a bank.
Can You Get A $2,500 Loan With An Online Lender?
If you have bad credit, an alternative online lender may be a better option for a $2,500 loan.
Online lenders also have more lax lending criteria and can provide funding in a much shorter time frame, which is a big advantage if you are in need of fast cash to cover a pressing expense.
Having said that, these lenders typically charge high-interest rates and fees, which makes them a more expensive option.
Find Out How Much You Qualify For
How To Get A $2,500 Loan?
To get your hands on a $2,500 loan, follow these steps:
Step 1: Review Your Finances And Credit Health
Before applying with a lender, it’s best to review your finances and credit to see where you stand as a borrower. If your score is high and your finances are stable, you should have little issue getting approved for a loan, no matter where you apply.
But if your score is low or your finances are shaky, you’ll probably need to apply directly with an online lender rather than a traditional financial institution. Reviewing your finances can also help you apply with lenders whose eligibility requirements you meet.
Step 2: Compare Lenders
Use an online loan aggregator to compare different lenders and what they offer. More specifically, compare things such as interest rates, fees, and terms to find out where the best deal lies. As mentioned, you should also verify each lender’s eligibility requirements to help you decide which lender you’ll have the most luck getting approved with.
Step 3: Fill Out Your Application
Once you’ve narrowed down your choices, complete the loan application and submit the required documents for the lenders to review. Then wait for your lender’s approval on your $2,500 personal loan.
Step 4: Get Funded
If approved, go over the final loan agreement carefully to make sure you understand all the terms and conditions. If all looks good, sign it and wait for your funds to be deposited into your account.
Spring Financial is an online consumer lending company that offers innovative financial and credit-building solutions designed to give Canadians the opportunity to build credit, save money and borrow responsibly.With many Canadians struggling with high-interest debt and limited financing options, Spring Financial strives to provide Canadians with affordable and accessible financial products that can help them achieve greater financial freedom. Among their growing suite of smart money solutions, Spring Financial offers $1,500 cash advances, personal loans up to $35,000, and a credit-building program that helps you build credit and save money.
If you’re looking for an open-ended line of credit with credit limits up to $15,000, Fora is the best choice. Fora’s line of credit lets you withdraw funds from your available credit, and repay and redraw as needed. This makes it an excellent option for those seeking flexibility and quick access to cash as needed.Moreover, interest rates start as low as 19.9% and are only charged on the amount you withdraw.
Fairstone is a great choice for consumers looking for loans with affordable payments that meet their needs and budget. As Canada’s leading non-bank lender of personal loans, consumers can get unsecured loans up to $25,000. Homeowners can choose a secured loan (backed by the value of their house) to borrow more money and access lower payments compared to an unsecured loan. Whether you’re looking to consolidate debt into one simple monthly payment, cover unexpected expenses or something else altogether, Fairstone is a great option.
SkyCap Financial has been helping Canadian consumers take control of their financial futures since 2013. Their main goal is to provide alternative financing to all Canadians, regardless of their financial past or credit history. They provide fast and easy short-term loans ranging from $500 to $10,000 and approve applicants in as little as 24 hours. Consumers can take advantage of SkyCap Financial’s quick application and a team of experienced individuals who strive to make your experience as smooth as possible. SkyCap Financial bases all their lending decisions on three main factors, current income, credibility, and stability, so they can approve more Canadians, especially those who have been rejected in the past based on credit issues.
Cash Money has been helping Canadians access easy and quick loans for more than 30 years. They offer payday loans, personal loans, and line of credit loans from $1,500 to $10,000. User will enjoy their simple online application, personalized options, and same-day funding. Whether you need to cover an emergency expense or simply need to make it to your next payday, Cash Money can a variety of options to meet your needs.
Money Mart is a Canadian financial services provider that specializes in offering short-term financial products, including payday loans, cheque cashing, wire transfers, and installment loans. They're available both in person and online, providing borrowers with different options to apply for loans and access their borrowed funds. Their Payday Boost products are available for up to $1,500, and installment loans are available for up to $18,000. They're known for their easy-to-use services and same-day cash options, making Money Mart a great option for those who have little time to wait for much-needed funding.
LendDirect is an online lender that provides personal lines of credit for Canadians looking for a more flexible financial solution. Unlike traditional loans, LendDirect offers revolving credit, allowing borrowers to access up to $15,000 on an as-needed basis. The approval process is quick, with funds available within 15 minutes via Interac e-Transfer.
GoPeer is a peer-to-peer lending platform that connects borrowers with individual investors who fund loans. Through GoPeer, you can get a personal loan for up to $35,000, with flexible repayment terms and competitive interest rates. Interest rates start at 8.99%, depending on your credit profile. GoPeer's unique peer-to-peer model allows consumers to benefit from a more personalized borrowing approach. The online application process is quick and easy, and funds can be deposited into your account in as little as 7 days.
Cash4You is a financial services company that offers payday loans and installment loans. Payday loans are available for up to $1,500, and installment loans are available for up to $15,000. Cash4You provides an easy and efficient application process, which can be done either online or in-store. Loan applications can be approved very quickly and funding provided shortly after. Cash4You caters to consumers with varying credit scores, so bad credit borrowers may apply.
Magical Credit is an online lender that offers two types of loan products; Magical Cash Loans and Magical Installment Loans. Borrowers can access up to $1,500 with the Magical Cash Loan and up to $20,000 with the Magical Installment Loan. Magical Credit specializes in bad credit loans, so qualifying with them may be easier compared to traditional banks. Moreover, they accept various government subsidies as income for their Magical Cash Loan, providing greater accessibility to those in need.
The MogoMini line of credit offers Canadian consumers a great personal loan alternative. Borrowers can access up to $5,000, spend what they need when they need it, make the automatic minimum payments, and finally control their own principal payments. This Mogo product is flexible and users can test drive their line of credit for 100 days to see if it’s the right fit. Access their easy online application via your MogoMoney dashboard and get pre-approved in 3 minutes with no impact on your credit.
Cashco Financial is a Canadian financial services company that offers short- and long-term loan options. Payday loans for up to $1,500 are available with no credit checks and instant approvals. Flex loans are available for up to $7,000 with loan terms of up to 60 months and flexible repayment options. Cashco is known for providing same-day funding, ensuring you have access to the money you need quickly.
Loan Away is a Canadian online lender that provides unsecured personal loans and home equity loans. Unsecured personal loans are available for up to $5,000, with funds available in as little as 24 hours or less. Home equity loans are available for up to $50,000 to homeowners with sufficient equity, with interest rates starting as low as 19.9%. Loan Away’s online application process is straightforward and takes only a few minutes to complete.
The type of $2,500 loan you can get depends on a few factors, including your income, credit score, and whether or not you have a bank account, among other things.
Can I Get A $2,500 Loan With No Credit Check?
Some lenders do not require a credit check before approving a borrower’s application for a $2,500 loan. If you have bad credit, a “no credit check” loan may be ideal for you. Instead of relying on your credit score, lenders will place more weight on other factors to determine your ability to repay the loan, including your income and debts.
That said, a no credit check loan will likely come with much higher interest rates.
Can You Get A $2,500 Loan With Bad Credit?
Getting approved for a $2,500 loan with bad credit may be extremely difficult with a bank, but not with alternative online lenders. The latter often have loans that are designed specifically for bad credit borrowers. If your credit score is on the lower end of the spectrum, you may be able to get a $2,500 loan with an online lender.
Again, a bad credit loan will likely mean you’ll be paying a higher interest rate, which means your loan will be more expensive.
Can You Get A $2,500 No Bank Verification Loan?
Most lenders require borrowers to have an active bank account. This helps lenders assess a borrower’s financial strength while providing the lender with a resource from which to withdraw funds for loan repayment.
If you don’t have a bank account, your options for $2,500 loan approval will be limited. However, some lenders might not require an active bank account, and won’t take steps to verify your account information or status. Instead, these lenders may provide funds via cheque or cash, and may allow you to repay the loan in the same way. However, these types of loans are not always easy to come by.
Can I Get Instant Approval On A $2,500 Loan?
Banks usually take days or weeks to approve a loan application, which is not ideal if you’re looking to get approved for a quick loan to cover an urgent expense. Online lenders usually approve loan applications within 24 hours, and some may even offer instant loan pre-approval.
Payday lenders, in particular, often approve borrowers right away with little delay. But personal loan lenders might take a little longer, even if it’s only a few hours.
In addition to the initial $2,500 loan amount you’ll need to pay back, what are all the extra costs associated with the loan going to be?
The following charts outline the different costs associated with different loan terms and rates to help you understand how much your $2,500 loan will cost you overall.
Cost Of A $2,500 Loan Over 12 Months
10%
25%
46%
Monthly Payment
$219.79
$237.61
$263.81
Total Paid
$2,637.48
$2,851.33
$3,165.73
Total Interest Paid
$137.48
$351.33
$665.73
Cost Of A $2,500 Loan Over 24 Months
10%
25%
46%
Monthly Payment
$115.36
$133.43
$161.18
Total Paid
$2,768.70
$3,202.29
$3,868.35
Total Interest Paid
$268.70
$702.29
$1,368.35
Tips On Getting A $2,500 Loan
To maximize your chances of getting approved for a $2,500 loan with the best rate and terms that are most suitable for you, consider the following tips:
Verify The APR – Lenders typically display “interest rates” with their loan products. However, as important as this is, you’ll want to find out what the “APR” is, which stands for “annual percentage rate.” It’s the APR that will tell you the true cost of the loan, because it includes both the interest rate as well as all other fees the lender charges, such as loan origination fees, late payment fees, early repayment fees, and others.
Watch Out For Long Terms – Longer loan terms give you more time to repay the loan, which means each loan payment will be smaller. However, longer loan terms mean you’ll be paying more in interest overall. In general, it’s best to choose a term that you can comfortably afford, rather than one that gives you the lowest payment option.
Find Out How Quickly You Can Get Your Funds – Depending on your situation, you may need the borrowed funds sooner rather than later. Find out how long the lender will take to extend the funds after loan approval and make sure it’s within an acceptable time frame according to your needs.
Find Out About Eligibility Criteria – While there are certain requirements that are universal among most lenders, each lender may have specific loan criteria. Before you apply for a loan with a specific lender, find out what the exact eligibility requirements are, in order to avoid any unnecessary credit inquiries.
Because a $2,500 loan is considered a small amount, it may be a little easier to qualify for compared to larger loan amounts and will likely come with shorter loan terms, usually around a few months to a year or two.
Can I get a no refusal loan?
A “no refusal” loan means the lender will not turn down your loan application because of your bad credit score. With this type of loan, you can qualify without a credit check. Lenders will look at other factors of your financial profile instead, such as your income, assets, debt, and employment stability. However, these loan types are usually much more expensive, so be sure to carefully review the loan terms before you apply.
How fast can I get a $2,500 loan?
You can secure a small $2,500 loan from an alternative online lender much faster than from a bank or credit union. Online lenders offer streamlined loan applications that can be completed and submitted entirely online, and approval decisions are made within 24 to 48 hours, and often sooner.
Can I get a $2,500 loan with a payday lender?
No, payday lenders don’t usually provide loan amounts any higher than $1,500. Plus, depending on the province, they only allow you to borrow no more than 30% to 50% of your gross pay.
Can I repay my loan early?
Some lenders may allow you to pay off the loan in its entirety earlier than the original due date. However, you may be subject to early repayment penalty fees if you do. That said, some lenders may not charge such fees and may allow early loan repayment.
Final Thoughts
If you need a little financial assistance to cover a big expense, a $2,500 loan may help. Depending on your financial and credit situation, you may find it a lot easier and faster to apply with an online lender. Assess your financial health and the loan options available to you before you apply.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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