A Guide To Getting A Loan In Newfoundland and Labrador
Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 6 – 84 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- $500 – $10,000
- Rate
- Up to 34.99%
- Term
- Up to 60 months
Looking for a loan in Newfoundland? Whether it’s for a new home, a vehicle, or personal needs, various financing options are available to make your financial goals a reality. Let’s explore your options to help you decide which one is best suited for you and your situation.
What Types Of Loans Are Available To Residents In Newfoundland & Labrador?
If you live in Newfoundland and Labrador, your loan options are plentiful. Here are a few common financing options available:
Personal Loans
A personal loan is a fixed amount of money borrowed from a lender that is paid back over time with interest. It can be used to cover various expenses, like car repairs, emergencies, or debt consolidation. Repayments are typically made in monthly installments until the loan is paid off.
| Loan Amounts | $500 — $35,000+ |
| Loan Terms | 9.99% — 35% |
| Interest Rates | 3 months — 5 years |
Learn more: Personal Loans Newfoundland and Labrador
Lines Of Credit
A line of credit is a flexible financing solution that allows you to access funds up to a set limit whenever needed. You only pay interest on the amount you borrow, not the entire credit limit. It’s useful for ongoing expenses or emergencies, offering quick access to cash without having to re-apply for a loan whenever the need for extra money arises.
| Loan Amounts | $5,000 — $100,000+ |
| Loan Terms | Typically variable interest rates are tied to the lender’s prime rate |
| Interest Rates | No set term; funds can be repaid at any time |
Fortunately, there are some credit line options available that require no credit check or interest charges. A couple of notable options include the following:
| MoneyUp | MoneyUp provides instant access to credit lines of up to $1,000, without interest or the need for a credit check. |
| Nyble | Nyble offers a no-interest credit line of up to $250, which can also help users build credit with no credit check required. |
Learn more: Best Line Of Credit Rates In Canada
No-Interest Cash Advance
A no-interest cash advance allows you to borrow money without paying interest if repaid within a specified period. It provides quick funds without the need for a credit check, making this loan option ideal for bad credit borrowers who need access to small amounts of fast cash.
| Bree | Bree provides cash advances of up to $500 in cash advances with no fees, interest, or credit checks involved. |
| KOHO Cover | KOHO Cover provides interest-free cash advances of $250 without a credit check, though a small monthly subscription fee applies |
Payday Loans
A payday loan is a short-term, high-interest loan typically due on your next payday, though you may have up to 62 days to repay the loan. It provides quick cash for urgent needs but can lead to debt if not managed carefully, given the sky-high fees and short repayment terms. Payday loans should only be considered as a last resort after all other options have been exhausted.
| Loan Amounts | Up to $1,500 |
| Loan Terms | $14 per $100 borrowed |
| Interest Rates | Up to 62 days |
Learn more: How To Get A Payday Loan In Newfoundland
Considering A Loan? Here’s What Lenders Typically Look For
While loan criteria can differ depending on the lender, most will review a few key factors before approving your application:
- Residency: You must live in Newfoundland if that is where you’re applying.
- Income: Proof of income is essential to show you can cover loan repayments as well as your regular expenses.
- Employment Status: Many lenders prefer applicants who have been employed for at least 3 to 6 months. That said, some lenders may accept alternative income sources, such as government assistance or pension payments.
- Credit History: A credit check is common, though some lenders may not require a credit inquiry at all.
| Can You Qualify For A Loan With Poor Credit? Yes, it’s possible to secure a loan even with a low credit score. Traditional banks may decline your application, but alternative lenders often cater to borrowers with bad credit. For instance, payday lenders typically don’t do a credit check and focus more on your income. Learn more: How To Get A Bad Credit Loan In Newfoundland and Labrador |
How To Apply For A Loan In Canada
If you’re planning to apply for a loan, follow these steps:
Step 1: Choose The Right Loan Type
Start by looking into the various loan options available and determining which makes the most sense for you. For example, if you need a larger loan amount and have good credit, a personal loan might be ideal. But if your credit is poor and you need quick cash, a payday loan may be more accessible.
Step 2: Review Eligibility Criteria
Before applying, make sure you meet the lender’s basic requirements. These often include:
- Proof of income
- Employment status
- Bank information
- Credit score (if applicable)
Ensuring that you meet these requirements improves your chances of approval and helps avoid unnecessary rejections.
Step 3: Compare Loan Offers
Take time to shop around using online loan comparison platforms like Loans Canada. Be sure to compare the following:
- Interest rates
- Repayment terms
- Fees
- Funding speed
Step 4: Submit Your Application
Once you’ve chosen a lender, complete their application and submit it along with the required documents, which may include the following:
- Government-issued ID
- Proof of residence
- Bank information
- Recent pay stubs
- Employment letter
Step 5: Wait For Approval
After submitting your application and documents, the lender will review your application. How long you wait for approval depends on the lender. For instance, online lenders may respond within minutes, while traditional banks might take a few days.
Step 6: Receive Your Funds
Once approved, your loan will be dispersed, typically via direct deposit or e-Transfer.
Learn more: How To Apply For A Loan
Can I Get Guaranteed Loan Approval?
No lender can promise guaranteed approval. If they do, that’s a sign of a potential scam. That said, you can boost your chances of loan approval by doing the following:
- Keep Your Debt-to-Income Ratio Low: Don’t take on more debt than your income can handle. Generally speaking, you should aim to keep your debt-to-income ratio below 35%.
- Add A Cosigner: If your income or credit profile isn’t strong enough to qualify you for a loan on your own, consider adding a cosigner. This person should have a strong income and credit score, and will take over loan payments if you default. This lowers the lender’s risk and increases your chances of loan approval.
- Choose The Right Lender: Some lenders only work with borrowers with good credit, while others work with poor credit applicants. Be sure to pick a lender that aligns with your financial situation.
Is Bad Credit Standing In The Way Of Loan Approval?
To improve your credit score – and therefore your chances of loan approval – try using a credit-building product, such as the following:
- Secured credit cards
- Savings loans
- Credit-building platforms
- Rent reporting services
These tools can help you build a stronger credit profile and make loans more accessible to you.
How To Find A Legitimate Lender In Newfoundland
To ensure a lender is legitimate, take the following steps:
- Check If They’re Required To Be Licensed: See what type of lender they are. For instance, if they offer high-cost credit loans, they must be licensed to operate in Newfoundland & Labrador. If they’re a payday lender, they must comply with the Payday Loans Licensing Regulations under the Newfoundland legislation. In these cases, check for a license number on the lender’s website or storefront.
- Search The Registry Of Companies: Use the province’s Registries (Deeds, Companies, Others) department to see if the lender is an existing business entity in Newfoundland.
Learn more: Borrower Rights: High-Interest Loan Legislation In Canada
| Have You Been The Victim Of A Loan Scam? If you feel you’ve been mistreated by a lender, report the lender to the Consumer Protection Division so they can investigate the situation: Mail: Motor Registration Building 149 Smallwood Drive Mount Pearl, NL P.O. Box 8700 St. John’s, NL A1B 4J6 Telephone: 1-877-968-2600 Email: consumeraffairs@gov.nl.ca |
Where Can I Get An In-Person Loan In Newfoundland?
If you want to apply for a loan with an alternative lender, you’ll likely be dealing with an online application, as most alternative lenders are only available online. That said, certain alternative lenders have physical locations throughout Newfoundland if you prefer an in-person experience:
| Fairstone | – 15 – 25 Kenmount Road, St. John’s, NL A1B 1W1 – 75 Elizabeth Dr., Gander, NL A1V 1W8 – 12 Church St., Deer Lake, NL A8A 1E1 Find a Fairstone branch near you. |
| easyfinancial | – 80 Kenmount Rd, St. John’s, NL A1B 3W8 – 8 Murphy Square C2, Corner Brook, NL A2H 1R4 – 69 Manitoba Dr #129, Clarenville, NL A5A 1K3 Find an easyfinancial branch near you. |
| Lend Direct | – 330 Torbay Rd Unit FS05, St. Johns, NL A1A 2H3 Find a Lend Direct branch near you. |
Key Points To Keep These Points In Mind Before Applying For A Loan
Before you move forward with a loan application, consider the following important factors that could influence both your approval chances and your financial future:
Timing
Taking on debt can be helpful, but only under the right circumstances, as you don’t want to add any unnecessary financial stress. Make sure this is the right time for you to borrow. A loan may be a smart choice if you:
- Can handle a large upfront expense
- Need to cover an unexpected emergency
- Need to pay for essentials, like rent or utilities
If the expense is urgent and necessary, borrowing might make sense. But for non-essential purchases, like vacations or luxury items, it’s best to think twice.
Lender Comparison
Shopping around for lenders and their loan offers can help you secure lower interest rates and better repayment terms, which can potentially save you hundreds of dollars or more over time.
Pre-Approval
Pre-approval gives you a clear picture of what you can afford and shows lenders that you’re financially capable of handling a loan.
Bank Account
Having an active bank account is essential for most lenders, who use this information to verify your financials and use it to deposit loan funds. If you don’t yet have a bank account, you can open a free one with a digital bank, like Simplii Financial or Tangerine.
Learn more: Where Can You Get Free Bank Accounts In Canada?
Loan Cost
The total cost of your loan depends on several factors, including the following:
- Interest rate
- Loan term
- Loan amount
How Much Do Loans Cost?
The cost of your loan will depend on your loan type and the variables that come with it. The following table compares the potential cost of a personal loan, payday loan, and line of credit with varying interest rates (based on a $1,500 loan amount):
| Loan Type | Interest Rate (APR) | Term | Required Monthly Payment | Total Loan Cost |
| Personal Loan | 15% | 12 months | ~$137/month | ~$1,644 |
| Payday Loan | $14 per $100 borrowed* | 2 weeks | ~$1,710 lump sum | ~$1,710 |
| Line of Credit | 25% | Revolving | ~$60/month (minimum payment) | ~$1,800 (if paid over 12 months) |
*in all provinces except Quebec and the territories.
Note: Use this online loan calculator to calculate your loan cost.
Need More Financial Help? Check Out These Programs
| Employment Insurance (EI) | Learn More |
| Canada Child Benefit (CCB) | Learn More |
| Maternity/Parental Leave | Learn More |
| Federal Disability Tax Credit | Learn More |
| Compassionate Care Benefits | Learn More |
| GST/HST Tax Credit | Learn More |
| Green Tax Credits | Learn More |
Bottom Line
If you’re in need of extra cash, there’s a financing option available for you. Do your research on the various loan options out there, compare lenders and loan offers, and assess your financial and credit health before moving forward with your loan application.
