More likely than not, you’ve all experienced a financial issue or setback and it’s even more likely that you’ve all had problems gaining access to the money you needed to deal with the issue. This is where short-term loans can truly help. A short-term loan from any reputable online lender will not only allow you to cover the cost of any issues you’re currently experiencing but will afford you the short approval time you need.
Keep reading to learn everything you need to know about short-term online loans.
A short-term loan is just that, a loan that is typically paid back within a short period of time. Obviously, there are exceptions, but most short-term loans are paid off anywhere from four months to two years. Two years might not seem like a short period of time to some, but compared to say a mortgage, which can be amortized for up to 40 years, two years is quite short.
Yes, there are hundreds if not thousands of online lenders available in Canada. Potential borrowers can fill out a loan application online in their own free time and typically without too much involvement from the lender. Many lenders have automated their underwriting process which has also led to fast approvals and funding.
While approval time varies by lender, the following lenders are some of the best in the industry:
There are many different credit products you can apply for, each with their own approval requirements, interest rate and payment conditions. For instance, here are some of the most common fast-approval loans that are available online in most parts of Canada:
A short-term installment loan is a lump sum of unsecured cash that you can borrow from almost any lender. These loans have terms that range between 6 months to 5 years with loan amounts as high as $35,000.
Like with a personal loan, the funds get sent to your bank account via direct deposit. The loan amount is then divided into equal installments, which you must repay over a set period (plus interest/fees).
While the approval time and funding vary by lender, most short-term installment loan lenders provide approvals within 1 – 2 business days (about 2 – 48 hours). Moreover, the entire loan application can be completed online, making it an extremely convenient option.
Payday loans are small, high-interest cash loans ($100 – $1,500) you can get online or in stores all over Canada. Each province has different regulations that dictate how much payday lenders can charge; ranging from $15 to $25 per $100 borrowed. Once you have it, you must repay the full loan, plus interest and fees by your next payday (usually between 14 – 30 days).
The approval speed depends on the lender and when/where you apply. If you apply online, some lenders offer approval within 1 – 2 hours, while others take a maximum of 24 hours. After approval, some payday lenders are able to send you the funds within 30 minutes via e-transfer.
A line of credit gives you access to a revolving credit limit that you can withdraw from as needed and pay back monthly (with interest). You also get to make minimum or partial payments to avoid penalties. These products are normally only available with banks and credit unions but some alternative lenders offer fast lines of credit online. Other factors:
This is a good option for borrowers (with good credit and incomes) who need regular access to cash. People with home equity can also apply for a Home Equity Line of Credit (HELOC), where the funds are secured against that equity.
While it may take a week or more for a bank to provide a response, an alternative lender may provide approval within 1 to 2 business days (24 – 48 hours).
This secured loan lets you leverage your car’s title (proof of ownership) as collateral in exchange for financing. This can be particularly helpful when you need a large loan, but can’t qualify for an unsecured loan. The car title acts as security for the lender, leading to better approval odds and rates. In general, you can borrow up to 25% to 50% of the car’s value and terms range between 3 months to 3 years.
Do note, that while these loans are easy to qualify for, they come with high-interest rates and fees. Moreover, your vehicle can be repossessed if you default on your payments.
The average approval time varies by lender, but many provide approval within 1 to 2 business days (24 – 48 hours). Your funds will be sent shortly after approval via direct deposit or e-transfer.
While requirements vary by lender, you generally require the following to apply for a fast approval short-term loan online in Canada:
Before you apply for any sort of easy loan in your province or territory, remember to do lots of research, look at different lenders and compare these important factors:
If your credit is particularly bad, causing your applications to be denied, or you simply don’t want to go through the process of a credit check, you can also seek out other loans such as the following:
A guarantor loan involves finding a cosigner who has good credit and financial aptitude to co-sign your loan. A cosigner is someone who agrees to take responsibility for the loan in the event you default on it. This helps lower your lender’s risk, which can help you qualify for the loan and may help you get a lower interest rate.
If you’d like to finance something in the future, a credit builder loan may be worthwhile. It can not only help you save money to finance or cover your expense, but it can also help you build your credit.
A credit builder loan is specifically designed to help you save and improve your credit in the process. With a credit builder loan, you don’t get any money upfront. Rather you make payments to the lender who will put a portion of your payments aside in a secured account. Each payment you make will be reported to Canada’s credit bureaus, which can help raise your credit score. Once your term ends, the lender will give you back your payments minus interest and fees.
No matter how easy it can be to qualify for the products above, there are plenty of scenarios when applying for them is NOT the best course of action, including:
Fast approval short-term loans online are smaller in size and therefore have shorter terms. They’re often faster and easier to get approved for too. While approval time will depend on the lender you work with, most lenders that offer short term loan options can and will work to get you the financing you need within a day or two
If you’re interested in applying for a short term loan, you can fill out our online application by clicking the button below.
Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.
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