Sometimes a little extra cash is needed to pay for certain expenses that your bank account might not have enough to cover. In this case, a $2,000 loan might give you the financial nudge you need when money is tight. Whether you’re looking for extra money to cover an emergency repair on your home or car, pay an unexpected bill, or have some other urgent expense, a small $2,000 loan may help.
Read on to find out how to get a $2,000 loan in Canada, and the types of loan options that may be available to you.
How To Qualify For A $2,000 Loan In Canada
When you apply for a $2,000 loan in Canada, your lender will look at the following factors to determine your eligibility for the loan:
- Age. You must be the age of majority in your province to apply for a personal loan.
- Residency. You must be a Canadian citizen or permanent resident to apply for a $2,000 loan in Canada.
- Valid bank account. Most lenders will require an active bank account for funding and repayment.
- Income. Your income needs to be high enough to accommodate the monthly payments for your $2,000 loan, plus your current bills. Your lender might have a minimum income requirement that you may have to meet.
- Employment. Some lenders may want to see that you have been employed for a certain amount of time or have a stable job. Others, on the other hand, might still approve your loan application even if you’re unemployed. You simply have to show that you have a source of income which may include government benefits.
- Credit score. While some lenders may require good credit to get approved for a loan, others may still approve your loan application even if you have bad credit or limited credit history.
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How To Apply For A $2,000 Loan?
To apply for a $2,000 loan, follow these steps:
Step 1. Compare Lenders
Pull up a list of different lenders and loan products to compare their interest rates, fees, terms, and eligibility requirements to help you choose which lender to apply with.
Step 2. Complete And Submit Your Application
Once you’ve decided on a lender, complete the loan application, carefully review it, and submit it. Be sure to upload all the required documents. Lenders will want to review your credit and financial health, which means they’ll need to look at supporting documents, such as proof of income and employment, bank statements, and photo ID to verify your identification.
Step 3. Sign Your Contract And Wait For Funding
Once the lender approves your loan, carefully review the terms and conditions of the contract before you sign. If you’re comfortable with your obligations, sign the contract and wait for the lender to deposit the funds into your bank account which typically happens in 24 to 48 hours.
Types Of Lenders That Offer $2,000 Loans
Banks and other traditional lenders typically offer loans for higher amounts, but if you have good credit, you could qualify for a small $2,000 loan with them.
A more convenient and easy to qualify option is alternative online lenders. These lenders offer $2,000 personal installment loans to those with bad or good credit.
Features Of A $2,000 Personal Installment Loans
- Higher interest rates. These lenders typically charge anywhere from 8% to 47% for short-term personal loans, depending on your overall financial health.
- Short loan terms. Small personal installment loans usually come with shorter terms between 6 months to 5 years.
- Fixed repayment schedules. Since each payment is determined by a set schedule, your payments will be predictable and easier to budget for.
- Bad credit allowed. In many cases, you don’t have to have good credit to get approved for a small $2,000 installment loan with an online alternative lender.
Types Of $2000 Loans You Can Get In Canada
If you need a relatively small $2000 loan, there are a few different types of loans you can get:
Get A $2000 Unsecured Loan
Unsecured loans are regular installment-based loans that are not collateralized by a valuable asset. These loans are typically considered more risky for lenders which may result in higher interest rates.
Get A $2000 Secured Loan
A secured loan is one that is backed by an asset of value, such as a house or car. Lenders can use this collateral to recoup their losses in the event the borrower defaults on the loan. Since the loan is collateralized, there’s less risk for the lender, so interest rates tend to be lower for secured loans than for unsecured loans.
Get A $2000 No Credit Check Loan
If your credit is poor, you could apply with a lender who offers a no credit check loan. These lenders place more emphasis on your income and assets rather than credit scores. However, while you can get a $2000 loan with no credit check, it will generally come with very high interest rates.
Get A $2000 Co-Signed Loan
If you are unable to qualify for a loan on your own because of bad credit, weak income, or high debt, you may be able to add a cosigner to the loan application to strengthen your ability to get approved. A cosigner is a person with strong credit and financial credentials who can help you qualify for a loan by agreeing to take over loan payments in the event that you are unable to.
Get A $2000 Bad Credit Loan
If you need a $2,000 loan but have bad credit, you likely won’t be able to qualify for one with a bank. Fortunately, you could get a $2,000 bad credit loan from an alternative lender. They often have other approval requirements, such as a strong income and little debt. However, while they may have more flexible criteria, they are usually more expensive.
Get A $2000 No Credit Check Loan
If you have poor credit, getting a $2,000 loan can prove difficult. However, you can avoid being rejected due to poor credit by applying for a no credit check loan. There are some personal loan lenders in Canada who offer small $2,000 loans without any credit checks. Do note, that while these loans are easier to qualify for with bad credit, they do come at a cost. Most no credit check loans have short terms and high-interest rates.
Get A $2000 No Bank Verification Loan
For consumers who have dealt with past financial issues or who simply don’t want to provide too much information to a lender, a no bank verification loan or a no employment verification loan are appealing. With this type of loan, a potential lender won’t require you to provide bank statements or proof that you have an active bank account. You’ll likely receive your money via a cheque or even cash depending on the type of lender.
Get A $2000 No Refusal Loan
A no refusal loan allows borrowers to qualify for a loan without a credit check. This makes it ideal for those with poor credit. Lenders that offer no refusal loans usually base their approval on other aspects of your financial profile including your income, debt, assets and employment stability. If you’re looking for a no-refusal loan, be sure to review the terms and conditions carefully as they usually have a high cost.
Get A $2000 Instant Approval Loan
Loan approval times depend on the type of lender you’re working with. For example, payday lenders usually approve borrowers immediately. A personal loan lender, on the other hand, may be able to provide near-instant approval but may also require several hours up to several days. If you submit an application early in the morning and are available to provide any additional information or documentation needed, this will help move the process along quicker.
Where Can You Get A $2,000 Loan In Canada?
|Loan Amount||Interest Rate||Term||Province Availability|
|Up to $50,000||Prime to 46.96%||3 - 60 months||Across Canada||Learn More|
|$1,000 - $15,000||29.9% - 46.9%||12 - 60 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|$300 - $35,000||9.9% - 47.42%||24 - 60 months||BC, AB, ON, NB, NS, PEI, NL||Learn More|
|$500 - $35,000||9.99% - 46.96%||6 - 60 months||BC, AB, SK, MB, ON, NB, NS, PEI, NL||Learn More|
|$500 -$25,000||26.99% - 39.99%†||6 - 60 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|$500 - $20,000 (unsecured)||Starting at 29.99%||9 - 84 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|$5,000 - $50,000||5.75% - 22.99%||Up to 84 months||BC, AB, MB, ON, NB, PEI, NL||Learn More|
|$5,000 - $35,000||Starting at 9.9%||6 - 60 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|Up to $15,000||Starting at 19.99%||Open-end||BC, AB, SK, ON, NS, PEI, NL||Learn More|
|Up to $5,000||19.9% - 45.9%||6 - 36 months||BC, AB, ON, NL||Learn More|
|$500 - $12,500||19.99% - 34.99%||12 to 60 months||BC, AB, SK, MB, ON, NB, NS, PEI, NL||Learn More|
|$500 - $10,000||12.99% - 39.99%||9 - 60 months||BC, AB, SK, MB, ON, NB, PEI, NL||Learn More|
Cost Of A $2,000 Loan
Besides the initial $2,000 loan amount, how much will the loan cost you? The following chart compares different loan terms and displays the overall costs of a $2,000 loan.
|6-Month Term||1-Year Term|
|Total Interest Paid||$47||$88|
As you can see, your monthly payments will be much higher with a shorter term. However, you’ll pay less in total interest over the life of the loan.
If you need a quick financial fix, a $2,000 loan from an online lender might be your best option. Alternative lenders like these typically have less stringent lending criteria and can provide you with approval and funding quickly, whether you have great credit or not.