Whether it’s to cover the cost of a car repair, to fix a broken appliance, or to deal with a medical emergency, there are many instances in life when you may need extra financial help.
When fast access to financing is what you need, an online cash loan might be the solution you’ve been looking for. You can have your loan approved within hours. The funds reach your bank account quickly. Let’s take a more detailed look to help you determine if this is the right option for your needs.
Can You Get A Cash Loan Online?
Yes, there are plenty of Canadian lenders online that offer cash loans. Typically, online cash loans are sums of money that you can apply for and receive within 24 – 48 hours. However, some lenders offer cash loans the same day you apply. This gives you fast access to liquid cash, deposited directly into your bank account. You then repay the loan, with interest, over a predetermined period.
Features Of A Online Cash Loan
Here are some other important things to know about online cash loans in Canada:
- They generally come with higher interest rates than regular bank loans
- Most loans are “unsecured”, so there’s no collateral but rates can be higher
- Depending on the lender, they can range from around $500 to $35,000
- Repayment terms can last a few months (usually 6 months) to several years (usually under 5 years)
Where Can You Get A Online Cash Loan?
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Types Of Online Cash Loans
There is more than one option when it comes to getting a quick cash loan to cover an expense in your life, and here are just a few of them:
Personal Loans
There are many online lenders who provide personal loans in Canada. These lenders usually offer cash loans between $500 to $35,000. If approved, you receive the cash via e-transfer or direct deposit. Personal loans are one of the best forms of online cash loans as they tend to be the most affordable. Interest rates on these loans vary between 3% to 46% and loan terms range from 6 months to 5 years.
Payday Loans
There are hundreds of online payday lenders who offer cash loans in Canada. These cash loans are easy to qualify for and often have very fast approvals. Borrowers can get up to $1,500 online the same day they apply (varies by lender).
Payday Loan Warning
While payday loans are certainly an option to get your hands on fast cash online, they should be a last resort as they’re the most expensive forms of credit. The interest rate on payday loans are extremely high, which can make it very difficult to repay the loan amount. Moreover, you usually have to pay back payday loans in one lump sum within a short amount of time. Loan is usually due after two weeks or when your next paycheque arrives. This doesn’t give you a lot of time to repay the loan amount.
Car Title Loans
If you’re having a tough time securing a loan due to bad credit or poor finances, a car title loan might be a good option. Car title loans are secured loans that use the borrower’s car as collateral. This loan is easier to qualify for with bad credit because it provides the lender with added security. With this loan, you agree to allow the lender to put a lien on your car title and temporarily give up the title in exchange for the money being borrowed (until repaid).
Car title loans typically have terms between 3 months to 3 years, and loan amounts vary based on your vehicle’s value. However, generally, you can borrow up to 25% to 50% of the car’s value. While these loans can offer quick cash online, they often come with very high-interest rates, making them an expensive option.
Note: It’s important to understand that if you default on your loan, you could lose your car.
Home Equity Loans
If you own a home and have a certain amount of equity built up in it, you may be eligible for a home equity loan. With this type of loan, you borrow against the equity in your home, which is the value of your home, less the outstanding amount left on your mortgage. If you have at least 80%, you may qualify for a home equity loan.
These loans come with much lower interest rates because it’s secured by your home. You can apply for a home equity loan with a bank or an online alternative lender. Online lenders typically have lower requirements and provide funding much faster than banks.
Requirements For An Online Cash Loan
In Canada, the eligibility criteria for an online cash loan can vary from lender to lender. Some are more strict than others. However, to apply for a loan, you’ll normally need to:
- Be a Canadian citizen or permanent resident
- Be at least the age of majority in your province or territory (18 or 19 and over)
- Have 1 or more pieces of government photo ID (driver’s license, passport, etc.)
- Have an active bank account (you may also need direct deposit)
- Pass the lender’s minimum credit score and income requirements
- Show proof of your income (with recent bank statements, pay stubs, etc.)
- Have a valid address in Canada (some lenders will ask for a document that contains your address, like a recent utility bill)
Borrow Up To $50,000
How To Apply For An Online Cash Loan?
The process of getting an online loan is rather simple and straightforward and includes the following steps:
- Submit an application – Fill out all the applications that the online lender requires with all the appropriate information. Be sure to submit all the required documents to avoid any hiccups during the process.
- Go through the approval process – Once your application has been sent in, the lender will go over all the information and documents provided to make sure you’re eligible for loan approval.
- Receive decision – Within a few hours to a couple of days, most online lenders will let you know whether you’re approved or denied a loan.
- Get your cash – If you are approved for the loan, the requested funds will be deposited straight into your bank account using the information you provided or via e-transfer. You should then be able to gain access to the money right away.
- Start making payments – Once you get your hands on the money, your obligations to repay the loan will begin. You’ll be required to make regular payments according to the schedule set forth by the lender until the full loan amount – plus interest – is repaid by the due date.
How Will I Receive My Online Cash Loan?
Generally, alternative lenders offer two options for depositing your online cash loan:
- Interac e-Transfer – If you use Interac e-Transfer, most lenders will send you a money transfer by email within minutes of approving your loan. The email should have a link that lets you deposit the funds into your bank account straight away.
- Direct Deposit – Some lenders will ask for your chequing account, routing and institution numbers so they can send your loan by direct deposit. It may take a full day to get your funds but the process is slightly easier than an e-Transfer.
Benefits Of An Online Cash Loan
Although online cash loans can feature higher interest rates and other drawbacks, they have some clear benefits, including but not limited to:
- Easy Requirements – Online lenders tend to have easier standards than banks. If your identity checks out and your finances are strong enough to cover your payments, it won’t be too hard to qualify. Some lenders take non-traditional incomes too, like payments from government financial programs (CPP, CCB, etc.).
- Fast Approval – Many online cash loans are approved and deposited on the same day (maybe even the same hour) that you apply, largely due to having fewer requirements. This can help you deal with any emergency costs that come up, such as lack of rent, home or car repairs, and utility fees.
- Flexible Repayment Conditions – There are different types of online cash loans. Depending on the type you choose, you’ll find that your repayment conditions are varied. For example, payday loans usually have 14-day terms while online personal loans have much longer terms with more flexible repayment options. As long as you have good finances and credit, you should be able to negotiate an affordable payment plan.
- Fixed Interest Rates – Online cash loans feature come with fixed rates instead of variable rates. Fixed rates can be more beneficial to some people because they don’t change with Canada’s prime rates (like variable rates do), which helps with predictability and budgeting.
When The Banks Say No
Banks have stringent lending criteria, making it a real challenge for borrowers to get approved for a loan in this traditional way. It can be pretty discouraging and disappointing if the banks deny your loan application. But there are other options available if you’ve been turned down by your bank, and online lenders are one of them.
In fact, not only do online lenders provide a more convenient way to get a loan, but their lending requirements are usually lighter. Online lenders often offer different loan options for borrowers, including those with a less-than-perfect credit score or those who don’t have much in terms of assets.
You can apply from wherever you happen to be that has a secure internet connection. The application process is rather simple and quick, and you can usually receive an answer within the same business day. What’s even better is that you can get really quick access to the money soon after you are approved.
When Should You Get An Online Cash Loan?
There are certain times when a fast online cash loan may be a good option:
In The Event Of An Emergency
If you need money immediately, then a fast cash loan might be right for you. Banks and other traditional lenders usually take a few days before they are able to approve a loan. Then the actual funds themselves can take even longer to be transferred. Instead, a fast cash loan can give you the money you need right away, which is helpful in an urgent situation.
When The Banks Say No
If your credit score is not as high as it could be, you might have a tough time getting approved for a loan from the bank. If you’re turned down for a loan from your financial institution, then applying with an online lender might be a good option. Their criteria are usually not as strict, making it easier to get approved for these types of loans.
If You’re Looking For A Convenient Way To Borrow Money
Sometimes all you want is a little more convenience when it comes to taking out a loan. While you may be able to get approved for a conventional loan at the bank, you might simply want to streamline the process and be able to apply and get approved for a loan without having to leave your home. In this case, an online loan would certainly make a great option.
Protecting Yourself From Loan Scams
While there are many legitimate online lenders, there are also scammers on the prowl looking to take advantage of borrowers. These predatory lenders prey on those who are most vulnerable and are seemingly desperate to get a loan. To protect yourself from these lenders, it’s important to watch for signs of loan scams, including the following:
- You’re offered guaranteed approval
- The lender is not registered in your province or territory
- There’s no physical address for the lender
- Your offer lacks important details
- The loan offer comes with an expiry date, prompting you to act quickly
- You’re required to make an upfront cash payment
What Out For Loan Insurance Scams
Some lenders are also in the business of loan insurance scams. In this case, the “lender” offers easy loan approval, high loan amounts, a low-interest rate, and an easy repayment plan. But in exchange for all of this, they’ll also require loan insurance as a means of reducing the “risk” on their part.
They could ask for any amount of money to cover this cost, from anywhere between a few hundred dollars to a thousand or more. They’ll ask to have this money transferred to them via a prepaid debit card, credit card, or Western Union transfer.
These are scams that you need to be on the lookout for in order to protect your hard-earned money.
Online Cash Loan FAQs
What are online lenders?
Can I get an instant online cash loan if I have bad credit?
Do I need to be employed to get an online cash loan?
Can I get an online cash loan with no credit check?
Be careful if a lender offers “no credit check” loans. While there are legitimate lenders who sell these loans, they have far higher rates and tighter payment plans for smaller amounts of money. Plus, scam artists and predatory lenders will target people who are desperate for cash and can’t get approved due to bad credit or a lack of credit history.
