How to Get A Long Term Personal Loan Are you looking for personal loan companies for long term loans approval in Canada? Before starting your search, read the below article to recall the important points which may help you in fetching for personal loan in Canada –
Firstly decide who to approach? Public loan lenders or private personal loan lenders. Private lenders are a group or a company that loan money. They are not a bank or any kind of financial institution. Approval of loan from the private lenders completely depends on the personal relationship between the two parties.
Collect all the information about benefits of taking the loan from a private lender. In contrast to traditional banks loan policy, a private lender gives you multiple benefits on loan. Moreover, a traditional bank takes a lot of time to approve a loan whereas private lenders take a couple of days to approve a loan.
Beware of risks of obtaining a loan from the private lender. The private lender gives a loan on a huge interest rate. A traditional bank gives loan at 6% per annum whereas a private lender charge (7-10) % of interest rate annually.
Following terms must be made clear before you take a loan – 1.
Interest rate- it is the annual cost of loan that borrower has to pay the lender.
2.
Annual percentage rate- it is a fee similar to an interest rate with included fees. It is usually higher than the interest rate.
Long term personal loan in Canada are for a fixed period. The borrower has to agree to terms and condition of the lender. Before taking the loan, the borrower has to make an agreement with the lender which is called Covenants.