Short-term loans have gained massive popularity in Canada over the past few years. Several financial institutions are nowadays offering robust cash loans Canada to the consumers to cope with uncertain expenses. The major benefits of this particular type of loan are:
- Minimum documentation
- Hassle-free application process
- Faster disposal of money
- Competitive interest
- Flexible repayment tenure
Despite such advantages, many people fall victim while repaying their cash loans Canada. Blaming the financial institutions are of no use, as they have their own sets of rules. So, to have a smooth loan repayment process, the borrowers need to pay heed to some important factors that the lenders don’t say often.
For those who are contemplating the fine print, move on to get a detailed overview:
- Look for the Penalties
Lenders often impose fees on the factors like early or late payment, part pre-payment etc. Some of them even charge extra bucks from the borrowers who decide to repay their loan before the stipulated time. So, people must go through the terms and conditions vis-à-vis with the extra fees before taking the cash loans Canada.
- More on APR & Other Rates
Both for the initiated and uninitiated, APR is the total amount of interest which a borrower has to pay annually. Considering the current market condition, the annual percentage rate varies. Therefore, borrowers sometimes end up paying extra on this interest than expected. It is always advisable to have a comprehensive view between exact APR and representative APR. However, the good part is that the FCA recently has set a cap on APR by 0.8% per day.
- Availability of Other Options
People often go by the recommendations when it comes to taking a short-term loan. Some even prefer to stay with their associated banks to get hold of the money. Thus, they miss out on major facilities and advantages. The users must look for better alternatives before signing the final deals. There are several comparison sites in this digital-first world which help the applicants for choosing the best lenders. Many Fintech companies offer short-term loan at a competitive interest rate. So, with a little research with the aid of comparison sites, the borrowers can save a substantial amount of money.
- Importance of FCA
FCA, also referred as the Financial Conduct Authority are there to shield borrowers from any of discrepancy during the process of loan repayment. A good majority of the borrowers are still unaware of their existence. So, the applicants must consider the basics of the FCA if not the entire content to do away with any unfavorable situation.
- Credit Score and More
Moreover, the applicants must have the knowledge that they can hurt their credit score with multiple loan application. With every application, the financial institution asks for the credit history and score to the credit bureau. The crestfallen credit history is detrimental as it imposes a borrower to be credit hungry. Thus, he can face hindrance on getting future short-term cash loans Canada.
So, a borrower needs to consider all the factors mentioned above to enjoy a hassle-free loan application and repayment procedure.