The phrase “easy online loans” is often used to describe payday loans or cash advances offered by online payday loan companies in Canada.
The loan application process for these lenders is ‘easy’ because:
- It is quick and completed online
- It offers up to 95% approval rate with instant decisions in most cases
- No physical paperwork is needed
- Payday loan funds can be sent within minutes using e-Transfer
- There are no credit score checks
While payday loans may be easy to apply for, their inherent downsides should make them your last resort.
Payday loan borrowers can only access a small amount (generally up to $1,500) and they pay extremely high interest rates (think as high as 500% APR), which makes it difficult to pay off the loan.
If you are in a tough spot financially and credit-wise, a traditional bank lender may not be an option for you.
If this is the case, see whether you can qualify for other financing options through personal online loan lenders before going for broke.
Below, I cover easy online loan options and platforms in Canada.
Easy Online Loans
|LoanConnect||$500-$50,000||5.75% – 46.96%||6-60 months|
|Mogo||$500-$35,000||9.90% – 46.96%||9-60 months|
|Loans Canada||$500-$35,000||2.99% – 46.96%||4-60 months|
This loan search engine simplifies the process of getting an online loan. You can borrow up to $50,000. Pre-approvals take 5 minutes, and it is possible to receive funds on the same day.
Loan Connect works with a variety of lenders so you can easily match up with a lender that meets your needs.
- Loan amount: $500 to $50,000
- Interest rate: 5.75% to 46.96%
- Loan term: 6-60 months
Learn more about how to find the best loan rates in this LoanConnect review.
Mogo is a financial technology company that offers Canadians access to free credit scores, online personal loans, and a prepaid card.
MogoMoney loans are up to $35,000 with terms ranging from 9 months to 5 years.
Loan pre-approval takes 3 minutes and you can check your Equifax credit score for free.
- Loan amount: $500 to $35,000
- Interest rate: 9.9% to 46.96%
- Loan term: 9 months to 5 years
Loans Canada is a popular online platform for finding loans of all kinds in Canada including bad credit loans, debt consolidation loans, and car loans.
After completing the online application, they send you the best offers from lenders in their extensive network. Loan offers are available for all types of credit scores and you can receive funding within a day.
Online loans available through the Loans Canada platform are up to $35,000 with terms ranging from 4 months to 60 months.
- Loan amount: $500 – $35,500
- Interest rate: 2.99% to 46.96%
- Loan term: 4-60 months
LendingMate provides easy approval online loans of up to $10,000. This loan is a guarantor loan which means you must provide a guarantor to co-sign your loan.
There are no credit checks so you can apply with bad credit and 95% of borrowers are approved.
- Loan amount: $2,000 – $10,000
- Interest rate: 43%
- Loan term: 12-60 months
- Available in: Ontario and British Columbia
Other lenders in Canada offering fast and easy application online loans include:
- Loan Away
- SkyCap Financial
- Easy Financial
What is a Personal Loan?
A personal loan refers to money you borrow to take care of personal needs.
These needs can be anything including emergencies, debt consolidation, home renovation, medical, vacation, wedding, car repair, and other bills.
When you take a personal loan, the lender expects you to pay it back over a period of time (instalments) and with interest.
The cost of the loan (interest and fees) is higher when you have a poor or bad credit score.
For example, a borrower with an 800 credit score (excellent) may be approved for a personal loan with an interest rate of 5%.
Whereas a borrower with a 600 credit score (poor credit rating) may qualify for the same loan amount at an interest rate of 21%.
What is an Online Loan?
When you need a loan, you can approach your traditional bank (such as RBC, TD, CIBC, or BMO), credit union, or an alternative lender (aka online lender), payday lenders, title loan companies.
You can apply for an online loan without setting foot in a bank or meeting in person with a representative.
Since the onboarding process is all digitized, loan processing is faster, and you can receive funds within a day.
Types of Online Loans
There are two main types of online personal loans: unsecured and secured.
Unsecured online loans do not require the borrower to provide collateral.
Secured online loans require the borrower to provide collateral. For instance, you may secure your loan with a home, cash, vehicle, or another asset.
There are also guarantor loans that require the borrower to find someone who is willing to make loan payments if they are unable to.
Benefits Of Online Loans
Compared to a bank loan, an online lender may extend credit even if you have bad credit.
They consider other aspects of your financial picture in addition to your credit rating, giving you an opportunity to qualify for a loan if you can show that you have the wherewithal to make payments (e.g. have a job).
Other advantages of online loans are:
- The application process is easy and available online 24/7
- You can pre-qualify without hurting your credit
- It is easy to compare rates across lenders and also look at their terms e.g. pre-payment policies
- Faster approvals and quick funding
Downsides of Online Loans
If you have an excellent credit history and score, you will typically get a better interest rate at your bank or credit union.
The online lending world is littered with scam companies, and you should do your due diligence to avoid getting conned.
A high interest loan can result in a vicious cycle of debt if you are unable to pay off the loan within a reasonable amount of time.
Online Loan Payoff Calculator
How To Choose An Online Personal Loan
When applying for an online loan, you should watch out for:
Interest rates: How much interest are you going to pay? A lower rate means you can pay off the loan faster. You can compare rates across providers using a loan comparison service.
Fees: Find out if there are any hidden fees. Do you pay an application or origination fee?
Payment terms: You should be able to pay off the loan earlier without incurring prepayment penalties.
Loans terms: How long can you borrow the money for?
Before giving out your information to an online lender, read the reviews from real users on platforms like Trustpilot and the Better Business Bureau (BBB).
Easy Online Loan FAQ
Visit the online lender’s website to complete the application form or get a pre-approval. They will ask for information to identify you and confirm your bank account and financial details.
Have comments about online loans? Leave them in the comments.