LendDirect provides Canadians with another option to secure a line of credit. You can get up to $15,000 if you submit the necessary documents and have a good credit history.
A line of credit can be used to pay for different types of expenses, whether big or small.
This review will cover what LendDirect is, how a LendDirect line of credit works, its pros and cons, and more.Â
What is LendDirect?
LendDirect is a platform offering Canadians another option to secure up to $15,000 in financing.
They offer personal loans called a LendDirect line of credit, which you can use to cover expenses like bill payments, large purchases, debt consolidation, and more.Â
The difference between a LendDirect line of credit and a regular personal loan is that a line of credit is similar to a credit card, wherein you get to choose the amount of credit to use, when to use it, and how long to use it.
Other lenders only offer installment loans, limiting flexibility in terms of when and how you receive your funds.
How Does a LendDirect Line of Credit Work?
The LendDirect line of credit works in six simple steps:
- Finish the application – The loan application is fully online. You will need to provide your personal details and income information.
- Verify your income – Validate your income by submitting supporting documents.
- Receive a decision – Once everything has been submitted, LendDirect will give you a decision on whether you qualify for a line of credit or not.
- Obtain your funds – You can get your funds in as little as 15 minutes through Interac e-Transfer®, or have it directly credited to your chequing account.
- Make regular payments – Pay your balance on a set schedule. You can make early repayments to save on the interest rate paid.
- Withdraw funds – As you pay your balance, you top up the amount you can borrow again.
LendDirect Interest Rates
Here are the loan features of LendDirect:
- Amount of Loan – Up to $15,000
- Interest Rate – 19.99% to 46.93%
- Loan Duration – No end dates
- Eligibility Requirements – Be at least 18 years old, a Canadian citizen with a valid I.D., and have an open and active chequing account in your name.
LendDirect Line of Credit Requirements
The LendDirect line of credit requirements are as follows:
- Be at least 18 years old
- An open bank account under your name
- Proof of recurring income
How to Apply For a Personal Line of Credit
To apply for a personal line of credit with LendDirect of up to $15,000, all you have to do is:
- Apply online – You can complete the application on their website here. If you get pre-approved, you have no obligations, as you are given 30 days to decide if you would like to proceed.
- Verify your income – Submit your income information to receive a fast lending decision.
If you get approved for a personal line of credit, you can receive your funds through Interac e-Transfer® in as little as 15 minutes.
Pros and Cons of LendDirect
Still undecided if you should get a line of credit with LendDirect? Here are some pros and cons to take into consideration:
Pros of LendDirect
- Fast Application – Apply for a direct line of credit with LendDirect in just a few minutes.
- Flexible Repayments – You can make the minimum payments on a set date, and if you’re having trouble repaying your balance, LendDirect will do its best to work with you on this.Â
- Receive Funds Fast – Get your funds in as little as 15 minutes through Interac e-Transfer®.
- No Reapplying Needed – You can borrow more funds without needing to reapply as long as you pay your balance.
- Loan Insurance – By paying an extra fee, your loan payments or outstanding loan balance may be covered if you experience sudden emergencies or lifetime milestones.
Cons of LendDirect
- High-Interest Rates – Compared to traditional lenders, LendDirect’s interest rate of 19.99% to 46.93% is high.
- Not Accessible In All Locations – You may not be able to get a line of credit with LendDirect, depending on where you are based, as they don’t service all provinces in Canada.
Is LendDirect Safe and Legit?
Yes, LendDirect is safe and legit.
LendDirect has been operating since 2016 and has a 4.6-star rating on TrustPilot with more than 2,000 reviews. The company also has an office address in Toronto.
LendDirect Alternatives
If you’re looking for alternatives to LendDirect, here are a few:
Loans Canada
Loans Canada is a platform you can use to get connected with lenders. When applying with Loans Canada, it will use the information given to match you with lenders given your needs and circumstances.
The application takes a few minutes to complete, and you should get approval from their partnered lenders within 24 to 48 hours.
Below are the personal loan features of Loans Canada:
- Loan Amount – $300 to $50,000
- Loan Duration – 3 months to 60 months
- Interest Rate – 6.99% – 46.96%
- Eligibility Requirements – A minimum credit score of 300
You can directly apply for a personal loan on Loans Canada here.
FatCatLoans
FatCatLoans is a platform that connects you with various lenders where you can borrow up to $50,000. Even if you don’t have the best credit score, your application may still be accepted.
The application process can be completed online. If you’re approved, you may receive your funds within the same day.
Below are the personal loan features of FatCatLoans:
- Loan Amount – $300 to $50,000
- Loan Duration – 3 months to 120 months
- Interest Rate – 6.99% – 46.96%
- Eligibility Requirements – Be 18 years of age, have a minimum income of $1,000, and a minimum credit score of 300.
AimFinance
AimFinance is an online platform that provides personal loans for Canadians based in Ontario. Aside from loans, the platform also gives personal finance lessons on its website. You can borrow up to $5,000.Â
Once you finish the online application, which should only take a few minutes, you will receive a quick lending decision from them.
If you are approved, you may receive the funds in your bank within one to two days.
Below are the personal loan features of AimFinance:
- Loan Amount – $1,000 to $5,000
- Loan Duration – 9 months to 24 months
- Interest Rate – 46%
- Eligibility Requirements – Be 18 years of age, a resident of Ontario, a Canadian citizen, have a minimum monthly income of $1,200, have an active Canadian bank account, proof of steady income, and a fair to good credit score.
ZoomCarLoans
ZoomCarLoans is a platform where you can access various lenders through their network of dealers in Canada. You may qualify for a loan here even if you don’t have the best credit history.
Once you fill out their application form, you will be connected with lenders you qualify for.
Below are the car loan features of ZoomCarLoans:
- Loan Amount – Borrow up to $50,000
- Loan Duration – 24 to 84 months
- Interest Rate – 2.00% – 46.96%
- Eligibility Requirements – Have a minimum income of $2,000, three months of employment, and be a Canadian Citizen or Permanent Resident.Â
Fairstone
Fairstone is a Canadian alternative lender that services over 240 locations across the country and is also available online.
You can borrow up to $50,000. Flexible loan terms are available, and it’s possible to receive your funds 24 hours after being approved.
They offer a wide range of financial products and services like secured and unsecured personal loans, home equity loans, car loans, and online loans.
Below are the secured personal loan features of Fairstone:
- Loan Amount – $5,000 to $50,000
- Loan Duration – 36 months to 120 months
- Interest Rate – 19.99% – 24.49%
- Eligibility Requirements – Be a Canadian homeowner with a minimum credit score of 560.
These are the unsecured personal loan features:
- Loan Amount – $500 to $25,000
- Loan Duration – 6 months to 60 months
- Interest Rate – 26.99% – 39.99%
- Eligibility Requirements – Have a steady income, regular employment, an established credit history, and a minimum credit score of 525.
LoanConnect
LoanConnect is a platform where you can access an array of lenders to get a loan that best suits your needs and circumstances.Â
Once you finish the application, which only takes a few minutes, you will be connected with lenders who are willing to give you a loan. You can borrow up to $50,000.
Below are the personal loan features of LoanConnect:
- Loan Amount – $500 to $50,000
- Loan Duration – 3 months to 120 months
- Interest Rate – 6.99% – 46.96%
- Eligibility Requirements – Borrower’s current debt must total less than 60% of their income and have a minimum credit score of 300.
Is a LendDirect Line of Credit Worth It?
A LendDirect line of credit is a good option for people looking for a flexible personal loan.
A line of credit may be helpful if you experience sudden financial emergencies or go through a lifetime milestone.
However, you may have to pay a higher interest rate with LendDirect, especially if you have bad credit.
FAQs
The interest rate for LendDirect is 19.99% to 46.93%.
LendDirect usually gives you a lending decision within 60 minutes of submitting your application with the complete documents. Once approved, you can receive your funds in as little as 15 minutes through Interac e-Transfer®.
Yes, direct lending is safe as long as you’re able to make your payments on time. You should be able to get a better interest rate with a good credit score as well.Â
You can be confident that your loan will be approved as long as you submit the necessary documents, meet their eligibility criteria, and have good credit. LendDirect will provide you with a lending decision after they have reviewed your application.
