LendingMate Review 2023: Get a Guarantor Loan in Canada

Getting a personal loan in Canada when you have poor or bad credit can be challenging. This is because lenders don’t view you as creditworthy and the default risk that you won’t pay your debt obligation is high.

LendingMate offers a solution to this problem by providing guarantor no-credit-check loans to Canadians in Ontario and British Columbia.

This LendingMate review covers what you need to know.

What is LendingMate?

LendingMate.ca offers guarantor loans to residents of Ontario and B.C. It is owned by LendingMate Financial Inc., a financial institution based in Toronto.

The company is related to a broader group of lenders across the globe that have loaned out over $2 billion over the years.

The maximum loan amount available on LendingMate is $10,000.

How To Apply For a Loan with LendingMate

To get started, complete the online application. It takes about 5 minutes. After submitting your application, a link is sent to your guarantor so they can provide their details and sign the agreement.

Your guarantor gets a call from LendingMate to confirm their responsibilities before the loan is approved.

LendingMate generally pays out your loan within 24 hours of accepting your guarantor.

To be eligible for a LendingMate loan, you must:

• Be a Canadian resident aged 19 to 75
• Have no active bankruptcy or consumer proposal
• Have a source of income (employment or government benefits)

Your guarantor must meet the following criteria:

• Be a Canadian resident aged 19-75
• Cannot share finances with you
• Have a good credit rating
• Not have guaranteed another loan on LendingMate

If your guarantor is a homeowner, their chances of getting approved increase.

You can borrow up to $10,000 for up to a 5-year term at an interest rate of 43% per year.

Is LendingMate Legit?

While LendingMate is not accredited by the Better Business Bureau (BBB), it holds an A rating on the platform and appears legitimate.

There is not much information about the parent company on the Canadian website.

What is a Guarantor Loan?

A guarantor is someone who promises to pay back a loan if the borrower is unable to do so. They co-sign the loan and are responsible for repayments if the borrower defaults.

Guarantor loans enable individuals with bad credit to assess loan facilities. These types of loans have a high-interest rate and do not rely on the credit score of the borrower.

A guarantor is generally expected to have a good credit score and show they have the financial ability to take on the loan liability if required.

Pros of a LendingMate Guarantor Loan

• You can apply for this loan even if you have bad credit
• You can borrow up to $10,000
• There are no penalties for repaying your loan early
• Easy online loan application

Cons of a LendingMate Guarantor Loan

• It may be challenging to find a guarantor
• The APR is 43%
• Only available in Ontario and British Columbia

LendingMate Alternatives

Bad credit loans with competitive rates are accessible using two popular loan comparison websites: LoanConnect and Loans Canada.

LoanConnect

Access personal loans of up to $50,000. Loan terms are between 6 and 60 months, and interest rates range between 1.90% to 46.96%.

Learn more in this LoanConnect review.

Loans Canada

This platform can be used to find debt consolidation, car repair, and guaranteed and private loans.

Loan amounts range from $500 to $35,000 for 4-60 month terms, with interest rates between 1.99% and 46.96%.

With these two loan comparison sites, you may qualify for an unsecured personal loan; however, it will likely be at a higher interest rate if you have a low credit score.

LendingMate FAQs

Related:

• Easy Online Loans in Canada
• No Credit Check Loans in Canada
• Best Credit Cards To Rebuild Credit
• Payday Loan Alternatives
• Best Personal Loans in Alberta