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Is EasyFinancial the Right Lender for You?

Set up in 2006, EasyFinancial’s mission is to provide Canadians with easy access to loan products that could help them meet unplanned expenses. Lots of Canadians frequently find themselves in situations like this, but loaning from traditional banks isn’t always an option.

Banks work on securities and assess your ability to pay back a loan before lending you cash. Private lenders like EasyFinancial also do something similar and ensure that you can pay back your loan.

However, they are generally less stringent and more forgiving than big banks.

The catch though is that generally, private lenders charge higher interest rates to compensate for the risks that they’re taking. This is especially true for lenders that are more lenient with people with poor credit scores.

Why do people choose private lenders over banks?

Bank interest rates are usually relatively nominal to ensure that the loan taker doesn’t end up getting overwhelmed and defaulting on payments. However, they’re pretty strict when it comes to qualifying people based on credit scores and employment history.

When unexpected situations arise, many of us end up with less-than-satisfactory credit scores that are unlikely to be good enough to pass a traditional bank’s strict requirements.

This leads to the need for private lenders like EasyFinancial, who might charge higher interest rates on personal loans but are accommodating in terms of qualifications.

Taking up a loan from private lenders is also a great way to improve your credit score. EasyFinancial provides its customers with loans between $1000 to $35,000 at varying interest rates.

You can take advantage of private lenders whenever you need to pay an unexpected bill or meet an emergency expense. At the same time, you can improve your credit score by making timely payments to your private lender of choice.

People typically take out loans from EasyFinancial for the following reasons:

  • To pay outstanding bills
  • To handle financial and medical emergencies
  • To better manage home- or vehicle-related expenses
  • To cover unexpected travel costs
  • To pay off other higher-interest debts

Loan breakdown for EasyFinancial

EasyFinancial provides unsecured and secured loans to their customers. 

Unsecured Loans – $1000 to $15,000

You can obtain an unsecured loan for any amount between $1000 to $15,000. To be eligible for an unsecured loan through EasyFinancial, you need to have the following:

  • Proof of being past the age of majority in your province 
  • A stable source of employment
  • Monthly income of at least $1200
  • A qualified bank account

The requirements for unsecured loans from EasyFinancial are pretty straightforward and less complicated than many other private lenders in Canada. If there’s a need for it, they might ask you to submit additional personal and financial documents such as:

  • Government identification – passport, driver’s license, or any other valid government-issued identification
  • Proof of income – T4 slips, recent pay stubs, etc.
  • Proof of address –  Utility bill or other similar documents
  • Pre-authorized debit form or void cheque 
  • Your latest 30-day bank statement

EasyFinancial will also check your credit score before approving or declining your loan application. In addition, they’ll report your payments to Canada’s major credit bureaus (TransUnion and Equifax).

Secured Loans – $15,000 to $35,000

EasyFinancial also provides its customers with an option to get a secured loan for any amount between $15,000 to $35,000.

As the stakes are higher, you are required to provide some form of collateral prior to loan approval. You can put your home or any other qualified asset as a collateral against your loan.

Generally, it is ideal to opt for secure loans from such lenders if you want to loan a big amount, enjoy lower interest rates, and qualify for longer payment terms. The emphasis on your income also reduces significantly when you opt for a secured loan.

Of course, you should be cautious when applying for a secured loan. It’s important to ensure that you have the ability to comfortably repay your loan on time.

Otherwise, it could lead to your asset getting seized. Also, you might need to submit additional documents when applying for a secured loan. The most common documents being asked for include:

  • Your yearly property tax statement
  • Your yearly mortgage payments

Interest rates from Easyfinancial

EasyFinancial seems to be very flexible with their loan amounts. If anything, they’re very welcoming with their easy application process for both secured and unsecured loans.

However, there is a not-so-little drawback to this fairytale: their interest rates. Their interest rates fluctuate wildly and can range anywhere from 19.99% to 49.96%.

Obviously, a 49.96% interest rate is not going to be a breeze for anyone to repay. Fortunately, unless your credit score is poor, you probably won’t have to worry about getting anything higher than 35%.

That being said, this is why it is not advisable to apply for loans from private lenders if you have an excellent credit history.

If your records are good and you have stable employment, you might want to try applying for a loan from a bank first. Also,  to have a better idea about the best loan interest rates in Canada, you can try checking Rate Genie

When should you opt for a loan from EasyFinancial?

The answer differs for everyone. You can opt for an EasyFinancial loan when you meet the criteria, so practically anyone who passes the test can apply for a loan.

However, just because you can doesn’t mean you should. It is important to have a good understanding of your financial situation before applying for such loans.

Missing even just a single month’s payment can lead to serious financial problems for you in the future. But if you’re confident that your loan won’t put you at risk of drowning in financial hardship, go for it.

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