For all those people in Canada who require quick money to meet their financial needs, the solution lies in small loans. As the name suggests, they are obtained for a smaller value and are generally short-term loans.

Common examples of small loans are:

Personal Loans

A personal loan is another common example of small loans as they are also given for a smaller value. These are generally short-term loans and can be either secured or unsecured. However, they are generally repaid in form of installments. A fixed payment schedule is decided with the agreement of both the parties, which is signed by them.

Benefits of Small Loans

Have a look at some of the benefits of small loans:

Easily Manageable

Small loans are easy to manage. This is due to the fact that they have a smaller value. Hence, repaying them is not a tough task. Even if an individual has obtained multiple small loans, they can still manage it easily. In case, they have trouble managing them, there are numerous loan management instruments at their disposal that they can use. A debt consolidation loan is a popular instrument among them.

Easy to Apply

Small loans are relatively easier to apply as compared to other types of loans. This is due to the fact that they are low-risk loans. Many lenders provide this convenience to applicants to apply for the loan online. All the information related to loans they offer is also available on their website. Hence, any Canadian resident can apply for a small loan in a hassle-free manner provided they meet the requirements.

Quick Processing

For the processing of long-term loans and loans with a higher value, it generally takes a longer time. The lender needs to be sure that their money is in safe hands. However, with small loans, there is no such issue. They are quickly processed, and the borrower can receive loan amount within a few days. In case of a payday loan, the loan application is approved during the same day.

Low Interest

As compared to high value loans and long-term loans, small loans have a lower rate of interest. This way, the borrower gets saved from spending a huge chunk of their income for paying interest on the loan they have obtained.

Multiple Purposes

A small loan can be obtained for multiple purposes. Whether an urgent expense has cropped up, the due date of an outstanding bill is nearing or you have medical expenses not covered by your insurance company, you can apply for a small loan and meet your financial needs easily.

How to Apply for a Small Loan?

As stated above, the process to apply for a small loan is easy. All you have to do is to select a reliable and reputed lender in Canada and go through the terms and conditions they have set. Apply for the loan online and wait for the lender to contact you. Once they have received your application and reviewed your details, they will let you know whether you are eligible for the loan or not. It will be then followed by other formalities, provided you have proven your eligibility.