What’s needed to qualify for a loan in B.C.?Qualifying for a loan in B.C. starts with a few basic requirements: you must be at least 19 years old, have proof of ID, an active bank account, and proof of residency in the province. All lenders will need you to meet this minimum set of criteria. But after this, eligibility becomes lender and loan specific. It is typical for loan companies to want to see proof of income, verify your credit score meets a certain standard, and identify your other debts to determine your ability to pay back the loan. Generally, larger loans, loans with longer terms, and loans from banks and credit unions all have stricter prerequisites.
Can I get a business loan in B.C.?
Getting a business loan is more complex than getting a personal loan, as the loan company must analyze the business’s financial health. Most loan companies will want to see the following before approving a business loan:
- A business plan
- Two years of business history (unless it’s a start up loan)
- The company’s credit score
- The company owners’ credit scores
- Proof of profitability and projected revenues
- Collateral (for a secured loan)
Exceptions do exist if your company does not have some of the above, but the key is that the loan company must feel your business can realistically pay back the loan. There are financing options via both the provincial and federal government for qualifying businesses that cannot afford or qualify for private financing.
What kind of personal loan can I get in B.C.?
Personal loans are incredibly helpful, as they can be used for many different purposes and come in all sizes. Loan amounts range from $500 to $50,000, and can be short term – lasting just a few weeks or months – to long term, lasting five years or more. The average interest rate on a personal loan in B.C. is just under 10%, but this can fall to 5% for those with the best credit.
While your personal financial circumstances will help determine what size of loan you qualify for and what terms you will get, once you have your personal loan you can use it for anything, including:
- Debt consolidation (the average non-mortgage consumer debt in B.C. is $33,000)
- Monthly bills
- Emergency expenses, such as medical bills or veterinary fees
- Vehicle repairs
- A new purchase
What kind of business loan can I get in B.C.?
B.C. is home to over half a million businesses, and whether large or small, new or old, access to affordable financing is a priority for them all. Luckily, B.C. is also home to a plethora of lenders who cater to businesses of all kinds, and who provide loans for everything business-related, including: