Installment Loans PEI

Residents of Canada’s smallest province don’t have to go far to get the best installment loan deals – they’re available right here! Smarter Loans’ local experts have combed the market, compared all of the options, and compiled a shortlist of just the best loans from the most reputable lenders in PEI. Take a look:

How much can I borrow with an installment loan in PEI?

The average consumer in PEI has $23,254 in non-mortgage debt, of which $2,276 is credit card debt, $2,753 is student debt, and $15,304 is other types of consumer debt. Installment loans are just one of these other types of consumer debt available to Islanders, but they come in an unparalleled range of sizes. Some are as small as $500, while others are as large as $100,000 (or even more!). The type of installment loan you choose, the lender you apply to, and your own personal financial circumstances all influence how much you will be able to borrow.

For access to larger borrowing amounts, consider secured installment loans, lenders with higher limits, and ways to improve your financial profile to make yourself a more attractive applicant (such as improving your credit score, or paying off existing debts).

How much do I need to earn to get an installment loan in PEI?

Income varies significantly across PEI, with those in Charlottetown averaging $46,160 a year, but those in Summerside and rural areas taking home significantly less. In addition, 7.1% of the population are unemployed, and a further 20.6% are retired. So if there were a single employment type or income level required by all lenders, many PEI residents would be left without any loan options.

Fortunately, this is not the case. While some lenders require applicants to have regular employment income, many do not. Many only require that applicants have some form of provable, regular income that’s sufficient to cover new loan repayments, even after existing debts have been taken into account. Debt-to-income ratio is therefore a much more important consideration than income alone.

Can I get a secured installment loan in PEI?

Given that 68.8% of Islanders own their home (worth an average of $403,987), it’s not surprising that many wish to utilize their most valuable asset in order to make their day-to-day cheaper – and choosing a secured installment loan is one way to do this. Secured loans tend to have lower interest rates and higher borrowing limits than unsecured loans, and they are common across PEI.

However, you don’t have to own a home to access a secured installment loan; any asset you hold can be used as collateral. This includes vehicles, valuables, savings accounts, and so on.

Can an installment loan be used for living expenses in PEI?

PEI may be the cheapest place to live in Canada, but the average $1,615 needed per person per month to survive is still beyond many people. More than half of Atlantic Canadians will have to borrow money to cover their basic living expenses over the next year. Installment loans can be used for this purpose, but it’s important to understand the full impact a loan will have on your finances, before you take it out. If you miss payments or make late payments, your credit and financial future can be harmed.

So if you’re struggling with your day-to-day costs and want a loan to help, you need to make sure that the new loan repayments are financially viable over the whole term of the loan. A loan calculator can help you determine this. PEI currently has a very low loan delinquency rate (1.09%), but only vigilance will keep it this way.

How long does it take to get an installment loan in PEI?

The time it takes to get an installment loan in PEI depends on three things: how long it takes to complete and submit an application; how long it takes for the lender to process that application; and how long it takes for funds to be released after an application is approved.

The first and third are fairly standard across lenders; most have streamlined, online systems that make applying for a loan very fast (a few minutes to half an hour). And most, when a loan application has been approved, will release funds to the borrower within a business day of receiving the signed loan contract.

However, lender processing time can vary from as little as a few days, to as much as several weeks. So if urgency is a concern, make sure you look at a lender’s timeframe before applying. Similarly, consider the type of loan you’re applying for. More complicated applications (e.g. for secured installment loans) generally take longer to process than very simple applications (e.g. for short term unsecured installment loans).