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What type of personal loan can I get in Nova Scotia?
Nova Scotians can choose from a broad range of personal loan types, including:
- Installment loans
- Car loans
- Personal lines of credit
- Debt consolidation loans
- Payday loans
- Boat loans
- Bad credit loans
- Guarantor loans
- Emergency loans
- Home equity loans
All of these types of personal loan count as non-mortgage debt, or consumer debt. Nova Scotians have the lowest median household consumer debt in the country at $50,000 (half the national figure).
How can I use a personal loan in Nova Scotia?
Personal loans are popular because they are so flexible; they can be used for almost anything. Most are straightforward versions of installment loans, where the borrower receives a lump sum of money upfront, and can spend it however they wish. Across Canada these loans are most commonly used for debt consolidation, vehicle costs, and home repairs – but almost any expense is valid.
There are some types of personal loan, however, that are use-specific; for example, an auto loan. Make sure you carefully choose what type of personal loan to get, based on what you need cash for.
How long does it take to get a personal loan in Nova Scotia?
The loan and lender you choose will dictate how long it takes to get a personal loan; applications for smaller, unsecured loans tend to take less time to process than those for large secured loans. Online lenders tend to work faster than their brick-and-mortar counterparts. Because of this variety, it can take anything from just one business day to several weeks for lenders to process a loan application, make a decision, and disperse funds.
If urgency is a priority, make sure you look at fast-turnaround lenders, such as online lenders and payday lenders. You may pay more in interest for the benefit of speed, but if you need funds fast, a lender that takes weeks to get back to you won’t help.
Who can get a personal loan in Nova Scotia?
In order to get a personal loan, you must be:
- At least 19 years old
- With an active bank account
- And proof of address
You’ll also need to meet your chosen lender’s eligibility requirements. These requirements can vary, but most often relate to:
- Employment type
- Employment income
- Credit score
- Existing debts and assets
As mentioned above, the average debt level in Nova Scotia is lower than elsewhere in Canada, but so too is the average wage and the average credit score. So it’s not a given that every borrower in the province will qualify for a loan from every lender. Do your research: make sure you understand your financial situation thoroughly before deciding which lender to apply to.
Do I need to be employed to get a personal loan in Nova Scotia?
Employment income is not necessarily required for all types of personal loan in Nova Scotia. This is good news for the nearly 40% of Nova Scotians who are not part of the labour force. However, we’re not just talking about the 6.5% of the population who are officially unemployed – there are many others in a variety of situations, including:
- Those with regular non-employment income, such as pension income, benefits income, alimony, and so on
- The self-employed
- Seasonally-employed people
- Gig and freelance workers
There are no rules regarding what type of income is needed to get a personal loan, so each lender can make their own. Those in regular employment will have plenty of lenders to choose from, as this is usually considered the ‘safest’ form of income; but if you do not have regular employment income, you still have options. Just make sure you look at lenders who accept other forms of income or security for their loans.
How much does a personal loan in Nova Scotia cost?
77% of Atlantic Canadians are concerned about their ability to repay their debts; this is the highest rate amongst the provinces. So before you apply for any loan, it’s vital you understand how much it will cost. Loan costs are split into two main categories:
- Loan fees, which can include:
- Origination fees
- Processing fees
- Application fees
- Valuation fees
- Closing fees
- Early repayment penalties
- Late payment penalties
- Loan interest, charged on the entire loan amount according to either a fixed or variable rate
By far the largest cost of most loans comes from interest, and the interest rate you can be charged on a personal loan can be as little 4% to as high as 35%, depending on the loan, the lender, and your financial circumstances. Always make sure you use a loan calculator to understand the monthly and overall cost of any loan, before agreeing to it.
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