Frequently Asked Questions About Loans in Prince Edward Island
How do I qualify for a loan in PEI?
To qualify for a loan in Canada’s smallest province, there are only three absolutes:
- You must be at least 18 years old
- You must be a resident of the province
- You must have an active bank account
If you meet these criteria, you should be able to find a loan company to qualify you, but bear in mind that each lender has their own extra set of requirements for you to meet. These usually relate to income, credit score (typically a minimum credit score of 600 is required), and existing debts. Most lenders have some rules that relate to these factors, but some have more lenient eligibility standards than others.
How long does it take to get a loan in PEI?
Processing times for loans vary by lender; traditional lenders like banks and credit unions generally take the longest, sometimes weeks. This compounds their already more stringent application processes, and can mean it takes a month or more to actually receive your loan money. If you need to go into branch to apply for your loan, and you live outside of PEI’s few urban centres, this can be especially frustrating.
Alternative lenders can sometimes fare better, especially if they are dedicated loan companies, and especially if they offer fast turnaround as a perk. Depending on the type of loan and who is offering it though, you may have limited access to a brick-and-mortar location in PEI. Online lenders tend to be the fastest and most convenient, and can process a loan application in just a few days. There are even same day lenders for certain types of personal loan.
Where can I get a loan from in PEI?
PEI is Canada’s least populated province, and does not have as many lenders as some of its brethren. However, there are still options. These fall into four main categories:
- Banks and credit unions
- Online lenders
- Alternative financial companies (including auto loan providers, boat loan companies, etc.)
- Payday lenders
The best type of lender for you will depend on what you need a loan for, how much you want to borrow, and your personal financial circumstances (which dictate who is likely to approve you).
How do I pick the right lender in PEI?
Picking the right lender starts with understanding your options. This relies on two factors: your personal financial circumstances – such as your credit score, income and so on – and the type of loan you need. Your finances will determine which lenders you are eligible to get a loan from, and your need will narrow that list down further, as not every loan company offers every type or size of loan. Once you have a list of possibilities (those who have what you need and who will work with you), it’s time to look at costs. Understand each company’s interest rates, fee structure, and other loan terms to find a competitive deal. It’s also important to check a company’s customer reviews to ensure their reputability.
What kind of loan can I get in PEI?
PEI may only have 150,000 residents, but it still caters to a wide range of financial needs. You can get many different types of loan, including: