Responsibility of Using Payday Loans
Though payday loan come with an ease of access at any urgent time; but there are some strict repayment risks involved. So, you as a user must have clear vision that along with accepting loan offer, you are taking up certain responsibilities of following loan policy and maintaining repayment criteria. Make sure that you only utilize short term loan amount for handling unexpected expenses that may arise anytime instead of paying off debt. We try to counsel our customers that they should come with required cash demands so that they can pay back easily on due date. As compared to bank loans and other loans, online payday loans are associated with high risk factors. That’s why they incur high interest rates as well as some timely restrictions so that both lender and borrower may not end up into any loss.
Interest Rates for Payday Loans and Restrictions
To reduce risk factors, online short term loans are usually associated with some interest rates and fees which compiles overall repayment amount. To protect borrowers from any kind of fraud, these interest rates are regulated by Canadian jurisdiction. When all these charges are combined with interest rates, Annual Percentage Rate (APR) is formed. As per Canadian regulations, interest rates are capped to 60% to protect consumers from any kind of exploitation. Since these regulations are not strictly imposed so you may find some lenders charging unreasonable high interest rates. But all affiliated lenders in our network follow interest rate guidelines to stay honest to their customers. Thus, Canada-Payday-Loans have made it clear that its customers are subjected to pay justified amount only.
Provincial Regulations in Canada
Online short term loan regulations vary from province to province in Canada. According to amendment to criminal code of Canada, 2006 some provinces were given right to practice payday loans however some are not. However, if you have any doubts regarding short term loan regulations then you can visit Canada Payday Loan Association website.
Non-Repayment Implications according to Canadian Provinces Alberta
Charges for regular payday loans are kept at 2.5% per month. In case of Non-repayment an additional charge of 25$ can be asked by lender. At maximum it can be renewed 2 times. British Columbia
Maximum rate of 30% per annum is charged for default payday loans whereas in case of Non-sufficient funds an additional charge of 25$ can be incurred. Saskatchewan
Default loans can be charged at a maximum rate of 30% per annum as per Canadian legislation. In addition, to handle non-repayment, onetime charge can be implemented for 25$. Nova Scotia
Default loans that have crossed the due date by one day have to be charged at 59% per annum at the maximum. An additional charge of 40$ can be charged as late fees. Prince Edward Island
Default loans can be charged at a maximum charge of 59% per annum. A maximum administration charge of 50$ can be charged if repayment has crossed even one day. There is no limit for the number of times this penalty can be charged in case of NFS, however, the total penalty for the loan cannot be greater than 50$ irrespective of the number of cases penalty has been charged. Northwest Territories
Default loans can be charged at a maximum rate of 59% per annum. A maximum administration charge of 50$ can be charged depending upon the due payday loan amount. The total penalty for the loan cannot be greater than 50$ irrespective of the number of cases. New Brunswick
Default online short term loans can be charged at a maximum interest rate of 30% per annum. In case of non-repayment a late fee of 40$ can be incurred. Newfoundland and Labrador, Quebec
These two regions follow very strict payday lending discipline. Quebec has limited interest to 30% on short term loans where in Newfoundland and Labrador, default payday loans are granted at a maximum rate of 59% per annum. A 40$ penalty is added for NFS loan that has crossed the due date by even one day. No limit is there for the number of times this penalty can be charged in case of non-sufficient funds, however, the total penalty for the loan cannot be greater than 50$ irrespective of the number of cases. Ontario
According to payday loans act 2008, Ontario has limited loan fee to $21 per $100 borrowed for a period of two weeks and the effective annual interest rate is 14,299% whose equivalent simple interest rate is 548%. Manitoba
This province offer online short term loan at rates of 17% for two weeks. Any loans taken out by customer within a certain time period are limited to rates of 5%.
No payday loan related information is availablefor Nunavut.
Representative annual percentage rate (APR)
All the interest rates and charges mentioned on these sections are not guaranteed and representative only. However, actual APR depends on a lot of factors including lender, province, and financial stability of borrower and the amount that is to be borrowed.
Disclaimer : Canada Payday Loans Firm is niether a part of any financial institution and consortium nor a lender itself. It is an intermediate platform between payday loans lenders and borrowers. It helps borrowers to get in touch with legal online payday loan lenders all over Canada. It neither provides any loan on its own nor does it take any lending decision as per lending policy of various lenders. If anyone is willing to apply for online short term loans with Canada Payday Loans then, he/she is supposed to fill online application form available on our website. Application filling process merely takes 15 minutes provided you have internet connectivity at place from where you wish to apply. Submitting application form does not ensure any loan approval. Once applicant’s form is received, Canada Payday Loans forward it to list of affiliated lenders in its network. The lenders would then review application form and suitable lender makes decision over amount to be lent. After that, lender send loan offer along with implied interest rates and other loan charges involved. The purpose of sending this offer is to let customers weigh advantages and disadvantages on their own behalf so that he/she can decide that whether to accept or reject loan offer in order to receive needed amount.
Canada Payday Loan as a responsible firm makes sure to provide complete, accurate and up-to-date information regarding short term ending to our customers. Once an applicant agrees upon accepting lender’s offer, he is supposed to provide electronically signed documents with final offer. After receiving back final offer, lender grants loan approval and required funds are transferred into borrower’s bank account mentioned in application form. We or any lender in our network does not put any obligation on any of our borrowers to accept loan offer. We make sure to inform you that some of our lenders might like to review borrower’s credit history to ensure that applicant is qualified for borrowing payday loan and is capable to pay back loan amount along with calculated interest rate within decided time frame. This credit verification does not harm applicant’s credit history in anyway however it is done to reduce to repayment risk factors. In fact, credit history can be boosted if borrowers pay back loan amount in time.
Canada Payday Loan firm possess right to make alterations in any specific part or website as a whole without sending any prior notification to customers or applicants registered with us. All the revisions are active form very moment the changes are implemented so it is visitor’s responsibility to go through our every section very carefully. It is user’s responsibility to agree with our revisions before using any of our services provided on our website.