Saskatoon personal loans

Personal loans in Saskatoon can give you access to around $300 to $50,000 with a repayment period of 3 months to 5 years, sometimes longer. Learn more about your options and the key factors to consider before choosing the right personal loan for your situation.

Personal loans in Saskatoon: 4 types

Here’s a rundown of the types of personal loans in Saskatoon available to you.

• Secured. Secured loans involve some sort of collateral, such as your investments or house, that acts as insurance to your lender in case you default. They are a common way to get approved for a personal loan, especially if you want to borrow a large amount.
• Unsecured. Unsecured loans don’t require any collateral and come with higher interest rates than secured loans since the lender is taking on more risk.
• Fixed rate. If you prefer a predictable repayment plan, fixed-rate personal loans will lock in your interest rate at the beginning of your loan term, and your payments will stay consistent.
• Variable rate. With this loan, your interest rate will shift with the markets, which impacts your monthly repayments.

What fees can I expect with a personal loan in Saskatoon?

Most financial institutions will charge between 6% – 12% interest on personal loans, depending on the length of your term and amount of the loan. Many alternative or private lenders will charge more for unsecured personal loans, which often come with a much higher interest rate than personal loans offered by banks and credit unions.

Comparing providers

The interest rate on a personal loan can vary depending on your credit history, the type of lender and the type of loan (secured or unsecured). Suppose you want to get a personal loan for $2,000 for 36 months and you decide to compare three providers to find the best deal.

Option	Interest rate	Monthly amount	Total cost
Credit Union	8.99%	$64	$2,304
Bank	19.99%	$75	$2,700
Private lender	39.99%	$97	$3,492

When you tally up the difference, you realize that you can save over $1,000 on the total cost of your loan by choosing to take out a loan with your credit union. That’s why it pays to compare a number of different options before settling on your lender.

How to compare personal loans

From how much you want to borrow to how long it’ll take to pay off, there’s a lot to consider when you’re deciding on the details of your ideal personal loan. Keep these factors in mind when you’re shopping for a personal loan:

• Amount. You can apply for a personal loan with an amount in the hundreds or as much as $50,000. When lenders approve your loan, they may even qualify you for even more financing than your original ask. Proceed with caution and only borrow what you need and can repay to avoid going deeper into debt.
• Interest rates. People with bad credit will end up paying higher interest rates compared to their peers with a solid credit history. It’s important to do your homework and compare interest rates before agreeing to a personal loan. Your aim is to secure as low an interest rate as possible. You can also decide on fixed-rate or variable-rate loans.
• Repayment terms. Lenders will offer you between 6 months right up to 10 years to repay your personal loan. You need to decide on whether you prefer a short term or long term loan. Find the sweet spot, making sure you can manage your monthly repayments without unnecessarily dragging out the length of your loan.
• Fees, penalties and total cost. Don’t fixate solely on the interest rate your lender is charging you. Triple check the fine print of your loan’s terms and conditions so you’re aware of, and comfortable with, all of the extra fees from origination fees to penalty charges for late payments.

Are you qualified for a personal loan in Saskatoon?

Whether you’re applying for a $5,000 or $50,000 personal loan, lenders follow the same criteria in determining your eligibility for financing. If you’re preparing to apply for a personal loan, here’s a look at 5 key areas you should consider to help you put your best financial foot forward:

• Credit history

  Your credit score and credit history are one of the most important factors lenders take into account. Your credit score is put together based on your payment history with existing and previous loans, your outstanding debts, and the length of your credit history, among other things. For good to excellent credit, the average rate can range from around 4% to 19.99%. For poor credit, the average rate can range anywhere from 20% to 47%. Good credit widens the scope for loan options available to you while people with poor credit may need to turn to bad credit loans or cosigned loans.

• Income

  Lenders will require that you have a stable source of income to ensure you have the ability to keep up with the minimum monthly payments on your loan. If you’re applying for a larger personal loan, lenders may require that you have a certain minimum income before you can apply.

• Employment

  Virtually all personal loan applications, from online lenders to banks, will ask for your employment information. This aspect ties into receiving a steady income stream, but don’t worry if you’re self-employed or work part-time, loan options will still be available to you. If you’re unemployed, many lenders accept applicants who receive government benefits or investment income as a form of income. Your goal is to show lenders you can afford to repay the loan with the funds that are available to you.

• Loan security

  As we outlined earlier, there is a disparity in interest rates between unsecured and secured loans. If you’re willing to secure your loan and put your assets on the line in case you default on payments, your loan offers will come with lower interest rates. When you opt for an unsecured loan, lenders will weigh the criteria above more closely to decide on your trustworthiness.

• Assets, debts and expenses

  Your debt-to-income (DTI) ratio is another component in calculating your credit score. Your DTI adds up all of your debts against all of your income so lenders can understand how much wiggle room you have to add another loan repayment into the mix. The lower the DTI, the better. Calculate your DTI ratio.

How can I apply?

You can apply for a personal loan online or at your nearest financial institution or lending facility. You can submit an online application from just about anywhere, so long as you can prove that you’re at least 18 years of age and have a regular income, a bank account and a permanent address.

To complete your application successfully, you will also likely need to submit some other basic information such as:

• Personal details, including your name, date of birth, Social Insurance Number and a valid form of ID
• Contact details, such as your residential address, email address and phone number
• Details about your employment and income

How can I tell if a lender in Saskatoon is legit?

Look for the following signs to make sure you’re working with a legit lender.

• The lender displays a Saskatchewan licence number. The lender should display their licence number in-store and online.
• It provides contracts in the language you use to speak with your lender. This means that if you and your lender communicate in English, your contract must be in English. If it’s French, your contract must also be in French.
• It follows rate and fee regulations. Stay away from lenders who charge more than 60% interest on loans, and be sure to compare 3 – 4 providers to lock in the best deal.

How to file a complaint against a lender

You can file a complaint directly with Saskatchewan’s Financial and Consumer Affairs Authority by filling out an online form or by calling them at 306-787-5645. The organization will typically conduct an investigation if they believe that a payday loans company has breached Saskatchewan’s consumer protection laws. If there is evidence of malpractice, they can take legal action against the business. This includes revoking its license, slapping it with a penalty and even filing a civil action to get a settlement for customers if the lender is facing numerous complaints.

Personal loan alternatives in Saskatoon

If you’re not sure you want to take out a short-term loan, you have other options. Here are some programs and lenders you might want to check out.

Saskatoon assistance programs

Saskatoon has a number of programs that can provide some much-needed relief for residents and newcomers who are struggling to make ends meet.

• Saskatchewan Assistance Program (SAP) provides income assistance to families and individuals who, for various reasons – including disability, illness, low income or unemployment – cannot meet their basic living costs.
• Discounted bus pass program allows people with lower-incomes access to quality public transportation, in order to work and attend community activities.
• Family Health Benefits offers support for health costs like eye exams, dental work, prescription drugs and other incidentals to those living below a certain income threshold.
• Transitional Employment Allowance (TEA) provides a general living allowance to people looking for work to cover the costs of food, clothing, shelter, and transportation.
• Saskatchewan Assured Income for Disability (SAID) is an income support program for people with significant and enduring disabilities.

Credit counselling

If you feel like you’re drowning in debt and you’re not making any headway on paying your bills down, it might be time to look into a credit counselling program. The Credit Counselling Society of Saskatchewan is one option that can help you with budgeting and debt consolidation in Saskatoon.

Before you get a personal or payday loan, consider alternatives available to you

Bottom line

If you want to make a large purchase or consolidate your debts, then it might make sense to take out a personal loan. Be sure to compare lenders and familiarize yourself with the laws of Saskatchewan to make sure you’re getting the best terms for your loan. Be wary of unlicensed and predatory lenders and pay back your loan on time to avoid paying additional fees or interest.

To learn more about how personal loans work, check out our guide here.

Have more questions about personal loans?

• Can I get a personal loan in Saskatoon if I'm unemployed?

  You could, although it’ll depend on the lender and you’ll need some form of income. You might be able to get approved for a loan if you receive a pension, disability, social security or other government benefits because many lenders consider these to be a type of regular income. You will have more trouble securing a loan if you don’t have any money coming in at all.

• How long does it take to get approved for a short-term loan?

  Depending on the lender, you may be able to receive your loan as soon as the next business day if you apply online. Some lenders may even be able to get you your money the same day, while banks and credit unions may take a few days to approve and disburse your loan funds.

• Can a lender have me arrested if I don't repay the loan?

  Not exactly. Lenders can sue for damages if you don’t repay your loan, but this won’t result in your arrest.

Co-written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio