As a prospective borrower, it is essential for you to protect your financial interests when you go in search of a loan. You can rest assured potential Canadian lenders will be doing their very best to protect their interests.
In pursuit of a loan, there are two things you need to focus on from a financial perspective. First, you want/need to find a borrowing option that offers you the best interest rate possible. By the way, the interest you would have to pay is more than just a cost of borrowing.
You also need to focus on is the amount lenders will charge you in the form of processing fees. You can usually find this information in the fine print. This is where lenders will disclose loan processing fees or any other additional cost of borrowing.
Helping You Understand Loan Processing Fees and Interest Costs
We feel we have an obligation to make sure all of our prospective borrowers understand the borrowing process. as it relates to the actual costs of borrowing. By disclosing this information upfront, we feel we are empowering our customers to make good financial decisions.
Throughout Canada, prospective borrowers have a lot of different borrowing options, some better than others. We are competing in a space where borrowers under difficult financial circumstances are approaching lenders for help. Unlike payday lenders, most lenders that offer unsecured personal loans do not seek to add to these difficult financial circumstances. We always want to be in a position to help our prospective borrowers as much as possible.
With all of this in mind, we would like to take this opportunity to educate you and the borrowing public about the borrowing process, particularly, our borrowing process. The numbers you will see below are very competitive within the Canadian lending community.
Loan Processing Fees for Borrowers
These would be the fees a lender will charge you to process your loan application and maintain your loan account. Depending on the lender, these costs could include the administrative costs associated with processing the loan, plus any additional costs like credit report processing and NSF (non-sufficient funds) charges.
At SkyCap Financial, we charge a nominal amount to process loans. This gives us a competitive edge over payday lenders and other lending companies that tend to take a predatory approach. For NSF returned items, we do charge $45, which is very much in line with lending industry standards.
The monthly interest you would pay with your loan payment is the majority of your borrowing “costs”. The interest rate a lender offers you is the single most important factor on which you need to be focusing.
If you fill out a loan application online with SkyCap financial, we will be using information from your application to determine three things:
- The amount you can borrow
- The applicable APR (interest rate) that will be charged on your loan
- How many months you get for repayment
You can assume that your credit history and credit score will play a big part in how we process your loan. As for the amount you can borrow, we offer loans ranging from $500 to $10,000. You can request a specific amount, although you may have to settle for less if we set limitations because of the underwriting process. Please keep in mind, we do not approve all applications.
The interest rate we offer will reflect on how our underwriting department perceives your creditworthiness. Our interest rates range from 12.99% APR to 39.99% APR. To be very clear, the better your credit profile, the lower the interest rate offer will be. Also, the terms of your loan (payment terms) that we assign will depend on the amount you are borrowing, your APR, and your creditworthiness.
Get an idea on borrowing
To help you get an idea of what your monthly payments and interest costs would be over the life of a loan with the given parameters, we offer you the following calculations.
- A: $500 loan @ 12.99% for 9 months (monthly pymnt = $58.61, total interest = $27) Note: This example represents our minimum offer.
- B: $1,000 loan @ 19.99% for 12 months (monthly pymnt = $92.63, total interest = $112)
- C: $2,000 loan @ 29.99% for 24 months (monthly pymnt = $111.92, total interest = $684)
- B: $10,000 loan @ 39.99% for 36 months (monthly pymnt = $481.04, total interest = $7,318) Note: This example represents our maxiimum offer.
For the above examples, we used what we believe to be common loan calculations based on what our borrowers typically request. You can use these numbers to estimate your own monthly payment amounts and total interest on any loan amount.
For instance, under example A, you know the payment amount per $100 of loan @ 12.99% is $11.78 ($58.91 / 5). You also know the total interest per $100 of loan is $5.40 ($27 / 5). You can play with these numbers to estimate your own amounts. The same process applies to the other examples. If you prefer, you can find free loan amortization tools on the internet.
We hope you find this information to be useful. If you have any questions about the costs of borrowing, we encourage you to contact us through our website at your convenience.