Traveling is one of the few luxuries wherein most people can take a break from the hustle and bustle of daily life. Going to another city or country provides both escape and adventure for the working professional.
Planning is the key to ensuring a stress-free vacation, especially when it comes to your budget. However, even if you prepare for all types of contingencies, there might be times when you find yourself in dire need of funds right in the middle of your excursion.
Financial issues when traveling can range from minor mishaps to severe circumstances. Fortunately, if you’re a Canadian, there’s a way for you to access cash even when you’re in a different place.
Instant loans are financial products offered by online lenders. These are characterized by a quick and easy process that’s usually done electronically. You can find lots of reliable providers of instant loans in Canada that can help you when you’re in a pinch.
These loans are generally considered as emergency loans because they provide access to funds right when you need them. An instant loan is useful when you’re on vacation, for instance, if your allergies attack right at the beginning of your trip and you have to visit the nearest local doctor’s clinic. However, the physician doesn’t accept your insurance. With this, you may have to use the cash you have on-hand for your travel budget, and you end up being short on funds for the rest of your vacation period.
Applying for an instant loan is useful for such type of situation. The money that you borrow allows you to breathe a sigh of relief and lets you enjoy your outing without worrying too much about finances.
Benefits Of Instant Loans For Travelers
As mentioned above, the primary advantage of instant loans is that they offer financial assistance during emergencies while you’re on vacation. You no longer need to scramble to find someone to borrow money from, especially when you’re in a different time zone than the rest of your family and friends.
Here are the benefits of instant loans for travelers:
- Quick And Easy Process
Canadians can easily apply for this type of loan online. In fact, the entire process is done electronically, which is why it’s ideal for travelers.
An instant loan company lets you fill up a form on their official website, and which is automatically sent for approval once you submit it. Instant loan companies have also made the process more convenient for users by developing an app where you can apply for an instant loan and monitor your repayments as well.
Learn more about the #1 iOS and Android instant loan app in Canada by watching this video: https://www.youtube.com/watch?v=phUZreG-meY
Once you’ve submitted your application, the form will, then, be sent directly into the lender’s system, where they can check your information. Approval or denial of the request is typically confirmed within a few hours to a day. You’ll receive a notification on your email inbox, as well as on the app.
- Convenient Disbursement Of Funds
After your loan request has been approved, the lender will then deposit the amount into your bank account. This aspect is useful for travelers since you can access the funds directly. You won’t have to go through the process of cashing in a check or getting the money in person.
Moreover, you can withdraw the money in cash form and proceed to exchange it for the local currency. The whole process takes a short amount of time, which is a primary factor during emergencies.
- Usage Flexibility
Another benefit of instant loans is that the lender doesn’t need to know the purpose of why you’re applying for one.
With mortgages and auto loans, you have to use the funds only for buying a home or car, respectively. Conversely, instant loan companies don’t mind where you’ll be spending the funds as long as you repay your debt promptly. You won’t feel any judgment from these providers when you have to borrow money to pay the hospital for helping you with your injuries after a night of too much partying or other types of misadventures.
- Borrower Control
Online forms require you to provide the usual details, like your name, address, contact number, and email. The lender may also need to know your occupation, as well as other financial-related information.
A favorable aspect of instant loans is that you have the liberty to choose the amount that you want to borrow and the repayment period. Then, the system automatically sums up the total cost, including the accompanying fees of the loan request, and divides it with the number of months that you commit to repaying the debt.
The autonomy that the process provides makes it easy for you to plan out your monthly budget afterward. With this, you can finish paying off your obligations to the lender o time, which is one of the most prudent things you can do financially.
- Consumer Protection
Moreover, the loan industry is heavily regulated to ensure that consumers are protected from hefty fees and, worse, scams that pervade this particular market. Canada’s Financial Consumer Agency has crafted regulations for instant, online, and payday loans for the benefit of the public.
The maximum cost of borrowing for a CAD$100-loan varies for different territories. The lowest amount is CAD$15, which is applicable to Alberta, British Columbia, New Brunswick, and Ontario.
Saskatchewan and Manitoba impose a CAD$17 limit, while Nova Scotia, as well as Newfoundland and Labrador, have a slightly higher amount at CAD$19 and CAD$21, respectively. Meanwhile, Prince Edward Island has the highest maximum at CAD$25.
You must also be aware of the cooling-off period, where you have the chance to cancel your loan application. Most territories allow 48 hours or two business days. For a few provinces, however, you have only until the next business day to cancel your request.
The maximum penalty for a returned check or pre-authorized debit ranges from CAD$20 to CAD$25 for several territories. Nova Scotia stands out with a hefty penalty of CAD$40, while Ontario and Prince Edward Island don’t impose fines for this situation.
There are also restrictions on loan rollovers and debit for some areas as well. As a Canadian consumer, you’re assured of protection by the government for this type of financial product.
Tips When Applying For A Loan
Emergencies are stressful situations. You might end up feeling so anxious about the circumstances that you keep getting distracted. Nonetheless, you have to keep your wits about you when applying for a loan, especially during these instances, to avoid making bad financial decisions.
Here are some tips when applying for an instant loan:
- Know The Basic Requirements
Even if this financial arrangement doesn’t require a credit check, lenders still have a few guidelines that you should follow. Otherwise, their business would crumble due to delinquent payments and other related issues.
The most basic requirement would be that you’re employed. This is one of the ways that lenders ensure your capacity for repayment. You must also be a resident of Canada and have a bank account.
- Shop Around
Next, you must compare the rates of different providers. This way, you can be sure that you’ll get the best deal even with debt.
If you’re planning to travel, you may want to become familiar with different instant loan providers, just in case you need to borrow money. Doing this task as part of your travel preparation prevents you from going for the first company that pops up during your search, which might not offer the most favorable rates.
- Understand The Loan Terms
It’s good to be aware of the terms that entail your loan application. You shouldn’t go into the deal blindly, no matter how desperate you are for funds.
These are the factors that you should be mindful of during the application process:
- Amount To Borrow – Calculate the exact amount that you need for your emergency expenses. Then, take into consideration the processing fees and other costs that lenders may add to the total.
- Repayment Period – For the repayment period, ensure that you can make the necessary adjustments to your monthly budget. You have to be certain that you can accommodate this new expense for the entire repayment duration.
- Monthly Repayments – As stated earlier, the system automatically calculates the monthly repayments, which makes it easier for you to incorporate it into your budget. Nonetheless, you also have to know the additional costs of your loan, such as interest rates and processing fees, so that you can cross-check the sum.
- Be Mindful Of The Possible Repercussions
A significant reason why you ought to be smart when applying for an instant loan is that there are legal repercussions if you fail to repay your debt. While the chances of getting jailed are slim, it’s still a possibility. Moreover, your credit rating would plummet into the abyss if you don’t set your finances straight.
Instant loans are a viable option for Canadian travelers who find themselves short on cash during their excursion. The setup is useful for emergencies, from the quick application process to the convenient disbursement of funds.