There are a few different types of unsecured loans in Canada.
Corporate Unsecured Debt: This is the riskiest option among the three. It’s more uncommon than the other choices.
Personal Loans: These are loans with a vague purpose, such as repairing your automobile or paying a bill in order to avoid a late charge. Friendly Lender works with a number of direct lenders that provide a variety of personal loans, including payday loans, bad credit loans, emergency loans, installment loans, and another short-term financing.
Consumer Durable Loans: A mortgage for a house, car, boat or another type of property is often referred to as a consumer durable loan. A refrigerator for your kitchen or anything like your hot water heater and may even cover a television loan are things that might be financed through this kind of lending. These loans are most often given at the point of sale, which is to say at the store where the item is purchased. If the debt is paid off within a certain period of time, these loans may sometimes provide no interest.
Student Loans: This is a typical kind of debt that isn’t secured. Students and their parents take out unsecured loans to pay for tuition and textbooks while the student studies in order to acquire future employment. Because there is no assurance that the student will be able to find work in his or her chosen field, these loans are repaid under very tight conditions to reduce lender risk. In the event that a parent or other individual co-signs or collateral is supplied by the borrower, these loans may be secured.
Not all of these sorts of unsecured credit are appropriate for everyone in every scenario, but it’s vital to understand what alternatives are available when things go wrong. Fortunately, Friendly Lender has a team that is capable of helping you choose the loan product that is right for your financial needs.