There are a few different types of unsecured loans in Canada.
Corporate Unsecured Debt: This type assumes a greater amount of risk and is not something commonly encountered by the average consumer.
Personal Loans: These are loans which you can request in order to meet an unspecified need, such as repairing your car or paying a bill in order to avoid a late fee. The direct lenders Friendly Lender works with can offer many different kinds of personal loans, such as payday loans, bad credit loans, emergency loans, installment loans and other short term loans.
Consumer Durable Loans: This loan is typically taken out for consumer durable goods, such as an appliance for your kitchen, or things like your hot water heater and could even apply to a loan for a television. These types of loans are commonly offered at the point of sale, basically at the store where the item is purchased. These loans may sometimes offer no interest if the debt is repaid within a certain period of time.
Student Loans: This is a common type of debt that is unsecured. These loans are taken out by students or their parents to cover the cost of tuition and books while the student is taking courses to secure future employment. Because there is no guarantee that the student will find employment in the field in question, these loans are repaid under very strict conditions to reduce risk for the lender. There are some cases in which these loans can be secured if a parent or other individual co-signs or collateral is offered by the borrower.
Not all of these types of unsecured loans apply to everyone in every situation, but it is important to know what options are out there for various situations. Fortunately, Friendly Lender has a team that is capable of helping you choose the loan product that is right for your financial needs.