If you’re considering a loan with LendingMate, understanding the step-by-step application process is essential. Unlike traditional lenders, LendingMate specializes in guarantor loans, which requires both the borrower and a guarantor to meet eligibility criteria.
Loan Details and Terms
When considering a loan with LendingMate, it’s essential to understand the specifics:
- Loan Amounts: Borrowers can apply for loans ranging from $2,000 to $10,000.
- Repayment Terms: The repayment period varies between 12 to 60 months.
- Interest Rates: Interest rates start at a staggering 43% APR. While this is higher than standard personal loans, it remains more manageable than payday loans.
Understanding the Guarantor Role
Being a guarantor comes with responsibilities. If the borrower misses payments, it can affect both the borrower’s and the guarantor’s credit scores. Therefore, it’s vital that both parties fully understand the commitment involved in this arrangement.
Application Process
The application process with LendingMate is designed to be straightforward and fully online. Here’s how it works:
- Both the borrower and the guarantor need to provide basic personal and financial information.
- Approval is typically fast, often within 24 hours.
- If the guarantor meets the requirements, funds are released quickly.
This efficiency is a significant advantage for those in urgent need of funds.
Documents You May Need
Before applying, make sure both the borrower and the guarantor have access to:
- Valid government-issued ID
- Proof of address (e.g., utility bill or lease agreement)
- Employment or income verification
- Banking details for deposit and repayment setup
Having these documents ready can help speed up the approval process.
Repayment Structure
One of the notable features of LendingMate is its fixed repayment structure. This makes budgeting more manageable for borrowers. Additionally, there are no prepayment penalties, allowing borrowers to pay off their loans early, which can lead to savings on interest payments.
Who Can Be a Guarantor?
To qualify as a guarantor, the person must:
- Be at least 19 years old (depending on province)
- Have good credit history
- Not live at the same address as the borrower (in most cases)
- Be financially stable and able to make payments if necessary
Frequently Asked Questions (FAQ)
Can I apply without a guarantor?
No. LendingMate only offers guarantor-based loans, so having a qualified guarantor is mandatory.
How long does it take to receive the money?
If approved, funds are typically transferred within 24 hours.
Will this loan affect my guarantor’s credit?
Only if you fail to repay. Then, the guarantor becomes responsible, and their credit score may be impacted.
Can I repay the loan early?
Yes, there are no prepayment penalties.
Who Should Consider Applying
LendingMate is best suited for individuals who have been denied traditional loans due to poor or limited credit history. It’s also a viable option for newcomers to Canada who haven’t built a credit score yet. If you have a trustworthy family member or friend willing to act as a guarantor, LendingMate can help you access funds quickly. However, because of the high interest rates, it’s important that applicants consider their ability to repay the loan on time. This service is not ideal for those who have other, more affordable borrowing options available. Responsible borrowing is key.
Final Thoughts
In conclusion, LendingMate provides an avenue for those who might otherwise struggle to secure a loan. The quick approvals and fixed repayment structures are appealing, but the high interest rates are a significant consideration. If you’re contemplating a LendingMate loan, ensure you fully understand the terms and have a reliable guarantor in place. For more information on LendingMate’s services, check the links provided for further exploration of your options.
You will be redirected to the bank’s website