What's Next?
Personal (term) loan
Own your loan, step-by-step.
Personal loans, also called term or installment loans,
are used to finance major purchases over a pre-determined period of time.
Apply for a term loan.
HOW does a term loan WORK?
Money you borrow through a personal (term) loan is deposited directly into your chequing account, all at once, and must be repaid within a certain time frame (called the loan's 'term').
They're used to make specific purchases purchases, like a computer or mattress.
- Another alternative is to have your vendor finance the purchase.
You and your lender will agree on how often you'll make principal and interest payments and how long until you pay the loan back (its term).
- Personal (term) loans are built such that principal payments repay the loan by the end of its term.
- You'll start making regular interest and principal payments shortly after you receive the money.
- Interest payments may include an additional service fee.
- Personal (term) loans tend to have open pre-payment clauses, which allow the borrower to repay all or part of the principal at any time, without penalty. The sooner you pay back your principal, the less you'll pay in interest overall - remember, you only pay interest on the principal you still owe.
They can have fixed or variable interest rates and can be both secured or unsecured.