Online Payday Loans Canada vs Bank Loans

Online Payday Loans Canada vs Bank Loans : A huge population of the world is dependent on loans to make ends meet. From households to huge industries, all take loans for various reasons. The loaning system is so old and deeply embedded in our society that we can not think of a life without it.

In today’s date, there are various places one can get a loan from. When we look at Canada, a prosperous state, its population is dependent on loans. The two most popular kinds of loans in Canada are bank loans and online payday loan. So let’s compare the two based on some important features and see which one fares better than the other.

The Convenience of Online Payday Loans Canada and Bank Loans

When we talk about convenience related to a loan we mostly consider the ease of application, the speed of transferring money and the number of formalities involved. Bank loans lag way behind online payday loans on this factor. Firstly, you don’t have to physically visit for payday loans in Canada, whereas on the other hand, you have to make multiple trips to the bank to get a loan from there. The application process for a payday loan is online and it takes a mere 5 minutes to fill-up the form. Banks make the applicants fill up a number of forms that take hours on end and also ask to submit multiple proofs which are never easy for someone to gather in a small time frame.

Partiality factor

Ideally speaking, there should be no partiality for anything to anyone in this world. Sadly, banks show a lot of partiality in terms of credit history advantages. A lot of people who do not have a good credit score find it very hard if not impossible to get a loan from the bank. Moreover, even if the credit score is acceptable, banks give a lower rate of interest to a person who has a relatively high credit score. Such injustice is not witnessed when a person applies for an online payday loan. The private lenders who actually send the money to the borrower do not usually check the credit history of borrowers which gives them an equal chance to get a loan. Even the interest rate is set equal for each and every loan applicant, irrelevant of their credit score.

Profit-Hogging

It is understandable that every business, be it government or private, is there to make a profit, though there is always some play of morals necessary in the dealings. The companies that provide online payday loans have good moral factors as they accept loan amounts for as low as $150. Such an amount will never be accepted in a bank as the money being made from the interest will not make them a considerable profit. Such activities done by the bank are widely looked down upon and this makes a lot of people shift to payday loans.

Online payday loans are the favorite loans for the people of Canada. They are extremely popular and there is a good reason for it. Such types of loans are truly dedicated to helping people in need and that is why they are considered much better than bank loans for a lot of situations.