Borrowell personal loans answer the needs Canadians have become more and more frustrated with banks and the hoops they make applicants jump through while applying for a loan. Many Canadians are hoping to get a consolidation loan for their debt, but it is difficult to convince a bank to provide an unsecured loan for an amount that provides them relief. Borrowell personal loans are allowing those with suitable credit track records to consolidate their personal debt without having to go through the big banks. Borrowell is one of the simplest ways for Canadians to reduce their interest rates on credit card debt, providing consumers with an online loan that fits their needs.
Why use Borrowell Personal Loans, and what are they?
Borrowell is an online lender that offers loans at competitive rates quickly and easily. Borrowell offers unsecured personal loans up to $35,000. These loans can be used for anything you want and they do not require any type of security or collateral.
The most common use for Borrowell personal loans is debt consolidation due to credit card interest in Canada being too high to continually carry a balance on. If you are trying to dig out of credit card debt, it is difficult to find success with rates that high. Repaying your bare minimum can end up in many years of debt repayment and a substantial amount of money wasted on interest. Replacing your credit card debt with a loan through a bank often means putting your home up for collateral – if you own one. Borrowell personal loans offer an alternative to this.
Borrowell aims at offering financial products to those with decent credit. Qualifying for a Borrowell personal loan, you need a credit score of at least The minimum credit score you need to qualify for a loan option is 660. Two credit bureaus, Equifax and TransUnion, provide credit scores that range from 300 to 900 (the higher the better). About 85% of Canadians have a credit score of 660 or higher.
In addition to credit score, their process takes into account a number of additional factors including your income, how much credit you have access to, and the amount of debt you carry. So even if you have a credit score of 660 or higher, it may not be possible for them to present you with a loan option at this time. When you are approved, it is possible to get a rate as low as 5.6%. However, your actual interest rate will depend on your credit score and other creditworthiness factors. Even if you pay a higher rate, chances are that it will still be lower than what you currently pay on your credit cards.
Credit Card Debt Consolidation Issues
Using a consolidation loan as part of your plan to get out of debt can be an effective decision. This strategy only works if you have changed your spending habits that caused those unpayable credit card bills. Living within your means will ensure you do not consolidate your credit card debt, and then run it up again using the cards you just paid off.
Carefully consider whether closing credit cards after paying them off using a Borrowell loan is a good idea. Terminating your credit cards can affect your credit score, and make it more difficult to get the credit you need for a car or home loan down in the future. If you do not think you can keep from spending using the credit cards it is probably better to close them. The strategy is to improve your circumstances and get out of debt, not make the situation worse.
Borrowell’s Personal Loan Application Process
One of the things I want to emphasize in this Borrowell review is how easy the application and verification processes are. Online loan companies allow you to avoid going into a branch and applying for a loan, and the process is usually fairly smooth. Borrowell’s application process is simple and takes only a few minutes.
First of all, the initial credit application takes about one minute to fill out. You use some personal information that allows Borrowell to perform a credit check. The good news is that Borrowell does not use a hard inquiry to check at this point, so it is not going to affect your credit score. If you are shopping around for interest rates for your credit card debt consolidation, Borrowell is an ideal place to start.
Once you enter this information, you will be presented with loan options. Borrowell offers three-year and five-year personal loan options. If you are trying to get out of debt, this is helpful because you have an idea of exactly how long it will take you to pay off your debt. Plus, you will have a fixed-rate loan and possibly save thousands of dollars in interest charges.
After you have seen what your options are, choose one and you will be taken to a page where you need to fill in a little more information. This page will verify your income and your bank account. In order to verify your income, you will need to take pictures of your latest pay stubs with your phone or scan them into your computer. There is an easy to use document uploader on the page that will walk you through the process.
Once you have finished these steps and included your bank account information as Borrowell will need a place to directly deposit your money. Once that is done, you will usually get your money the next business day. You can then use the money for whatever you want.
Is Borrowell Right for You?
One of the things about Borrowell is the fact that the company takes steps to ensure that it follows best practices with lending and verification. This is not a bad credit loan or a payday loan. It is a legitimate personal loan with great interest rates for those with good credit. Many Canadians with good credit have found themselves in credit card debt in recent years, and Borrowell is a good alternative for debt consolidation and refinancing. It is not a sketchy company, nor is it a traditional bank with extra hoops to jump through, and you can get unsecured personal loan rates that are competitive with traditional banks.
Even if your goal is not debt consolidation, a Borrowell personal loans can still help. If you want a small loan for your home business, or if you are not satisfied with the loan rates you have been quoted, this can be a viable option.
Borrowell Personal Loans FAQ’s
What criteria do I have to meet to qualify for a Borrowell personal loan?
In order to qualify for a loan, you must:
-be a Canadian citizen or resident
-have reached the age of majority in the province where you reside
-have a valid account with a Canadian bank or other financial institution
-have a valid email address
-have a credit score above 660
-no bankruptcy, consumer proposal, collections or current delinquencies on file
-have a minimum credit history of 12 months
Where do I have to live?
We are able to provide loans to residents of all provinces except Quebec and Saskatchewan. At present we are not able to offer loans to residents of the Northwest Territories, Nunavut or Yukon.
How old do I have to be?
You must be the age of majority in the province where you live. The age of majority is 18 in Alberta, Manitoba, Ontario and Prince Edward Island. The age of majority is 19 in British Columbia, New Brunswick, Newfoundland and Nova Scotia. At present, you must live in one of these provinces in order to qualify for a loan through Borrowell.
What is the minimum credit score I need?
The minimum credit score you need to qualify for a loan option is 660.
Two credit bureaus, Equifax and TransUnion, provide credit scores that range from 300 to 900 (the higher the better). About 85% of Canadians have a credit score of 660 or higher.
In addition to credit score, our process takes into account a number of additional factors including your income, how much credit you have access to, and the amount of debt you carry. So even if you have a credit score of 660 or higher, it may not be possible for us to present you with a loan option at this time.
Is there a minimum income requirement?
To qualify for a loan from Borrowell, you need to have a minimum yearly income of $20,000 before taxes. You will need to verify your income with pay stubs or the Notice of Assessment from your two most recent tax returns.
What types of income are acceptable?
We accept employment, self-employment, business, investment, rental and pension income. Income needs to be verified by providing two recent pay stubs or the last two Notices of Assessment from your personal tax returns.
Why did I not get approved for a loan?
There are a number of different reasons why you might not have received a loan option. Here are a few of them:
- You may have what is called a “thin credit file” – not enough information on your credit report for our scoring purposes.
- You may not meet some our lending criteria, such as 12 months of credit history and a credit score of 660 or above. We also look at your income, how much credit you have access to, and the amount of debt you carry.
- If you have a bankruptcy, consumer proposal, collections or delinquencies on your account, we will not be able to give you a loan.
If you applied and did not receive a loan option, we are sorry that we are not able to help you at this time. You may want to get a copy of your credit report from Equifax or TransUnion to make sure the information on your credit report is correct.
Borrowell Personal Loans Application Process
Does checking my rate affect my credit score?
No, checking your rate does not affect your credit score. We do what is called a “soft inquiry” when you check your rate.
How do I get a loan?
Borrowing at Borrowell is simple, secure and convenient. Start by checking your rate at www.borrowell.com.
If you qualify, you will receive two loan options, a 3-year term and a 5-year term. In each case you will find out how much you’ve been approved for, your interest rate and your fixed monthly payment. Select the one that suits you best.
You will then need to complete three additional steps: answering a few questions about your identity, providing proof of income, and verifying your bank account.
For proof of income, you can upload or email us your two most recent paystubs. Feel free to take a photo if that is easier. (No pay stub? You can submit the Notice of Assessment from your last two tax returns instead.)
To verify your bank account, we use VersaPay, a leading provider of payment solutions. You will create a VersaPay account and input your bank and branch (transit) number. To ensure that the banking information you added is correct, a small amount will be deposited and credited to your bank account and an email will be sent when your account is ready to be verified. This can take 1-3 business days.
When the proof of income and bank verification is completed, we’ll email you so that you can review and accept your loan documents. We will then deposit the funds directly into your bank account.
How do I receive the money?
Once you have submitted your proof of income, verified your bank account and accepted your loan documents, your money will be directly deposited into your verified bank account.
What is Annual Percentage Rate (APR)?
The Annual Percentage Rate (APR) allows you to compare the total cost of credit from different loan options. For Borrowell, the APR includes two things: the interest you pay, and the one-time origination fee you pay us for arranging and servicing your loan.
Borrowell loans offer fixed interest rates, so your monthly payment will never go up.
How much can I apply for?
You can apply for loans between $1,000 and $35,000, in increments of $100.
Why did I not receive the loan amount I asked for?
The loan size is limited based on your income and debt levels. While you can ask for up to $35,000, you may be approved for a loan amount lower than what you request.
How long do I have to accept the loan offer?
If you qualify, we will present you with two potential loan options, a 3 year term and a 5 year term. We will show you the loan amount, interest rate and fixed monthly payment. You can accept right away to begin the verification process, or come back within the week. (After 7 days, your loan options will expire and you will need to apply again.)
Rates and fees
What are your rates?
When you check your rate for a loan through Borrowell, you will find out right away if you are eligible to receive a loan option. Those who qualify will find out their loan amount, interest rate, origination fee and annual percentage rate (“APR” which includes all fees). Borrowell interest rates start from 5.6% APR for the best credit borrowers. Our average APR varies between 11-13%.
A credit score above 660 is required to qualify for a personal loan from Borrowell. The Borrowell interest rate is an estimate annual percentage rate including the origination fee. Your rate may be different. Borrowell does not guarantee applicability regarding your individual circumstances.
Why do you charge an origination fee and how much is it?
In order to give you the lowest possible interest rate, we charge a one-time “origination fee” that covers the costs of finding customer like you, evaluating loan applications, building and operating our processing platform, and providing amazing customer service. We feel this is a clear and transparent way to be upfront about how we get paid for the service we provide. The interest you pay gets returned to the lender that provides the funds.
The one-time origination fee is between 1-5% of your loan amount. The percentage depends on the term of the loan (3 year loans have a lower fee) and your loan grade – the better your credit profile, the lower your origination fee.
There is never any cost to get a quote. It is free to apply and you will find out right away if you qualify, along with the loan amount, interest rate, and monthly payment.
How does the origination fee get paid?
We will add the origination fee to the approved loan amount. For example, if you are approved for a $5,000 loan at a 2% origination fee, your total loan amount would be $5,100. You would receive $5,000 in your bank account and pay the origination fee off with the rest of your loan. We never ask for funds from you before we give you your loan.
Are there any fees or penalties for paying my loan off early?
There are no fees or penalties to make extra payments or to repay your entire loan early.
Do you charge other fees?
As long as there are enough funds in your account when your payments are due, there are no other fees. If there are not enough funds in your bank account to cover your payment when it is due, we will charge a $25 NSF (Non-Sufficient Funds) fee. This fee is to cover the costs we have to pay because of the unsuccessful payment. We do not make money from NSF fees.
Verification and Funding
How do I repay my loan?
Your monthly payment will be taken out automatically each month, from the same bank account where we deposited your funds. We will send you a reminder email 3 days before your payment is due so you can make sure you have the funds in your account.
Can I pay my loan off early?
Yes, you can pay off your entire loan at any time with no prepayment penalties or fees.
Can I make extra payments on my loan?
You can make additional payments on your loan without any prepayment penalties. You can also repay your loan in full at any time. To make an extra payment, email us at email@example.com or call us at 1-888-285-0990. Please let us know:
- your loan number
- the payment amount
- the date of the payment
Please give us at least 3 business days notice to process your additional payment.
How do I repay my loan in full?
You can repay your loan in full at any time without any prepayment penalties.
The fastest way is to call us at 1-888-285-0990 so that we can provide you with the amount you would have to pay, set the payment date and get your confirmation to do so.
You can also email us at firstname.lastname@example.org. Please let us know:
- your loan number
- the date you would like to make the full repayment
We will respond letting you know how much the payment would be, which you will need to confirm in order for us to process the payment.
What happens if I do not make a payment?
We will send you a reminder email 3 business days before your payment is due. If you do not have enough funds in your account on the payment date, we will charge you an NSF (non-sufficient funds) fee of $25 to cover associated costs.
Borrowell Personal Loans in the News:
CIBC partners with fintech innovator Borrowell to deliver “one-click” online loans
Exclusive partnership leverages innovative technology for real-time loan adjudication and next day funding
TORONTO, Oct. 27, 2016 – In a move that changes the traditional process for applying for a loan, CIBC announced today it is partnering with Borrowell to offer “one-click” online lending for clients. A first in Canada, the new partnership allows CIBC to leverage the fintech’s unique technology and underwriting approach to adjudicate loans for existing clients online in real time, with funds typically issued the next business day directly into a client’s CIBC account.
“CIBC’s partnership with Borrowell to deliver a digital borrowing experience to clients is a first from a major Canadian bank,” says David Williamson, Group Head of Retail and Business Banking, CIBC. “By leveraging innovative technology, we are taking a process that is often viewed as slow and cumbersome for clients and making it much faster and more convenient.”
The initiative is launching with loan offers to select CIBC clients. The technology allows clients to apply for a loan of up to $35K using a simplified application process, with the ability to securely upload documents online for verification. Future plans to extend the borrowing platform to a wider client base will be based on client experience feedback and input from this first phase.
“Canadians expect technology to make experiences faster and more customer-friendly, from booking travel to online shopping,” says Andrew Graham, CEO of Borrowell. “In the past few years, we’ve seen Canadians embrace our fast, fair and friendly approach to personal loans. We are excited to be partnering with CIBC to bring this experience to more Canadians.”
“By adopting this forward thinking approach, we are delivering on our commitment to being a strong, innovative, relationship oriented bank and ensuring we meet the needs of clients today and in the future,” says Mr. Williamson. “Taking this step is a good example of disrupting a traditional banking process and leveraging technology to make the experience significantly better for clients.”
CIBC fast tracking with fintechs
Today’s announcement is the latest in a series of partnerships forged by CIBC to deliver innovations to clients, including the recently expanded Global Money Transfer which allows clients to send international remittances with no up-front transfer fees, and the bank’s agreement with Thinking Capital to accelerate lending in the small business market.
“Our partnership with Borrowell is based on our shared view that the process for borrowing money for personal banking clients could be improved in the digital age, while retaining all of the prudent risk management criteria you would expect from a major bank,” adds Mr. Williamson.