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Navigating through the different short-term and payday loan offers can get overwhelming. Some lenders follow the payday loan regulations and apply a fixed rate on the amount borrowed as the cost of borrowing. Some other lenders do not have a license and charge annual interests and brokerage fees. Even though they offer longer terms, is it really the better option? Trying to figure out the best solution for you can be daunting, especially when you need to go with the fastest option.
Here is an easy-to-decipher comparison chart to help you better understand which short term or online loan solution is right for you (based on the Ontario payday loan rates):
| iCASH | Traditional Payday Lenders | Lenders with brokerage fee and annual interests | |
|---|---|---|---|
| Terms | 42 day term (with the 3 repayments option available) |
10 day term | 70 day term with 32% interest |
| Principal issued | $500 | $500 | $500 |
| Broker fee | - | - | $229.31 |
| Cost of borrowing (in percentage) | 15% of the amount borrowed | 15% of the amount borrowed | 32% annual |
| Cost of borrowing on a 500$ loan | $75 | $75 | $30.68 |
| Total cost of borrowing (interest fees and brokerage fees) | $75 | $75 | $259.99 |
| Pro-rated cost of borrowing | |||
| Pro-rated cost of borrowing per day | 1.78$ per day | 7.50$ per day | 3.71$ per day |
| Annual percentage rate | 130% | 548% | 271% |
| Licensed | Yes | Not all | No |
| Offers a cashback program of up to 20% of the cost of borrowing in return* | Yes | No | No |
| Paperless | Yes | No | No |
| Long term client benefits status | Yes | No | No |
| E-transfer for all customers in 2 minutes | Yes | No | No |
| Best Choice! |
Often, it takes a breakdown of the information, side-by-side, in order to be able to make an informed decision. Comparing the terms of online short-term loans and payday loans in your province is important in order to get a clear understanding before you sign a loan contract. Each province has different regulations governing the rates for all licensed lenders. If you have any questions about the rates in your province, our Customer Experience Advisors would be more than happy to assist you.
Need help finding out the right amount of your loan? Visit our Budgeting page!
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