Personal loans in Quebec: how to compare your options

A personal loan can spread an expense over scheduled payments, but the useful comparison starts with what you need and what you can repay. An attractive monthly payment tells you little without the number of payments, interest and fees beside it.

The Financial Consumer Agency of Canada's personal loan guide explains how fixed loan amounts are repaid in instalments over an agreed term. This article covers that general comparison. NovaCash advertises a fast online loan of $300 to $2,000 CAD; its own offer determines the terms.

Work out the amount you need

Start with the invoice or expense, its deadline and the money already available. Subtract money committed to essentials before deciding how much of your balance you can use. A balance that looks sufficient today may also need to cover an automatic withdrawal tomorrow.

If the expense is smaller than a lender's minimum loan, compare other ways to cover it before borrowing extra. If it exceeds the maximum, consider the whole funding need before taking on a payment that leaves part of the bill unpaid.

Compare offers on the same basis

Write down the same details for each option. This makes it easier to see whether a lower payment comes from a lower cost or simply a longer repayment period.

• The amount you would receive.
• The interest rate and whether it can change.
• All fees, including recurring charges.
• The payment amount, frequency, number of payments and final date.
• The total amount you would repay.
• The terms for early repayment and missed payments.

Compare actual offers for the amount you need. A general calculator or advertised example can help you start, but it cannot confirm the cost of a different amount or schedule.

Put the payments into your household budget

Use take-home income and actual bill dates. Add the proposed payments alongside rent, groceries, utilities, transport, medication and existing debts. Check the balance between deposits, not only the monthly total.

Leave room for expenses that vary. If repayment depends on getting every available shift or having no unexpected bill, the budget has little protection. Consider whether paying the original bill in stages, moving a due date by agreement or postponing a non-essential purchase would be more manageable.

A shortfall that returns every month deserves a wider budget review. Record what causes it before choosing another payment commitment.

Where NovaCash fits

NovaCash's published criteria include age 18 or older, Canadian citizenship, at least $1,200 a month paid by direct deposit, employment for more than three months, no bankruptcy in progress and the ability to repay. It excludes self-employment and income from social assistance, child tax credits, student loans and retirement savings plans. Read the full eligibility explanation before considering an application.

The site describes weekly, every-two-weeks or monthly payments and early repayment without penalty. Monthly membership fees apply. Its calculator uses a six-month illustration that excludes those fees; your offer sets the actual schedule and total cost. Review the NovaCash borrowing and repayment FAQ alongside any offer.

Decide after reading the terms

Ask for an explanation of anything you cannot reconcile, including a difference between the calculator and the offer. Keep a copy of the terms you accept. The best comparison ends with a payment schedule you understand and can fit into your budget, rather than a decision based only on how quickly a lender responds.