You Can Get a Personal Loan on Maternity Leave. Here’s How…April 05, 2020
You can get a personal loan while on maternity leave. Here’s what you need to know…
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Having a child can be stressful. It’s full of joy and wonder, but it’s also a time of uncertainty because you are learning new skills and caring for a precious human who can’t care for themselves. If you’re looking for a personal loan to relieve some of the stress around money during this time, you can get the funds you need from a trusted lender online.
Need quick cash without the risks and hidden costs that come with payday loans? Go to our 3-minute application and get a personal loan e-transferred to your bank account today!
What to consider for a maternity leave loan?
A maternity leave loan is a personal installment loan that a borrower gets to help with parenting expenses. Unlike an auto loan or mortgage, personal loans can be put towards any kind of expense and the borrower has the freedom to spend it on anything once the funds are received.
The “installment” aspect of the maternity leave loan means you agree to make equal payments over a fixed term. Payments include interest (and fees in some cases) and are usually made once a month. Installment loans differ from credit cards and lines of credit because they have an end date (that you set yourself) so you know when the loan will be fully repaid.
The benefits of installment loans are numerous:
- Predictable monthly payments: Payments stay the same so you know exactly how much you owe every month. This offers more predictability and makes it easier to budget. Most installment loans also use fixed interest rates which provide peace of mind as you don’t have to worry about the rate increase.
- Flexible payment schedules: Customizable repayment plans give you flexibility and freedom. You can pick a long term if you want to make lower monthly payments or agree to a shorter period to save on interest.
- Quick access to funds: Online lenders understand that you need money urgently sometimes, which is why funds are normally released within 24 hours or less upon approval.
- Relaxed eligibility requirements: It’s easy to qualify for an installment loan in Canada. You need to be a Canadian resident, at least 18 years of age, possess an active bank account, and have proof of your income, residence, and expenses.
- Credit building: Installment loans can help you build credit if you use them wisely.
How to qualify for a maternity leave loan
With the rise of online lenders, your credit score is no longer a big obstacle to getting the funds you need. If you make sufficient income either from your work or benefits, you can get approved regardless of your credit rating.
That’s why it’s better to move forward with an application while you’re working than after you give birth. This helps your loan application because you have a higher income and you are an active employee. If that’s not possible, don’t worry because you still have options.
With a trusted online lender like Spring Financial, you typically need to have an income of $1,200 per month to get approved for a loan.
If you don’t make that much while receiving maternity or parental EI benefits, your partner’s (or perhaps your parent’s) income can make up the difference. With their permission, you can add them to the application as a cosigner.
What’s a cosigner?
Applying with a cosigner is a great way to increase your chances of getting approved for a loan. Cosigners are typically close friends or family members who sign a loan agreement with the borrower. Lenders determine less risk with a cosigner since that person is also held responsible for repayments.
Although applying with a cosigner isn’t an option for everyone (and you can still get approved without one) cosigners substantially increase the chances that a person with insufficient income will get approved.
Please keep in mind that if you are successful at obtaining a maternity leave loan, you will be expected to begin repayment at some point, so it’s crucial you have income ensured at a later date. In other words, make sure your employer is keeping your position safe for when you return.
Get approved today!
If you decide that a maternity leave loan is the best choice for you, Spring Financial can assist you with devising a plan that works best for your needs. Spring Financial offers:
- Personal loans for every credit rating: Get approved even if you have no credit, poor credit, or have filed for bankruptcy.
- Cash when you need it: Funds can be e-transferred straight to your bank account on the same day or within 24 hours of applying.
- 3-minute application process: Applications can be done online or over the phone so you never have to wait in line at the bank.
- Build your own repayment plan: Terms can last between nine to 60 months. You choose the plan that works best for your schedule.
- Credit-building opportunities: Unlike payday loans, personal loans can improve your credit score if you make payments on time.
- No hidden costs: There are no application fees or maintenance charges, ever.
- Trusted online lender: Spring Financial has helped countless Canadians achieve their financial goals – see what they have to say on Trustpilot.