OFONIMEH JOHNSONLendingMate Review 2022: LendingMate, a provider of personal loans to Canadians with bad credit, is examined by Loan Money Apps Team. We provide frank commentary on the astounding interest rates LendingMate charges.
Face it, there are instances when you could require a loan but not have the ideal credit to stroll into your neighborhood office of one of Canada’s Big Five banks and obtain one.
But don’t be concerned. Even if you have poor credit and are ineligible for a regular bank loan, there are a ton of alternative lenders willing to take advantage of your need for money and promise you a few thousand dollars.
If you have a guarantor, LendingMate is one such lender that provides lending products and services to citizens of British Columbia and Ontario.
The private lending sector is infamous for selling loans with absurdly high interest rates that may leave you with more debt than you applied with. Is LendingMate a part of those businesses? Read our LendingMate review to learn out.
LendingMate Review 2022: How to Apply for LendingMate Loans and Interest Rate
To be clear, LendingMate is just another private lender that provides personal loans to borrowers with poor credit.
The company has its headquarters in Kelowna, British Columbia, and offers relatively small loans of $2,000 to $10,000 with periods ranging from 12 to 60 months to residents of B.C. and Ontario.
Although extremely high, the interest rate on LendingMate’s personal loans is 43 percent over a 12-month period.
Private personal lenders often charge interest at an annual rate that is substantially higher than the conventional bank because they take on greater risk by lending to borrowers with less-than-perfect credit.
For instance: a bank normally offers loans with an interest rate of 2.5 percent.
Thankfully, personal lenders are not allowed by law to charge interest rates greater than 60%, including expenses.
That isn’t much consolation, though, because 43 percent is only 17 percent away.
LendingMate’s business strategy contains another quirk in addition to interest. Compared to high interest rates, this one occurs less frequently.
LendingMate offers guarantor loans, thus anyone without a guarantor cannot get a loan from them. A guarantor is a friend or family member who pledges to repay the loan if you are unable to do so and can assume responsibility for doing so.
Because they will eventually be liable for repaying the loan, the guarantor is scrutinized more closely than you as the applicant.
Guarantors must have solid credit, be between the ages of 19 and 75, and be capable of making the repayments in the event that the borrower is unable to.
Additionally, LendingMate emphasizes that having a homeowner as a guarantor will increase your chances of approval. They will require very good credit if they don’t own a home.
Additionally, LendingMate maintains that their loans are free from any unstated costs. We will NEVER charge for late payments, letters, early settlement, or anything else, the company explicitly states on its website.
In addition, the company asserts that, unlike some lenders, it would not reject your loan based only on your credit history.
What Is LendingMate’s Process and How Does LendingMate Work?
Visit LendingMate’s website and select “apply” if you think their business strategy makes sense and you wish to apply for a loan.
After that, an application will need to be completed. In addition to standard information like name, email, phone number, Social Insurance Number (SIN), and address, the application also requests specifics on the loan you’re interested in, such as the amount and period. You have a choice of 36, 48, or 60 month increments.
The disclosure statement, which is the single most crucial document in the entire procedure, is what comes after the application process.
It describes your obligations and rights, the fees they’ll charge, and the situations that may breach the contract and allow LendingMate to go after you for any money owed.
For instance, if you are currently filing for bankruptcy or making a consumer proposal, you won’t be approved for a loan and your agreement will be null and void.
The good news is that there are no late penalties and that the APR (Annual Percentage Rate) is only 43%. You can prepay more of the monthly payment or the full loan at any time as long as you notify LendingMate in advance.
There is no grace period, however, and payments are due on the date specified.
LendingMate sends a link to your guarantor that contains their application once your application is finished.
If both you and your guarantor are accepted, LendingMate will call you both to complete the transaction.
They guarantee that after your guarantor approves, they will send payment within 24 hours.
They will transfer the funds into your guarantor’s bank account before giving them to you in order to avoid fraud and ensure that they are aware of the loan.
After that, it will be your responsibility to repay the loan in full in accordance with the conditions you agreed to.
LendingMate will first ask your guarantor for the money if you can’t make payments or miss them before taking more serious measures, like initiating legal action, to get the money that you technically both owe.
How To Apply For a Loan with LendingMate
Fill out the online application to get going. There is a 5-minute wait. A link is emailed to your guarantor once you submit your application so they may fill out their information and sign the contract.
Before the loan is accepted, LendingMate calls your guarantor to clarify their obligations.
After accepting your guarantor, LendingMate typically pays out your loan within 24 hours.
You must meet the following criteria in order to be approved for a LendingMate loan:
- • Be a Canadian citizen between the ages of 19 and 75
- • Have a steady source of income (employment or government benefits)
These requirements must be fulfilled by your guarantor:
- Have a solid credit score,
- be a Canadian citizen between the ages of 19 and 75, and not have guaranteed another loan on LendingMate.
- Your guarantor’s chances of being accepted rise if they own a home.
At an interest rate of 43% per year, you are permitted to borrow up to $10,000 for a maximum of five years.
Application Link: https://lendingmate.ca/en-CA/
Is LendingMate Legit?
Despite not having a BBB accreditation, LendingMate has an A rating on the marketplace and seems to be a legitimate company.
On the Canadian website, there is not a lot of information regarding the parent corporation.
How does LendingMate Guarantor Loans work?
A guarantor is a person who guarantees repayment of a debt in the event that the borrower is unable to. They co-sign the loan and are accountable for payments in the event that the borrower falls behind.
People with poor credit are able to evaluate lending options thanks to guarantor loans. These loans feature a high interest rate and do not consider the borrower’s credit score.
A guarantor is often expected to have a high credit score and demonstrate their ability to pay back the loan obligation should it become necessary.
Benefits of a LendingMate Guarantor Loan • You can apply for this loan even with poor credit.
You may borrow up to $10,000 without incurring any fees if you repay your loan early.
simple loan application online
Cons of a LendingMate Guarantor Loan: The APR is 43%; it’s only accessible in Ontario and British Columbia; it can be difficult to find a guarantor.
FAQs On LendingMate Review 2022.
See some of the Frequently asked questions on LendingMate Review 2022 below and their various answers.
Where is LendingMate located?
What is lend mate?
LendingMate is a guarantor lender; all of our customers must have a guarantor for us to lend to them. A guarantor is a great sign to us that someone trusts you and that we should too, no matter what your credit score! A guarantor’s responsibility is to make the loan repayments if the borrower does not.
What is the purpose of a guarantor?
A guarantor is someone who agrees to pay your rent if you don’t pay it, for example a parent or close relative. If you don’t pay your landlord what you owe them, they can ask your guarantor to pay instead.
How do I contact lending mate?
Call us on (855) 360-5597 2pm-9pm Mon-Fri and we’ll be happy to help.
Is it safe to be a guarantor?
Being a guarantor for someone you can trust to buy a property might be a big benefit. It does, however, come with some inherent risks for the guarantor, such as taking on the burden of repaying the full loan in the event that the borrower is unable to. Relationship hazards could exist in addition to financial concerns.
Does guarantor affect credit rating?
How does being a guarantor affect my credit rating? The act of being a guarantor shouldn’t appear on your Credit Report, but if you fail to make any repayments that the borrower has missed, you could end up with negative markers which will lower your Credit Rating and make taking out credit more difficult.
What happens if guarantor Cannot pay loan?
The creditor can choose to proceed to recover the loan from the guarantor without approaching the principal debtor. A guarantor is directly liable to liquidate the debt of the principal borrower, in the event that the principal borrower defaults or refuses to honour his repayment obligation.1
That has been LendingMate Review 2022: How to Apply for LendingMate Loans and Interest Rate Canadian Loan. If this article has been of help to you, why not share it with friends on social media through any of the sharing buttons below?
LMA Team.
OFONIMEH JOHNSON
