This is how the program works
Canada Post has launched a new loan program with TD Bank Group to provide Canadians with more financial options.
Called MyMoney, the program started as a pilot project last fall before expanding nationwide. It was touted as a way to provide more choice for people living in rural, remote and Indigenous communities.
Canada Post already offers money transfer services, as well as reloadable prepaid credit cards.
WHAT TYPE OF LOAN CAN I APPLY FOR?
Applicants can borrow between $1,000 and $30,000 through MyMoney in variable or fixed rate loans, with repayments spread over terms of one to seven years.
Variable interest rates go up or down with changes to the prime rate, while a fixed rate stays the same for the life of the loan. Ultimately, a person’s loan rate will depend on factors such as the applicant’s credit history.
Variable interest rates currently vary between 9.78% and 19.78%, compared to 9.98% and 19.98% for fixed interest rates.
Refunds can be made weekly, bi-weekly, monthly or bi-monthly.
Fees are not charged unless a repayment is missed and loans can be repaid at any time at no additional cost.
CTVNews.ca has contacted Canada Post for a comment on what happens if a person is still unable, or chooses not to repay their loan.
AM I ELIGIBLE?
Canada Post lists a number of requirements to qualify for a MyMoney loan.
An applicant must be a Canadian citizen or permanent resident, be of legal age, and have a personal annual income of at least $1,000.
An applicant must also not have declared bankruptcy or had collection accounts for overdue payments within the past 24 months, and must have a valid checking or savings account in their name with a financial institution where the loan funds can be deposited. Loans cannot be acquired for a third party.
The loans are also described as “unsecured”, which means that they do not need to be backed by collateral such as property and are instead based on the applicant’s credit.
HOW TO APPLY?
Potential candidates can apply on the Canada Post website or by phone.
Applicants will need to verify their identity and may need to do so in person at a Canada Post office.
Other details required to apply are gross annual income before taxes and monthly housing costs, including mortgage or rent payments, property taxes and heating costs.
A social insurance number isn’t required to apply, but it will help get credit information, says Canada Post.
Once a loan is active, TD transfers the funds by direct deposit between one and five business days.
Applicants do not need to be an existing TD customer to apply.
With files from The Canadian Press