There might come a point in our lives when we’ll need a reliable lending company to help us with some of our financial needs. When that happens, it’s a smart move to do lots of research and background-checking to find the best personal loans company for your needs.
Many Canadians consider Borrowell as one of the most trusted lending companies in the country. As one of Canada’s leading financial technology companies, top financial institutions such as American Express and Scotiabank also have connections with Borrowell. Due to these, it’s no surprise that many people are interested in their loan services.
If you’re one of those people who have been eyeing Borrowell for a while, here’s an in-depth review for you.
Overview
Borrowell is an online lender that offers low-interest personal loans and mortgages. Launched in 2014, Borrowell provides various services like insurance plans and credit monitoring on top of its loan services. Thanks to these offerings, customers can track their spending habits and credit score through Borrowell. Other services include:
- Credit Cards
- Banking & Investing
Borrowell doesn’t have a physical branch. However, its website and customer service hotlines are available to accommodate its customers’ needs.
Available Loans
Along with its wide range of services, Borrowel offers different types of loans. These come in two main variants:
- Personal Loans: These loans generally refer to borrowed money that has to be repaid in specific increments. Personal loans come in different types, depending on the financial institutions involved. In the case of Borrowell, clients can avail the following:
- Small Business Loan
- Debt Consolidation
- Home Improvement
- Vehicle Purchase
- Commercial Loans: These loans work in a similar way to personal loans, except they cater to businesses instead of individuals. Larger companies can consider taking commercial loans to help them with a variety of financial needs.
We’ll explain them in detail below:
Personal Loans
Borrowell’s personal loan product has low interest rates ranging from 5.6% to 29.19%. The minimum loan term is three years, but you can pay your loan balance in advance without pre-payment fees. Loans are quickly approved as long as you’re eligible and present complete documents. Here are the qualifications:
- Canadian citizen or resident
- Age of majority in the province of residence
Upon approval, it will take at least 48 hours before your loan gets sent through a direct deposit. Funding time will depend on the amount of money you’ll loan, with loan offers ranging from $1,000 to $35,000. Compared to its competitors, it’s easier to get approved by Borrowell, especially if you already have a good credit score.
Other loans, such as home improvement and vehicle purchases, are similar to personal loans. Borrowell tailors these options depending on your purpose and needs.
Paying loans in advance can boost your credit score as Borrowell also has an affiliation with Equifax. If you want to increase your credit score further, you may opt to borrow a small amount of money and pay it back before its due. Aside from that, it’s advisable to pay in advance to prevent the stack-up of interest rates. You can compare and contrast rates through Rate Genie.
Commercial Loans
Meanwhile, commercial loans from Borrowell have a different interest rate compared to personal loans, ranging from 5.6% to 25.5%. Funding time is much shorter, and it will take only a day or so before Borrowell transfers the loan to your account. Applying for a commercial loan also has a lot more requirements:
- Canadian citizen or resident
- Age of majority in the province of residence
- Valid account with a Canadian bank or financial institution
- Credit score above 660
- No bankruptcies or current delinquencies on file
- $20,000 minimum income annually before taxes
Borrowell also requires users to verify their identity through Equifax before they’ll be able to apply for a commercial loan. Like personal loans, users must have at least $20,000 yearly income and clean credit history.
Application Process
As discussed above, the application process will take a short amount of time as long as you are eligible and have complete documents. Borrowell is strict with this process, so it would be better to do these before applying:
- Consolidate unpaid debts: One metric that’s important to Borrowell is your credit score. To have a high credit score, you shouldn’t have any outstanding debts. High-interest debts are much worse, so you better pay outstanding dues before applying.
- Organize proof of your income and residency: Remember to always check your documents first, which includes your bank statements and paychecks. Do this before submitting them for review so you don’t have to waste time later on just in case they find the documents lacking or unsuitable. They should be updated and legitimate to avoid disapproval and/or the need to resubmit your documents.
- Check your credit score and credit report: Having a credit score of 500 is okay, but a credit score of 660 to 900 is definitely preferable when applying for Borrowell. This score will increase your chances of getting a loan approved. At the same time, a great credit score means you’ll be able to apply for a bigger loan amount. As for credit reports, it’s good to check if you have errors and signs of identity fraud before proceeding with the application.
Pros
The good thing about Borrowell is they don’t charge for lump sum and advanced payments. This factor encourages users to pay earlier, which helps increase credit scores. Users don’t have to wait until the bill is due to pay, which helps reduce the amount of stress faced by customers. The BBB (Better Business Bureau) accredited Borrowell in 2017.
We’ll also consider Borrowell’s strict application process as a pro. This factor can benefit users in the long run, as applicants need to check everything they might have overlooked in the past. The strict application process motivates applicants to either elevate their credit score further or to pay their outstanding debts.
Lastly, Borrowell offers many services. These services are useful for someone who wants to save, invest, and increase their credit score at the same time. Users will find it easier to transfer and track their investments and payables as they’re all in one platform.
Cons
Borrowell has a penalty fee of $25 to $54 for insufficient funds. You can make repayments through automatic debits, so you need to make sure that you have enough funds before the repayment period. They also only accept payments monthly. These requirements can be quite a hassle, especially when you prefer flexible payment schedules.
One more thing is Borrowell not having a physical branch. This factor can be a pro to others but can be a downer for people who still do their finances traditionally. Processing customer concerns is also quite tricky when done online and through calls, and some users of Borrowell aren’t satisfied with their support team.
Lastly, Borrowell is not for users who want to obtain a loan as fast as possible. Despite being eligible and having all of the documents needed, the fact that there are many papers required to be submitted is already time-consuming. If you want fast cash, Borrowell is not the company for you.
Borrowell: Great for relatively quick loans if you can handle strict requirements
We recommend Borrowell if you currently have a high credit score and no unpaid debts. Those who want to acquire a home or a car without sacrificing their savings or those who want to invest or avail an insurance plan can find Borrowell perfect for their needs. If you want to try your luck availing their loans, you better prepare the required documents ASAP and make sure to sign up on their website.
