Canada Post Now Offers Loans: 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 program last fall before expanding across the country. It’s a way to provide more choices 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 you 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 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.
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 have accounts in collection for overdue payments within the last 24 months, and must have a valid checking or savings account in their name with a Canadian financial institution where the loan funds can be deposited. Loans cannot be acquired for a third party.
How to apply? Prospective candidates can apply via the Canada Post website or by telephone. 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 security number is not required to apply but will help obtain credit information. 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.