2-Month Loans for April 2024

Get a 2-month loan at one of the lenders verified by our specialists. On 11.04.2024 there are 3 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 3
Updated
04.04.2024
17:07
Best Quick Loan Today 11.04.2024*
Mr. Payday
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Rating by Finanso®
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The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $10.000
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Mogo
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$15,000
Rate
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Effective interest rate on the product

up to 46.96%
Term
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Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
i

Loan term for the financial product

60 months
Reviews
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review
Royal Bank of Canada
4.6
Great service and quick processing of my loan request.
Review
Royal Bank of Canada
1.8
I found the process of getting a loan with RBC to be quite slow and confusing.
Review
Royal Bank of Canada
4.4
RBC provided me with a loan at a very low interest rate, helping me save on loan payments.
Review

What are 2-Month Loans?

In Canada, 2-month loans serve as a succinct financial solution with a short-term repayment period. These loans are specifically designed to address immediate financial needs or unforeseen expenses, offering borrowers quick access to funds for a brief duration. Two main types of such loans prevalent in Canada are short-term installment loans and payday loans.

Short-term installment loans provide borrowers with the flexibility of repaying the borrowed amount over two months through scheduled monthly installments. Lenders offering these loans often assess factors such as income, employment stability, and creditworthiness to determine eligibility. This type of loan typically comes with varying interest rates, allowing borrowers to choose a plan that aligns with their financial capacity. On the other hand, payday loans in Canada are characterized by their quick turnaround, with repayment expected by the borrower's next payday or within a maximum period of 62 days.

Features

  1. Short Duration. The loan has a concise term of two months, providing a quick resolution to immediate financial needs.

  2. Fixed Loan Amount. Borrowers can access a predetermined amount of funds tailored to their specific requirements.

  3. Defined Repayment Period. Repayment is expected within the two-month timeframe, offering clarity and a rapid turnaround.

  4. Streamlined Application Process. The application process for a short-term loan is typically straightforward, facilitating quick approval and fund disbursement.

Pros and Сons

Pros

Flexible Application Requirements. Eligibility criteria are generally more lenient compared to traditional loans, making it easier for individuals with varying credit histories to qualify.

No Extensive Credit Checks. Most lenders offering short-term loans do not conduct thorough credit checks, enhancing accessibility for borrowers with less-than-perfect credit.

Potential for Renewal or Rollover. In certain situations, borrowers may have the option to renew or roll over their loan if they cannot repay the full amount by the due date, providing some flexibility.

Cons

Short Repayment Window. The brief repayment period can be a challenge for some borrowers, especially if they face unexpected financial setbacks during the two-month timeframe.

Potential for Additional Fees. Renewing or rolling over the loan may incur additional fees, increasing the overall cost and creating financial strain for the borrower.

Risk of Debt Cycle. The quick turnaround of such loans may pose a risk of entering a debt cycle if borrowers struggle to repay and continually renew the loan, accruing additional fees.

How to Get a Loan with a Two-Month Term

Apply for a Loan

  1. Research Lenders. Explore reputable lenders in Canada that offer short-term loans with a two-month repayment period. Consider factors such as interest rates, fees, and customer reviews.

  2. Determine Eligibility. Review the eligibility criteria of potential lenders. Typically, requirements include being of legal age, a Canadian citizen or resident, and having a stable source of income.

  3. Check Credit Requirements. Understand the credit requirements of the lenders. While some lenders may not perform extensive credit checks, it's essential to be aware of the impact on your credit history.

  4. Gather Necessary Documentation. Prepare the required documents, which may include proof of identity, address, income (pay stubs, bank statements), and any other documents specified by the lender.

  5. Compare Loan Terms. Compare the terms and conditions offered by different lenders. Pay attention to interest rates, fees, repayment options, and any potential penalties for early repayment or renewal.

  6. Submit In Person or Online Loan Application. Submit the completed application online if the lender of your choosing is offering online loans or in person. Some lenders may offer instant approval, while others may take a short time to review and respond to your application.

  7. Review Loan Agreement. Once approved, carefully review the loan agreement. Understand the terms, conditions, interest rates, and any associated fees. Seek clarification on any points you find unclear.

  8. Sign Agreement. Sign the loan agreement if you agree to the terms. Make sure you fully understand the repayment schedule and any other obligations.

  9. Receive Funds. After signing the agreement, the lender will disburse the funds to your designated bank account. The time it takes to receive the funds varies among lenders.

Requirements

  1. Age Eligibility. Borrowers typically need to be of legal age, which is 18 or 19 years old, depending on the province.

  2. Citizenship/Residency. Borrowers are usually required to be Canadian citizens or permanent residents. Some lenders may also accept individuals with valid work or study permits.

  3. Stable Source of Income. Lenders often require borrowers to demonstrate a stable source of income, such as regular employment or another verifiable income stream.

  4. Bank Account. Having an active bank account is a common requirement, as it facilitates fund disbursement and loan repayment through direct debit.

  5. Consent to Credit Check. Borrowers may be required to consent to a credit check, allowing the lender to assess their creditworthiness.

Conditions

  1. Loan Amount. Lenders specify the maximum loan amount that borrowers can access, with loans often ranging up to a certain limit, such as $1,500.

  2. Interest Rates. The interest rates associated with the loan are clearly outlined in the loan agreement. Lenders may provide fixed or variable rates, affecting the overall cost of borrowing.

  3. Repayment Period. The repayment period is clearly defined, specifying that the borrower must repay the loan within the agreed-upon two-month timeframe.

  4. Fees and Charges. The loan agreement details any origination fees, late payment fees, or other charges that may apply, providing transparency on the total cost of the loan.

  5. Renewal or Rollover Options. Some lenders may offer the option to renew or roll over the loan if the borrower is unable to repay the full amount by the due date. Conditions and associated fees for this option are clearly stated.

  6. Early Repayment. Conditions related to early repayment are outlined, including whether there are penalties or fees for repaying the loan before the agreed-upon term.

  7. Default Consequences. The consequences of defaulting on the loan, including potential additional fees, impact on credit score, and any legal actions the lender may take, are communicated clearly.

Best Places to Get a Loan with a Two-Month Term

  1. Bree is a lending platform offering short-term payday loans ranging from $20 to $250, with repayment scheduled for the next pay cycle. Unique to Bree's approval process is its reliance on zero NSF fees in the applicant's bank account. This innovative approach aims to assess financial stability and responsibility. Bree provides a streamlined solution for those seeking small loans with a quick turnaround.

  2. iCash stands out as a payday lender with flexibility varying by province, offering instant loans online with amounts from $100 to $1,500. With a repayment window spanning 7 to 62 days, iCash provides borrowers with options tailored to their needs. What sets iCash apart is its 24/7 approval process and the convenience of e-Transfer services. Additionally, iCash is inclusive, accepting applications from individuals with bad credit, emphasizing accessibility in the lending landscape.

  3. Money Mart is a payday loan provider operating across provinces with loan amounts ranging from $120 to $1,500. Offering a repayment window of 1 to 62 days, Money Mart emphasizes quick access to funds, with deposits made as soon as 24 hours (excluding weekends). This expedited service sets Money Mart apart, catering to individuals in need of swift financial assistance. Prospective borrowers can benefit from Money Mart's efficiency, particularly when time is of the essence.

  4. Cash Money distinguishes itself as a payday loan provider with varying loan amounts by province, ranging from $100 to $1,500. The repayment period spans 5 to 40 days, reflecting a balance between short-term convenience and flexibility. Cash Money's appeal lies in its commitment to instant approval, with e-Transfer services available in as little as 15 minutes. Notably, Cash Money is open to applicants with bad credit, fostering inclusivity in its lending practices.

Things to Pay Attention to

  1. Regulatory Compliance. Ensure the lender adheres to relevant regulations and legal standards. Look for clear information about the lender's license and compliance with applicable laws.

  2. Customer Reviews. Research customer reviews and testimonials to gauge the lender's reputation. Reviews can provide insights into the borrowing experience and the lender's reliability.

  3. Customer Support. Assess the availability and responsiveness of customer support. A reputable lender should have accessible customer service to address any concerns or queries.

  4. Privacy and Security. Verify the lender's privacy and security measures. Ensure your personal and financial information will be handled securely and in compliance with privacy regulations.

  5. Loan Purpose. Confirm that the loan purpose aligns with your needs. These loans are designed for short-term financial requirements, so avoid using them for long-term purposes.

How to Repay a Loan

  1. Understand the Terms. Review the loan agreement to understand the terms, including the repayment schedule, interest rates, fees, and any penalties for early repayment or late payments.

  2. Set Up Automatic Payments. If possible, set up automatic payments through your bank or the lender. This ensures that payments are made on time, reducing the risk of late fees and penalties.

  3. Early Repayment. Consider making early repayments if your financial situation allows. Check the loan agreement for any penalties or fees associated with early repayment.

  4. Communicate with the Lender. If you anticipate difficulties in making a payment, communicate with the lender in advance. Some lenders may offer options such as temporary forbearance or modified repayment plans.

  5. Check for Prepayment Penalties. If you plan to repay the loan early, check for prepayment penalties or fees. Some loans may have restrictions or additional costs associated with early repayment.

  6. Complete Repayment on Time. Ensure that you complete the repayment according to the agreed-upon schedule. This not only fulfills your financial obligation but also helps maintain a positive relationship with the lender.

Reasons for Getting Rejected for a Loan

  1. Poor Credit History. One of the primary reasons for loan rejection is a poor credit history or a low credit score. Lenders may view individuals with a history of late payments, defaults, or high levels of debt as higher-risk borrowers.

  2. Insufficient Income. Lenders often require borrowers to have a stable and sufficient income to ensure they can repay the loan. If the income is deemed insufficient to cover the loan amount and meet other financial obligations, the application may be rejected.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, where a significant portion of the income is already committed to existing debts, can signal financial strain. Lenders may be hesitant to approve loans for individuals with a high debt burden.

  4. Unstable Employment History. Lenders prefer borrowers with a stable employment history. If an individual has a history of frequent job changes or periods of unemployment, it may raise concerns about their ability to repay the loan.

  5. Legal Issues. Individuals facing legal issues such as being subject to legal action, liens, or judgments may encounter difficulties in obtaining a loan. Lenders assess legal stability as part of the risk evaluation process.

  6. Inaccurate Credit Report. Errors or inaccuracies in the credit report can lead to rejection. It's crucial for borrowers to regularly check their credit reports for inaccuracies and address any issues promptly.

  7. Loan Purpose. Some lenders have specific criteria regarding the purpose of the loan. If the intended use of the funds doesn't align with the lender's policies, the application may be rejected.

Alternatives

  1. A credit union loan is a financial product offered by a member-owned cooperative financial institution. These loans are extended to members of the credit union and typically come with competitive interest rates. Credit unions, being not-for-profit organizations, aim to provide affordable financial services to their members. Members often benefit from personalized service and a focus on community involvement, making credit union loans an attractive option for those seeking financial assistance.

  2. A credit card is a revolving line of credit issued by a financial institution that allows cardholders to make purchases up to a predetermined credit limit. Cardholders can repay the borrowed amount in full by the due date to avoid interest charges, or they can choose to pay a minimum amount and carry a balance, incurring interest on the remaining debt. Credit cards offer flexibility and convenience for transactions, and many come with additional perks such as rewards programs or cashback incentives.

  3. A title loan is a short-term, secured loan where the borrower uses their vehicle's title as collateral. The lender assesses the value of the borrower's vehicle and provides a loan amount based on a percentage of that value. The borrower temporarily surrenders the vehicle title to the lender, who holds it until the loan is repaid. If the borrower fails to repay the loan, the lender may take possession of the vehicle. Title loans often appeal to individuals with poor credit, but they come with high interest rates compared to traditional personal loan options and the risk of losing the vehicle if repayments are not made.

  4. A pawnshop loan is a short-term, collateral-based loan where individuals borrow money by providing valuable items as security. The borrower brings an item (such as jewelry, electronics, or collectibles) to the pawnshop, and the pawnbroker assesses its value. Based on this value, the pawnbroker offers a loan amount. If the borrower repays the loan, including interest, within a specified period, they can retrieve their item. However, if they fail to repay, the pawnshop retains ownership of the item. Pawnshop loans are accessible without a credit check but come with the risk of losing the pawned item if the borrower cannot meet the repayment terms.

Editorial Opinion

While 2-month loans provide a quick financial solution for those facing immediate cash needs, it's crucial to approach them with caution. These short-term lending options often come with higher interest rates, potentially leading to increased overall borrowing costs. While they serve as a useful tool for addressing unforeseen expenses, borrowers should carefully evaluate their financial capacity to ensure timely repayment. Furthermore, the ease of access to such loans may pose a risk for individuals who may find themselves trapped in a cycle of debt. As with any financial product, responsible borrowing and a thorough understanding of the terms are essential to avoid potential pitfalls associated with short-term loans.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

FAQ

What is the shortest term for a loan?

The shortest term for a loan can vary depending on the type of loan and the lender's policies. Generally, payday loans or cash advance options, which are designed to be repaid by the borrower's next paycheck, often have terms as short as two weeks. These extremely short-term loans are meant to provide quick access to funds for urgent expenses but come with high-interest rates.

What are the disadvantages of a loan with a two-month term?

A loan with a two-month term can have disadvantages, primarily related to the compressed repayment period. The shorter term means higher monthly payments, potentially straining the borrower's financial situation. Additionally, the interest rates associated with short-term loans can be comparatively high, leading to increased overall borrowing costs. For some borrowers, the brief repayment window may increase the risk of missed payments, resulting in late fees and negatively impacting their credit.

Can you get a 3-month loan?

Yes, obtaining a loan with a three-month repayment term is possible through various lenders, including payday lenders, credit unions, and online lenders offering short-term installment loan options.

These short-term loans are designed to provide borrowers with a slightly longer repayment period compared to typical payday loans. Lenders offering short-term loans consider factors such as the borrower's creditworthiness, income stability, and overall financial situation.

It's important for individuals seeking personal loans with three-month terms to carefully review the terms and conditions, including interest rates and fees, and ensure they have a clear understanding of the repayment schedule to make timely payments.

Loan Terms