4-Month Loans for April 2024

Get a 4-month loan at one of the lenders verified by our specialists. On 24.04.2024 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 24.04.2024*
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
4.6
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Review
Royal Bank of Canada
4.4
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Review
Royal Bank of Canada
2.4
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Review
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

What are 4-Month Loans?

In Canada, "4-month loans" serve as a specific category of short-term loans, offering borrowers a concise repayment period ranging from two weeks to two years. Unlike standard personal loans that often extend up to five years, these short-term options are designed to address immediate financial needs. It is crucial for borrowers to carefully assess their ability to meet repayments, especially given that short-term loans, particularly those tailored for individuals with poor credit, tend to carry relatively high-interest rates.

There are diverse types of short-term loans available to Canadians, and loans with 4-month term fall within the spectrum of short-term installment loans. With a repayment window of 3 months to 2 years, these loans provide the flexibility of monthly payments, potentially making them a more manageable solution compared to traditional payday loans. While short-term installment loans may have lower interest rates, accommodating higher loan amounts of up to $5,000, and the potential qualification for individuals with bad credit, it is essential for borrowers to navigate through the associated terms and eligibility requirements before making a financial commitment.

Features

  1. Loan Duration. Such a loan is designed for a relatively brief period, providing borrowers with a concise timeframe to repay the borrowed amount. This short duration can be advantageous for those seeking quick financial solutions without committing to a more extended repayment plan.

  2. Repayment Structure. Unlike traditional payday loans that often require a lump-sum repayment on the borrower's next payday, installment loans offer a structured repayment plan. Borrowers can spread their repayments over several months, typically with monthly payments, making it more manageable for budgeting.

  3. Loan Amounts. While specific loan amounts can vary, short-term installment loans often provide borrowers with access to higher sums, accommodating financial needs that may exceed the limits of payday loans. This flexibility can be beneficial for individuals requiring a more substantial amount to address specific expenses.

Pros and Cons

Pros

Flexibility in Loan Amounts. Compared to payday loans, loans with 4-month repayment period may offer higher loan amounts. This can be beneficial for individuals who require a more substantial sum to address specific financial needs.

Potential Access for Bad Credit. Some short-term loans may be accessible to individuals with less-than-ideal credit histories. While credit checks are typically involved, the eligibility criteria might be more lenient than traditional personal loans, providing an option for those with diverse credit backgrounds.

Quick Funding. In many cases, borrowers can receive funds relatively quickly, especially when applying online. This quick turnaround can be crucial for addressing urgent financial situations.

Cons

Higher Interest Rates. Short-term loans, including those with a four-month term, often come with higher interest rates compared to standard personal loans. Borrowers need to be mindful of the overall cost of borrowing.

Stricter Eligibility Requirements. While there may be flexibility for bad credit, some loans may still have eligibility criteria that need to be met, including age, income, and employment requirements.

Possible Hidden Fees. Borrowers should be vigilant about potential hidden fees associated with short-term loans. Some lenders may charge additional fees, such as origination fees or penalties for late payments.

How to Get a Loan with a Four-Month Term

Apply for a Loan

  1. Assess Your Financial Situation. Before applying for a loan, evaluate your financial needs and determine the exact amount required. Consider your income, expenses, and the purpose of the loan.

  2. Research Lenders. Explore reputable lenders that offer short-term installment loans with a four-month term. Look for lenders with transparent terms, reasonable interest rates, and positive customer reviews. Financial institutions, online lenders, and credit unions are potential options.

  3. Gather Necessary Documentation. Prepare the required documentation, which may include proof of identity, proof of income, and details about your employment. Having these documents ready can expedite the application process.

  4. Apply Online or In-Person. Many lenders allow for online applications, providing a convenient and quick way to apply for a loan. Alternatively, you can visit a physical branch to apply in person. Follow the application instructions provided by the chosen lender.

  5. Complete the Application Form. Fill out the application form accurately and provide all required information. Be honest about your financial situation, employment details, and any other relevant information. Incomplete or inaccurate information may delay the approval process.

  6. Review Loan Terms. Carefully review the terms of the loan, including the interest rate, repayment schedule, and any associated fees. Ensure you understand the total cost of borrowing and are comfortable with the terms before proceeding.

  7. Submit Application. After reviewing and confirming the details, submit your loan application. Online applications may receive faster processing, with some lenders providing approval within a few hours.

  8. Receive Funds. Once approved, the lender will disburse the funds to your Canadian bank account. The timing of fund disbursement may vary depending on the lender and the application method.

Requirements

  1. Canadian Citizenship or Permanent Residency. Borrowers are typically required to be Canadian citizens or permanent residents to qualify for a loan.

  2. Age of Majority. Applicants must be of the age of majority in their respective province or territory. This age requirement ensures that borrowers have the legal capacity to enter into financial agreements.

  3. Source of Income and Employment. Lenders commonly require borrowers to have a regular employment or a stable source of income, such as disability insurance. This ensures that borrowers have the means to repay the loan within the specified term.

  4. Canadian Bank Account. Borrowers are often asked to have an active Canadian bank account. This facilitates the smooth transfer of funds and repayment transactions.

Conditions

  1. Repayment Schedule. The repayment schedule outlines how borrowers are expected to repay the loan over the four-month term. This includes the frequency of payments, whether monthly or otherwise.

  2. Fees and Charges. Lenders may impose various fees, such as origination fees, late payment fees, or prepayment penalties. Borrowers should be aware of these fees and factor them into their decision-making.

  3. Application Process. Lenders outline the steps involved in the application process, whether it's an online application, an in-person visit, or a combination of both. Borrowers should follow the provided instructions to submit a complete and accurate application.

  4. Flexibility in Repayment Terms. Lenders may offer flexibility in repayment terms, allowing borrowers to choose a plan that aligns with their budget. This could include options for modifying the repayment schedule or making lump-sum payments.

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

  1. GoLoans offers short-term loans with an annual percentage rate (APR) consistently below 32%, accompanied by a transaction fee of $1.00. For instance, a $500 loan, inclusive of 3rd party surety fees or a bond (if required), results in a repayment of approximately $774. The company allows loyal customers to renew their loans after a grace period, facilitating completion of a previous loan before starting payment cycles for the new one. Borrowers can choose a repayment period of 91 to 120 days, with the option to expedite repayment and save on interest by making higher payments. Loan applications undergo a screening process to ensure borrowers have sufficient income for repayment, and certain criteria, such as monthly salary and NSF charges, are considered in the evaluation.

  2. Urgent Money, located in Toronto, Ontario, offers quick and convenient loans to Canadians, regardless of their credit history, with funds deposited directly into their bank accounts within hours of same-day approval. The installment loans provided by Urgent Money have a repayment period of 90 to 120 days, and the cost per $100 borrowed is $18.00. The company prioritizes the privacy of its customers, utilizing SSL encryption on all pages and ensuring HTTPS access at all times. Personal documents received by Urgent Money are handled with the utmost security.

  3. Kingcash provides quick and instant online cash loans, offering a practical alternative to traditional bank loans for individuals in need of a swift cash advance directly to their bank accounts. The loans range from $500 to $750 and can be slowly repaid over a period of 120 days. Kingcash recognizes the occasional need for extra funds and aims to assist borrowers by providing a seamless and efficient loan application process.

  4. Credito facilitates the process of obtaining cash loans without requiring borrowers to leave their homes. The online platform offers personal loans for Canadians without the need for a credit check. The application process takes only 5 minutes, and borrowers can receive their money on the same day. Credito allows repayment over a period of 90 to 120 days for short-term loans ranging from $500 to $850. The company emphasizes the convenience of obtaining cash loans online, making the borrowing experience accessible and efficient for Canadian residents.

Things to Pay Attention to

  1. Interest Rates. Understand the interest rates associated with the loan. Fixed or variable interest rate significantly impacts the overall cost of borrowing. Compare rates from different lenders to ensure you secure the most favorable terms.

  2. Total Cost of Borrowing. Consider the total cost of borrowing, including any fees or charges imposed by the lender. This includes application fees, origination fees, late payment fees, and prepayment penalties. Be aware of all potential costs to avoid unexpected financial burdens.

  3. Credit Check Impact. Understand how the loan application and approval process may impact your credit score. While some lenders offer options for individuals with poor credit, be aware that credit checks are a standard practice for assessing creditworthiness.

  4. Customer Reviews. Research customer reviews and testimonials about the lender. This can provide insights into the lender's reputation, customer service, and overall satisfaction of previous borrowers.

  5. Regulatory Compliance. Verify that the lender complies with relevant regulations and licensing requirements. Different provinces may have specific rules governing short-term loans, and compliance ensures a level of consumer protection.

How to Repay a Loan

  1. Understand Repayment Terms. Familiarize yourself with the repayment terms outlined in the loan agreement. This includes details such as the repayment schedule, payment frequency (monthly, bi-weekly, etc.), and the total repayment period.

  2. Set Up Automatic Payments. If possible, consider setting up automatic payments through your bank account. This ensures that your loan payments are made on time, reducing the risk of late fees and maintaining a positive credit history.

  3. Repay the Loan Early. Check if your lender allows early repayment without imposing penalties. If feasible, consider paying off the loan ahead of schedule. This can save on interest costs and help you become debt-free sooner.

  4. Communicate with Your Lender. If you encounter financial challenges or anticipate difficulty making a payment, communicate with your lender in advance. Some lenders may offer flexibility or alternative arrangements, helping you avoid late fees.

  5. Review Statements. Regularly review statements or online accounts related to your loan. Ensure that all payments are accurately recorded, and promptly address any discrepancies or concerns with your lender.

  6. Financial Counseling. If you're facing financial challenges, consider seeking advice from financial counselors or advisors. They can provide guidance on managing debt and creating a sustainable repayment plan.

Reasons for Getting Rejected for a Loan

  1. Poor Credit History. One of the most common reasons for loan rejection is a poor credit history. Lenders often assess credit scores to determine an individual's creditworthiness. A low credit score may indicate a history of late payments, defaults, or other financial challenges, making the borrower a higher risk.

  2. Insufficient Income. Lenders evaluate the borrower's income to ensure they have the financial capacity to repay the loan. If the income is deemed insufficient to cover the loan payments, the application may be rejected.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, where a significant portion of the borrower's income is already allocated to existing debt obligations, can lead to loan rejection. Lenders prefer borrowers with a reasonable debt load compared to their income.

  4. Recent Bankruptcy or Foreclosure. Individuals who have recently filed for bankruptcy or experienced a foreclosure may face challenges in obtaining new credit. Lenders may view recent financial hardships as a risk factor.

  5. Multiple Loan Applications. Applying for multiple loans within a short period can signal financial distress to lenders. Each loan application generates a hard inquiry on the borrower's credit report, potentially affecting their credit score and loan approval chances.

Alternatives

  1. A line of credit is a flexible borrowing arrangement where a lender establishes a maximum credit limit for a borrower, and the borrower can draw funds as needed up to that limit. Unlike a traditional loan, borrowers pay interest on the amount borrowed, and once repaid, the credit becomes available again. Lines of credit provide individuals and businesses with ongoing access to funds, allowing for financial flexibility and the ability to manage cash flow effectively.

  2. Peer-to-peer lending, often referred to as P2P lending, is a financial platform that connects individuals seeking loans with potential investors willing to lend money. This lending model bypasses traditional financial institutions, allowing borrowers to access funds from a pool of individual lenders. Peer-to-peer lending platforms typically operate online and use technology to match borrowers with investors based on various criteria. This form of lending can offer competitive interest rates and may provide opportunities for individuals who may face challenges obtaining loans through conventional channels with standard credit approval process.

  3. Title loans are short-term, secured loans where borrowers use their vehicle's title as collateral. The lender places a lien on the vehicle's title, and the borrower receives a loan amount based on the vehicle's appraised value. While title loans provide quick access to cash, they come with high interest rates and the risk of losing the vehicle if the borrower fails to repay the loan. Title loans are often criticized for their potential to lead to cycles of debt due to their high costs and short repayment periods.

  4. Pawnshop loans involve borrowing money by offering personal items as collateral. Borrowers bring valuable items such as jewelry, electronics, or instruments to a pawnshop, and the pawnbroker assesses their value. In exchange for the item, the pawnbroker provides a short-term loan. If the borrower repays the loan within the agreed-upon period, they can retrieve their item. However, if the borrower fails to repay, the pawnshop keeps the item and may sell it to recover the loan amount. Pawnshop loans are known for their accessibility but often come with high interest rates and the risk of losing cherished possessions if repayment is challenging.

Editorial Opinion

Loans with a 4-month term in Canada present a short-term financial option with specific characteristics. While they offer the advantage of a concise repayment period and structured installment plans, borrowers should carefully weigh the associated costs. The potential for higher interest rates compared to traditional personal loans and the necessity for meeting specific eligibility criteria, including credit checks, demand scrutiny. These loans can be suitable for addressing immediate financial needs, especially when compared to more rigid payday loans. However, individuals considering a four-month loan should conduct thorough research, compare terms from various lenders, and ensure that the repayment plan aligns with their financial capabilities.

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

How do you calculate interest on a 4-month loan?

To calculate interest on a loan, you typically use the personal loan calculator or formula:

Interest = Principal Amount × Interest Rate × (Number of Months / 12)

This formula estimates the interest for each month based on the annual interest rate. For a more precise calculation, the lender may use daily or monthly compounding methods. It's crucial to understand the terms outlined in the loan agreement, including whether the interest is fixed or variable, as these factors influence the total interest paid over the loan term.

What is the easiest short-term loan to get approved for in Canada?

In Canada, payday loans are often considered among the easiest short-term loans to get approved for.

Payday lenders typically have minimal eligibility requirements, making them accessible to individuals with varying credit histories. The approval process is often swift, with lenders focusing more on the borrower's income and ability to repay the loan by the next payday rather than conducting extensive credit checks.

While the accessibility of payday loans can be advantageous for those in need of quick cash, borrowers should exercise caution due to the high-interest rates associated with these loans.

What are the downsides of short-term loans?

Short-term loans come with certain downsides, including potentially high-interest rates, which can result in higher overall borrowing costs compared to traditional loans. The quick repayment period, while advantageous for some, can be a challenge for others, leading to financial strain. Additionally, borrowers may face stricter eligibility criteria, and individuals with poor credit may encounter limited options. Short-term loans can contribute to a cycle of debt if not managed responsibly, emphasizing the importance of careful consideration before deciding to borrow money this way.

Loan Terms