TYPES OF PERSONAL LOANS AND LINES OF CREDIT
Flexible Borrowing Solutions
Dreams can come true with a little planning and the help of a Motor City Personal Loan. Personal loans can be a viable option for a variety of reasons and are typically used for specific purchases such as home renovations, furniture, cars and pleasure vehicles, or to consolidate other debts. Most personal loans range from $100 to $50,000 with a term between 12 and 60 months. With a Motor City Personal Loan, you can expect the following:
Competitive Interest Rates
Repayment terms from 12 to 60 months
Repayment options: monthly, semi-monthly,
bi-weekly or weekly
Life, Disability and Critical Illness Insurance can be added to your personal loan
Calculate Your Loan Payment or Amount
A Line of Credit is a type of loan that works similar to a credit card in the sense that you have a limit that you can use for any purpose, as needed, and you only pay interest on the amount that you use. The big difference between a LOC and a credit card is the interest rate. Interest rates on a LOC are typically a lot lower than credit card interest rates.
When choosing the Line of Credit that's right for you, there are two types to choose from:
- Personal or Unsecured - Based on your income and credit rating
- Home Equity Line of Credit (HELOC) or Secured - Based on your assets
Personal Line of Credit
A personal line of credit is unsecured, so your credit score and a good history of repaying debts in a timely fashion are what we mainly use to determine the limit. Personal lines of credit are used mostly for small home remodelling projects, but could help pay for a great vacation, buying new furniture, and more. You can spend the money on whatever you want as long as you don’t exceed the approved line of credit limit.
Meritline Home Equity Line of Credit
A Meritline lets you use the equity in your home as security, which provides our lowest borrowing rate. With one application and one-time legal and appraisal fees, you can increase your buying power.
This secured personal line of credit has no maintenance fees. Once the Meritline has been approved, it provides a long-lasting solution for your future borrowing needs. Use it for anything you like – home renovations, vehicles, your child’s education, a wedding, even investments.
With bill payments, debit transactions, preauthorized payments, and cheques all coming from your account, sometimes your balance isn’t what you think it is. In the event of a shortfall, overdraft protection provides you access to available funds, up to an approved limit, to avoid the inconvenience and cost of an overdraft and/or returned payment.
At Motor City, Overdraft Protection works by attaching a Personal Line of Credit to your chequing account. Once you do this, your account is allowed a negative balance ("authorized overdraft") within your personal approved limit. Just like a regular LOC, you only pay interest on what you use. Think of it as backup.
BROWSE OTHER MOTOR CITY PRODUCTS
On Approved Credit. Interest rate, term, borrowing amount are determined on an individual basis.
*Scholar Power Line of credit must have a guarantor and is converted to a personal loan one (1) year after student completes or stops post-secondary education. Loan is repayable at same low interest rate for a period of five (5) years.