Some personal loan lenders offer what appears to be multiple types of loans (e.g. auto loans, payday loans), in reality these are simply standard personal loans marketed for a specific use. The structure of the loan itself stays the same regardless of how it is used.
Though there are aspects of a loan that differ, such as the repayment period, whether the interest rate is variable or fixed and so on, the qualitatively different types of loans you can get in Alberta are unsecured loans and secured loans.
Unsecured loans
Unsecured loans are personal loans that do not require any form of collateral to protect the lender if you default on your payments. Instead, the lender can sue you or take advantage of the right of offset: A clause typically written into banking agreements that allows an institution to recover money from you that they are owed. This means that if you have other…
