Alpha Loans review
Weigh the pros and cons of applying to Alpha Loans, a Quebec-based online lender.
This review is on alphaloans.ca and not other companies sharing the same name. Apply for “mini loans” between $250 and $1,500 with this lender. Alpha Loans says it does not conduct credit checks during its approval process, and you can get your funds on the same day.
Max. Loan Amount
What should I know about Alpha Loans?
Quebec-based online lender Alpha Loans says it provides “mini loans” of up to $1,250 without any credit checks or need to send documents in its application process. Instead, Alpha says it uses instant bank verification to help its applicants obtain a loan. You can get your funds deposited into your bank account on the same day your application is accepted.
Across the board, its annual interest rate is 23.99%. But you should find out what the annual percentage rate (APR) is when you’re evaluating your loan offer, because APR shows the truer cost of a loan. APR includes the annual interest rate plus other fees you need to pay to get your loan. Alpha Loans mentions potential weekly membership fees, which will make your loan more expensive. In an example it gives on its website, the fee is $20 per week.
Is Alpha Loans legitimate?
We don’t have confidence in saying this lender is legitimate because we didn’t find the following key information at the time of writing:
- Office address or phone number. We always advise consumers to check that their potential lender has an office address and phone number. Alpha only lists an email address on its website, with office hours of 8am to 5pm.
- An active name registration in Quebec’s business database. The business that owns Alpha Loans is registered in Quebec’s business database, but the “Alpha Loans” name is inactive as of April 28, 2021.
- Social media presence. Alpha has been on Facebook since November 2020, but it hasn’t been active since December 2020. It also only has 5 reviews, garnering 2.6 stars.
Features of Alpha Loans
If you’re thinking about signing up for a loan with Alpha, here are its key features:
- “Micro loans” of up to $1,250. Apply for between $250 and $1,250 in funding.
- Apply completely online via instant bank verification. There’s no need to upload documents because Alpha relies on instant bank verification (IBV) instead. With IBV, you’ll simply log onto your online banking so Alpha can receive a read-only copy of your bank statement to confirm your information. Bear in mind that it will also accept the traditional method of document verification via a recent bank statement, pay stub, proof of identity and address.
- No credit checks. Alpha says it does not pull your credit during the application process, so borrowers with bad credit or no credit are eligible.
- Flat interest rate of 23.99%. All borrowers receive an interest rate of 23.99%.
- Quick processing of funds. Upon approval, Alpha says it will issue funding on the same day via direct deposit to your bank account.
What to watch out for
Before signing up for more debt, make sure you’re aware of these red flags:
- Fixed interest rate. Even if you have perfect credit, you’ll receive the same interest rate as a borrower with bad credit or no credit at all. With excellent credit in tow, you’ll be able to qualify for better interest rates with other lenders.
- Caps on loan amounts. You can only borrow up to $1,250, which may not be enough for some borrowers.
- Potential for more fees. If you’re late or miss a payment because of non-sufficient funds, you’ll pay a penalty of $60. Alpha Loans also notes that you may incur administration fees, deferral fees, reborrowing fees, maintenance fees and potentially even “membership” fees, which will drive up the true cost of your loan. Make sure you’re aware of the charges you may face and how much they are before signing off on your loan.
- No reference to the option to repay your loan early. While some lenders allow borrowers to pay off some or all of their loan early, and without penalty, Alpha doesn’t suggest this is an option on its website.
Alternatives to Alpha Loans in Quebec
How much will it cost me to borrow with Alpha Loans?
That depends on how much you’re borrowing and how long it’ll take for you to repay the loan.
To start, Alpha says its flat interest rate is 23.99%. It also refers to a weekly membership fee of $20. After that, you may face additional charges, such as administrative fees, deferral fees, reborrowing fees, maintenance fees and prepayment penalties.
Alpha provides a few examples on its website, including the following:
- $750 loan. With a $750 loan, a borrower may make fortnightly payments of $120 over the course of 140 days, or roughly 4.5 months. All in, the total amount you’d pay is $1,080.
- $1,250 loan. With a $1,250 loan, a borrower may make monthly payments of $304 over the course of 183 days, or 6 months. All in, the total amount you’d pay is $1,824.
Am I eligible for a loan from Alpha Loans?
To qualify for an Alpha Loans, you’ll need to meet the following requirements:
- Be the age of majority in your province.
- Be a permanent resident in Canada.
- Have an online banking account you can sign into for instant bank verification. If not, you’ll need a recent bank statement (within the last 31 days) or a pay stub. You’ll also need to verify your identity and address.
What is the application process like?
Alpha says the online application can be done in less than 10 minutes. Here’s how to apply:
- Head to alphaloans.ca and click on “Loan Request” in the top right corner.
- Begin the application process by filling out your personal details, including your full name, date of birth, phone and email address. You’ll also need to follow the prompt to identify how much money you’d like to borrow (from $250 to $1,250).
- On the next page, fill in your contact details, including your mailing address, town, postal code and years in residence.
- On the next page, fill in your references. You must include 2 references, their full names, telephone numbers and their relationship to you.
- On the next page, provide your income information. Identify whether you work or receive EI, pension, disability or parental benefits. After that, provide your occupation, employer name, supervisor’s name and contact information, frequency of pay and your hire date.
- Confirm your details and submit your application.
- Once you’re approved, which should be pretty quick, you can move ahead to instant bank verification.