When you apply online for a payday or personal loan, many lenders use instant bank verification to verify your income and assess whether you can afford a loan. Unfortunately, platforms that most commonly handle bank verification duties for subprime lenders, such as Flinks, may not currently support KOHO. So if you have a KOHO account, you’ll need to look for a lender that offers manual income verification, like the providers listed below.
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What to expect from lenders that accept KOHO
Lenders need to assess your income to determine whether you can afford to repay a loan. But if instant bank verification is not an option for KOHO account holders, the lender will need to manually verify your income.
In most cases, you’ll be asked to provide your two most recent pay stubs as proof of income. Some lenders may request your most recent bank statement or a letter from your employer as proof. And if you’re self-employed, you may be asked to provide your last two tax returns.
You’ll need to upload copies of the relevant documents for the lender to review. This means that it may take slightly longer for your application to be processed and for you to receive your funds.
Documents you’ll need to prepare
The paperwork you need to supply will vary between lenders, but as a general rule, you will need to provide:
- Proof of ID. Provide a valid, government-issued form of photo ID, such as your driver’s licence.
- Proof of address. The lender may ask for a recent utility bill or tax return.
- Proof of income and employment. You may be asked to provide a bank statement or your two most recent pay stubs, plus a letter from your employer. If you’re self-employed, you may need to supply your last two Notices of Assessment.
- Latest mortgage or rent statement. You may need to provide this to show the lender what existing financial commitments you have. Some lenders may also require a statement of your assets and liabilities.
- Your KOHO account details. The lender will need to know your account details so they can deposit the loan into your account.
How to apply
It’s easy to apply for online loans that accept KOHO. Here’s what you need to do:
- Choose a lender. Compare lenders to find a reputable provider who can offer the loan you need.
- Fill out an online application. You’ll need to provide your name, date of birth, SIN and contact information. You’ll also need to provide income and employment details and specify the amount you want to borrow.
- Upload documents. Upload any supporting paperwork requested by the lender, including a government-issued ID, proof of address and proof of income.
- Get funded. Once your application has been processed and approved, the funds will typically be sent to your KOHO account via e-Transfer.
How long does approval and funding take?
Online loans that accept KOHO will take longer to process than instant bank verification loans. This is simply due to the fact that the lender will need to manually verify your income from bank statements or pay stubs, so you’ll need to allow extra time for your application to be processed.
So while some lenders may offer loans in as little as an hour with instant bank verification, it may take 24 to 72 hours to get approved and have funds deposited into your KOHO account.
Tips to increase your chances of approval
Boost your chances of getting a loan with these simple tips.
- Steady employment. If you’ve been steadily employed for an extended period, you’ll be more likely to be approved than someone who has just started a new job.
- No NSF transactions. If you can show the lender that there have been no NSF transactions on your account in the last 90 days, they’ll be more confident that you can afford to make on-time loan payments.
- Pay off existing debts. Paying off your credit card and other debts will reduce your debt-to-income ratio. This will help convince the lender that you will have enough income to afford your loan payments.
- Offer collateral. You can increase your chances of approval and potentially get a better rate if you provide collateral and apply for a secured personal loan.
Payday vs personal loans
Payday loans in Canada are short-term loans of up to $1,500 that are designed to be repaid by your next payday. They’re extremely expensive too—lenders can charge you up to $14 for every $100 borrowed. Combined with their short repayment periods, this results in triple-digit APRs and makes them difficult to repay on time.
But the advantage of payday loans is that they offer fast access to funds and lenient eligibility criteria. You can typically get funded instantly, and bad credit won’t necessarily prevent you from getting a loan.
Personal loans offer larger loan amounts and longer loan terms. You can borrow up to $50,000 from some lenders, with repayment periods commonly ranging from 6 to 60 months, making them easier to budget for. Loan APRs are also limited to a maximum of 35%.
Personal loans tend to have stricter eligibility criteria, and many lenders will require you to meet a credit score requirement to qualify. But some lenders offer bad credit personal loans—they will look at factors like your income and existing debts when deciding whether to approve your loan.
Bottom line
While instant bank verification may not support KOHO accounts, it’s still easy to apply and get approved for personal and payday loans. Just be aware that you’ll need to upload paperwork to prove your income and that it might take a little longer to get approved and funded.
Frequently asked questions
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