National Bank of Canada Loans

Here is what you need to know when applying for a National Bank of Canada (NBC) personal loan.

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At some point in your life you might need to get a personal loan. You may need to prepare for the arrival of a new baby or pay for your wedding. If you find yourself needing a personal loan, it’s important to be aware of the options available to you.

Typically, you’ll need a good credit score to be eligible for a loan from NBC, and you will need to pay the money back in monthly payments over the course of two to five years. NBC offers both fixed and variable repayments with the flexibility of additional repayments without penalty.

What types of loans does National Bank offer?

NBC offers flexible loans, and the rate you get depends on your credit history and the loan amount.

The bank will look at your credit report, which is a record of your credit history and contains information regarding the types of debt you have incurred, the amount that is due and whether you always pay your bills on time.

Generally, NBC offers two types of loans:

Fixed rate personal loan

If you want to pay a fixed amount and want to know how much interest you will pay for the entire duration of the loan, a fixed rate personal loan may be a good choice for you.

  • If your fixed rate loan is less than $10,000, the interest rate will range between 10.9% and 11.3%. Loan terms could be as short as 6 – 12 months or as long as 49 – 60 months.
  • If your loan is more than $10,000, the rate will range from 9.65% to 10.15%, with the same time frame as mentioned earlier.

Variable rate personal loan

The benefit of a variable rate loan is that you can save money if interest rates drop.

  • If your variable rate loan is less than $10,000, the rate is calculated by P + 6.5% where P is the prime rate.
  • For loans of more than $10,000, the rate is calculated by P + 5%. The loan term could be as short as 6 – 12 months or as long as 49 – 60 months for both amounts.

Why should I consider taking a personal loan with National Bank?

It’s worth noting that NBC’s loans are fairly ordinary when compared to other banks in Canada.

  • Different loan types. You can choose either a fixed rate or a variable rate loan. This allows you to choose a solution that fits your income and budget.
  • Pay off without penalty. When you secure a loan with National Bank, you can always pay off your personal loan at any time, without a penalty.
  • You can defer loan payment. If a situation arises that prevents you from making your loan payment, you can request a deferral. Terms and conditions regarding a deferral vary by loan type.

Where do National Bank personal loans fall short?

Some terms and conditions associated with loans from National Bank are not that favorable to borrowers.

  • Loan with a divorced spouse. If you take out a loan with your spouse, this is considered co-borrowing. This makes both of you responsible for the loan, and divorce or separation does not affect your obligations.
  • Death of a borrower. In case of a borrower’s death, the co-borrower or heir must assume the payments. If your income drops because of an illness or disability, you are still obligated to continue with the repayment of the loan.
  • Delays. Getting your credit report might delay the application process, so you may not want to consider this loan for emergencies.

How much will it cost me to borrow from National Bank?

National Bank doesn’t publicly disclose the fees associated with its personal loans.

What do borrowers say about National Bank?

According to the Better Business Bureau (BBB), NBC is not BBB accredited. Only one review of National Bank is on BBB’s site, and that review only gave the bank 1 star out of 5. There have been 3 complaints opened and closed in the last 3 years, with 2 coming within the last 12 months.

Are National Bank loans safe?

Loans from NBC are generally safe provided you are not careless with your transaction details and adhere strictly to the terms and conditions.

How to apply for a loan with National Bank?

Before you apply, please make sure you meet the following eligibility criteria:

  • You are a Canadian resident
  • You have a good credit history
  • You have reached the age of maturity in your province of residence
  • You have a source of income or pension income

You will need to provide the following details with your application:

  • Your social insurance number
  • Your address and telephone number
  • Your employer’s address and telephone number
More about National Bank

National Bank was established in 1859 and has since grown to rank among the most powerful banks in the world. The bank has a total worth over $246 billion, with headquarters located in Montreal, Quebec, Canada.

Bottom line

NBC provides fairly ordinary loans, but if you’re looking for the security of a well-known bank then you may want to consider a loan from NBC.

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