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FAQ

Personal Loan FAQs

Table of Contents

What criteria do I have to meet to qualify for a loan via Borrowell?

To qualify for a Borrowell loan, you must:

  • Be a Canadian citizen or resident
  • Have reached the age of majority in the province you live in
  • Have a valid account with a Canadian bank or other financial institution
  • Have a valid email address
  • Have a credit score above 660
  • Have no bankruptcy, consumer proposal, collections or current delinquencies on file
  • Have a minimum credit history of 12 months

How do I verify my bank account?

We use VersaPay to set up the pre-authorized debit agreement for a loan and for processing all the payments on your loan. You will be provided an instructions page that advises the steps to verify bank information. A small amount (micro-deposit) will be deposited and withdrawn from your account. You confirm the amount so we know we’re putting money into the right account

It will take approximately 24 hours for the verification micro-deposit to appear in your bank account. An email will be sent for you to check your bank account. You will log back into your VersaPay account to enter the deposit info and confirm your identity once you’ve checked for the deposit. 

You’re done! If the amount you enter accurately matches the micro-deposit amount,  your bank account is verified. You are on your way to getting your loan.

 

How do I set up a debit agreement?

We use VersaPay to set up the pre-authorized debit agreement for a loan and for processing all the payments on your loan.

After selecting your loan term, an email will automatically be sent to the email address supplied in your application. You will select Review this Agreement to be taken to VersaPay. A debit agreement page will be presented. On the debit agreement page, you will be asked to enter your bank account information. But don’t worry, all your information will be securely stored.

You will then be asked to set up a VersaPay account and to review and to agree to the debit agreement.

Can I get a second loan or increase my loan amount?

After your loan agreement has been issued, we can’t increase your loan amount. At this point in time, we are not able to process additional loans for customers who have an active loan with us.

If you have fully paid out your Borrowell loan, you are more than welcome to apply for another loan!

What happens if there isn’t enough money in my bank account when my payment is due?

We’ll send you a reminder email three business days before your payment is due. If you don’t have enough funds in your account on the payment date, we’ll charge you an NSF (non-sufficient funds) fee of $25 to cover associated costs.

How do I repay my loan in full?

You can repay your loan in full at any time without any prepayment penalties.

Please email us at service@borrowell.com. Please let us know:

  • Your loan number
  • The payment amount
  • The date you would like to make the full repayment

We’ll respond letting you know how much the payment would be, which you’ll need to confirm in order for us to process the payment.

Can I make an extra payment on my Borrowell loan or repay it in full?

You can make additional payments on your loan without any prepayment penalties. You can also repay your loan in full at any time.

Please email us at service@borrowell.com. Please let us know:

  • Your loan number
  • The payment amount
  • The date you would like to make the full repayment

We’ll respond letting you know how much the payment would be, which you’ll need to confirm in order for us to process the payment. Please give us at least 3 business days’ notice to process your additional payment.

How do I repay my loan?

Your monthly payment is taken out automatically each month, from the same bank account where we deposited your funds. We’ll send you a reminder email 3 days before your payment is due.

Do you charge any other fees?

As long as there are enough funds in your account when your payments are due, there are no other fees. If there aren’t enough funds in your bank account to cover your payment when it is due, VersaPay will charge a $25  Non-Sufficient Funds (NSF) fee. This fee is to cover the costs we have to pay because of the unsuccessful payment. 

Why do you charge an origination fee? How much is it?

In order to give you the lowest possible interest rate, we charge a one-time “origination fee” that covers the costs of finding customers, evaluating loan applications, building and operating our processing platform, and providing amazing customer service. We feel this is a clear and transparent way to be upfront about how we get paid for the service we provide. The interest on your loan is used to repay the investors who give Borrowell financing for our loan business.’

The one-time origination fee is between 1-5% of your loan amount. The percentage depends on the term of the loan (3-year loans have a lower fee) and your loan grade – the better your credit profile, the lower your origination fee.

We will add the origination fee to the approved loan amount. For example, if you’re approved for a $5,000 loan at a 2% origination fee, your total loan amount would be $5,100. You would receive $5,000 in your bank account and pay the origination fee off with the rest of your loan.

There is never any cost to get a quote. It’s free to apply and you’ll find out right away if you qualify, along with the loan amount, interest rate, and monthly payment.