How to prepare a straightforward loan application

A little preparation can make an online loan application easier to complete. The most useful work happens before you open the form: confirm that you meet the published criteria, work out the amount needed and gather accurate information.

NovaCash targets about five minutes for completing its form. Take the time you need to read the questions and consents. A shorter application still involves income verification and a lending decision.

Check eligibility first

The published requirements are age 18 or older, Canadian citizenship, at least $1,200 a month paid by direct deposit, employment for more than three months, no bankruptcy in progress and ability to repay.

NovaCash excludes self-employment and income from social assistance, child tax credits, student loans and retirement savings plans. Read the full eligibility guide before preparing an application. If an income source is unclear, call (877) 431-4134. An option in a form dropdown does not establish eligibility.

Work out the amount and repayment room

NovaCash publishes loan amounts from $300 to $2,000 CAD. Start with the actual expense and the money you can contribute after essential bills. Avoid choosing the maximum simply because it appears on the form.

List your take-home deposits, regular bills and existing payments. This prepares you to assess an offer later. Until you have the actual rate, fees and schedule, any estimated payment is only a planning figure.

Gather the details the form requests

• Identity and contact: your name, date of birth, email address and phone number.
• Address: your current address and Canadian postal code.
• Employment and income: the requested employer, job, income-source and work-contact information.
• Pay details: your actual pay frequency and next pay date.
• Reference: the requested contact name, phone number and relationship.
• Loan request: the amount you intend to request.

Check spelling and numbers before sending. Use the information that reflects your circumstances rather than changing an answer to match what you think a lender wants. If a question does not fit your situation, ask for clarification.

Prepare for the bank-verification step

After submission, the file is sent to FinX. You may be redirected to review its terms and connect your account through Flinks for instant bank verification, or IBV. Read the consent screens before continuing.

The published process uses IBV instead of paper documents to review account activity. Keep your phone nearby and allow time to finish the step. The income-verification explanation describes why paperless submission still involves an income review.

If the verification screen does not open, call (877) 431-4134 instead of opening another application. Keep the confirmation or error message so you can describe the problem clearly.

Know what to check after submission

A response within 60 minutes is a target for complete files and depends on when you submit. It is separate from acceptance and payment. See what happens while an application is reviewed.

If you receive an offer, compare its payments with your budget. Read the interest, fees, total repayment and dates, including monthly membership fees. The calculator's six-month example excludes those fees and does not set your contract term.

Once the criteria and budget checks are complete, use the NovaCash application form. Keep a copy of any agreement you accept and the repayment schedule you will need to follow.