Can I Get a Loan While in Consumer Proposal

It is possible to get a loan while in a consumer proposal, but it can be difficult to find a lender that would approve your application.

Most lenders would see someone in a consumer proposal as very high risk for lending. If you find a lender to borrow from, it is likely the loan would have high interest rates.

RELATED: What is a Consumer Proposal

Should you find a loan with a consumer proposal it is recommended to repay in full or you are likely to create further financial issues.

Applying for a Loan While in Consumer Proposal

When applying for an online loan the standard requirements with many lenders are:

  • Adult age (varies by province)
  • Employed (or reliable income)
  • Active (Canadian) bank account
  • Canadian citizen or resident
  • Meet minimum income (if required)

When applying you should ensure the accuracy of the information provided as it affects your chances of approval when applying for an online loan.

It is possible the lender will be interested in more detail about your overall financial health. It is pointless to try and hide a consumer proposal when applying for a loan since lenders will see this info easily.

In addition to your income, other details that might be request may include bank statements, employment record, current source of income, assets, debt, payment history, proposal payment amounts (and length of your payment schedule), along with any debts that are not covered by a consumer proposal (examples may include mortgages, secured car loans, and similar secured debts)

If you have experienced insolvency recently that has resulted in a consumer proposal, borrowing may provide difficult but there are lenders. It would be important that you are familiar with the terms and expected payments to ensure responsibility and so that you do not further damage your credit profile.