Money loans include personal loans taken out at a bank or credit union, among others. They also include the types of loans presented below, but do not include mortgage loans or loans contracted for the payment of an insurance premium.
Pawnbroking and payday loans
Pawnbroking allows you to get a sum of money in exchange for an item you leave as security. You may purchase the item back after a certain period of time, at a cost that includes the credit charges.
A payday loan allows you to get a short-term loan to cover liquidity needs while waiting to receive your paycheque. Credit charges apply.
In order to conduct pawnbroking activities or grant a payday loan, lenders must hold a permit from the Office de la protection du consommateur. The Office may not issue this permit where the lender charges a credit rate above 35%.
Loans payable on demand
Loans payable on demand do not include a reimbursement date for the capital. You under obligation to pay the credit charges in accordance with the rate specified in the contract, but the capital and credit charges are reimbursed at the lender’s request.
Credit card loans
A loan granted from a credit card is a form of financing offered by a merchant. These are related to “buy now, pay later” types of promotions. The page on financing plans provides more details on this subject.
Other credit contracts
There are other types of credit contracts:
- credit cards and lines of credit;
- contracts that involve credit to purchase an item in several instalments, such as a credit sale.
Last update : May 3, 2021
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.