The benefits of RBC Personal Loan are:
- Maximum repayment period of 5 years
- You can choose between fixed interest rates or variable interest rates.
- You can repay the loan at any time without penalties or fines.
- Life insurance is included for your entire family, optionally
Why did we recommend you or RBC Personal Loan?
This product is part of the credit product catalog of the largest Canadian bank today: the Royal Bank of Canada. Founded in 1864, RBC gradually expanded to become a multinational bank offering credit products to individuals and companies. It is considered one of the most credible banking institutions in Canada and North America.
Its loans are lines of credit offered to customers who have a good credit history and cannot count on assets as collateral for the loan, in addition, they do not require that the amounts have a destination defined in the act of contracting, such as loans for housing and student finance.
In the case of an RBC Personal Loan, you will set up a loan plan defining the amounts requested, the total repayment period, and the type of rates applied to the released amount, which may be fixed rates or variable rates.
It is therefore necessary to understand the difference between the application of interest rates.
Interest rates are monetary corrections based on the amount released by the bank, which is generally defined by national financial market indices. Such fees are applied as compensation for the credit granted by the bank, which is justified by the loss of income that the bank would have to not grant you the loan and keep the amounts in an application, among other variables.
In the case of RBC Personal Loan, the rates applied can be fixed or variable.
Thus, the fixed rates are defined when the loan is taken out and do not change until the end of the repayment, provided that the repayment plan is fulfilled within the established period.
The variable rates are adjusted annually according to the rates defined at the time of contracting, and the reimbursement installments will be changed and may be higher or lower than the initially charged.
Other benefits are included in hiring the RBC Personal Loan: you can include life and disability insurance in the amount of the loan for you and your family, you can advance loan installments to reduce the debt without penalties, and even if the bills are tight, you can skip paying one of the installments for each year of contracting the loan.
Author’s opinion
It is important to understand the financial system well before contracting a line of credit. In this case, the difference between the choice of the type of rate that will be applied to your loan directly affects the final amount of the debt and therefore must be studied with the maximum possible attention.
More conservative profiles will hardly be attracted to the variable rate modality, as the uncertainty that this option brings directly hurts your pocket. More contemporary profiles, on the other hand, will have greater faith in variable rates if they understand that the moment in the financial market is propitious for such hiring.
That’s why, the economic situation of the country greatly influences this decision. Be aware of the news and research well before deciding on your loan!
A tip for your pocket
When taking out a loan, a red flag is raised in your credit history. This is because other institutions understand that you are going through a time of financial urgency and therefore your purchasing power is compromised.
To avoid this misunderstanding on the part of the other institutions, strictly comply with your plan for reimbursement of the installments of the RBC Personal Loan.
Thus, you indicate that you can pay off your financial commitments and still avoid charging interest and late fees.
The RBC Personal Loan is available for application to Canadian citizens and the loan application process is very simple.
We separate for you the main information to start the process of requesting the RBC Personal Loan, let’s see what they are?