DashLoans

DashLoans: online installment loans for Canadian borrowers

DashLoans is a Canadian online lender focused on installment loans rather than payday loans. The company presents its product as an alternative for people facing unforeseen expenses who would be rejected by banks or charged far higher rates by payday lenders. Applications are completed entirely online, with no need to visit a branch to sign documents.

The lender states that its loans are never above 32% APR, a rate it contrasts with payday loans in Canada that it says can reach 780% interest and fall due within days. Repayment is spread over weeks or months in equal installments, and the company describes its criteria as discreet and designed to approve as many customers as possible.

Application process and approval times

The application form is described as taking under two minutes and carries no obligation. DashLoans says it aims to analyze applications within one hour and that live agents can review and approve them in real time. The company reports that over 94% of applicants are processed the same day.

Approved borrowers who have signed their contract before 1:30pm EST can receive a direct deposit free of charge the same day; applications completed after that time are deposited the next day. E-Transfer is offered where available. Applications are accepted 24 hours a day, and the company describes itself as open 24/7/365, with responses within hours even outside full staffing periods.

Eligibility criteria

DashLoans lists the following general requirements for applicants:

• Be 18 years of age or older.
• Be a Canadian citizen with proper identification.
• Have a short-term debt ratio that is manageable for the applicant's income.
• Not be under an undischarged bankruptcy or planning one.
• Have a minimum monthly income of $1,200.
• Have direct employment deposits made into a Canadian bank account for at least three months.

The company says it has a high approval rate but that not everyone is eligible, and that the most common reason for rejection is failing to meet one of the criteria above. All applications go through a screening process that includes checking whether monthly salary is sufficient to repay the loan and whether the bank account shows an excessive number of NSF charges.

Loan terms, guarantor and repayment

Loans are repaid over a period of 91 to 120 days depending on payroll frequency, and borrowers can repay faster by making higher payments, which reduces interest. DashLoans also offers extensions and skipped payments. Renewals are available to returning customers after a grace period that lets them complete a previous loan before the payment cycles of a new one begin.

No collateral is required. Instead, a third party acts as the collateral through a surety or bond, which the company calls a guarantor fee. The fee depends on the applicant's risk evaluation; the site states that a $500 loan carries a $250 guarantor fee, and that applicants with a beacon score over 700 do not need a surety or bond. The effective credit rate is stated never to exceed 32%.

Example loan costs

The site illustrates costs with three examples, noting they are for illustration purposes only and that the guarantor fee may change based on the applicant's risk:

• $350 loan: bi-weekly payments of $89.50 over 3 months, nominal rate 16.06%, guarantor fee $175, total $525.46, effective credit rate 31.99%.
• $500 loan: bi-weekly payments of $129.05 over 3 months, nominal rate 16.63%, guarantor fee $250, total $753.64, effective credit rate 31.99%.
• $750 loan: bi-weekly payments of $145.51 over 4 months, nominal rate 16.06%, guarantor fee $375, total $1,125, effective credit rate 28.56%.

Each example includes a cost per debit of $1 and a number of payments of 6 or 8 depending on the loan.

Payments, late fees and collections

Missed payments are postponed to the end of the contract and incur a $45 fee for insufficient funds, as stated in the contract; the company says this has no impact on the borrower's credit score at its business. A payment can be deferred by calling 72 hours in advance, which carries a $25 fee added to the end of the contract. Loans repaid properly are presented as improving goodwill and making renewal easier.

Collections are described as conducted in accordance with the laws of Alberta, including the Consumer Protection Act and the Collection and Debt Repayment Practices Regulation. The company says it may use collection agencies on defaulted loans.

Service hours and geographic reach

Live customer service is available from 8am to 8pm EST Monday to Friday and from 8am to 4pm EST Saturday and Sunday, while applications can be submitted at any hour. The site lists Alberta, British Columbia, New Brunswick, Ontario, Newfoundland and Labrador, and Prince Edward Island among the provinces it serves.

Customer feedback and banking integration

The site publishes customer comments describing prompt service, easy re-loans, professional handling and quick responses, including one borrower who applied on a Sunday morning and was told the deposit would arrive on Monday. It also states that it integrates with a range of banks, without naming them in the available material, and refers to five-star reviews on independent sites.