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LendDirect Review – Personal Loans and Lines of Credit

LendDirect Review – Personal Loans and Lines of Credit

If you need an alternative to traditional bank loans, LendDirect may be able to get you the funds you need. LendDirect can grant you a personal line of credit and help you deal with your financial difficulties. But what exactly do LendDirect’s personal lines of credit offer?

This article will give you a detailed overview of what’s on offer and help you determine whether it’s the right choice.

What Does LendDirect Offer?

At LendDirect, you can obtain their personal line of credit. If you qualify, the borrowing limit you can access is $15,000. Additionally, the company offers its loans with cash advances that don’t come with fees.

How Do You Apply for a LendDirect Personal Line of Credit?

You can apply for a LendDirect Personal Line of Credit either online or in-person at your local branch. Generally, if you choose to apply online, you may receive your confirmation within an hour. On the other hand, in-person applications typically last for a few hours. You might need to present the company with a number of documents, such as your bank statements, proof of income, a government identification document (e.g., passport), etc.

Here’s what the application process looks like:

  • Setting up your account – To become a LendDirect customer, you’ll need to create your account. At this point, you still won’t be committed to any loans.
  • Filing your application – Again, you can fill out your application online or in-person at your local branch. The forms will typically ask you to state bank and income information, along with some personal details. After completing the form, you’ll be able to file your application.
  • Income proof – To decide whether or not to grant you a personal line of credit, the company will require some form of income verification.
  • The decision – Upon analyzing the documentation and proof of income you submit, LendDIrect will issue a decision on approving your line of credit. Normally, the higher your income, the better the credit amounts and interest rates you’ll receive. Also, your creditworthiness will dictate the credit limit you can obtain.
  • Money transfer – If the company decides to grant you a line of credit, you’ll be able to access your money either through Interac e-Transfer or direct deposit. If you opt for the latter, the time it takes to receive the funds can range anywhere from two hours to two business days. Conversely, you can sometimes access your funds via Interac e-Transfer within 15 minutes after your approval. Just bear in mind that you may have to wait a little longer if you’re applying outside their business hours.

After a brief period, you’ll need to start repaying the amount you borrowed. If possible, pay more a significant sum of money every month to lower the amount of interest you have to pay.

Once you’ve returned the full line of credit balance you took out, the company can grant you even more money. The amount you can access in this case depends on your credit limit, and the company presents the funds via cash advances.

Who Qualifies for a LendDirect Personal Line of Credit?

LendDirect covers a large area in Canada. More specifically, it serves customers from Ontario, Saskatchewan, British Columbia, and Alberta. Fortunately, there aren’t many qualification requirements you need to fulfill.

The primary conditions you need to meet include being a Canadian citizen aged between 18 and 70, at least $1,500 in monthly income, proof of address in one of the four abovementioned areas, evidence of employment of at least three months, and a viable bank account with access to direct deposit.

What Can You Cover with LendDirect Personal Lines of Credit?

Personal lines of credit at LendDirect are a great option because they let you cover various expenses. These include expenses you’ve accumulated over a certain period, as well as unexpected expenses, such as house repairs. Here are the three main categories of expenditures you can cover with personal lines of credit:

  • Considerable expenses – For instance, if you need to pay for a medical emergency or a leak in your house, taking out a LendDirect personal loan is the right way to go.
  • Credit card debt – Credit cards are a convenient payment method, but their debt can also cripple your finances. This is because you can easily exceed your credit limit, accrue interest, and increase your debt over time. Luckily, you can access a personal line of credit and consolidate your debt. This way, you’ll group all your credit card debt payments into one payment with a single interest rate.
  • Bills – LendDirect personal lines of credit are also useful if you default on your bill payments.

Why Should You Take out a Personal Line of Credit from LendDirect?

There are several reasons why LendDirect’s personal lines of credit are a favourable option. First, the company can provide you with limitless cash advances, depending on your approved limit. Best of all, the company doesn’t require you to reapply for these advances.

Second, and as demonstrated above, you can gain access to credit of as much as $15,000 with basic approval conditions.

Third, there are courtesy payment options available, provided you can justify your claim for courtesy payments with a rational reason.

Moreover, the company charges interest only on the amount you borrowed, and there are no penalties for repaying your balance early.

Does LendDirect Offer Loan Protection?

LendDirect features a loan protection plan for its line of credit. This provides your finances with adequate protection should an unforeseen circumstance arise. In particular, here are the situations covered by LendDirect’s loan protection:

  • Involuntary unemployment – If a customer loses their job without a valid cause, they’ll keep making their loan payments for up to half a year, with maximum amounts of $2,000. If they remain involuntarily unemployed after the six months, they’ll make another lump sum payment. The amount of the lump sum payment will be $2,000 or less. The total benefit limit amounts to $4,000.
  • Sickness or injury – If a customer experiences an injury or illness that prevents them from working for ten business days in succession, they’ll make loan payments for up to half a year, with maximum amounts of $2,000. If they remain unable to return to work due to an injury or illness after the six-month period expires, they’ll be able to make another lump sum payment. Just as involuntary employment, the maximum amount of their lump sum payment will be $2,000, and the total benefit limit amounts to $4,000.
  • Critical illness – If a customer is diagnosed with a life-threatening condition, such as cancer, all payments on their loans up to $15,000 will be covered. The same goes for other critical conditions, including strokes, kidney failure, heart attacks, or organ transplants.

Loss of life – if a customer passes away, all payments on their loans of up to $15,000 will be covered

What Are the Differences Between Typical Payday Loans and LendDirect Lines of Credit?

There are many differences between traditional payday loans and LendDirect Lines of Credit. Here are the main ones:

LOAN AMOUNT A maximum of $15,000 Between $50 and $1,500
FEE STRUCTURE Daily interest Flat fee
REPAYMENT PERIOD Payments are made over an agreed period Payments are due the next payday
QUALIFICATIONS Good credit and documentation that verifies your personal information and income Require neither good credit nor too much documentation
EXTRA MONEY The maximum amount of extra cash you can obtain is the amount of your credit limit. Only after paying back your current loan will you be able to apply for extra cash.


Depending on your financial situation, both of these options can be a viable solution. We’ll give you some general rule of thumbs to help you decide which one you should go for:

Personal Lines of Credit

  • If you need extended repayment periods
  • If you need to cover your rent or mortgage payments
  • If you need a large loan amount

Payday Loans

  • If you need money for a short period
  • If you need to pay smaller bills (e.g., grocery bills)
  • If you need a smaller amount of money


What’s the difference between LendDirect and regular banks?

First and foremost, LendDirect isn’t considered a bank. It’s a Canadian alternative lending company, and the main perk you get is less stringent lending criteria. As a result, the company is a perfect solution for customers who don’t qualify for lending at regular banks.

How long do you have to wait for LendDirect to transfer funds to your bank account?

The time it takes for LendDirect to transfer your funds to your bank account varies. The shortest waiting times are reserved for Interac e-Transfers, where you can get your borrowed amount within 15 minutes in some cases. However, if you choose to get your money via direct deposit, you’ll sometimes need to wait up to two business days.

What are the consequences of missing a payment?

Customers who miss their payments are typically charged higher interest rates or penalty fees. In addition, their bank accounts are marked under the “past due” category, and their credit gets dented. Generally, LendDirect will report your negative activity to the credit bureau if you don’t manage to make your payment even after 30 days or more pass. In this case, contact the company, and it will try to help you maintain the good standing of your account.

The Bottom Line

Overall, if you can’t take out a loan from a traditional bank, LendDirect might be your next best option. The company should give you plenty of time to pay back the money you borrowed and won’t catch you off-guard with unforeseen fees. What’s more, LendDirect offers excellent loan protection, helping you overcome any dire circumstances you might be going through.

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