Personal Lending

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Your personal Line of Credit, LOC, is linked directly to your Daily Chequing account and is used primarily as “overdraft protection”, filling the gap between pay days and purchases.
Your LOC has fully open terms, so you can repay as much as you want at any time, however you are required to cover the interest on a monthly basis which is payable at the last day of the month.
The interest rate on your LOC fluctuates with the Prime Rate and varies based on whether your LOC is unsecured or secured (usually with a Parama Term Deposit, GIC or TFSA). Secured or partially secured Lines of Credit have lower rates than unsecured do.

Do you need money to pay off a credit card or consolidate debt? Or is it finally time to buy that fancy car you’ve been eyeing?
These types of loans are typically used for vehicle purchases, debt consolidation, or for other large expenses.
Our loans are fully open and you can take up to 5 years to pay us back.

Every year around RRSP season (January to February), Parama offers a special 1-year RRSP loan to our members.
These loans are fast, easy to apply for and feature a payment deferment option so you can wait for your tax refund before making any payments.
If you want to catch up on unused contributions from previous years, longer repayment terms can be arranged at a slightly higher borrowing rate.