Other reasons for borrowing

There are a number of reasons why you may need to borrow money. Whether you’re looking to renovate your home, consolidate your debt or simply want to take that much deserved vacation, it’s important to find the right borrowing option.

What is a personal loan?

If you are interested in making a large, one-time purchase with the option of a fixed or variable interest rate, a personal loan may be the right option for you. Features of a personal loan include:

• Type of disbursement: Lump sum
• Interest rates: Fixed or variable
• Loan amount: You have to borrow at least $3,000 with a personal loan. The maximum you can borrow will depend on your credit score and other factors.
• Repayment options: Choose from weekly, bi-weekly, semi-monthly and monthly payments. Your payments will be a combination of principal and interest.
• Secured or unsecured: Secured loans are backed by your collateral either by property or investments, resulting in a higher borrowing amount and lower interest rate, whereas with unsecured loans they typically have a faster approval process. Learn more about secured and unsecured personal loans.
   

What is a personal line of credit?

If your borrowing needs vary, and you want to make on-going purchases, a personal line of credit is probably a better fit. Features of a personal lines of credit include:

• Type of disbursement: Reusable. Once you're approved for it, you can access any portion of the credit line at any time.
• Interest rates: Variable
• Line of credit amount: Borrow as low as $5,000.
• Repayment Options: You pay interest on the amount you use, not the entire credit limit as you do with a personal loan. No matter how much you borrow, all of it plus interest must be repaid by the end of the term.
• Secured or unsecured: Personal lines of credit can be secured or unsecured. Securing your line of credit by property or investments typically results in a lower interest rate and higher credit limit.
   

Where can I learn more about bank loans for specific purposes?

While this basic information holds true for most loans and lines of credit, there can be some variation depending on what the loan is used for. For example, there are special lending products for education, home and car needs. Learn more about these bank loans and lines of credit here:

• Home equity line of credit
• RRSP loan
• Student line of credit
• Car loan
  
  

Apply for a personal loan or line of credit with CIBC

After you’ve decided which option is right for you and your financial situation, contact CIBC to receive more information. You can start your loan application online or call a CIBC advisor at 1-866-525-8622Opens your phone app..

There are a multitude of reasons you may want or need to take out a short-term loan. At CIBC, you’ll find personal loans and lines of credit to help you manage your finances. From RV and mobile home loans, to vacation and wedding loans, we’re sure to have the loan you’re looking for.
 

Short-term loans to match your borrowing needs

Whatever your situation, you’ll find a short-term loan to help you meet your financing needs.

Here are some of the many uses of a personal loan from CIBC:

• Undertake home renovations
• Make a major purchase (use a mobile home loan, boat, motorcycle, snowmobile loan, ATV, RV loan, etc.)
• Finance your education (tuition, school loans, etc.)
• Consolidate your debt
• Fund your investments
• Purchase a car
• Subsidize wedding costs (consider a wedding loan)
• Pay for vacation expenses (apply for a vacation loan)
• Handle excessive medical expenses (cosmetic surgery costs, dental bills, orthodontic expenses)
• Manage other financial needs

CIBC offers a wide variety of personal and short-term loans with attractive interest rates and flexible loan features to help you manage your money.
 

Interested in applying for a personal short-term loan from CIBC?

If you’re ready to get started with your loan application, there are a couple options.

• Apply online for a personal loan
• Call CIBC Telephone Banking at Opens your phone app.1-866-525-8622
• Visit one of our banking centresOpens a new window in your browser.

The process is simple and secure, so get started today.

There are many reasons you may need to borrow money, such as remodeling your kitchen, buying a new car, paying off credit card debt, helping the kids pay for university or making a major purchase. Depending on your borrowing need, here are some options to consider on your loan or line of credit.
 

1. Closed-end loan vs. open loan

Fundamental difference: Open loans don’t have any prepayment penalties while closed-end loans do. In other words, if you try to make a payment other than the exact monthly payment, you’ll be charged a fee if you have a closed-end loan, but not if you have an open loan.

CIBC offers only open loans, meaning you can prepay any amount of the loan that you wish without incurring penalty fees. You can also choose to pay the loan off in one lump sum or even adjust your payment schedule, allowing you flexibility and freedom in your repayment plan.
 

2. Secured loan vs. unsecured loan

Fundamental difference: Secured loans mean your loan is backed by collateral such as your house or investments whereas unsecured loans are not backed by any collateral.

Of course, there’s a little more to it than that. Here are some quick comparisons of secured and unsecured loans:

Even as a homeowner, you don’t have to secure every loan you apply for. For example, if you need fast cash or a smaller loan amount, you may prefer the expedient application process of an unsecured loan. You could be approved in as little as 20 minutes.

On the other hand, if you’re taking out a large loan, you may be more interested in getting the best possible interest rate and repayment options that work for you. In this case, a secured loan would meet your needs.
 

Apply for a loan with CIBC

Now that you have this basic knowledge, you can apply for a loan that suits your needs and budget. To get started, apply online for a loan or line of credit. If you have more questions about your lending choices, you can also contact a CIBC advisor at 1-866-294-5964Opens your phone app..