About Royal Bank of Canada Personal Loans

The proper name of the largest public bank in Canada is The Royal Bank of Canada (or RBC). With more than 1500 branches throughout Canada and offices in 46 countries, it is a full financial institution that contracts personal loans and other public financial transactions.

History

Founded in Halifax in 1864 as the Merchants Bank, RBC expanded quickly and in 1901 changed its name to The Royal Bank of Canada to designate its presence throughout the country. Six years later it moved its head offices to Montreal, and continued expansion through mergers until the Royal Bank of Canada became the nation's largest banking institution. Always a front runner in innovation, in 1961 RBC became the first Canadian bank to utilize computers.

Considerations

Contracting a personal loan to purchase a big ticket item such as a car, RV or boat can be a stressful move, and the Royal Bank of Canada will assign a personal loan officer to assist you with the paperwork involved. In general, you will want to be sure that the loan payment is in line with your ability to make the payments, and that the item purchased does not lose its value before the loan is paid off.

Benefits

Borrowing from a trusted institution can not only give you the option of buying you vehicle long before you would be able to save the cash needed for the purchase, it will also help raise your credit score and make your purchasing power much higher. A personal loan means the car or object bought is the collateral against your loan, and is an excellent way for younger workers to establish credit history.

Types

Personal loans from the Royal Bank of Canada are divided into two types, depending on the interest rate chosen. A Fixed Rate loan will be the same payment amount throughout an exact period of months, so you will have the advantage of knowing that the last payment will be made in a certain month and year. A variable rate personal loan takes into account the fluctuation of the Prime Rate, and while your payment amount will stay the same the interest paid may rise or fall, shortening or lengthening the total number of payments due.

Time Frame

Receiving a personal loan from the Royal Bank of Canada can take anywhere from three days to several weeks, depending on your financial situation. The bank will check your income, current debt and credit history to determine your ability to repay the loan. If you have a well established credit and employment history, the process will be a matter of updating your personal information. If you have a less than stellar history they will use mathematical calculations to determine your ability to pay, and may require a more established person to cosign your loan.

Resources

• Royal Bank of Canada