TD Bank Personal loan and Line of Credit: Requirements and application process review

Last Updated on July 1, 2024 by admin

Canada’s international Toronto-Dominion Bank{ TD bank Personal Loans} gives the borrower the credit they need, with fixed monthly loan payments . As the top largest banks in the United States and Canada, the bank offers secured and unsecured personal loans and lines of credit to cover large and small expenses with amounts ranging from $2,000 to $50,000.

The loan interest rate options can be decided by the borrower if to opt in for a fixed or variable interest. You can borrow up to $50,000 as the amount of credit you need for renovations, unexpected expenses, investments, and more. by choosing a payment schedule that works with your budget so you can repay your loan without stress.

TD bank APR is 6.99%-21.99% and it doesn’t have origination or application fees during the loan application process. The loan tenor ranges from 36 months to 60 months

Read: How to Enroll/Register for TD bank Online and mobile banking and transfer money

Types of TD bank Personal Loans

TD Bank, operating primarily in the US and Canada, offers a few different types of personal loans:

1. TD Fit Loan (Unsecured Personal Loan):

  • Purpose: This loan is designed for a variety of personal needs, such as debt consolidation, home improvements, medical expenses, or large purchases.
  • Features:
    • Unsecured: No collateral required.
    • Fixed interest rate: The interest rate remains the same throughout the loan term.
    • Flexible loan amounts: Typically ranging from $2,000 to $50,000.
    • No origination fees: TD Bank does not charge fees to originate the loan.
  • Eligibility: You will need to meet specific credit and income requirements.
  • How to Apply: You can apply online through their website or in person at a TD Bank branch.

2. Personal Secured Loan:

  • Purpose: This loan is secured by your TD Bank savings account, money market account, or CD. It can be used for similar purposes as the TD Fit Loan.
  • Features:
    • Secured: Requires collateral in the form of your TD Bank savings.
    • Typically lower interest rates: Since it’s secured, the interest rates may be lower than unsecured loans.
    • Continue earning interest: You can continue earning interest on your savings while using the loan.
  • Eligibility: You need to have a qualifying TD Bank savings account and meet other credit requirements.
  • How to Apply: You can apply in person at a TD Bank branch.

3. TD Moneyline Overdraft Protection:

  • Purpose: This is a line of credit linked to your checking account that can help cover overdrafts.
  • Features:
    • Acts as a safety net: Provides protection against overdraft fees.
    • Interest-only payments: You only pay interest on the amount you borrow.
  • Eligibility: You need to have a TD Bank checking account and meet certain creditworthiness criteria.
  • How to Apply: You can apply online, in the TD app, or at a TD Bank branch.

 

 

What you need to apply for TD Bank personal loan

To apply for TD bank personal loan , borrower need to provide their basic personal information such as:

General Requirements:

  • Proof of Identity: You will need to provide valid identification documents, such as a driver’s license, passport, or state-issued ID.
  • Social Security Number (SSN): If applying in the US, you’ll need your Social Security Number. If applying in Canada, you’ll need your Social Insurance Number (SIN).
  • Proof of Income: You will need to provide documents to verify your income, such as pay stubs, tax returns, or bank statements.
  • Good Credit History: TD Bank typically looks for applicants with a good credit history. While they don’t have a publicly stated minimum credit score requirement, a higher credit score will generally improve your chances of approval and help you secure a lower interest rate.
  • Debt-to-Income Ratio (DTI): TD Bank will assess your DTI, which is the percentage of your monthly income that goes towards debt payments. A lower DTI indicates that you have a better capacity to repay the loan.

Specific Requirements for Different Loan Types:

  • TD Fit Loan (Unsecured): You won’t need to provide any collateral for this loan. The approval and interest rate will mainly depend on your creditworthiness.
  • Personal Secured Loan: You will need to have an existing TD Bank savings account, money market account, or CD that can be used as collateral for the loan. This can help you get a lower interest rate.
  • TD Moneyline Overdraft Protection: This is a line of credit linked to your checking account, so you’ll need to have a TD Bank checking account to qualify.

Also read: United states Banks Mobile Check Deposit Limits

Type of TD bank interest rate

TD Bank, operating primarily in the US and Canada, offers various interest rates depending on the product and the customer’s specific situation. Here are some of the key categories:

1. Personal Loan Interest Rates:

  • TD Fit Loan (Unsecured Personal Loan): Interest rates for this loan are fixed and typically range from 8.99% to 23.99% APR (Annual Percentage Rate), depending on your creditworthiness, loan term, and other factors. You can check your rate on their website without impacting your credit score.
  • Personal Secured Loan: This loan often has lower interest rates than unsecured loans because it’s backed by your TD Bank savings account, money market account, or CD. The exact rates will vary based on the collateral and your credit profile.

2. Savings Account Interest Rates:

  • TD Simple Savings: This is a basic savings account with a variable interest rate that changes with market conditions. The current rates are relatively low, as with most basic savings accounts.
  • TD Beyond Checking: This checking account offers a higher interest rate when you meet certain requirements, such as maintaining a minimum daily balance and making a certain number of debit card transactions each month.

3. Money Market Account Interest Rates:

  • TD Money Market Account: This account typically offers higher interest rates than regular savings accounts, with tiered rates based on your balance. The more you save, the higher the potential interest rate.

4. Certificate of Deposit (CD) Interest Rates:

  • TD Choice CDs and TD Step Rate CDs: These accounts offer fixed interest rates for a specific term. The interest rate you get depends on the term length and the amount you deposit. Generally, longer-term CDs have higher interest rates.

Important Considerations:

  • Variable vs. Fixed Interest Rates: Variable rates change with market conditions, while fixed rates remain the same throughout the term of the loan or deposit.
  • Annual Percentage Yield (APY): APY takes into account compounding interest, which is the interest earned on both your original deposit and any accumulated interest. It’s a good way to compare different savings products.
  • Promotional Rates: TD Bank sometimes offers promotional interest rates on specific products for a limited time. It’s always good to check their website or contact them for the latest rates and offers.

 

How to apply For TD bank personal Loan

Interested borrower can apply for TD bank personal loan via online, by phone or by visiting one of its business office to Borrow the amount you need all at once with funds available as soon as one business day

 

TD Bank Personal Line of Credit

TD Bank does offer Personal Lines of Credit (LOC), but it’s important to note that this product is primarily available in Canada and not in the US. Here’s some information about the TD Personal Line of Credit:

What is a Personal Line of Credit?

A personal line of credit is a flexible borrowing option that allows you to access funds as needed, up to a pre-approved credit limit. You only pay interest on the amount you borrow, and you can reuse your credit line as you repay the balance.

TD Personal Line of Credit Features:

  • Flexible Borrowing: Borrow the amount you need, when you need it, up to your approved limit.
  • Revolving Credit: Once you repay the borrowed amount, that credit becomes available again for future use.
  • Competitive Interest Rates: TD Bank typically offers competitive interest rates on personal lines of credit.
  • Convenient Access: Access your line of credit through online banking, mobile app, TD Access Card, cheques, or at a TD branch.
  • Debt Consolidation: A personal line of credit can be used to consolidate high-interest debts into one manageable payment.

Eligibility Requirements:

  • Good Credit History: A good credit score is usually required to qualify for a personal line of credit.
  • Income Verification: You’ll need to provide proof of income to demonstrate your ability to repay the borrowed amount.
  • Other Factors: TD Bank may consider other factors like your debt-to-income ratio and employment history.

How to Apply:

If you’re in Canada, you can apply for a TD Personal Line of Credit online, at a TD branch, or by calling TD Bank directly.

Important Considerations:

  • Interest Rates: Interest rates on lines of credit are often variable, meaning they can fluctuate with market conditions.
  • Fees: Some lines of credit may have annual fees or other associated charges.
  • Responsible Borrowing: It’s crucial to borrow responsibly and ensure you can comfortably repay the amount you use from your line of credit.

 

Read: Bank of America online banking and Mobile app: How to register, deposit check, transfer money and check statement of account

You can send money from your Line of Credit within Canada and the United States  to a person or a business with an email address, or a valid Canadian mobile number – and an eligible bank account with a participating Canadian financial institution.

Type of TD bank Lines of Credit

TD Bank, operating primarily in the US and Canada, offers various lines of credit, mostly in Canada:

Personal Lines of Credit:

  1. TD Personal Line of Credit: This unsecured line of credit is designed for everyday expenses and major purchases. It offers flexible access to funds with a pre-set credit limit. Borrowers only pay interest on the amount they use, making it a convenient option for managing cash flow.

  2. TD Student Line of Credit: Specifically tailored for students, this line of credit helps cover the costs of post-secondary education, including tuition, books, and living expenses. It often comes with lower interest rates and flexible repayment options.

Secured Lines of Credit:

  1. TD Investment Secured Line of Credit: This line of credit uses your eligible investments as collateral, allowing you to borrow at potentially lower interest rates than unsecured lines of credit. It’s suitable for borrowers who have investments and need access to funds without selling their assets.

  2. TD Home Equity FlexLine: Using your home as collateral, this line of credit provides access to a larger amount of money at a lower interest rate compared to unsecured personal lines of credit. It’s ideal for major expenses like home renovations or debt consolidation.

Other Lines of Credit:

  1. TD Business Line of Credit: Designed for businesses, this line of credit helps manage cash flow, cover operating expenses, or invest in growth opportunities. It offers flexible access to funds and can be tailored to the specific needs of a business.

How to apply for your TD Bank  line of credit

TD Bank primarily operates in the US and Canada, and their line of credit offerings differ slightly between the two countries.

In Canada:

  1. Apply Online: You can apply for a personal line of credit directly through the TD Bank website. Look for the specific line of credit you want and follow the online application process.
  2. Book an Appointment: You can also schedule an appointment to speak with a TD Bank representative at a branch near you. They can guide you through the application process and answer any questions you have.
  3. Call TD Bank: If you prefer, you can call TD Bank directly to apply for a line of credit over the phone.

In the US:

  1. Home Equity Line of Credit (HELOC): To apply for a HELOC, you can start the process online. However, you’ll likely need to complete the application by speaking with a home lending specialist.
  2. Business Line of Credit: For business lines of credit, you can either apply online or in person at a TD Bank branch.
  3. Other Lines of Credit: TD Bank US does not offer unsecured personal lines of credit like they do in Canada.

Summary and different between Personal Loans and Personal Lines of Credit


 

Personal Loans

Personal Lines of Credit

Applying

Apply each time you want to borrow

Apply once and use your available credit whenever you need it1

Payments

Pay a fixed amount until your loan is paid off

You can pay off your loan at any time without any fees or charges

Pay as little as:

1% of the outstanding balance owing or $50—whichever is the greater amount

Options available to lock in a portion of your outstanding balance at a fixed rate

Interest rates

Choose between:

Fixed Rate – Rate stays the same for the time period chosen

Variable Rate – Rate changes whenever TD Prime Rate changes

Enjoy a competitive variable interest rate. This variable rate changes whenever TD Prime Rate changes

You also have the option of protecting yourself from interest rate increases and establishing regular fixed payments though a Fixed Rate Advantage Option (FRAO)

FRAO means you can convert all or a portion of your outstanding balance to a fixed interest rate with fixed payments for a specific term.

When the term is finished, if there is a remaining FRAO balance, the balance moves back to the revolving portion which is at a variable rate.

Minimum amount for a FRAO is $2,000

Type

Auto Loans

RSP Loans

Personal Unsecured Loans

Home Equity Lines of Credit

Unsecured Lines of Credit

Student Lines of Credit

Investment Secured Line of Credit

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About admin

Meet Ogbeide Frank, also known as Perere, a blogger passionate about finance and technology. He studied Business Administration at Ambrose Alli University in Ekpoma and Mobile Communication at Orange College in Malaysia. Frank has experience working as a banker and consultant for various agencies in Nigeria. For advertisement, content marketing, and sponsored posts, you can reach him at kokobest04@gmail.com.
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