Canada’s struggling postal system is getting into the loan business.
Canada Post has announced that it is moving into financial services with “MyMoney Loan,” a new lending business that will be administered by Toronto-Dominion Bank (TD).
Canadians will be able to borrow variable or fixed rate loans ranging in amounts from $1,000 to $30,000, with repayments that can be spread over one to seven years.
To qualify for a loan, Canadian adults must meet several requirements such as having an annual income of $1,000 or more and no bankruptcy filings on their credit report.
As unsecured loans, individuals will not need to put up any collateral as security. Loan amounts will be based on individual credit scores.
The new loan service was trialed in select markets in Nova Scotia, Manitoba, and Ontario, but is now being rolled out nationwide.
The expansion into financial services comes as Canada Post’s mail delivery service continues to shrink as people increasingly communicate and transact electronically.
