Canada Post has officially launched a nationwide loan program with TD Bank Group. In view of this development, Canadians can now pick up a $1,000 or more loan along with stamps at their local post office
In a statement, the Crown Corporation stated that the loan program, which could be expanded to other services, will provide more financial options for Canadians across the country including in rural, remote, and Indigenous communities.
Michael Yee, vice-president of financial services at Canada Post, in an interview ahead of the launch, said “We believe that this is the best way of providing Canadians with better access to financial services, especially underserved Canadians”.
It was stated that the loans, which range from between $1,000 and $30,000, fill a gap between payday lenders and traditional banks. The loans will carry interest rates set by TD but customers do not need to have a bank account and can be new to credit.
Yee added that “What we found when we spoke to Canadians is that there is really a need in the market in accessing simple and affordable loan services”.
Yee further noted that the postal service has been running pilot programs for the loan program, called MyMoney, since last year and in recent weeks ramped it up across the roughly 6,000 post offices nationally.
The VP said customers have been using the loans for unexpected emergencies like car repairs or veterinarian bills, as well as to consolidate debt from higher interest rate products, said Yee.
It was clarified that Postal workers aren’t allowed to give financial advice, but have been trained to direct customers on how to apply either online or by phone for the loans as well as to provide materials with more information.
More so, TD employees will support customers through the actual application, decision-making and funding process.
In a statement, Michael Rhodes, group head of Canadian personal banking said the partnership will help TD reach more Canadians.
Rhodes added that “Financial service is an essential service, and this alliance enables TD to play a meaningful role in helping to expand access to banking to more Canadians.”
