Small Loan Apps

Small loan apps let you access a limited amount of money through your phone. They are commonly used for unexpected bills, groceries or other expenses that need to be covered before your next payday.

Depending on the provider, the money may be offered as a personal loan, payday loan, wage advance or cash advance. Always check the fees and repayment terms before borrowing.

KOHO

With KOHO Cover, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

How Do Small Loan Apps Work?

Small loan apps usually ask you to create an account, verify your identity and provide information about your finances or income.

The provider then determines whether you qualify and how much you can access. The money may be deposited into your bank account, sent by e-Transfer or made available directly through the app.

What Types of Small Loan Apps Are Available?

Common options include:

• Cash advance apps: Provide small advances for temporary expenses.

• Payday loan apps: Offer short-term loans that are generally due around your next payday.

• Personal loan apps: Provide loans that are repaid through scheduled instalments.

• Wage advance apps: Let eligible workers access part of their earned wages early.

Cash advance apps may be useful when you only need a small amount and want to avoid applying for a larger personal loan.

Can You Get a Small Loan Without a Credit Check?

Some small loan apps do not require a traditional credit check. They may instead consider your income, account activity or repayment history.

KOHO Cover does not require a credit check. Your available advance is based on your eligibility and activity with KOHO.

What Should You Check Before Borrowing?

Before using a small loan app, review:

• Interest and borrowing fees

• Monthly subscription costs

• The total repayment amount

• The repayment date

• Automatic repayment terms

• Credit-check requirements

• Late fees or penalties

Borrow only what you need and make sure the repayment will not prevent you from covering your essential expenses.