Financial stability with an Escalator Loan

Break the Cycle of Debt

Financial stability with an Escalator Loan

Stuck in the predatory (Payday) loan system? See how the DUCA Impact Lab can help with a personalized debt re-payment loan.

About the
DUCA Impact Lab

The DUCA Impact Lab is a registered charity established by DUCA Financial Services Credit Union Ltd., with a mission to bring better banking to all and help individuals break free from predatory lenders. Through the support of a partnership with credit unions like Your Neighbourhood Credit Union and Kindred Credit Union, the Impact Lab is expanding its reach to help even more Canadians access fair, responsible financial solutions. 

We’re ready to help you.

Let us help you break free of the Payday loan trap so you can better manage your personal finances and debt obligations:

  • Lower interest rates
  • Loan approval is based on cash flow, not credit score
  • Payments made directly to Creditors — you won’t have to deal with them
  • Ongoing money management support
  • Qualify for an interest rebate when the loan is paid back on time
  • Escalator Loans are reported to Equifax (Credit Bureau) which means borrowers are able to improve their credit standing while re-paying the loan.
No_Hidden_Fees

No Hidden Fees

Unlike the exorbitant interest rates and fees associated with Payday loans, the Escalator Loan has no hidden fees or penalties.

Flat_Interest_Rate

Flat Interest Rate

Each Escalator Loan has a flat rate of Prime +8%, a rate much lower than that of predatory lenders.

Rebate

Rebate

Borrowers who make payments on time receive a rebate equivalent to a 2.00% reduction on the interest rate.

Escalator Loan benefits
Principal Pre-Escalator Loan$4,000 Escalator Loan $4,000
Interest Rate (APR) Pre-Escalator Loan46.93% Escalator Loan 13.45%**
Term Pre-Escalator Loan5 Years Escalator Loan 2.5 Years
Monthly Payment Pre-Escalator Loan$217.29 Escalator Loan $157.74
Total Payments Pre-Escalator Loan$13,027.38 Escalator Loan $4,732.28
Total Interest Costs
Pre-Escalator Loan $8,027.38
More than DOUBLE
the borrowed principal
Escalator Loan $732.28
Rebate to Borrower $113.58

**Rate example only   

This Escalator Loan Borrower reduced the following:

  • Monthly payments by 29%
  • Length of term by 50%
  • Total cost of borrowing by 92%

*Criteria to qualify for an Escalator Loan:

Regular income

Willingness to complete a phone assessment and the DUCA Impact Lab Cash Flow Tool

Have existing high interest debt (outside of the DUCA Credit Union)

Debt cannot exceed $18,000

Must be a Canadian citizen or Permanent Resident

Not available in Quebec

Cannot have undischarged bankruptcy

Cannot have outstanding child support without a payment plan in place

Cannot owe money to the Canada Revenue Agency without an approved payment plan in place

Our credit union partners

Our partners include credit unions like Your Neighbourhood Credit Union, Kindred Credit Union, and others who share our commitment to fair financial solutions. These credit unions support the escalator loan by contributing to awareness and outreach efforts, helping to extend its impact. Stay tuned as we continue to grow our network of partners.

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