goeasy Ltd T.GSY

Alternate Symbol(s): EHMEF

Financial Services Credit Services

goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands. The Company's segments include easyfinancial and easyhome. The easyfinancial segment lends out capital in the form of unsecured and secured consumer loans to non-prime borrowers. easyfinancial's product offering consists of unsecured and real estate secured instalment loans. The LendCare operating segment specializes in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement categories. The easyhome segment provides leasing services for household furniture, appliances and electronics and unsecured lending products to retail consumers. Its customers can transact seamlessly through an omnichannel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement, and healthcare verticals.

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goeasy Ltd > Goeasy update

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Post by Torontojayon Mar 29, 2023 9:52am

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Post# 35366708

Goeasy update

From the Goeasy website

Only 36% of the Company’s consumer loan portfolio carries a rate of interest greater than 35% per annum, of which the weighted average annual interest rate on those loans is 42.5% per annum. If this portion of the portfolio were to be immediately reduced to the newly proposed maximum allowable rate of 35% per annum, the weighted average interest rate on the total portfolio would reduce by approximately 270 basis points. However, as is customary with new legislation, the changes would occur on a prospective basis, thereby having a gradual effect on the Company’s weighted average interest rate over multiple years.

In the province of Quebec, the Company has been offering loans at a maximum rate of interest of 35% per annum, to comply with existing provincial licensing requirements, since 2017, and this portfolio produces a return on equity greater than 20% per annum.

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