If you need a personal loan to cover a major expense, you have many options in Canada. Banks and credit unions are solid choices when you have good credit, but they’re not your only choice. If you have bad credit, traditional lenders might be out of reach, but there are many alternative lenders in Canada that are more lenient with their requirements.
In this guide, we cover the top personal loans in Canada. Compare lenders to find the best rates and terms for your situation.
Best personal loans in Canada
Loan provider
APR
Loan amount
Loan term
Key features
9.90% - 46.96%
$300 – $50,000
4 - 60 months
Loan search platform with the largest lender network
Loans Canada is a free loan search platform based in Toronto, Ontario. It has a large network of lenders for all types of borrowers. If you've been denied a personal loan by a bank or credit union or simply want to compare offers to find the best for you, Loans Canada is worth considering.
Why it's one of the best
Time saver. Loans Canada works with over 60 partners. Your one application will be sent to lenders across Canada that match your profile, which saves you time and effort.
Low starting rates. Rates for Loans Canada personal loans start at 9.9%. Just be aware that you'll pay much higher interest when applying with bad credit.
Established and reputable. Loans Canada has been featured in the news, such as CBC News, the Toronto Star and the Financial Post and is a member of the Canadian Lenders Association. Loans Canada was the finalist in the best personal loan search platform category in the Finder: Personal Loan Customer Satisfaction Awards 2023.
How to apply
Apply online by providing your name, contact and employment details. Get your loan offers right after.
Easy online application
Free
Secured and unsecured options
BBB accreditation with an A+ rating
High rates for lower credit scores
You're limited to providers Loans Canada is partnered with
Not a direct lender
Loan amount
$300 – $50,000
APR
9.9% – 46.96%
Term
4 - 60 months
Min. credit score
300
Fees
No application, origination or brokerage fees
Turnaround time
Receive funds in as little as 24 hours.
Serviced provinces
All of Canada
2. Cashco: Flexible personal loans for non-prime borrowers
Cashco has been around for over 10 years and specializes in long-term personal loans for people who may not get approved for traditional loans.
Why it's one of the best
Flexible. Cashco will work with you so you get loan payments that work with your budget.
High approval rate. According to Cashco, it has a 96% approval rate. To get approved, you'll need to show Cashco you can afford to take on its loan payments, given your current monthly income and debt payments.
Rebuild your credit. Cashco reports payments to the credit bureaus. On-time payments will help increase your credit score.
How to apply
Apply online. Provide your documents, such as ID and proof of address, then get a decision.
Online application
Bad credit is okay
Established lender
High rates for low credit
Requires submitting a photo of yourself
Loan amount
$500 – $7,000
APR
20% – 48.99%
Term
6 - 60 months
Min. credit score
300
Fees
Up to 10% of your loan amount to set up your loan, NSF and late payment fees of $25.
Spring Financial is a direct lender of personal loans online. It has been in business since 2015 and has funded over 250,000 Canadians. This lender is a suitable option if you've been denied by a traditional lender because of your low credit score or insufficient income. However, if you don't qualify for a standard Spring personal loan, you'll be offered The Foundation loan. With this loan, you won't receive any money until after you make all on-time payments with interest.
Why it's one of the best
Fast. It's possible to apply, get approved and get your money all on the same day.
Flexible. Borrow as little as $500 and as much as $35,000. Pay it off any time without penalty.
Established presence. Spring Financial was included in the top 15 most recommended and the top 15 best-rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. It has a high Trustpilot rating of 4.7 out of 5 based on over 15,000 reviews (but a low BBB rating – D).
How to apply
Take less than five minutes to fill out an online application. Then get a phone call from Spring Financial to discuss next steps.
Fast approval and funding
Low starting rate
Rebuild your credit
Pay off any time without penalty
High rates for bad credit
The Foundation loan may not be suited for you
Some complaints online about The Foundation and bad customer service
Direct lender SkyCap Financial has had a steady online presence since 2013. It specializes in personal loans for fair to good credit, and you don't need collateral to get approved. This lender is worth considering if you don't qualify for financing from a bank or credit union.
Why it's one of the best
Helpful to clients. SkyCap Financial has received many reviews from clients praising its service. It also has a section on its site that breaks down the rates and fees it charges, which we've found uncommon for lenders. SkyCap also offers a free financial literacy course to its clients.
Received awards. SkyCap was a finalist in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024. This lender also made it to both the top 15 most recommended and the top 15 best-rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023. It was also a 2022 finalist for the Consumer Lender of the Year award by the Canadian Lenders Association.
Easy online application. Get a personal loan without ever leaving your home, and you can get funding within 24 hours.
How to apply
Apply online in less than 10 minutes. Connect your bank account to provide SkyCap with read-only copies of your bank statements. Provide a piece of ID to verify your identity.
Fast approval and funding
Convenient
Pay off any time without penalty
Transparent
Loan amounts not as high as other lenders in its category
Steep rates for low credit scores
Loan amount
$500 – $10,000
APR
12.99% – 39.99%
Term
12 - 60 months
Min. credit score
575
Fees
No fees except $50 NSF fee
Turnaround time
24 hours
Serviced provinces
All provinces and territories except Quebec and Nova Scotia
5. LoanConnect: Loan search platform for good and bad credit
LoanConnect is an online loan search platform founded in 2016. It's based in London, Ontario, and is a member of the Canadian Lenders Association. Whether your finances are strong or you could use some leniency from a lender, LoanConnect can match you for free with offers.
Why it's one of the best
Quick pre-approval. LoanConnect's application is easy to fill out and you'll get your results afterwards.
Partnered with lenders for prime and non-prime borrowers. LoanConnect is partnered with a large network of lenders to let you borrow funds with good or bad credit. Just be aware that rates for bad credit are less favourable.
Top 15 Most Recommended. LoanConnect made it to the top 15 most recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.
How to apply
Fill out an online application by providing your name, contact and employment details. Compare your offers after you submit.
Free to use
Large loan amounts available
Secured and unsecured options
BBB accreditation with an A+ rating
High rates for lower credit scores
You're limited to providers LoanConnect is partnered with
Founded in 2008, Mogo is a fintech company based in Vancouver, BC. It boasts over 1.5 million members and offers various financial products, including personal loans for good and bad credit.
Why it's one of the best
Fast quote for free. Create a free Mogo account online and get a free quote in three minutes. Doing this won't affect your credit score and you don't have to apply for a loan should you decide not to.
Trial period. Mogo offers a trial period that lets you return the amount you borrow within 100 days and get your paid interest and fees back. This is a rare perk that lets you save money if you change your mind about your loan. However, this may not be available to borrowers with low credit scores.
Top 15 Best-Rated. Mogo made it to the top 15 best-rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.
How to apply
Sign up online for a free Mogo account. This only takes a minute or two, and once you've signed up, fill out a brief loan application. Get your quote immediately after without affecting your credit.
Fast decision and funding
Large loan amounts available
Low starting rate
Steep rates for low credit scores
Trial period only available to select borrowers
Not a direct lender
Some negative reviews online
Loan amount
$500 – $35,000
APR
9.9% – 46.96%
Term
6 - 60 months
Min. credit score
600
Fees
Non-sufficient funds fee of $20 to $50
Turnaround time
Within 24 hours
Serviced provinces
BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU
7. Fig: Online personal loans for high credit scores
Fig is a Canadian lender that launched in 2023, but the company backing it, Fairstone Bank, has been around for decades. Fig is based in Montreal, Quebec, but it's available in most provinces. It specializes in personal loans for people with good to excellent credit.
Why it's one of the best
Competitive rates. Fig's rates start at 8.99%, which is competitive against most other online-only lenders.
Easy process. Get instant pre-approval and get your loan funds within two business days. You won't ever have to step foot outside your home.
Backed by a big brand. Fig has a large, established lender backing it, one that has nearly 100 years of lending experience.
How to apply
To access Fig's online application, click the Go to Site button. Input your personal details and get a decision within minutes. Fig's application cannot be accessed directly on its website.
High loan amounts available
No prepayment penalties
Simple process
You may get better rates at a bank
Bad credit will not qualify
Loan amount
$2,000 – $35,000
APR
8.99% – 24.99%
Term
24 - 60 months
Min. credit score
700
Fees
NSF fee: $45
Turnaround time
Up to 5 business days
Serviced provinces
Alberta, British Columbia, Manitoba, New Brunswick, Northwest Territories, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan
8. goPeer: Peer-to-peer personal loan with competitive rates
goPeer is a regulated peer-to-peer lending platform with offices in Calgary and Toronto. Apply online and get multiple offers from everyday Canadian investors. Your finances will need to be good shape in order for you to get strong offers and fast funding. If you're a riskier borrower, your rate will be higher and it may take longer to find investors willing to fund your loan.
Why it's one of the best
Competitive rates. Getting a loan from goPeer is completely online. This means goPeer can save on operating costs and pass on those savings to you.
Flexible loan amounts. You can borrow between $1,000 and $35,000 without needing to offer any collateral.
Repayment flexibility. Easily pay off your loan or make additional payments any time without any fees by logging in to your account and depositing funds from your bank account.
How to apply
Apply online within minutes by providing your name, contact and employment information. Receive one or more offers depending on the strength of your application.
No need to visit a branch
Regulated
Pre-qualify without affecting your credit
Origination fee
People with bad credit may not qualify
Slower process than other online lenders
Loan amount
$1,000 – $35,000
APR
8.99% – 34.99%
Term
36 or 60 months
Min. credit score
600
Fees
Origination fee varies No application or prepayment fees
Turnaround time
Receive a response within 24 hours of your loan application
Fat Cat Loans is a loan search platform for all credit scores. It's partnered with lenders that offer various types of loans, including same day cash loans.
Why it's one of the best
Same day loans available. If you submit your contract before 3pm, you could get your funds on the same day.
84% chance of approval. According to Fat Cat Loans, you have an 84% chance of getting approved for a loan if you apply through them.
Save time. Fill out just one application and get matched with offers based on your financial situation.
How to apply
Apply online by providing your personal details, such as name, contact info and employment. Get an instant decision and finalize your loan with your lender of choice.
Online process
No hidden fees
Options for all clear
Unclear if both secured and unsecured loans are available
Loan amount
$300 – $50,000
APR
6.99% – 46.96%
Term
3 - 84 months
Min. credit score
300
Fees
No application, origination or brokerage fees
Turnaround time
Within 24 hours
Serviced provinces
Canada-wide
10. easyfinancial: Secured or unsecured loan for low credit scores
easyfinancial is one of the largest and most well-known alternative lenders in the country, offering personal loans to Canadians who can't access traditional financing because of their low credit score, low income or existing debts. You can apply to get a loan with or without collateral. easyfinancial has been in business for over 30 years and has over 400 branches across Canada. Its locations consistently receive high ratings from clients, with many praising staff members' helpfulness throughout the process.
Why it's one of the best
Finder Awards winner. easyfinancial was awarded the Winner award in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.
Quick. Get approval in as little as 10 minutes and get your money as soon as the same day.
Flexible options. Borrow as little as $500 and as much as $100,000 with terms from 9 - 120 months. Get a 2% rate reduction when you apply with a co-borrower.
How to apply
Visit an easyfinancial branch if you want face-to-face service. For a faster, more convenient process, fill out an online application and get a decision within minutes.
High loan amounts available
No prepayment penalties
Easy to get
Bad credit is okay
Expensive loan
Loan amount
$500 – $100,000
APR
9.99% – 46.96%
Term
9 - 120 months
Min. credit score
300
Fees
you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Direct private lender FlexMoney offers installment loans completely online. It's been around since 2012 with an office in Toronto, Ontario. It's BBB accredited with an A+ rating.
Why it's one of the best
Instant decision. FlexMoney's automated processes allows it to quickly review your application and let you know within minutes whether it wants to proceed.
Fast funding. Once you submit your signed loan agreement, you can get your money as soon as the same day or the next morning.
Build your credit. FlexMoney reports payments to the credit bureau, which can help improve your credit score and credit history.
How to apply
Fill out a simple online application and verify your income and identity via instant bank verification.
No prepayment penalties
Accepts pension
Easily make extra payments via e-transfer
Steeper interest rates than banks and credit unions
Loan amount
$500 – $15,000
APR
18.9% – 46.93%
Term
6 - 60 months
Min. credit score
500
Fees
No application, origination or prepayment fees
Turnaround time
24 hours
Serviced provinces
Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI, and Saskatchewan
Bank of Montreal is a well-known Canadian bank that's been around for over 200 years, so you can be sure you'd be getting a personal loan from a legitimate lender. It's a strong option when your finances are in great shape. You can use its personal loan for whatever you need, such as consolidating debt, improving your home or paying for a major expense.
Why it's one of the best
Flexible options. Choose between a fixed and variable rate, and get a better rate when you use an asset, such as your home, as collateral. BMO's starting loan amount is $2,000, which is lower than other banks and helpful if you don't need to borrow that much.
Competitive rates. BMO doesn't reveal its personal loan rates online, but as a large bank with a more involved application process than alternative lenders, it can offer some of the lowest rates.
Finder Awards winner. BMO was awarded the Winner award in the Best Personal Loan Traditional Lender (National) category in the Finder: Personal Loans Best-in-Class Awards 2024.
How to apply
Book an appointment online to schedule a face-to-face meeting at a branch. Make sure to bring a government-issued photo ID and proof of employment, such as recent paystubs and T4 slips. If the personal loan is for consolidating debt, bring your statements for the debts you'd like to pay off.
National Bank is one of the Big Six banks and has been serving Canadians since 1859. You can use its personal loan for many purposes, including consolidating debt, investing, renovating a home and more. You'll need a good to excellent credit score to get approved.
Why it's one of the best
Finder Awards finalist. National Bank was a finalist in the Best Personal Loan Traditional Lender (National) category in the Finder: Personal Loans Best-in-Class Awards 2024.
Fixed or variable rate. Choose fixed to lock down your rate throughout the life of the loan, or choose variable to save on interest if rates go down.
Apply online or in person. National Bank has a convenient online application that takes less than 15 minutes to complete, and it has hundreds of branches across Canada for more personalized service.
How to apply
Visit a National Bank branch or fill out a 15-minute application online. If you apply online, you'll need to provide your personal and financial details such as your name, address, job, assets and liabilities. Get a response within 24 to 48 hours via email or phone call. The representative will let you know what documents to provide.
Established lender
Many branches across Canada
No prepayment penalties
Bad credit may not qualify
Slower process than alternative lenders
Loan amount
Undisclosed
APR
Undisclosed
Term
6 - 60 months
Fees
Varies
Turnaround time
Varies
Serviced provinces
All
14. Fairstone: Secured or unsecured personal loan for non-prime borrowers
If you have a fair to bad credit score, it's worth exploring options from direct lender Fairstone. You can get a personal loan with or without collateral, but you'll increase your chances of approval, especially if your credit score is not the best, if you secure the loan with your home equity. Make sure you can afford the loan though, because defaulting could result in losing your house. Fairstone has been in business since 1923, has over 230 branches across Canada and is owned by a Schedule 1 bank.
Why it's one of the best
Finder Awards finalist. Fairstone was a finalist in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.
Flexible options. Borrow as little as $500 and as much as $60,000 with terms from 6 - 120 months. Apply online or in person.
Fast. Get your unsecured personal loan within 24 to 48 hours. A secured loan will take longer because it involves a house appraisal.
How to apply
Visit a Fairstone branch for in-person service or apply online. Fill out a quick application and get your quote immediately after. You can get an unsecured personal loan completely online, whereas a secured personal loan will require a visit to a Fairstone branch.
Secured and unsecured personal loans
Online account management available
No prepayment penalties
BBB accredited with an A+ rating.
High rates for low credit
Homeowner preferred
Could lose your house if you secure the loan with your home equity and default
Loan amount
$500 – $60,000
APR
19.99% – 39.99%
Term
6 - 120 months
Min. credit score
525
15. Magical Credit: Online personal loan with flexible eligibility criteria
Direct lender Magical Credit is another popular choice when banks and credit unions aren't an option. It opened its business in 2014 and offers unsecured personal loans online. Its rates are less competitive than financial institutions, but its loans are easier to get.
Why it's one of the best
Flexible requirements. You can apply with fair or bad credit, and Magical Credit is open to many forms of non-employment income, such as public and private pensions, maternity leave benefits, child tax credit and EI.
Easy online process. You won't ever have to leave your home because the process is completely online, from application to funding.
Fast. Get funded in as little as one business day after applying.
How to apply
Apply online and verify your income and identity via bank verification. Magical Credit requires zero to minimal documents.
Easy process
Bad credit accepted
100% online
Use the loan for any purpose
High rates for low credit
Loan amount
$1,500 – $20,000
APR
19.99% – 46.8%
Term
12 - 60 months
Min. credit score
300
Fees
A single administration fee of $194
Turnaround time
Receive funds within as little as 24 hours
Serviced provinces
Canada-wide (excluding Manitoba, Saskatchewan and Quebec)
Money Mart is one of the largest alternative lenders in Canada, offering both installment loans and payday loans. They're a lot less strict with their eligibility requirements than banks, but you'll be charged much steeper rates.
Why it's one of the best
Established presence. Money Mart has been in business since 1982 and has over 500 branches across Canada.
Easy process. Money Mart's installment loan is unsecured, so there's no extra step of offering or appraising collateral. You can get funded as soon as the same business day.
Easier eligibility criteria. Money Mart does not require a good credit score. Rather than focusing on your credit score, it'll look at your overall financial situation, including your income and existing debts.
How to apply
Visit a Money Mart branch or apply online within minutes. If you choose Express online, you'll verify your income and identity via instant bank verification. If you choose Standard, you'll go through an online manual review, which will take longer.
No prepayment penalties
No hidden fees
Choice to apply at home or at a branch
Steep interest rates
Loan amount
$500 – $15,000
APR
29.9% – 46.9%
Term
6 - 84 months
Min. credit score
300
Fees
None
Turnaround time
Less than 1 day
Serviced provinces
AB, BC, MB, NB, NS, NT, ON, PEI, SK, YT
How we found the best personal loans in Canada
To find the best personal loans in Canada, Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. The providers shown on the best list are those who scored highest based on this data-driven methodology. They are providers that are available and not available through Finder, with partners listed first. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.
464+
hours invested
112
lenders vetted
4,608
data points analyzed
How to find the best loan companies in Canada
Consider taking the following steps to find the right loan for your needs.
1. Know your credit score
Knowing your credit score can help identify loans where you have a high rate of approval. Request your credit score from credit bureaus or fintech companies:
Credit bureaus. Order a free copy of your credit report once a year from one of the two credit bureaus operating in Canada: Equifax or TransUnion. This free report will be sent through postal mail and takes approximately two weeks to arrive. Another option is to pay a fee to get instant access to an online copy of your credit report.
Fintech companies: Lenders like Borrowell, Loans Canada and Nyble offer free credit monitoring.
2. Decide what type of personal loan you want
What’s best will depend on your financial situation.
Secured personal loans. Secured loans require you to use collateral, such as your house or car, to secure your loan. If you default on your loan or can’t keep up with repayments, your lender can repossess the asset. Secured loans often come with the lowest interest rates because you reduce the risk for the lender.
Unsecured personal loans. Unsecured loans come with higher interest rates because they don’t require any collateral. Instead, these loans rely on your credit score and other personal factors to determine your eligibility.
Individual loans. These loans don’t require cosigners. You will be solely responsible for their repayment, and your credit score will suffer if you default or miss a payment.
Cosigned loans. If you can’t qualify for a traditional loan on your own, you can ask someone close to you to cosign on your loan and act as a guarantor. This guarantor must accept responsibility for repaying the loan if you default on your payments. Also, any missed payments or defaults will impact your credit score as well as the guarantor’s credit score. Your guarantor should know what they’re committing to before signing.
Fixed-rate personal loans. A fixed-rate personal loan has a set interest rate that doesn’t fluctuate over the loan term. Because your rate is fixed, your monthly payments will stay the same, which can help you budget. Banks, credit unions, P2P lenders and alternative lenders offer fixed-rate personal loans.
Variable-rate personal loans. A variable-rate personal loan has an interest rate that can change as market conditions fluctuate. The interest rate on these loans will increase when the Bank of Canada hikes interest rates — a situation that happened several times over the last 24 months. Banks and credit unions offer variable rate personal loans, along with a handful of private lenders.
3. Decide on the best place to get a loan
Compare different types of lenders to find the best place to get a personal loan.
Banks and credit unions
Best for people with good to excellent credit
Competitive rates
Secured/unsecured loans
Fixed or variable
In-person service
Long wait times
P2P lending platform
Best for people who have good to excellent credit and don’t want to go with a bank
Canadian investors fund your loan
Competitive rates due to low operating costs
Alternative, private lenders
Best for people with poor to fair credit or those who would prefer to apply online
Higher rates on average
Less strict eligibility criteria
Accepts bad credit
Secured/unsecured loans
Typically fixed rates
Entirely online
4. Compare loan features
Compare the following features to find the top loan in Canada for your needs:
APR is the annual interest rate plus the fees to finance your loan. It gives you a more realistic idea of how much your loan will cost. Aim to get pre-approved with a few lenders to find the best APR for your credit score. Some lenders, such as Mogo and Fairstone, can even give you a free quote within minutes without doing a hard credit check (which can impact your score).
Loan amounts vary among lenders, so make sure you can borrow the amount you need. With a personal loan, you can typically borrow as little as $500 and as much as $50,000, depending on your credit score.
The length of time you have to repay your loan also varies among lenders. Loan terms are usually between 6 and 60 months, but they can be longer if you borrow a large amount or use an asset as collateral to secure your loan (for example, your house to secure a home equity loan).
You may encounter costs beyond the interest rate. Here’s what you should watch out for:
Insufficient funds (NSF) fee. This is a common fee, usually between $25 and $50. Lenders charge this in addition to the NSF fee your bank will charge.
Late payment fee. Pay this fee for late or missed payments. The fee is either a fixed amount ($15 to $40) or a percentage of the unpaid balance.
Origination fee. This is a set-up or processing fee that is deducted from your loan amount. Typically, expect to pay between 1% and 5% of the loan amount.
Prepayment penalty. This is not at all common for unsecured personal loans.
Loan insurance. This is coverage for your loan repayments in the event of a job loss, critical illness, accident or death. It adds to the cost of your loan and is completely optional. Avoid lenders that pressure you to buy loan insurance.
Think about the following when determining the right lender for you:
Frequency of repayments. Some lenders only allow monthly payments, while others give you a choice between weekly, bi-weekly, semi-monthly or monthly.
Flexibility of repayment schedule. Some lenders let you easily change your payment schedule and manage your payments online, while others are more restrictive.
Ease of prepayment. Check for prepayment fees to make sure you won’t incur fees for making early payments or paying your loan off ahead of schedule.
When discussing your loan offer, ask your lender how much of your monthly payment will go towards the principal vs interest (and double-check this against the fine print in your loan contract).
If your finances aren’t stable, you may want to check out lenders that offer one of the following options:
Skipping a payment: Some of the big banks let you skip a payment or two per year.
Grace period: Some lenders give you a few penalty-free days after your payment due date (such as goPeer).
Trial period. The odd lender may let you “test run” your loan. For example, Mogo gives you a refund on interest paid if you’re unhappy with your loan and return the full principal within 100 days (with certain loan types only).
Checking a lender’s online presence and customer reviews, especially if it’s a lesser-known private lender, can give you a good indication of the quality of service you can expect to encounter with your loan. Take reviews with a grain of salt – people typically don’t go to the Better Business Bureau or Trustpilot when they’re satisfied with a product. But if you notice a pattern of complaints, that could be a red flag. Another option is to check out the Finder: Personal Loans Customer Satisfaction Awards, where lenders were reviewed and scored based on feedback from past customers.
Our pick for the month
“Fig is our pick for the month. Specializing in personal loans for prime borrowers, it offers a completely digital process, fast funding and competitive rates. Also, from October 7 to December 16, 2024, Fig is running a $10k cash contest. Details are available on its website.”
Leanne Escobal, Publisher, Loans and Money Transfers
How to apply for personal loans in Canada
Follow these steps to apply for personal loans:
Fill out an application. Provide personal info such as your name, address, phone number, job, income and housing situation.
Get a decision. Online lenders can give pre-approval within minutes, while banks and credit unions can take one to three business days.
Provide documents. You may need to provide bank statements, tax returns, government-issued ID and other documents.
Get a final loan offer. Review your loan agreement. Understand your payment schedule and how much the loan will cost you overall. Keep an eye out for extra fees.
Sign and submit. If you’re happy with the terms of your personal loan, sign and submit your contract. You’ll get your money via Interac e-Transfer or direct deposit.
Plans to get a personal loan in the next 3 months
According to data released in the latest Finder: Consumer Sentiment Survey, Canadians are less likely to take out a personal loan in the next three months. In Q2 2023 20% of respondents planned to take out a personal or installment loan. The number dropped to 5% of respondents who plan to take out a personal or installment loan in the next three months.
Survey methodology
The results of the Finder: Consumer Sentiment Survey Q3 (CSTQ3) were collected through an online Pollfish survey conducted between August 10 to 21, 2023. In the survey, 1,013 Canadians from across the country were asked about their current debt obligations, among other questions regarding money goals and financial confidence. The estimated margin of error for the survey is +/- 3%, 90% of the time.
The results of the Finder: Consumer Sentiment Survey Q2 (CSTQ2) were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.
Bottom line
Personal loans are a quick and affordable way to get access to financing, especially if you have good credit. There are many different types of personal loans. That’s why you’ll want to compare factors like how much you want to borrow, the interest rates you’re willing to pay and how long your loan term should be to find the right personal loan in Canada.
Based on the latest information available from the Bank of Canada, the average personal loan interest rate in Canada is 9.32%. However, this includes secured loans such as auto loans, so your rate may be higher if you're applying for an unsecured personal loan.
A good first step is to find a loan that offers an interest rate close to the average personal loan interest in Canada. Keep in mind, what a lender actually charges you in interest will depend on personal factors such as your credit score, income and current debts. If you have a strong credit score, you qualify for low-interest loans.
You can find the best loan company in Canada by knowing exactly what you need in a personal loan, such as the loan type, loan amount, loan term, repayment flexibility and APR. From there, you can compare lenders and get pre-approval.
Check to see how the lender conducts itself during the offer stage. A reputable lender will take the time to make sure you understand the terms of your loan and will not pressure you into signing the contract or buying additional products you don't want.
The most common loans in Canada are personal loans, car loans, lines of credit and mortgages.
Among the Big Six banks, CIBC and National Bank have the most convenient online applications. However, banks have strict eligibility requirements. You typically need a credit score above 660, stable income and a low debt-to-income ratio to get approved for a bank loan.
Your credit score is an important factor that providers look at to determine your eligibility for a loan. If you have a bad credit score, it can be more difficult to qualify for a loan or you could end up paying much higher interest rates than someone with good credit. That's why it's important to compare personal loans for your unique financial situation.
A good credit score is usually any score that sits at 660 or above. Any score that falls below this number isn't necessarily bad, but it may cause you to have more difficulty getting approved for a personal loan. You can easily apply for a copy of your credit score with reputable credit bureaus such as Equifax or TransUnion.
That depends on your credit score, your debt-to-income ratio and other factors. If you have an excellent credit score and very little debt, an interest rate that's only a few points over the prime rate – currently 5.95% – would typically be considered good.
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To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.
Leanne Escobal is a publisher for Finder. She has spent over 11 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio
Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio
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