If you need to finance a major purchase, consolidate debt or pay for an unexpected expense, installment loans are a legit option. There are many online installment loans in Ontario that you can get in less than 48 hours, and they come with easier approvals than bank or credit union loans. The downside, however, is higher interest rates.
This guide focuses on the best installment loans in Ontario from some of the biggest alternative lenders. No single loan is best for everyone, so compare your options to find the top choice for your situation.
Summary: Best installment loans in Ontario
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Installment loans in Ontario: What makes these the best?
Spring Financial offers fast installment loans. If you don't qualify for an installment loan, however, it'll offer you its credit builder loan The Foundation. With this loan, you won't access the loan funds until after you've made all your payments on time.
Why it's one of the best
Get a loan from an established lender. Spring Financial has been providing installment loans since 2015 and has over 200 employees with headquarters in Vancouver, BC.
Improve your credit score. Spring Financial reports payments to the credit bureaus so you can increase your credit score.
Get quick funding. If you provide the required documents on time, you can get your installment loan the same day you apply.
100% online
Fast funding via e-Transfer
No prepayment penalties
High rates for bad credit
C- BBB rating, received complaints about the credit builder loan
LoansLoans.ca is a broker that helps people find short-term installment loans. It doesn't do any credit checks and accepts many types of income as long as it's over $1,200. You may be required to pay a fee of up to $300 that will be added to your payments.
Why it's one of the best
Avoid payday loans. LoansLoans.ca's installment loans have longer loan terms than payday loans, which means you can break up your repayments.
Qualify. LoansLoans is open to many types of income as long as they're recurring. And since it doesn't do credit checks, you can qualify with bad credit.
Work with an established broker. NCR Financial Services, the company that owns and operates LoansLoans.ca, has been around for over 15 years.
No credit check
Apply online in minutes
Funding on the same day or next day
High rates and fees
Doesn't give enough information about its brokerage fee
Loan amount
$500 – $1,000
APR
28% – 32%
Term
3 - 12 months
Min. credit score
300
Fees
Late payment fee (2.66% per month), $45 NSF fee, broker fee
easyfinancial helps Canadians access financing when banks aren't an option. It offers installment loans across Canada online and in hundreds of locations.
Why it's one of the best
Get a quick quote. Apply in minutes with no commitment and it won't affect your credit score.
Work with a well-known lender. easyfinancial is one of the biggest lenders of installment loans in Canada.
Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
Secured and unsecured loan options
2% rate reduction with a co-applicant
BBB-accredited with an A+ rating
Steep rates for bad credit
Many negative customer reviews
Loan amount
$500 – $100,000
APR
9.99% – 35%
Term
9 - 240 months
Min. credit score
300
Fees
you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Turnaround time
Approval within 30 minutes
Serviced provinces
all provinces
Winner: Best-in-Class
easyfinancial was awarded the Winner award in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.
Magical Credit specializes in online installment loans for people with fair to bad credit and/or low income. It's been in business since 2014 with offices in Concord and North York, Ontario.
Why it's one of the best
Get a fast loan. Apply online and validate your information with instant bank verification to get a fast decision (with funds sent in a few hours).
Rebuild your credit. Magical Credit reports on-time payments to the credit bureaus to increase your credit score.
Use non-employment income to qualify. Magical Credit accepts many types of income, such as most government benefits, private pensions and maternity benefits.
Receive funds within as little as 24 hours
Accepts child tax credit, EI, CPP, OAS, private pensions and more
Refer-a-friend program
Promotes a 3.9% fixed monthly rate but the actual APR is between 19.99% - 46.8%
May charge an administration fee
Must show proof that you've been employed for six months (if applicable)
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)
AAR Financial offers installment loans with flexible loan amounts and loan terms.
Why it's one of the best
Get approved. AAR Financial says it approves 99% of applications.
Apply easily. You won't have to step foot outside your home. Apply and sign your documents online.
Work with an established lender. AAR Financial has been in business for over 15 years with headquarters in Winnipeg, Manitoba. It has BBB accreditation with a B+ rating.
Flexible loan amounts
No prepayment penalties for unsecured loans
High rates
Several negative reviews
May request multiple references
Loan amount
$1,000 – $50,000
APR
14.9% – 46.7%
Term
24 - 120 months
Fees
Fees may include insurance fees, administration fees and NSF/late payment fees.
Turnaround time
Within 24 hours
Serviced provinces
Manitoba, Saskatchewan, Alberta, Ontario and British Columbia
12. Money Mart: Experienced in lending to bad credit borrowers
Money Mart offers installment loans (and payday loans) to people with bad credit. It's been in business for over 40 years and is one of the largest alternative lenders in Canada.
Why it's one of the best
Get your installment loan fast. Get an instant decision and get your money via Interac e-Transfer, which is one of the fastest methods.
Apply online or in-store. Get your installment loan online or at one of Money Mart's 500+ store locations.
Qualify. Money Mart is less strict with its requirements than banks, credit unions and some alternative lenders. You can qualify with a chequing account and a regular source of income.
Established lender
Convenient mobile app
Accepts non-employment income such as government benefits and private pension
High interest rates
Availability in provinces varies in-store and online
Credit check required for installment loans
Loan amount
$500 – $15,000
APR
29.9% – 46.9%
Term
6 - 60 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 installment loans in Ontario
To find the best installment loans in Ontario, 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
Features of installment loans in Ontario
Interest rates. Often between 18% - 47%, based on personal factors such as your credit score and income.
Loan terms. 3 - 60 months.
Loan amounts. Up to $10,000.
Loan security. These loans are unsecured, so there’s no need for collateral.
How to get installment loans in Ontario
Applying for installment loans is straightforward. After you choose a lender, fill out an application for financing and specify how much you want to borrow and its purpose. Provide documents to verify your income and identity.
Getting an installment loan is quick. It usually takes around 24 to 48 hours from start to finish. Once you receive your loan, you’ll pay it back in monthly installments over several months to a few years. The terms for your loan will be set by your lender, who will tell you how much you need to pay every month including interest.
Representative example: Marie gets an installment loan in Ontario
Marie, who lives in Ottawa, needs to replace the hot water tank in her basement. She applies for several installment loans in Ontario and ends up with a $10,000 loan to cover her expenses. She gets an interest rate of 15.4% and wants to repay the loan in 24 months. This is what her financing will look like:
Loan amount
$10,000
Interest rate (APR)
15.4%
Loan term
2 years
Additional fees
None
Monthly payment
$486.77 per month
Total loan cost
$11,682.46
What do you need to qualify for an installment loan?
Installment loans in Ontario tend to have similar eligibility requirements. In general, to qualify for an installment loan, you’ll need proof of income, which can include full- or part-time employment, disability, EI or pension payments. You’ll also need an active bank account and valid government-issued ID.
You usually need to prove that you have a decent credit score to qualify for installment loans by submitting to a credit check. There are dedicated installment loans for bad credit in Ontario too, so even if you have a poor credit score you may still qualify.
Installment loans for bad credit in Ontario
You can get an installment loan even if you have low credit score. In fact, many alternative lenders in Ontario specialize in installment loans for bad credit. The downside is that you’ll need to be willing to pay higher interest rates.
Why do bad credit installment loans have such high rates?
Installment loans for poor credit have high rates because lenders are taking on more risk. People with low credit scores are more likely to default on their loans. Lenders offset this risk by charging steeper rates. In Ontario (and across Canada), lenders can’t charge more than 60% (effective annual interest).
Are there any installment loans in Ontario with guaranteed approval?
No, there are no bad credit installment loans with guaranteed approval in Ontario. If you see a lender offering guaranteed approval for installment loans, it may be a scam, predatory or not actually guaranteed. A trustworthy and reliable lender cannot guarantee approval on a bad credit installment loan. Any legit lender will want to look into each borrower’s finances to evaluate their information, income sources and credit history before approving an installment loan.
Can I get no credit check installment loans in Ontario?
Yes, you can get installment loans in Ontario with no credit check. These loans often come with lower loan amounts, plus interest and fees. They are expensive loans because of the riskier financial profiles that borrowers who apply for no credit check loans have.
Can installment loans in Ontario be used for debt consolidation?
Installment loans in Ontario can be used for debt consolidation. This means you can take out a large amount to pay off multiple smaller debts.
Keep in mind, getting an installment loan to consolidate debt may end up costing you more. Applying to consolidate debt suggests to lenders that you may have taken on more debt that you can manage. Because of this, they may not approve you for lower interest rates. However, you can use a debt consolidation loan to extend your loan term and lower your monthly payments. It’ll cost you more in the long run, but you get more room in your monthly budget.
There are several reasons why getting installment loans might be the right move for Ontarians. Here are some of their key benefits:
Help with unexpected expenses. Installment loans can help Ontarians pay for unexpected expenses like car repairs, home repairs or medical bills.
Easy process. Apply online within minutes. Some online installment loan lenders in Ontario can give instant personal loan pre-approval. Get funding within 24 to 48 hours.
Flexible eligibility criteria. Getting online installment loans in Ontario with bad credit is possible, primarily because lending requirements are slightly more relaxed. “No credit check” online installment loans generally don’t make hard inquiries on your credit score, but you’ll need to demonstrate how you’ll be able to repay the loan back.
More manageable repayments structure. Unlike payday loans that you have to repay by your next payday, you can take longer to repay your installment loan. Most lenders even give you the ability to choose between making payments once or twice a month for several months to years.
Drawbacks
Potentially high interest rates. Installment loans can have very high interest rates – as high as 47%. You’ll only qualify for a higher interest rate if your credit score is low or you have lower or inconsistent income. Watch out for long loan terms because you could end up paying more interest than the amount you borrow.
Disreputable lenders. Be wary of which lender you choose and where you provide your personal and financial details online. Learn more about personal loan scams.
How to compare installment loans in Ontario
When comparing options for installment loans in Ontario, consider the following features so you can find the right loan for your budget and needs.
Interest rates and fees
This is the most important factor to compare. Keep an eye on the rate as well as any fees a lender may include, such as administration fee, surety fee, brokerage fee, late payment fee and NSF fee.
Loan term
Installment loans can be as short as 3 months and as long as 60 months. Generally, the shorter the loan term, the less interest you’ll pay.
Repayment terms
Look for an installment loan lender in Ontario that offers flexible terms, including repayment assistance plans if you run into trouble and can’t honour the original terms of the loan for some reason. Check to see if there are any early repayment terms if you want the option to save on interest and repay your installment loan early.
Calculate your installment loan monthly payment
Calculate how much you could expect to pay each month
Payday loans are a different type of loan compared to installment loans. Payday loans have shorter loan terms than installment loans, because you’ll have to pay back a payday loan by your next paycheque, whereas installment loans can be paid back over months or years.
Payday loans are also much more expensive compared to installment loans. While installment loan APRs typically max out at 47%, payday loan APRs can reach over 300%.
That’s why it’s important to carefully compare your options to make sure you can afford to pay back your loan. Some examples of reputable payday loan providers that operate in Ontario are iCash, Cash Money, GoDay and Money Mart.
Installment loans in Ontario are often used to pay for one-off expenses and are usually offered by online lenders. They can be a good alternative for bad credit borrowers compared to higher interest loans like payday loans.
However, watch out for installment loan lenders in Ontario offering guaranteed approval.
Frequently asked questions
Most lenders of installment loans do require a credit check, though there are some who don't.
If a lender does a hard credit check while assessing your loan application, then yes, it may briefly hurt your credit score. However, your credit score could improve over time if you consistently make your repayments by the deadline.
The easiest installment loans to get approved for in Ontario are short-term installment loans with no credit check. These loans usually take less than 6 months to pay off and have lower loan amounts.
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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