Best for all credit: Spring Financial Personal Loan
$500 – $35,000
Loan amount
10.8% – 46.99%
APR
6 - 60 months
Term
Eligibility requirements: Min. income of $1,800 /month and 3+ months employed
Spring Financial offers unsecured personal loans and credit builder for any credit score. Borrowers with bad credit or a past bankruptcy can apply. Apply online for a personal loan and get quick pre-approval.
- No fees
- Approval within 24 hours
- Minimum credit score is 400
- All of Canada
- Interest rates can reach as high as 46.96%
- Only borrow up to $15,000
| Loan amount |
$500 – $35,000
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|---|
| APR |
10.8% – 46.99%
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|---|
| Term |
6 - 60 months
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| Min. credit score |
500
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| Fees |
No fees except $30 NSF fee
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| Origination fee |
N/A
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| Turnaround time |
Within 24 hours
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| Serviced provinces |
All of Canada
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Best for good credit: goPeer Personal Loan
$1,000 – $35,000
Loan amount
8.99% – 34.99%
APR
36 - 60 months
Term
Eligibility requirements: Recommended income of $35,000 /year and no payday loan debt
goPeer is Canada's first consumer peer-to-peer lending platform. It strives to provide lower interest rates than the competition, including banks, to borrowers with good to excellent credit.
- Easy online application
- Get your offer within 24 hours
- Stricter eligibility criteria than other online lenders
- Funding can take a few days
| Loan amount |
$1,000 – $35,000
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| APR |
8.99% – 34.99%
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|---|
| Term |
36 - 60 months
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| Min. credit score |
600
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|---|
| Fees |
Origination fee varies
No application or prepayment fees
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| Turnaround time |
Receive a response within 24 hours of your loan application
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| Serviced provinces |
All provinces
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Best for comparing options: Loans Canada Personal Loan
$300 – $50,000
Loan amount
6.99% – 46.96%
APR
3 - 60 months
Term
Eligibility requirements: Steady source of income
Loans Canada is a broker with the largest lender network in Canada. Fill out 1 application to get matched with lenders who can potentially finance you. If you have poor credit, you can apply.
- Bad credit doesn't matter because Loans Canada will match you with a lender for your particular situation
- Easy online application to connect with multiple lenders
- Quick deposits, with access to your cash within 1-3 business days from the time that you apply
- High loan amounts of up to $50,000
- No collateral required to secure your loan
- Interest rates can reach as high as 46.96%
- No online quotes provided. Instead you'll have to speak to a customer service representative over the phone
| Loan amount |
$300 – $50,000
|
|---|
| APR |
6.99% – 46.96%
|
|---|
| Term |
3 - 60 months
|
|---|
| Min. credit score |
300
|
|---|
| Fees |
No application, origination or brokerage fees
|
|---|
| Origination fee |
0
|
|---|
| Turnaround time |
Receive funds within as little as 24 hours.
|
|---|
| Serviced provinces |
All of Canada
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Best for unsecured loans: SkyCap Financial Personal Loan
$500 – $10,000
Loan amount
12.99% – 39.99%
APR
9 - 36 months
Term
Eligibility requirements: Min. income of $1,666.67/month and full time employment/pension
SkyCap offers unsecured personal loans. It approves applicants based on their credibility, stability and current income. Borrowers with bad credit or a past bankruptcy can apply.
- Pay off the loan anytime without penalty
- Approval within 24 hours
- Minimum credit score is 550
- Interest rates can reach as high as 39.99%
- Residents of Nova Scotia or Quebec are not eligible
| Loan amount |
$500 – $10,000
|
|---|
| APR |
12.99% – 39.99%
|
|---|
| Term |
9 - 36 months
|
|---|
| Min. credit score |
575
|
|---|
| Fees |
No fees except a $50 NSF fee
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|---|
| Origination fee |
N/A
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|---|
| Turnaround time |
24 hours
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|---|
| Serviced provinces |
All provinces and territories except Quebec and Nova Scotia
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Best for flexible terms: FlexMoney Personal Loan
$500 – $15,000
Loan amount
18.9% – 46.9%
APR
6 - 60 months
Term
Eligibility requirements: Min. income of $2,000 /month and 3+ months employed
With FlexMoney, you'll be able to personalize your loan with various repayment options. Choose to lock in a term starting at 6 months up to 5 years. You can set up weekly, fortnightly or monthly loan repayments. Repayments are automated so you won't miss any due dates too.
- Quick online application with fast pre-approvals. Apply online and receive a decision on your application within 15 minutes.
- You don't need to be employed. You can still qualify for a loan if you're receiving government assistance, including CPP and OAS, or if you're self-employed.
- Loan amount of up to $15,000. The amount you can borrow from FlexMoney starts at $500 and goes up to $15,000.
- Lengthy terms. You'll be able to lock in a term starting at 6 months up to 60 months.
- Flexible repayment plans. You can set up weekly, fortnightly or monthly loan repayments. They're automatically withdrawn from your account.
- Steep interest rates. Interest rates can creep all the way up to 46.9% depending on your credit score and other factors.
- Minimum monthly income. You'll need a minimum monthly net income of $2,000 to qualify.
- Your credit score is pulled. FlexMoney will check your credit score before deciding on the rate it will offer you. You'll need a score of 500 at least.
| Loan amount |
$500 – $15,000
|
|---|
| APR |
18.9% – 46.9%
|
|---|
| Term |
6 - 60 months
|
|---|
| Min. credit score |
500
|
|---|
| Fees |
No application, origination or prepayment fees
|
|---|
| Turnaround time |
Receive funds within as little as 24 hours
|
|---|
| Serviced provinces |
Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI, Saskatchewan and Yukon
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Overall representative example
If you borrowed $20,000 over a 5-year term at 9.50% APR (variable), you would make 60 monthly payments of $420.04 and pay $25,202.23 overall, which includes interest of $5,202.23. The overall cost for comparison is 9.50% APR representative.
How to apply for a personal loan
1. Figure out how much money you need
Crunch some numbers to figure out how much you need to borrow and how much you can afford to pay back each month. Also, compare different types of loans to find the one that suits your needs best.
2. Shop around
Look for lenders that offer the type of loan you need with eligibility requirements you can meet. Then, compare factors like rates, fees and terms.
3. Prequalify
If the lender offers it, fill out a quick pre-application with a few different lenders to learn which rates and terms you might get. Prequalifying usually doesn’t affect your credit.
4. Finish the application
After you decide on a lender, follow the steps to complete the full application and submit documents like pay stubs to verify your income.
What rates can I expect on a personal loan?
Personal loan rates typically range from 4% to 36%. The rate you get depends on the following factors:
- Credit score. You need near-perfect credit to qualify for the lowest advertised rate.
- Income. Lenders will likely check if you have enough regular cash flow to easily afford your monthly repayments.
- Debts. The lowest rates go to borrowers with a debt-to-income ratio (DTI) below 20%.
- Collateral. Securing your loan makes it less risky to the lender and gets you lower rates.
- Loan amount and term. Some lenders may offer different rates depending on how much you want to borrow and how long you need to repay.
The cost of your loan depends on the loan term and your rate.
What goes into a personal loan APR?
Most lenders’ annual percentage rate (APR) tells you how much you’ll pay in interest and fees over one year. This makes it easier to compare the cost of loans with the same term.
The APR often includes an origination fee, which lenders charge after you sign your loan contract. But it doesn’t include penalties like late fees, nonsufficient funds (NSF) fees or prepayment penalties – which can all be avoided by paying your loan back on time and in full.
How to find the right personal loans lender
Ask yourself the following questions when comparing lenders:
- Does it offer what I need? Check if the amount you need falls into a lender’s range and if it offers the type of loan you’re looking for.
- Am I eligible? Make sure you meet the lender’s minimum credit score, income, age and other requirements before you apply.
- What’s the APR? This gives you a quick snapshot of the loan’s total cost per year.
- How long will I be in debt? Look at the loan terms available to make sure you’ll be out of debt in time to meet other financial goals, like buying a house or a car.
- Will repayments fit my budget? Use the available loan terms and APR to figure out how much you might owe each month.
- Are there any fees? Many lenders charge up to a 5% origination fee, which they take out of or add to the loan balance. This affects how much you need to borrow and your monthly cost.
- Is it legit? Read customer reviews to look out for personal loan scams and red flags, and make sure its website is secure.
