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There are a number of lenders offering personal loans in BC, including big banks, credit unions, private lenders and peer-to-peer services. Learn more below about the different types of loans on offer, how much they cost and what you can use the money for.
Learn more about where you can get personal loans in BC by exploring different lenders.
Bank loans are provided by Canada’s Big Five banks and other major financial institutions. These loans typically come with mid-level interest rates but you’ll usually need a good credit score (660-680+) or a high annual income to qualify. You may be able to qualify for lower rates if you secure your loan with an asset or get a cosigner.
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Credit unions are membership-only financial institutions that typically offer smaller personal loans in BC than banks. These loans usually come with slightly lower interest rates and more flexible repayment terms than banks. You may also be able to apply with bad credit if you secure your loan with an asset or get a cosigner.
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Online lenders are companies that offer personal loans in BC with less strict eligibility criteria. You may be able to apply with bad credit or low income as long as you can prove you’ll be able to make your repayments. You’ll usually get your funds very quickly (sometimes in less than 24 hours) and there’s less administrative work involved in most cases.
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P2P loans are usually offered through an online platform. This platform connects you to other Canadians who want to give you financing and collect interest on the money you borrow. Interest rates for P2Ps are usually lower than banks or private personal loans in BC. Your rates will be lower if you have a good credit score, but you can still apply with bad credit.
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With the cost of living on the rise – and Vancouver being named the second most expensive city to live in Canada, according to Mercer’s 2022 Cost of Living City Ranking – it’s no wonder BC residents are looking for supplemental financing in the form of personal loans.
Personal loans are a very flexible type of financing, and BC lenders generally don’t put restrictions on what you can use the loan money towards. That being said, some lenders in British Columbia may not be willing to lend you money for certain use cases.
Our research found that 41.3% of Canadians took out personal loans to buy a car, 19.5% to finance a mortgage, 15.8% to consolidate debt and 13.2% to finance home renovations. Here is a more comprehensive list of things people tend to use personal loans for:
You’ll need to choose one loan type out of each of the 2 categories in the table below when you apply for personal loans in British Columbia. For example, you could choose an unsecured fixed rate loan or a secured variable rate loan or any other combination.
| Loan type | Who’s it best for | How it works | Features |
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| Unsecured personal loans | Best for borrowers with good to excellent credit | Qualify based on your credit score |
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| Secured personal loans | Best for borrowers with assets or bad credit who want lower rates | Qualify based on your assets, which can be sold off if you default |
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| Loan type | Who’s it best for | How it works | Features |
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| Fixed rate personal loans | Best for borrowers who want predictable monthly payments. | Interest rates stay the same for your loan term |
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| Variable rate personal loans | Best for borrowers that want to benefit if interest rates go lower during their fixed term | Interest rates fluctuate for the duration of your loan term (in line with the Bank of Canada’s prime rate) |
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You’ll need to fill out your application correctly and meet certain criteria to successfully apply for most personal loans in BC. Eligible applicants will usually need to meet the following criteria:
To apply for personal loans in British Columbia, you’ll usually need to provide the following documents:
Am I eligible for a personal loan?
Think about the following features when deciding on which personal loan in BC is best for you:
Follow these steps for how to apply for a personal loan to qualify for the loan you want.
Do the math to figure out how much you need to borrow and how much you can afford to pay back each month. Aim for the shortest term possible so that you don’t end up paying significant amounts of interest.
Compare multiple lenders and loan types to get a fuller picture of how much you should pay based on your credit score and other personal factors. You can compare lenders using a personal loan broker or by comparing loans manually.
Fill out an application to prequalify for different loans to find out what the actual rates you’ll pay will be (rather than the advertised rate). Getting preapproved for a personal loan can give you an idea of where you might find the best deal.
Fill out an application once you’ve decided on the lender that will give you the best rates and conditions for your loan. You’ll usually need to submit contact details and financial information to apply as well as submit to a credit check.
You can use personal loans in BC to pay for the following expenses, depending on what your lender authorizes:
Personal loan interest rates in BC can range from 3.7% to 47%, depending on whether you get a secured or unsecured loan. The rate you get will depend on these factors:
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Interest rates and APR are very similar. The only difference is that interest rates are a standalone percentage that gets added to your loan amount based on factors such as your credit score.
APR is the cost of your interest rates plus the fees you’ll have to pay for your loan. This gives you a better idea of the true cost of your loan. If your loan has no fees, your interest rates and APR should match.
You may be able to take out personal loans in BC if you have a good credit score and decent income. You can also apply for bad credit personal loans in BC with some lenders if you’re willing to pay higher interest rates. Learn more about how to compare and qualify for personal loans in BC and apply to borrow the money you need today.
Read our guide to the features, fees and pros and cons when you borrow from BC-Loans.
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