Personal loans in Edmonton
Compare the interest rates, loan terms and eligibility requirements of personal loans in Edmonton.
Personal loans in Edmonton allow you to borrow up to $50,000 for just about any purpose, including everything from paying unexpected bills to renovating your home. To find the right loan for you, compare a wide range of lenders and loans.
Keep reading for your guide to personal loan providers in Edmonton and how to compare your options.
Compare personal loans in Edmonton, Alberta
Types of personal loans you can get in Edmonton
There are several options to consider when applying for a personal loan in Edmonton. The first factor to think about is whether your loan will be secured or unsecured:
- Secured loans. A secured personal loan requires you to put up an asset (such as your car or home) as collateral. This allows you to access lower interest rates, but it also means you could lose your collateral if you default on the loan.
- Unsecured loans. Unsecured personal loans allow you to borrow money without putting up any collateral. They have higher interest rates than secured loans, so they cost more to pay off, but they typically have a faster approval process. One type of unsecured loan you may have heard of is an installment loan, which is an unsecured personal loan designed for people with fair to bad credit.
Next, you’ll need to consider whether you want a personal loan with a fixed or variable interest rate:
- Fixed-rate loans. As the name suggests, the interest rate on a fixed-rate personal loan stays the same for the life of the loan. This gives you the convenience and peace of mind of a fixed repayment schedule and allows you to avoid any interest rate rises. However, these loans have slightly higher interest rates than variable-rate loans. You could also miss out on savings if interest rates fall but you’re stuck with a fixed rate.
- Variable-rate loans. The interest rate on variable-rate personal loans fluctuate based on market conditions, such as when the Bank of Canada raises or drops its benchmark interest rate. This means the breakdown of your payments could change over the life of your loan. If the rate increases, more of your payment will go towards paying off the interest than the loan amount.
Finally, decide whether you want an individual or cosigned personal loan:
- Individual loans. With an individual loan, you’re the only person responsible for paying it off. So if you miss a payment or default on the loan, your credit score will take a hit.
- Cosigned loans. If a poor credit score stops you from getting approved for an individual loan, you could ask a family member to cosign your loan and act as a guarantor. However, if you default on a cosigned personal loan, the guarantor then becomes responsible for repaying it, while their credit score and yours will also decrease.
Types of lenders in Edmonton
If you’re searching for a personal loan lender in Edmonton, these are the main options:
The Big Five banks and a range of other banks offer personal loans in Edmonton. Fixed- and variable-rate loans are available, and banks tend to offer competitive rates. However, these traditional lenders have strict lending requirements, so a good credit score is typically essential if you want to qualify for a loan. Examples of banks that offer personal loans in Edmonton include the Royal Bank of Canada, Bank of Montreal and HSBC.
If you want to take out a personal loan in Edmonton from a credit union, you’ll typically need to become a member first. Credit unions offer fixed or variable loans and offer highly competitive rates, but you’ll need an excellent credit score to qualify for the best interest rates. Examples of credit unions in Edmonton include Servus Credit Union and ABCU Credit Union.
Another personal loan option is to borrow money through a peer-to-peer lending marketplace. Rather than borrowing from a bank, the funds are loaned to you by investors. P2P loans have more relaxed lending criteria than traditional lenders and offer the ability to access potentially lower rates. Secured and unsecured loans are available. goPeer is an example of a P2P lender.
Online lenders offer a fast and easy online application process, plus they allow you to access the money you need quickly. They also have relaxed eligibility requirements compared to major banks, so they’re often worth considering for borrowers with bad credit. Examples of online lenders that provide loans in Edmonton include Mogo and SkyCap Financial.
Another option is to use an online loan broker to help you find a personal loan that suits your needs. Brokers partner with a wide range of lenders to offer a diverse variety of loan products, and they work with borrowers with good and bad credit. Examples of online brokers include Loans Canada and LoanConnect.
How to get the best personal loan in Edmonton
Make sure to consider the following factors to ensure that you find the best personal loan for your needs:
The lower the interest rate, the less it will cost to repay a loan. Pay attention to the annual percentage rate (APR), which takes into account the annual interest rate as well as any financing fees that apply to show you the true cost of a loan.
As a general guide, you can borrow amounts ranging from $500 to $50,000. However, maximum loan amounts vary between lenders and also depend on factors like your credit score and income.
Most lenders offer loan terms ranging from 6 to 60 months, but terms of up to 120 months are available in some cases. Long-term personal loans are worth considering if you don’t want the pressure of a short repayment term, but remember that you will pay more interest in the long run.
Look for a personal loan lender in Edmonton that offers a repayment schedule to suit your needs. Check whether you can make weekly, fortnightly or monthly repayments and whether an early repayment fee will apply if you pay off your loan ahead of schedule.
Fees and charges
Read the fine print to make sure you’re aware of any fees that apply to the loan. These may include origination fees, NSF fees, penalties for late payment or paying your loan off early and loan insurance.
Finally, always remember to make sure you’re dealing with a reputable lender. Check that they’re properly licensed to offer personal loans in Edmonton, and read customer reviews to find out what other borrowers have to say about their services.
Am I eligible for personal loans in Edmonton?
The exact eligibility requirements you’ll need to meet to take out a personal loan in Edmonton vary between lenders. As a general guide, you’ll need to satisfy the following criteria:
- Be 18 years of age or older
- Be a Canadian citizen or a permanent resident
- Have a Canadian bank account
- Provide proof of income and employment
- Meet credit score requirements
- Have a suitable debt-to-income ratio
Each lender provides detailed information about exactly what you’ll need to do to qualify for a loan, so do your research before you apply.
Personal loans in Edmonton if you prefer to visit a branch
Rather visit a branch than apply online? You can visit a major bank branch near you, or check out one of the other lenders in the table below.
|Lender||Best for||Loan amount||Loan term||APR||Location in Edmonton|
|Blue Copper Capital||Fair to bad credit||$1,000–$100,000||6 - 36 months||14.00% - 33.00%||1 location (4012 118 Ave)|
|easyfinancial||Fair to bad credit||$$500 – $100,000||9 - 120 months||9.99% - 46.96%||8+ locations|
|Money Mart||Fair to bad credit||$500–$15,000||6 - 60 months||29.90% - 46.90%||18+ locations|
|ATB||Good to excellent credit||Not disclosed||12 - 60 months||7.20% - 14.20%||18+ locations|
|Servus||Good to excellent credit||Not disclosed||3 - 96 months||Not disclosed||18+ locations|
Can I get a personal loan with bad credit?
If your credit score is far from perfect, there are still many lenders in Edmonton that offer bad credit personal loans. Rather than focusing on your credit score, these lenders will assess your income and whether you can afford to repay a loan before approving your application. However, because lenders view you as a high-risk borrower, you’ll need to be willing to accept higher interest rates.
There are two main types of bad credit loans available:
- Secured loans. These loans require you to offer an asset such as your car or home as collateral. Loan amounts vary based on the type of collateral offered, but terms of up to 120 months are available. APRs range from around 9% to 49%.
- Unsecured loans. If you don’t have an asset to offer as collateral, you can borrow between $500 and $15,000 with an unsecured loan. Loan terms range from 6 to 60 months with APRs ranging from 18% to 47%.
Bad credit payday loans can help if you need fast access to cash to cover an urgent expense. However, bear in mind that payday loans are notoriously expensive. You’ll also need to do your due diligence to make sure you’re borrowing from a reputable lender.
How much will a personal loan in Edmonton cost me?
Several factors will affect the cost of your personal loan:
- Your credit score. If you have a credit score above 660, you’ll be able to access lower interest rates and therefore cheaper loans.
- Your debt-to-income (DTI) ratio. If you have a low DTI ratio of 20% or less, you may qualify for a lower interest rate.
- The amount you borrow. Your loan amount will affect the interest rate offered by the lender.
- The loan term. A long loan term may mean lower monthly payments, but it also means the loan will cost more to repay in the long run.
- Fees. From origination to NSF fees, make sure you’re aware of any extra charges that apply to your loan.
- Secured or unsecured. Secured loans come with lower interest rates, but they also have the risk of losing your collateral if you default on the loan.
To give you an idea of what to expect, let’s look at how much it’ll cost you to repay a $10,000 loan with a fixed rate over five years. For this example, let’s assume you’re making monthly repayments and there are no loan fees to worry about.
|Loan amount||Interest rate||Monthly repayment||Total repayments|
As you can see, even a 4% difference in the rate (16% vs 12%) can increase your monthly payment by $21 and cost an extra $1,244 over the life of the loan.
Edmonton personal finances at a glance
From credit cards to auto loans and lines of credit, debt is a major concern for the average Canadian. According to Equifax Canada’s Market Pulse consumer credit trends and insights report, released in September 2022, the average Canadian consumer is weighed down by $21,128 of non-mortgage debt.
Debt in Edmonton
The average Edmonton resident has $24,345 of non-mortgage debt, according to data from Equifax. Only two of Canada’s major cities have a higher average, with Fort McMurray ($37,640) and Calgary ($24,912) topping the charts.
Income in Edmonton
According to Statistics Canada, the average income of Edmontonians aged 16 and over was $54,600 in 2020. For comparison, the average income was $52,700 in Toronto and $58,500 in Calgary.
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