Get a $10,000 loan

If you need to take out a $10,000 loan in Canada, there are plenty of lender options, including banks, credit unions and online lenders. Those with good to excellent credit (a credit score of 660 or higher) will get access to lower interest rates and better loan terms. Borrowers with fair or bad credit (a credit score below 660) will need to shop competitively to find the best personal loan terms and rates.

Where to get a $10,000 loan in Canada

You can take out a $10,000 personal loan in Canada from four types of lenders: banks, credit unions, online lenders and peer-to-peer platforms.

• Banks

  Banks are a solid option for borrowers with strong credit scores. Banks usually offer some of the lowest interest rates, but the application process is more involved and takes longer. If you want to take out a $10,000 personal loan from a bank, be sure to check your credit report and make all bill payments and credit card payments on time. Paying your bills on time shows bank lenders that you are a responsible borrower.

• Credit unions

  Credit unions offer personal loans with rates that are equal to or better than banks. However, you’ll need to sign up for a membership to get the loan (usually a nominal fee between $5 to $25). Applying for membership and waiting on approval and funding could take weeks, so this isn’t your best option if you’re looking for a quick way to take out a $10,000 personal loan.

• Online lenders

  Online lenders are faster at approving and providing funds than banks and credit unions. You don’t need to submit as many documents, you can fill out the loan application in just minutes, and you can expect to receive your money either the same day or the next business day. However, this type of lender usually charges higher interest rates, although they do cater their process to people with fair or bad credit. However, there are also select lenders in this group that can offer low rates to prime borrowers that are equal to or better than traditional lenders (another term for banks and credit unions).

• Peer-to-peer (P2P) platforms

  Rather than funding your loan directly, peer-to-peer lending platforms connect you to everyday Canadian investors who fund your loan. The application process is similar to an online lender, but it can take one to two weeks to get your money since you’ll have to wait for investors to fund your loan application. You’ll also need a credit score above 600 to qualify.

Types of personal loans

Personal loans come in a variety of forms, from unsecured loans to secured loans, bad credit loans, and cosigned loans. Here’s a look at your options to help you decide which type of $10,000 personal loan best suits your needs:

• Secured loans

  Secured personal loans generally come with lower interest rates than unsecured loans because they involve collateral. Any asset you own is collateral. For instance, your home, car, boat, RV or investment portfolio can be used as collateral. The collateral is used as an assurance, meaning if you default on your loan or can’t keep up with repayments, the lender has the right to repossess and sell the asset in order to repay the oan. Putting up collateral is one way to increase your chances of approval since it reduces the risk for the lender.

• Unsecured loans

  Unsecured personal loans come with higher interest rates than secured loans because unsecured personal loans don’t require any collateral. Instead, lenders take a risk loaning you money and, as a result, charge higher interest rates. Unsecured loans are common for online lenders – the application and approval process is usually pretty quick, meaning you could secure a $10,000 personal loan within the same day of applying.

• Fixed-rate loans

  Fixed-rate personal loans have an interest rate that stays the same throughout your loan term (the length of time you have to pay back the loan). This gives you predictable monthly payments and allows you to budget accordingly. Banks, credit unions, online lenders and P2P lenders all offer fixed-rate loans.

• Variable-rate loans

  Variable-rate personal loans have interest rates that change with the markets. Banks and credit unions offer variable-rate personal loans, though there are select alternative lenders, like Symple, that also offer variable-rate loans. Generally, variable rates are lower than fixed rates, but go up and down with prime (which is influenced by the Bank of Canada target rate).

• Cosigned loans

  If you can’t qualify for a $10,000 loan on your own, you can ask a family member or close friend to sign the loan with you. The catch? If you default on payments, your cosigner will be responsible for repaying your loan, and both your credit score and your cosignor’s credit score will take a hit. Learn more about cosigned personal loans.

• Debt consolidation loans

  With a $10,000 debt consolidation loan, you roll your existing debts into one new fixed monthly repayment. The goal is for your new loan to have a better interest rate and loan term than all of your current debts. When applying for a debt consolidation personal loan, you will need to select “debt consolidation” as the purpose for the loan on your application.

  The lender will provide you with the approved amount, which is then used to pay off existing debts (including credit card balances, bills or other loans). After paying off all these debts, you’re left with one debt — the debt consolidation loan — and one loan payment. Learn more about the best debt consolidation loans.

Can I get bad credit personal loans with guaranteed approval for $10,000 in Canada?

Be very careful if you encounter a lender advertising bad credit personal loans with guaranteed approval for $10,000. These loans are either scams or predatory and the fine print will prove that these loans are not guaranteed.

In Canada, legitimate lenders do not guarantee approval. They evaluate a borrower’s financial situation first before approving any form of financing, and legitimate lenders clearly define their eligibility requirements.

If you want to increase your chances of approval on a $10,000 loan with bad credit, consider legitimate online lenders, like Spring Financial, that often work with borrowers with bad credit. Online broker LoanConnect, for example, has a minimum credit score of 300. With these lenders, you submit one application and they match you with a list of lenders that are best suited to providing you with a bad credit personal loan.

Get a $10,000 personal loan with bad credit

Below are loan providers that specialize in working with borrowers with bad credit. Compared to banks and credit unions, these lenders are more likely to approve bad credit loans for $10,000.

Personal loan provider	Key features	Eligibility requirements
	Interest rates: 10.8% - 46.99% Loan terms: 6 - 60 months	Min. income of $1,800, min. credit score of 500, 3+ months employed	Go to site
	Interest rates: 8.99% - 46.96%. Loan terms: 3 - 120 months	Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income	Go to site
	Interest rates: 6.99% - 46.96% Loan terms: 3 - 60 months	Canadian resident, age of majority in your province of residence	Go to site

Can I get instant approval on a $10,000 loan with bad credit?

Online lenders are a solid option if you have bad credit and you’re looking for the fastest way to get approved for a $10,000 personal loan. Many online lenders offer instant pre-approval and approval within 24 hours.

What is instant pre-approval?

When you submit an application, online lenders use technology to rapidly evaluate your information and determine whether you are pre-approved or denied for a $10,000 loan. You can usually find out their decision within minutes. If you’re pre-approved for a personal loan, it simply means the lender wants to proceed with your application and can even provide you with a quote.

Next step: Approval

If you want to proceed, then the next stage is official approval. The lender will examine your finances in more detail and conduct a hard credit check. If everything checks out, the lender will approve the loan. Online lenders are fast, with some offering approval of a $10,000 loan on the same day.

Questions to ask yourself when getting a $10,000 loan with bad credit

Below are some factors to consider before you apply or sign for a loan:

What is the annual percentage rate (APR)?

The APR is the annual interest rate plus fees you must pay to get the loan. While the interest rate tells you what the lender will charge to borrow the money, the APR provides a more accurate overall cost for taking out the loan. People with bad credit will end up paying higher APRs, so before signing a contract, be sure to compare your options. Always confirm exactly how much a $10,000 bad credit loan will cost you overall.

Is there room in my budget for more debt payments?

Before approving you for a $10,000 loan with bad credit, a lender will analyze your current monthly income and debts. To get approved, your debts cannot exceed your income, and your budget should demonstrate that you can manage additional loan payments.

Can I improve my credit score first?

This may not be an option if your financing need is immediate, but if you can wait six months, then it pays to improve your credit score first. Start by consistently paying your bills and existing loan payments on time; avoid any non-sufficient funds (NSF) fees in your bank account, and don’t add to your debt.

How much is going towards the principal?

Before signing a contract, understand exactly how much of your loan payments are going toward the interest vs the principal. You might find that your payments will go towards paying the interest rather than reducing the principal and this will add to the overall cost of borrowing money.

Do I meet the eligibility criteria?

Lenders often list their eligibility requirements, such as minimum income and credit score. Another factor to consider is whether or not a lender offers loans in the province where you reside.

Can I get a cosigner?

Having a cosigner increases your chances of approval on a $10,000 loan and may also lower your interest rate. But make sure your cosigner understands what they’re committing to when signing the loan documentation.

What are my loan options if I have good credit?

If you’re looking for a $10,000 personal loan and you have good credit (above 660), then you have many options and many offer funding with low interest rates.

Traditional lenders such as banks or credit unions will want your business. For reference, ATB’s current APRs range around 7.20% - 14.20%.

Variable-rate personal loans generally offer lower interest rates, but these rates can rise and fall with market fluctuations. To learn more, read the Bank of CanadaForecast Report.

Online brokers as an alternative

To find the best $10,000 loan for you, broaden your search to online brokers like Loans Canada or LoanConnect so you can compare interest rates and terms. Both have access to a large network of lenders, and you only need to fill out one application to get multiple lender offers before picking the best one.

If you need to borrow $10,000 fast, applying with an online lender can give you the quickest access to funds (usually within 24 to 48 hours).

Plans to get a personal loan in 2023

Recent data from the Finder: Consumer Sentiment Survey Q2 (CSTQ2), shows that 20% of respondents plan to take out a personal loan in the next three months.

How much Canadians plan to borrow

How much do you plan to borrow? Turns out the majority of Canadians looking for financing will typically borrow less than $15,000. According to data from CSTQ2, between April and June 2023:

• 21% — Will borrow between $1,000 and $4,999
• 24% — Will borrow between $5,000 and $9,999
• 22% — Will borrow between $10,000 and $14,999

$10,000 personal loan calculator

Find out your potential monthly payments on a $10,000 personal loan using the Finder’s online personal loan calculator.

For reference, the most recent average interest rate for personal loan plans, according to Statistics Canada, is currently 9.59%, and loan terms usually last up to 60 months, although some can be longer.

Based on that, let’s say you get approved for a $10,000 loan at the average personal loan rate of 9.59% on a 60-month loan term. Your monthly payment would then be $210.46, and by the end of the 5-year term, you would have paid a total of $2,627.52 towards interest charges alone.

• How to use this calculator to calculate the cost of a $10,000 personal loan

  1. Enter $10,000 under Loan amount
  2. Write the loan term in years (not months) under Loan terms
  3. Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees
  4. Hit Calculate
  5. Review your results

Am I eligible for a $10,000 personal loan?

Every lender has its own unique criteria, but generally, you’ll need to meet the following:

• Be at least 18 years old
• Be a Canadian citizen or resident
• Have an active bank account
• Meet the minimum credit score
• Meet the minimum income

How to get a $10,000 personal loan

1. Compare your options. Determine what type of personal loan best suits your needs. Compare each lender’s loan amounts, loan terms, interest rates, fees and reputation. Check that you meet the lender’s eligibility requirements.
2. Fill out the application with your top choices. This allows you to get pre-approval and compare offers. You’ll need to provide your personal details, such as your name, address, employment, income and debts.
3. Pick your best offer. Complete the rest of the application by providing any documents the lender may require, such as government-issued ID, recent pay stubs and bank statements.
4. Get verified. The lender will verify your identity and finances and give approval. Review and sign the contract.
5. Get funded. You’ll get your money via direct deposit or e-Transfer.

How to compare $10,000 loans in Canada

• Interest rates. Getting pre-approved will give you an idea of the interest rate you will be eligible for if you take out the loan. Some lenders can give pre-approval loan quotes without impacting your credit score. You can also avoid a credit check by quickly comparing personal loan rates in Canada (see our guide).
• Loan term. You’ll need to find a loan term that works for you. Loan terms typically range from 3 - 60 months. A longer loan term will give you lower monthly payments, but you’ll pay more interest over the life of the loan.
• Fees. Ask about NSF fees, late payment fees, prepayment penalties and origination fees (fee to process your loan).
• Loan insurance. Lenders may offer you insurance to cover your loan repayments in the event of a death, job loss or illness. This is allowed, but the lender should never require you take take loan insurance or push you into taking it. Loan insurance adds to the cost of your loan and, by law, should be optional.
• Upfront fees. Legitimate lenders will not ask you to pay any fees upfront, so be sure to avoid lenders that ask you to pay an upfront fee.
• No pressure. Avoid lenders that pressure you into signing a contract. Even if a lender doesn’t pressure you, never rush into a loan agreement without first understanding the terms of your loan, including the APR, the repayment schedule and how much interest and fees you will pay overall.
• Turnaround time. The time it takes to get your loan approved and for it to arrive in your bank account will differ among lenders. Online lenders can fund loans on the same day or the next day, while traditional lenders can take between one and three weeks. If your need for a $10,000 loan is urgent, consider emergency loans.

What are the monthly payments on a $10,000 loan?

Payments will depend on your loan term and interest rate. Longer loan terms will give you lower monthly repayments, but you’ll end up paying more in interest over the life of your loan.

Example: $10,000 loan over 3 and 5 years at 6.99%, 9.99%, 13.99% and 17.99% APR

Your goal is to commit to a repayment plan that fits your budget. You don’t want to overstretch your monthly budget by dedicating too much of your income to loan payments. At the same time, you don’t want to choose repayments that are so low that it takes longer for you to get out of debt.

Can I get a $10,000 with no credit check in Canada?

There are lenders in Canada that offer $10,000 loans with no credit check but expect to pay much higher interest rates or provide collateral such as your car. Plus, always check to make sure you are working with a legitimate lender.

Instead of assessing your credit score, no-credit-check lenders examine your income and bank statements to make sure you can afford the loan. To get approved, your income must be stable, and your bank account activity should have little to no NSF payments in the last three months (minimum).

What credit score do I need for a $10,000 loan?

To get approved for a $10,000 loan, you typically need a good credit score (above 660) or a fair credit score that’s close to 660. If you have bad credit (below 560), it may be possible to get a $10,000 loan if you apply to an online lender, but you’ll need to show the lender there’s room in your budget for additional loan payments. Do this by providing the lender details about your current income and debts. To increase your chances of approval, your bank account shouldn’t have recent NSF transactions, and you may need to put up collateral.

If you don’t qualify to borrow $10,000, an online lender may approve you for a smaller amount.

Can you get a $10,000 loan with no credit history?

It’s possible to get a $10,000 loan with no credit if you apply to a lender that doesn’t do credit checks or if you apply to a lender that provides personal loans specifically to people with no credit history. QuadFi is an example. This lender offers loans to people without a credit history in Canada, such as new immigrants. To approve you for a loan, it’ll look at other factors such as your foreign credit history, education and income.

Can I get a $10,000 personal loan if I’m unemployed?

Lenders want to make sure you can repay your personal loan, so if you’re unemployed, they will want to know that you’re receiving some other kind of income that will allow you to pay back your loan. While it depends on the lender, some accept alternative forms of income such as Employment Insurance (EI), government benefits, private pensions, CPP and OAS, investment earnings, along with other forms of non-employment income.

At the end of the day, you’ll need to prove that you can afford to make your loan repayments.

What can I use a $10,000 personal loan for?

Lenders don’t generally put restrictions on how to use your loan. That flexibility is one of the reasons why personal loans are such a popular financing option. According to Finder data, 36% of Canadians plan to take out a loan in 2022 to cover bills for essential fixed costs, 24% to consolidate debt, 19% to cover bills due to a job loss, 15% to buy a car and 14% to cover education. Additional reasons people take out a personal loan include:

Should you get a $10,000 debt consolidation loan?

This depends on your personal finances. If you have good to excellent credit and currently have high-interest debts such as credit cards, it might make sense to get a debt consolidation loan since you could get approved for a lower interest rate. Consolidating debt and getting a lower interest rate have several advantages, including simplifying your monthly payments, reducing your interest and helping you get out of debt faster. Learn more about the best debt consolidation loans in Canada.

If you have bad credit, you won’t get approved for a competitive rate. Since a debt consolidation loan is about reducing the cost of your debt — and freeing up money to pay off your debts — be sure to examine your options carefully and only proceed if you are offered a debt consolidation loan with better terms at a better rate.

Bottom line

Put your best financial foot forward before you apply for a $10,000 personal loan. It’s a large sum to ask to borrow. Get your credit in great shape, stay on top of your bills and show lenders you have a stable income source to make your repayments. To help, be sure to compare loan products and interest rates before decicing which lender is best for you, and remember to check for extra fees or charges before agreeing to a loan.

Frequently asked questions about $10,000 loans

• Do I qualify for a $10,000 loan?

  This depends on personal factors such as your credit score and income. To approve you for a $10,000 loan, lenders will check whether you have room in your monthly budget to take on more debt. You'll need to submit to a credit check and give them access to your pay stubs or bank statements or both.

• How can I get a $10,000 loan fast?

  The fastest way to get a $10,000 loan will be to apply through an online personal loan provider. Online lenders, like Spring Financial, SkyCap Financial and Symple, typically offer $10,000 loan turnaround times within 24 to 48 hours.

• Can you get a $10,000 loan with bad credit?

  Online lenders are more likely to approve you for a $10,000 bad credit loan than banks and credit unions. However, to get approved, you'll need to demonstrate to online lenders that you have sufficient income to pay back the loan. If they don't approve you for $10,000, they may approve you for a lower amount.

• How can I get a $10,000 loan instantly?

  You can't get a $10,000 loan instantly because lenders must first review your finances before approving. However, if you need a $10,000 loan as fast as possible, online lenders give faster approval and funding than banks and credit unions. You can apply online, receive pre-approval within minutes and get your money as soon as the same day.

• Can I get bad credit loans with guaranteed approval for $10,000 in Canada?

  Steer clear of lenders that offer guaranteed approval on $10,000 bad credit loans. This may be a scam, predatory or has fine print that actually doesn't make it guaranteed. If you need a $10,000 loan with bad credit, consider applying to legitimate lenders that specialize in bad credit loans.

• Can you get $10,000 quick cash loans?

  Lenders use Interac e-Transfer or direct deposit for $10,000 loans, so if you're looking to get $10,000 in cold hard cash, this isn't possible. If you're facing an emergency and need $10,000 as soon as possible, installment loans from online lenders are the fastest to get. However, be prepared for higher rates than what you'd get from a bank or credit union. Learn more about the best installment loans in Canada.