Get a $5,000 loan

If you need to get a $5,000 loan in Canada, lenders look at factors like your credit score. If you have good to excellent credit (660+), you can apply with banks and traditional lenders that offer low rates. Online lenders offer $5,000 loans for fair or bad credit (under 600) at a higher cost.

Jump to…

• $5,000 loans for bad credit
• $5,000 loans for good credit
• $5,000 loan cost & how to apply

Where can I apply for a $5,000 loan?

Here’s where you can get $5,000 personal loans for good or bad credit.

• Online lenders

  Apply for a $5,000 loan entirely online. Online lenders typically have more flexible requirements than banks and credit unions.

  Best for: Good and bad credit

  Pros

  • Next-day or same-day $5,000 loans available
  • Get a $5,000 loan with bad credit
  • Some lenders offer low-rate personal loans for good credit
  • Apply from the comfort of home. No in-person visits required.

  Cons

  • High rates for bad credit loans

• Banks

  Banks offer competitive interest rates, but application and qualification requirements are harder. Your finances need to be in good shape if you want a $5,000 personal loan from a bank.

  Best for: Good credit

  Pros

  • Get low interest rates
  • Established lenders

  Cons

  • Hard to qualify for a $5,000 loan with bad credit
  • May require in-person appointments

• Credit unions

  As member-supported financial institutions, local credit unions might offer low rates.

  Best for: Good credit

  Pros

  • Favourable interest rates
  • Established lenders
  • Good customer service

  Cons

  • Membership might be required
  • Hard to qualify for a $5,000 loan with bad credit
  • May require in-person appointments

• Peer-to-peer (P2P) platforms

  Peer-to-peer platforms let you bypass traditional lenders and borrow online directly from individual investors. It often takes 1-4 weeks to get money as you wait for investors to fund your $5,000 loan.

  Best for: Fair to good credit

  Pros

  • Competitive rates

  Cons

  • Loan might be partially funded
  • Not suitable for bad credit borrowers. Requires a credit score above 600.

• Online brokers

  With online loan brokers like Loans Canada and LoanConnect, you fill out one application and get connected to multiple lenders that match your financial profile.

  Best for: Good and bad credit

  Pros

  • Get a $5,000 loan with bad credit
  • Low interest loans for good credit
  • Pre-approval in minutes
  • Compare multiple offers

  Cons

  • Limited to partners within the broker’s network
  • Your information is shared with third-party lenders

Types of $5,000 personal loans

Qualification requirements and terms vary based on the type of $5,000 personal loan you get.

• Secured loans

  Secured personal loans come with low rates, because you must provide collateral like your house or car. If you default on your $5,000 loan, the lender can sell the collateral to repay the loan.

• Unsecured loans

  Unsecured personal loans don’t require any collateral. They’re riskier for the lender. As a result, unsecured personal loans come with higher interest rates.

• Fixed-rate loans

  With a fixed-rate personal loan, your interest rate stays the same throughout your loan term. Financial institutions, P2P lenders and online lenders offer fixed-rate personal loans.

• Variable-rate loans

  Most variable-rate personal loans come from banks and credit unions. The interest rate of a variable-rate personal loan will fluctuate with the Bank of Canada rate.

  If interest rates go up, your payment likely won’t change, but more of it goes towards interest than paying down your debt. If rates go down, more of your payment will go towards paying off debt.

• Installment loans

  Offered by online lenders, installment loans are unsecured personal loans with lenient eligibility requirements and (typically) higher rates. Lenders might accept borrowers with low credit scores or those with non-employment income such as government benefits.

$5,000 loans for bad credit in Canada

Worried you won’t qualify for a loan? There are $5,000 loans for bad credit in Canada. Some online lenders specialize in bad credit loans, focusing on income rather than credit scores. Be ready to provide proof of income, like recent pay stubs or bank statements, to show that you can handle payments for a $5,000 loan.

Get a $5,000 loan with bad credit in Canada

If you need $5,000 now with bad credit, compare lenders that work with poor credit borrowers.

Personal loan provider	Loan features	Eligibility requirements
	Interest rate: 10.8% - 46.99% Loan amount: $500–$35,000 Loan term: 6 - 60 months	Min. income of $1,800, min. credit score of 500, 3+ months employed	Go to site
	Interest rate: 6.99% - 46.96% Loan amount: $300–$50,000 Loan term: 3 - 60 months	Min. credit score of 300, have a steady source of income	Go to site
	Interest rate: 8.99% - 46.96% Loan amount: $500–$50,000 Loan term: 3 - 120 months	Min. credit score of 300, no min. annual income	Go to site

Can I get bad credit personal loans with guaranteed approval for $5,000?

Be wary of lenders offering guaranteed approval for $5,000 bad credit personal loans in Canada. Trustworthy lenders won’t guarantee approval without reviewing your financial situation first. Consider applying to online lenders that specialize in bad credit loans.

Can I get $5,000 loans for bad credit with instant approval in Canada?

Need $5,000 now? Some online lenders offer $5,000 loans with instant approval decisions even if you have bad credit. An instant decision provides a quote, not guaranteed approval. If you proceed, your finances will be more thoroughly reviewed. If everything looks good, you’ll be approved.

Can I get a $5,000 loan with no credit check in Canada?

Credit checks are pretty standard when you get a $5,000 loan in Canada. Make sure lenders that offer $5,000 loans with no credit check are legitimate. No-credit-check lenders assume you have a bad credit history, so be prepared for steep interest rates.

Get a quote before you apply to bad credit lenders. Mogo and Fairstone offer pre-approval quotes that don’t affect your credit score but can give you an idea of the rates and terms you qualify for. Learn more about no credit check loans.

What you’ll need to get a $5,000 loan for bad credit

• Government-issued ID like your driver’s license or passport.
• Bank statements from the last 60-90 days. Submit statements by email, uploading documents to your lender’s website or by instant bank verification.
• Pay stubs from the last two to three months.
• Proof of address such as a utility bill, credit card statement or internet bill.
• Bank account details, including the institution number, transit number and account number for depositing your loan and automatically withdrawing repayments.

Tips for getting $5,000 loans with bad credit in Canada

It’s tough to get approved for a $5,000 loan with bad credit, but following these tips will help.

Get a secured loan

Offering collateral lowers the risk for lenders and increases your odds of getting approved for a $5,000 loan with bad credit.

Apply with a cosigner

Another good way to lower your risk if by getting a trusted friend or family member who has good credit to cosign your loan. While this can increase the chance of getting approved, your cosigner will be on the hook for the loan if you default and their credit score will be affected.

Get a free copy of your credit report

Every year, you can order a free credit report from Equifax or TransUnion. Customers of RBC, Borrowell, Credit Karma and Loans Canada get their scores for free. Inaccuracies can hurt your credit score, so notify the bureau right away if you notice errors.

Before you apply, pay down existing debt to improve your credit score and make repayments less burdensome. This may not be an option if you need $5,000 now. But if you can wait a few months, a higher score could land you better terms.

Compare your options

Because $5,000 loans for bad credit come with high interest rates, compare lenders to get the lowest personal loan interest rate and fees. Some lenders like Mogo and Fairstone offer personal loan pre-approval, which can help narrow down your options without impacting your credit.

Check the eligibility requirements

Each lender has their own eligibility requirements for $5,000 bad credit loans, including minimum income and credit score requirements. Some lenders are more flexible than others.

Ask about fees and penalties

When researching your $5,000 loan options, look into costs besides the interest rate:

• Non-sufficient funds (NSF) fee. Missed payments may incur an NSF fee from your bank and your lender. Personal loan NSF fees are typically between $25 and $50.
• Late payment fee. Some lenders charge a percentage or flat fee for late payments.
• Origination fee. Not all lenders charge this loan processing fee. It may be deducted from your loan amount or added to it.
• Early repayment penalty. Many lenders don’t charge a fee for paying off an unsecured personal loan early, and doing so will reduce the total interest you pay.
• Loan insurance. Lenders may offer optional insurance on $5,000 loans for bad credit in case you default. You’ll pay extra, but it can be helpful in financially uncertain times.

Ensure you can afford $5,000 loan repayments

$5,000 personal loans for bad credit typically have loan terms from 3 - 60 months. The shorter your loan term, the less interest you’ll pay overall but the higher your payments will be. Aim for the shortest term with payments that fit within your budget.

Avoid predatory lenders

People in bad financial situations are often targeted by predatory lenders. Avoid lenders that pressure you into signing quickly and don’t clearly explain the loan terms, especially fees and your overall cost.

$5,000 loans for good credit in Canada

Do you have good or excellent credit (above 660)? You might qualify for $5,000 personal loans with low interest rates and favourable terms.

Banks and credit unions

One advantage of getting a $5,000 personal loan from a bank or credit union is peace of mind, because you’re working with an established, reputable lender. It’s also convenient to manage your various financial accounts and products through a single, online bank portal.

Traditional lenders like banks and credit unions offer low rates for strong-credit borrowers. For example, ATB’s interest rates range around 7.20% - 14.20%.

Online loan search platforms

Broaden your search for the best $5,000 personal loan with online loan search platforms like Loans Canada and LoanConnect. Loan search platforms connect your financial profile to a network of lenders, making it easy to compare rates and terms from multiple providers. It’s free to apply, and you’re under no obligation to accept any offers. But keep in mind that your information will be shared with third-party lenders.

Credit score requirements for $5,000 loans in Canada

In Canada, credit scores range from poor (300) to good (around 660-759) to excellent (around 760-900). The credit score you need for a $5,000 loan in Canada varies between lenders. If you need $5,000 loans with bad credit in Canada, some online lenders cater to bad-credit borrowers. Banks and credit unions typically look for applicants with good credit.

Compare $5,000 loans for bad credit

I need $5,000 now. Where can I get fast loans in Canada?

If you have good credit and need $5,000 now, try your local bank or credit union. If you’re already a customer, your loan application might be expedited. Plus, you’ll qualify for good rates and terms. You can also try online lenders, like goPeer, that specialize in loans for good credit borrowers.

If you need $5,000 now with bad credit, apply to online lenders that specialize in loans for bad credit borrowers. Some lenders, like Spring Financial, offer approval and funding within 24 hours.

Also look for lenders that offer instant bank verification, a quick digital financial assessment that replaces much of the manual effort of reviewing your application. SkyCap Financial and Spring Financial offer quick verification.

How much would a $5,000 loan cost?

How much does a $5,000 loan cost? That depends on factors like the interest rate, fees and loan term. Interest rates on personal loans in Canada tend to range between 6.99% and 46.96% with terms ranging from 3 - 60 months.

How much is a monthly payment on a 5000 loan?

Here’s a breakdown of the monthly payments for a $5,000 loan over 3 years and 5 years with 6%, 10%, 15% and 25% interest. This is just for illustrative purposes.

Interest rate	Monthly payment for 3 year loan term	Total cost after 3 years	Monthly payment for 5 year loan term	Total cost after 5 years
6%	$152.11	$5,475.95	$96.66	$5,799.84
10%	$161.34	$5,808.09	$106.24	$6,374.11
15%	$173.33	$6,239.76	$118.95	$7,136.98
25%	$198.80	$7,156.77	$146.76	$8,805.40

Figure out your monthly payments using our Personal Loan Monthly Payment Calculator.

• How to use this calculator

  1. Enter $5,000 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.

How to apply for a $5,000 loan online

Follow these simple steps to apply for a $5,000 loan online:

1. Compare loan options. Find lenders that offer the loan type you need (secured, unsecured, personal loan, payday loan, etc.) with rates, terms, and payments you can afford.
2. Fill out the application. After verifying that you meet the minimum requirements, apply online. Provide personal and financial details, valid photo ID, proof of income and proof of residency.
3. Submit your application and wait for a decision. Some lenders offer conditional pre-approval without a credit check. To officially complete the application process, you’ll need to consent to a hard credit check. Wait to find out if your application has been accepted or denied.
4. If approved, receive your funds. Sign your loan documents and get funds by Interac e-Transfer, wire transfer or any other method your lender offers. Funds arrive the same or next business day.

How to find the best $5,000 loan in Canada

• Annual percentage rate (APR). APR is the interest rate and fees of your $5,000 loan. It gives a clearer picture of the cost than the interest rate alone, helping you compare offers.
• Loan amounts and loan terms. Most lenders offer $5,000 loans. Make sure your top choices offer the repayment amount and time period you need.
• Repayment flexibility. Many lenders let you pay off your loan ahead of schedule without penalty, but some may charge an early repayment fee to make up for lost interest revenue.
• Grace period. Some lenders offer a “grace period” that lets you skip, for example, one payment per year without penalty. Peer-to-peer lender goPeer lets you pay 15 days after your monthly due date without any extra fee or impact on your credit score.
• Reputation of the lender. Check out customer reviews or the Finder: Personal Loans Customer Satisfaction Awards to learn more about Canadian lenders. Take note of any consistent records of If there’s a strong pattern of complaints, consider applying elsewhere.

2023 personal loan statistics

Recent data from the Finder: Consumer Sentiment Survey Q2, shows that 20% of respondents planned to take out a personal loan within the next three months.

How much Canadians planned to borrow

While the majority of respondents (24%) planned to borrow $5,000-$9,999, within the next three months, 22% planned to borrow $10,000-$14,999, while 21% planned to borrow $1,000-$4,999.

Bottom line

In Canada, many lenders offer $5,000 loans for bad credit and good credit. The total cost of a $5,000 loan depends on your financial profile, credit history and the lender you choose. Improve your credit score to increase your chance of getting approved with favourable terms.

Frequently asked questions

• How can I get a $5,000 loan with bad credit?

  To get a $5,000 loan with bad credit, you can apply to online lenders. Online lenders have easier eligibility requirements than banks and credit unions.

• What is the monthly payment on a $5,000 loan?

  The monthly payment on a $5,000 loan depends on your interest rate and loan term. Calculate your possible monthly payments and total loan cost with our calculator.

• What credit score is needed for a $5,000 personal loan?

  Banks and credit unions have higher credit score requirements than online lenders, typically 660+. If you have bad credit and are looking for a $5,000 loan, look at online personal loan providers, many of which accept scores between 500 and 650. Some cater specifically to bad credit borrowers.

• I need $5,000 now. Where can I get an emergency $5,000 loan?

  If you need $5,000 urgently, consider online lenders with quick approval and 24-hour funding like FlexMoney, SkyCap Financial, or Spring Financial. Some lenders like Mogo and Fairstone offer loan pre-approval, making it easy to compare $5,000 loan options without hurting your credit score.

  Dive deeper Emergency loans in Canada

• What income is needed for a $5,000 personal loan?

  Online lenders offering $5,000 personal loans tend to have minimum income requirements ranging from $1,000 to $2,000 per month. Banks and credit unions might have higher minimum income requirements for $5,000 loans.