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Best personal loans in Canada for 2022

Browse the best personal loans to find the right fit for your needs and budget.

If you need a personal loan but are not sure where to start, we’ve compiled a list of some of the best personal loans in Canada for good and bad credit scores. Browse your options, and find out how to pick the best loan company for your needs. We cover the steps to finding the right personal loan, including key features to compare and fees to watch out for.

Best personal loans in Canada

Best for comparing options: Loans Canada Personal Loan

$300 – $50,000
Loan amount
2% – 46.96%
APR
3 - 60 months
Term
Loans Canada is the best loan company for comparing loan options because it has the largest lender network in Canada.
  • 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 2% – 46.96%
Term 3 - 60 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees No application, origination or brokerage fees
Origination Fee 0
Turnaround Time Receive funds within as little as 24 hours.

Best for bad credit: LoanConnect Personal Loan

$500 – $50,000
Loan amount
1.9% – 46.96%
APR
3 - 120 months
Term
LoanConnect is the best loan company in Canada for bad credit because it's a reputable online loan platform that matches you with lenders for free based on your profile.
  • Easy online application that you can complete in a matter of minutes
  • Quick deposits within 24 hours of applying, if you meet all the eligibility criteria
  • High loan amounts of up to $50,000
  • Longer terms of up to 7 years, if needed
  • Lenders can provide bad credit loans
  • Potential for high interest rates of up to 46.96% depending on your financial circumstances
  • Limited providers based on companies LoanConnect works with
  • Online only so you cannot visit LoanConnect in person for assistance
Loan amount $500 – $50,000
APR 1.9% – 46.96%
Term 3 - 120 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees No application, origination or brokerage fees
Origination Fee 0
Turnaround Time Receive funds within as little as 24 hours.
SkyCap Financial Personal Loan
Finder Rating: ★★★★★ 4.1 / 5 Go to site Read review

Best for customer service: SkyCap Financial Personal Loan

$500 – $10,000
Loan amount
12.99% – 39.99%
APR
9 - 60 months
Term
SkyCap is the best loan company in Canada for customer service because as of June 2022, it has a Better Business Bureau rating of A+ and 4.68 out of 5 stars based on 290+ reviews. People have consistently commented on SkyCap's understanding and helpful team.
  • 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 - 60 months
Interest Rate Type Fixed
Min. Credit Score 550
Fees No fees except a $50 NSF fee
Origination Fee N/A
Turnaround Time 24 hours
goPeer Personal Loan
Finder Rating: ★★★★★ 3.6 / 5 Read review

Best for low rates for good credit: goPeer Personal Loan

$1,000 – $25,000
Loan amount
8% – 33.92%
APR
36 - 60 months
Term
goPeer is the best loan company for low rates for good credit because it aims to offer better rates than the banks.
  • Easy online application
  • Get your loan offer within 24 hours
  • Stricter eligibility criteria than other online lenders
  • Funding can take a few days as you wait for investors to fund you
Loan amount $1,000 – $25,000
APR 8% – 33.92%
Term 36 - 60 months
Interest Rate Type Fixed
Min. Credit Score 600
Fees Origination fee varies
No application or prepayment fees
Turnaround Time Receive a response within 24 hours of your loan application
FlexMoney Personal Loan
Finder Rating: ★★★★★ 4 / 5 Go to site Read review

Best for speed: FlexMoney Personal Loan

$500 – $15,000
Loan amount
18.9% – 46.93%
APR
6 - 60 months
Term
FlexMoney is the best loan company for speed because it gives an instant decision, plus official approval within 24 hours.
  • 100% online application for convenience
  • Automatic repayments can be set up
  • No application, origination or prepayment fees
  • Interest rates can reach as high as 46.93%
  • No in-person customer service
  • Must provide copies of your bank statements via online banking verification
Loan amount $500 – $15,000
APR 18.9% – 46.93%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 500
Fees No application, origination or prepayment fees
Turnaround Time Receive funds within as little as 24 hours
Mogo Personal Loan
Finder Rating: ★★★★★ 4.5 / 5 Go to site Read review

Best for no-obligation quotes: Mogo Personal Loan

$200 – $35,000
Loan amount
9.9% – 46.96%
APR
6 - 60 months
Term
Mogo is the best loan company to get a no-obligation quote because 3 minutes after you apply, you see what rate you qualify for without impacting your credit score.
  • Fast unsecured personal loans
  • Minimum credit score of 500
  • Trial period of 100 days
  • Interest rates as high as 46.96% for bad credit
  • Only available in British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island
Loan amount $200 – $35,000
APR 9.9% – 46.96%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 500
Fees Non-sufficient funds fee of $20 to $50
Origination Fee $0
Turnaround Time Within 24 hours

Best for no employment income: Money Mart Installment Loan

$1,000 – $15,000
Loan amount
29.9% – 46.9%
APR
12 - 60 months
Term
Money Mart is the best loan company in Canada because it accepts many government benefits and private pensions.
  • Accepts government-assisted income if you don't have employment income
  • Fast approvals process and access to funding
  • Convenient application process online, at a store or over the phone
  • Lengthy loan terms of up to 5 years
  • Flexible repayment installment options
  • Option to include loan protection insurance
  • Steep interest rate of 29.90% - 46.90%
  • Potential for additional charges, including establishment fees and missed payment fees
  • Loan amount limited to $15,000
Loan amount $1,000 – $15,000
APR 29.9% – 46.9%
Term 12 - 60 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees None
Turnaround Time Less than 1 day
Fairstone Secured Personal Loan
Finder Rating: ★★★★★ 3.7 / 5 Go to site Read review

Best for secured loans for fair credit: Fairstone Secured Personal Loan

$5,000 – $50,000
Loan amount
19.99% – 23.99%
APR
36 - 120 months
Term
Fairstone is the best loan company if you have a home to use as collateral. It has more flexible requirements than banks or credit unions.
  • Easy, secure online application with a quick approval process
  • Loan amount of up to $50,000
  • Flexibility in loan terms and repayment options to suit your needs
  • Get a quote without impacting your credit score
  • You're using your home as collateral to secure your loan
  • Potential for steep interest rates as high as 23.99% if you don't have the best credit score
  • Potential for additional charges for non-sufficient funds, late or missed payment fees
Loan amount $5,000 – $50,000
APR 19.99% – 23.99%
Term 36 - 120 months
Interest Rate Type Fixed
Min. Credit Score 560
Fees Varies by province
Origination Fee Varies by province
Turnaround Time 2+ days
Spring Financial Personal Loan
Finder Rating: ★★★★★ 4 / 5 Go to site Read review

Best for easy application: Spring Financial Personal Loan

$500 – $15,000
Loan amount
17.99% – 46.96%
APR
9 - 48 months
Term
Spring Financial is the best loan company for an easy application because of its streamlined online process.
  • Approval within 24 hours
  • Minimum credit score is 500
  • All of Canada
  • Interest rates can reach as high as 46.96%
  • Only borrow up to $15,000
Loan amount $500 – $15,000
APR 17.99% – 46.96%
Term 9 - 48 months
Interest Rate Type Fixed
Min. Credit Score 500
Fees No fees except $30 NSF fee
Origination Fee N/A
Turnaround Time Within 24 hours

Best bank: National Bank Personal Loan

N/A
Loan amount
8.2% – 11.3%
APR
6 - 60 months
Term
National Bank is the best bank for personal loans because we find it is most transparent about interest rates.
  • Interest rates are as low as 8.2%
  • Choose between a fixed and variable rate
  • No early repayment fees
  • Not as fast as online lenders
  • Stricter eligibility requirements than online lenders
Loan amount N/A
APR 8.2% – 11.3%
Term 6 - 60 months
Interest Rate Type Fixed

How we selected the best personal loans

*We’ve chosen the products on this page based on the providers available through Finder and online in the Canadian loans marketplace. These loans are not representative of the entire market. When choosing the best personal loans, we considered each lender’s rates, fees, terms, borrowing amounts, funding speed and borrower perks. Please note: Canadian major banks offer personal loans; however, their APR ranges are not listed online and vary, depending on the lender and each applicant’s financial situation.

No single personal loan will be the best choice for everyone, so compare your options before applying.

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How to find the best loan company in Canada

There’s no single best personal loan in Canada for everyone, but you can find one that’s best for your unique needs. Knowing what to look out for, such as interest rates and fees you can and cannot avoid, will help you reach your top choices. Consider taking the following steps:

1. Know your credit score

When you know your credit score, you can easily pick out the loans you’re eligible for, since credit score is a major factor that lenders look at. If you don’t know your credit score, you can order a free copy of your credit report once a year from one of the credit bureaus (Equifax or TransUnion). Your credit report is the true record of your financial history. If you notice any discrepancies on it, you can file a dispute with the credit bureau to raise your credit score. But this process can take several weeks.

It’s understandable if you don’t have the time for that. In which case, you can get a snapshot of your credit score through a free online credit monitoring service. Lenders like Mogo and Borrowell offer this. When you sign up, they’ll do a soft credit check to get your score within minutes.

2. Decide what type of personal loan you want

The following types are available to you:

3. Decide where you want to apply

You have different types of lenders to choose from:

  • Banks and credit unions. These are the traditional lenders. They offer competitive rates and give you a choice between secured and unsecured loans and between fixed and variable rates. If you have a good to excellent credit score above 660 and can wait 1-4 weeks to get your personal loan, they are a solid option.
  • P2P lending platform. With this option, everyday Canadian investors will fund your loan anonymously through a regulated platform. You can get a competitive interest rate because a P2P lending platform does not have the same large operating costs as brick-and-mortar financial institutions, which means it can pass on those savings to the borrower. goPeer is an example of this platform, but it only offers unsecured loans, and your credit score will need to be at least 600.
  • Alternative lenders. These lenders have higher rates on average, but they also have looser eligibility requirements. If your finances are not strong – for example, your credit score is below 600 – alternative lenders are an option. Some alternative lenders offer both secured and unsecured loans, while others offer only one type. Interest rates are fixed.

4. Compare loan features

Now that you have an idea of what type of loan you want and what type of lender you want to apply to, you can compare the actual loan features. These can differ significantly among lenders, so be sure to look out for the following:

Once you do these 4 steps, you can narrow down your choices to the best personal loans for your situation.

What are the best personal loan rates in Canada?

The interest rate determines how much your loan will cost you, so understandably, it’s the most crucial factor to consider. Interest rates depend on personal factors, such as your credit score, debt-to-income ratio and whether the loan has collateral, so there’s no single best personal loan rate.

That being said, as of January 2022, the average personal loan interest rate in Canada is 6.32% according to the Bank of Canada. This may not be very helpful because this combines fixed and variable rates and secured and unsecured loans, so we’ve included a comparison table below for different types of lenders, for unsecured vs. secured personal loans, and for fixed vs. variable interest rates.

Loan providerInterest ratesLender typeMinimum credit score
Picture not described
  • Fixed rate, secured: from 1.9%
  • Fixed rate, unsecured: 6.99% – 46.96%
Online broker300Go to site
Picture not described
  • Fixed rate, unsecured: 8.00% - 33.92%
P2P lender600Read review
Picture not described
  • Fixed rate, unsecured: 9.90% - 46.96%
Alternative lender500Go to site
Picture not described
  • Fixed rate, secured: 8.59%
  • Fixed rate, unsecured: 9.09%
  • Variable rate, secured 7.74%
  • Variable rate, unsecured 8.24%
Credit unionTypically above 660Credit union loans
National Bank logo
  • Fixed rate, unsecured: 9.65% - 11.30%
  • Variable rate, unsecured: 8.70% - 10.20%
BankTypically above 660Read review

As of April 2022
Compare more personal loan interest rates in Canada

Summary of the best personal loans in Canada

LenderAPRBest for…What sets it apart
LoanConnect1.90% (secured), 6.99% – 46.96% (unsecured)Bad creditLoanConnect has a large lender network and strong client service. Fill out 1 simple application and get matched for free with lenders who can potentially finance you based on your situation.
Loans Canada2.00% (secured), 2% – 46.96% (unsecured)Comparing optionsLoans Canada has the largest network of lenders in Canada.
SkyCap12.99% - 39.99%Customer serviceSkyCap bases its lending decisions on your credibility, stability and current income. It can consider borrowers with bad credit or past bankruptcy.
goPeer8.00% - 33.92%Low interest rates or good creditgoPeer strives to offer better interest rates than the competition. As an online P2P lender, goPeer can cut down operating costs and transfer those savings back to the borrower.
FlexMoney18.90% - 46.93%SpeedFlexMoney uses online banking verification to eliminate the need for extra documents and to speed up the process. It can give pre-approval instantly and official approval within 24 hours.
Mogo9.90% - 46.96%Easy application processMogo has a streamlined process where you fill out a simple form and find out if you’re pre-approved within 3 minutes. Getting pre-approval will not impact your credit score.
Money Mart46.93%No employment incomeMoney Mart can consider borrowers with bad credit who only have non-employment income such as government benefits.
Spring17.99% - 46.96%Easy applicationSpring lets you apply within minutes and get a rapid response about your application. You also won’t need to email or fax any paperwork.
Fairstone19.99% - 23.99%SecuredIf you have fair credit, you can use your home equity to borrow up to $50,000.
National Bank8.20% - 11.30%BankNational Bank is one of the largest banks in Canada. It is upfront about its interest rates.

    What are the eligibility requirements of a personal loan?

    You’ll need to meet the following basic requirements to get a personal loan:

    • Be 18 years old or the age of majority in your province or territory.
    • Be a Canadian citizen or a permanent resident.
    • Have an active bank account.
    • Have proof of regular income and ongoing employment.
    • Meet the minimum credit score.

    How to apply for a personal loan

    Follow these steps to apply for the best personal loan for your situation:

    1. Compare lenders. Compare the key features of different lenders and pick your top choices.
    2. Apply to your top choices. Include personal information such as your name, address, phone number, email, employment, income and housing situation.
    3. Wait for a decision. Online lenders can give fast pre-approval within minutes, while banks and credit unions can take 1 to 3 business days.
    4. Pick the best personal loan. Compare offers from your top choices, and pick the best personal loan for your needs.
    5. Submit documents to your top choice. You may need to provide bank statements, tax returns, government-issued ID and other documents to support your application. You’ll also need to submit to a credit check.
    6. Get a final loan offer. Review the loan agreement. Understand your payment schedule and how much the loan will cost you overall. Keep an eye out for any extra fees.
    7. Sign and submit. If you’re happy with the terms of your personal loan, sign and submit your loan agreement. You’ll get your money via e-transfer or direct deposit.

    Benefits of personal loans

    There are many benefits to consider before choosing the best personal loan for your budget and lifestyle:

    • Quick financing. Get the money you need within 24 to 48 hours to cover unexpected expenses.
    • Affordable payments. If you have good credit, pay less interest than you would with a credit card or short-term loan.
    • Large amounts. Qualify for larger amounts of credit than you might be able to with a credit card.
    • Multiple lenders. Whether you have good or bad credit, Canada has many providers of personal loans to choose from.
    • No prepayment penalties. Most lenders do not charge you penalties to pay off your loan early or make extra payments.
    • Bad credit can qualify. You may still be able to qualify with bad credit if you’re willing to accept higher interest rates, secure your loan with assets or enlist a co-signer.
    • Improve your credit score. Your credit score will improve if you keep up with your payments.

    What to watch out for with personal loans

    There are also a couple of drawbacks to consider before you sign up for a personal loan, as it may not be the best fit for you:

    • High interest rates. You may end up paying high interest rates on your personal loan if you have bad credit.
    • Origination fees. Some lenders may charge an administrative fee to process your loan, which can sit anywhere between 1% and 5% of the total amount you borrow.
    • More debt. Only take out a personal loan if there’s room in your budget to take on the debt.
    • Damage to credit score. If you don’t make payments on time, your credit score will take a big hit – which could affect your ability to borrow in the future.

    What role does my credit score play?

    Whether you’re applying for a credit card, a mortgage or a personal loan, your credit score is one of the most important factors in qualifying with a lender.

    How credit score affects your interest rate

    If you have a good credit score above 660, you’ll have access to lower interest rates. If you have a bad credit score below 560, lenders can offer you a loan but at higher rates to offset the risk they’re taking with lending you money. You may even have to compensate by proving you have a stable source of income to manage your repayments, or you may have to consider a secured loan, offering up an asset as insurance in case you default on your loan.

    How credit score affects your ability to get a personal loan

    Your credit score will determine the breadth of personal loan options available to you. Traditional lenders, such as banks and credit unions, will only provide personal loans to people with a good credit score. On the other hand, a low credit score may limit you to alternative lenders that offer bad credit personal loans.

    How to increase your chances of getting approved

    When you’re about to ask a lender for a personal loan, you’ll need to take extra care to make sure you’re putting your best financial foot forward. Your job is to prove to lenders that you are a responsible borrower who can repay your debts.

    While there’s no one surefire way to ensure that you are approved for a personal loan, the following may help:

    • Review the loan’s eligibility requirements before applying. Most lenders have specific requirements you need to meet in order to qualify. For example, they will state the minimum credit score or minimum employment income.
    • Get your credit report. Your credit report gives a true record of your financial history. Lenders use it to judge how much they should lend you. You can order a free copy from a major credit bureau once a year. Correct any errors or discrepancies before applying for a loan.
    • Improve your credit score first. This may not be an option if you need a loan now, but if you can wait half a year, increase your credit score by staying on top of all of your debt repayments, and paying down debts as much as you can to lower your debt-to-income ratio.
    • Enlist a cosigner. A cosigner is someone with good finances who agrees to sign the loan with you. This can strengthen your loan application because they would be signing up to cover your loan payments should you default on them. If you have fair or bad credit, this could be a way for you to get approved for a personal loan.

    What will the loan repayments be like?

    Loan repayments differ based on a number of factors, including:

    • Your loan amount. How much you decide to borrow will play a big role in what your repayments will look like.
    • Your interest rate. Rates can run as low as 1.90% right up to around 47%, depending on your credit score and other factors your lender may take into account.
    • Your loan term. You could decide to take out a 6-month loan right up to a 60-month loan (more if you borrow a large amount).
    • Any extra fees and charges. From origination fees to prepayment penalties, you may have extra charges tacked onto your loan.
    • Repayment schedule. Working with your lender, you may agree to weekly, fortnightly or monthly payments.

    Keep in mind, loans with a longer loan term tend to have lower monthly payments. But they allow more time for interest to add up, increasing how much your loan costs in the long run. Do some number-crunching and commit to a repayment plan that fits your budget.

      Find a personal loan for your situation

      Use the table below to compare personal loans from various lenders.

      1 - 8 of 8
      Name Product Interest Rate Loan Amount Loan Term Requirements Link
      Loans Canada Personal Loan
      Secured from 2.00%, Unsecured from 8.00% to 46.96%
      $300 - $50,000
      3 - 60 months
      Requirements: min. credit score 300
      Go to site
      More Info
      A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
      Spring Financial Personal Loan
      17.99% - 46.96%
      $500 - $15,000
      9 - 48 months
      Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
      Go to site
      More Info
      If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
      SkyCap Financial Personal Loan
      12.99% - 39.99%
      $500 - $10,000
      9 - 60 months
      Requirements: min. income $1,600/month, stable employment, min. credit score 550, no bankruptcy
      Go to site
      More Info
      Apply in less than 5 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours.
      Loanz Personal Loan
      29.9% - 46.9%
      $1,000 - $15,000
      12 - 60 months
      Requirements: min. credit score 570, min. income $1,200/month, 3+ months employed
      Go to site
      More Info
      Apply online and get approved in less than 3 minutes. Receive funds in as little as 15 minutes. Borrowers with bad credit or no credit can apply.
      LoanConnect Personal Loan
      Secured from 1.90%, Unsecured 6.99%-46.96%
      $500 - $50,000
      3 - 120 months
      Requirements: min. credit score 300
      Go to site
      More Info
      Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
      FlexMoney Personal Loan
      18.90% - 46.93%
      $500 - $15,000
      6 - 60 months
      Requirements: min. income $2,000/month, 3+ months employed, min. credit score 500
      Go to site
      More Info
      Apply in less than 10 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours. Pay off your loan any time without penalty.
      OFFER
      Mogo Personal Loan
      9.90% - 46.96%
      $200 - $35,000
      6 - 60 months
      Requirements: min. income $13,000/year, min. credit score 500
      Go to site
      More Info
      Get a free quote without affecting your credit score and get an unsecured loan the same day. 100-day money-back guarantee: If you're not happy with your loan, pay back the principal and get the 100 days of paid interest and fees back.
      SECURED
      Fairstone Secured Personal Loan
      19.99% - 23.99%
      $5,000 - $50,000
      36 - 120 months
      Requirements: must be a homeowner, min. credit score 560
      Go to site
      More Info
      Use your home equity to get a secured loan with flexible repayment options. Get a free quote without impacting your credit score.
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      Compare up to 4 providers

      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.

          Other borrowing options

          If you’re struggling to qualify for a standard personal loan, you may want to consider other suitable forms of credit. These include the following:

          • Line of credit. If you need ongoing access to credit that you can pay back on your own terms then you may want to consider a line of credit.
          • Credit card. You may want to think about taking out a credit card to pay for small purchases since this will let you earn rewards and enjoy special card privileges.
          • Borrowing from friends or family. If you can pay your loan back quickly, you could ask your family or friends to give you an interest-free loan.
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          Bottom line

          Personal loans are a quick and affordable way to get access to financing, especially if you have good credit. There are many different types of loans and the best personal loan for you will depend on various factors. These can include how much you want to borrow, the interest rates you’re willing to pay and how long you want to take to pay back your loan.

          Frequently asked questions

          More guides on Finder

          Go to site