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Best personal loans in Canada for 2021

Compare the best personal loans in Canada to find the right fit for your needs and budget.

Comparing the best personal loans for your unique financial situation can be an arduous process, especially if you have bad credit. This is why we’ve compiled a list of some of the best personal loans in Canada to help you get started. Find out which providers offer personal loans, and learn how you can compare different types of lenders to find the best deal.

Best for bad credit: Loans Canada Personal Loan

$300 – $50,000
Loan amount
2% – 46.96%
APR
3 - 60 months
Term
When you apply for a Loans Canada personal loan, you'll be connected to one of the largest networks of lenders in Canada. You will be able to qualify for a loan even if you have bad credit. Loan decisions are based on factors like your income, so the state of your credit won't be as important.
  • 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
  • No in-person locations if you prefer to meet with your lender
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 no fees: Fairstone Personal Loan (Unsecured)

$500 – $20,000
Loan amount
26.99% – 39.99%
APR
6 - 60 months
Term
Fairstone offers unsecured personal loans that can be used to finance passion projects, debt consolidation or any other needs. You can take out a loan of anywhere from $500 to $20,000, without putting up any collateral, and without facing any application and origination fees and charges.
  • No early settlement, origination and application fees
  • No prepayment fees for paying off your loan early
  • Flexible loan amounts of up to $20,000
  • Repayment installment options, including fortnightly or monthly
  • 14-day cancellation period to cancel your loan without incurring any fees
  • Can come with high interest rates of up to 39.99%
  • In-branch application is involved in the loans approval process
Loan amount $500 – $20,000
APR 26.99% – 39.99%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 560
Fees No application, origination or prepayment fees
Origination Fee None
Turnaround Time Within 24 hours

Best for unsecured loans: Mogo Personal Loan

$200 – $35,000
Loan amount
5.9% – 46.96%
APR
6 - 60 months
Term
If you're looking for an unsecured personal loan, Mogo offers loans starting at $200 up to $35,000 for a term of 6 months to 5 years. With varying APRs, Mogo considers each application individually and bases rates on the province you reside in, your credit score, credit history and the loan product you're interested in.
  • Free credit score check when you sign up for a Mogo account and verify your identity
  • Check loan options available to you before applying
  • Sign your application and contract online for convenience
  • Automatic repayments are mandatory for easy organization
  • High loan amounts of up to $35,000 for unsecured loans
  • &gt
  • Regional availability only
  • APRs can reach as high as 47.42% if you have bad credit
  • Fees may apply depending on the loan option you choose
  • Non-sufficient funds fee of $20 to $50
Loan amount $200 – $35,000
APR 5.9% – 46.96%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 540
Fees No application or origination fees
NSF - $20 to $50
Origination Fee $0
Turnaround Time Within 24 hours

Best for low interest rates: LoanConnect Personal Loan

$500 – $50,000
Loan amount
1.9% – 46.96%
APR
3 - 120 months
Term
LoanConnect is a reputable online personal loan platform that compares several suitable financing options based on your unique profile. Fill in your personal details in a simple online application and you'll be matched with a hand-picked list of lenders that are willing to provide you with financing. Secured loans start at 1.90%, and you can expect to receive funds within as little as 24 hours of applying, provided you meet all of the eligibility requirements.
  • Easy online application that you can complete in a matter of minutes
  • Low interest rates starting at 1.90% for secured loans
  • 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 5 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.

Best for repayment terms: Fairstone Personal Loan (Secured)

$5,000 – $50,000
Loan amount
19.99% – 23.99%
APR
36 - 120 months
Term
You can apply for a secured personal loan from Fairstone for an amount between $5,000 and $50,000. Loan terms vary between 3 years right up to 10 years. Fairstone offers you several repayment options. You can pay weekly, fortnightly or monthly and opt into setting up automatic repayments for convenience.
  • Lengthy loan terms of up to 10 years, depending on your repayment goals
  • Flexible repayment schemes, with weekly, fortnightly and monthly repayment schedule options
  • Option to set up automatic repayments for convenience
  • Only available to people with a credit score of at least 560
  • Must provide collateral for a secured loan
  • Need to visit a branch to complete the application
  • Fees may apply, depending on your province and territory
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

Best for fast funding: LendDirect Line of Credit

$100 – $15,000
Loan amount
19.99% – 46.93%
APR
No end dates
Term
LendDirect offers customers line of credit loans with the option to borrow up to $15,000. LendDirect also offers flexible payment options with the option to apply 100% online. If your application has been approved, your loan will be funded using INTERAC e-Transfer where you will typically receive the money within 15 minutes.
  • Funds released within 15 minutes of application approval via INTERAC e-Transfer
  • 100% online application for convenience
  • Fast turnaround time for approvals, which are usually less than an hour
  • Automatic repayments can be set up
  • Loans of up to $15,000
  • Interest rates could be as steep as 46.93%
  • No in-person customer service
  • Need a credit score of at least 560
  • Cannot be on government assistance
Loan amount $100 – $15,000
APR 19.99% – 46.93%
Term No end dates
Interest Rate Type Fixed
Min. Credit Score 560
Fees None
Origination Fee $0
Turnaround Time Within 2 hours with INTERAC e-Transfer®

Best for title loans: Loans Canada Vehicle Title Loan

$500 – $35,000
Loan amount
0% – 29.99%
APR
3 - 96 months
Term
Loans Canada offers online title loans so you can apply, get approved and receive your funds entirely online. With online loans, lenders typically ask you to upload images of your vehicle and send in a copy of your title instead. Once you're approved and your car ownership is verified, Loans Canada sends your funds to your bank account.
  • Online application instead of taking your car to a title loan company for inspection
  • Quick approvals process and turnaround time for processing your funding
  • Interest rates as high as 29.99% for bad credit
  • Delays may occur with verifying your car ownership online
  • You may need to consent to a credit check
  • Using your vehicle as collateral to secure your loan
Loan amount $500 – $35,000
APR 0% – 29.99%
Term 3 - 96 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees Varies by lender
Origination Fee Dependent on lender
Turnaround Time Varies

Best for no employment income: Cash Money Installment Loan

$500 – $10,000
Loan amount
Starting at 46.93%
APR
6 - 60 months
Term
Cash Money provides installment loans of up to $10,000, accepting government assisted income if applicants aren't employed. Employment Insurance, Child Tax Benefits, Social Assistance and Canada Pension Plan income can count as a form of income in your application.
  • 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 46.93%
  • Potential for additional charges, including establishment fees and missed payment fees
  • Loan amount limited to $10,000
Loan amount $500 – $10,000
APR Starting at 46.93%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 560
Fees Vary across provinces/territories
Turnaround Time in as little as 15 minutes with INTERAC e-Transfer® or on the spot at your nearest Cash Money store

Best for debt relief: Debt.ca

N/A
Loan amount
N/A
APR
Varies
Term
If you're juggling credit card due dates, personal loan repayments, lines of credit and collections calls, Debt.ca connects you with debt service providers near you based on your postal code and your individual financial situation with your debts. Working with a local debt specialist, Debt.ca will help you consolidate your debts and work with your creditors to come to a settlement agreement.
  • Options include debt settlement, debt consolidation, credit counselling and consumer proposals
  • Easy, secure online application with quick referrals help from a debt specialist
  • Debt relief provided with bad credit or no credit
  • Lower monthly payments and lower interest rates after consolidating your debts
  • Unsecured debts only &ndash
  • secured debts cannot be settled via Debt.ca
  • Your credit rating will take a hit depending on the debt relief option you choose
  • Potential for additional fees as you go through the debt relief process
  • Only some debt consolidation/relief options showcased
Loan amount N/A
APR N/A
Term Varies
Interest Rate Type Fixed
Min. Credit Score 300
Fees Varies (depends on the company you're connected with)

Best for secured loans: Easy Financial Secured Loan

$15,000 – $45,000
Loan amount
19.99% – 28.99%
APR
72 - 120 months
Term
If you own your home and you need to borrow money, Easy Financial provides secured loans worth up to $45,000 if you use the equity in your property as collateral to score lower interest rates. Easy Financial's secured loans come with an interest rate of 19.99-46.96%, depending on factors like your credit score, loan amount and repayment time, along with the stability of your income.
  • Easy, secure online application with a quick approval process
  • Loan amount of up to $45,000
  • Flexibility in loan terms and repayment options to suit your needs
  • You have the option of in-person, online or over-the-phone interactions
  • Applying won't hurt your credit score at all
  • You're using your home as collateral to secure your loan
  • Potential for steep interest rates as high as 46.96% if you don't have the best credit score
  • Potential for additional charges for non-sufficient funds, late or missed payment fees
Loan amount $15,000 – $45,000
APR 19.99% – 28.99%
Term 72 - 120 months
Interest Rate Type Fixed
Fees N/A
Turnaround Time Within 48 hours

Best for good credit: Borrowell Personal Loan

$1,000 – $35,000
Loan amount
5.6% – 29.19%
APR
36 - 60 months
Term
Borrowell offers personal loans from $1,000 to $35,000 to Canadians with a credit score of at least 660, so your credit needs to be in great shape to qualify. If you do, interest rates are as low as 5.6%. Part of applying for a Borrowell Personal Loan includes getting a free credit score check.
  • High loan limits of up to $35,000 to cover a wide range of costs
  • Flexible loan terms ranging from 3 to 5 years
  • Free credit score check as part of the Borrowell Personal Loan application
  • Loan calculator access to help you save on total interest paid
  • Unlimited early repayments at no additional cost
  • Receiving your funds in as little as 48 hours after your loan is approved
  • Interest rates can be as high as 29.19%
  • You must have a minimum credit score of 660
  • You must have a minimum yearly income of $20,000 before taxes
  • You must not have declared bankruptcy in your lifetime
  • You must have at least a 12-month credit history
Loan amount $1,000 – $35,000
APR 5.6% – 29.19%
Term 36 - 60 months
Interest Rate Type Fixed
Min. Credit Score 660
Fees Origination fee: 1% - 5% of loan proceeds depending on credit score
Origination Fee 1% - 5% of loan proceeds depending on credit score
Turnaround Time 1-3 business days

Best for peer-to-peer loans: goPeer Personal Loan

$1,000 – $25,000
Loan amount
8% – 31%
APR
36 - 60 months
Term
goPeer is Canada's first consumer peer-to-peer lending platform helping Canadians borrow for personal loans. goPeer says it's able to offer better rates to borrowers than traditional lenders. Simply apply online and loan offers from anonymous investors will be sent directly to your goPeer account. Your identity will always remain confidential.
  • Interest rates are as low as 8.00%
  • Apply easily online and potentially receive multiple loan offers
  • Loan offers within 1 business day, peer funding typically within a few days
  • No early repayment fees
  • Potential for interest rates as high as 31.00%
  • A low credit score may not garner many loan offers
Loan amount $1,000 – $25,000
APR 8% – 31%
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

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 choose the best personal loan for you

Shopping around and comparing offers can get you a great deal. Here are a few tips as you begin your search for the best personal loan:

  • Nail down your priority. Do you care the most about rates? Monthly repayments? Overall loan cost? Consider what matters the most to you and start comparing lenders based on that feature.
  • Check that you’re eligible. Even if you have excellent credit and a high income, you might not be eligible for every loan. Some lenders don’t operate in every province, while others won’t work with self-employed applicants. If you’re not sure what the requirements are, reach out to the lender’s customer service team and ask.
  • Compare interest rates. Interest rates are the most important factor to consider when taking out a personal loan. Your best bet is to look for the shortest term with the lowest rate to save money in the long run.
  • Check for any fees and charges. Fees can add unnecessary costs to your loan. You should aim to watch out for hidden fees and charges in your contract so that you’ll know what extras you’ll need to pay for before you sign up.
  • Decide on terms and repayment options. The term of your loan and your repayment conditions determine how you’ll repay your loan each month over a set period of time. Aim for a lender that will work with you to renegotiate repayment if your financial situation takes a turn for the worse.
  • Use a repayment calculator to compare costs. Comparing interest rates is a good way to get a quick idea of which loan is the least expensive – as long as they have the same terms. When you’ve narrowed down your choices, use our calculator to find out how much each option might cost you in the short and long terms.
  • Read customer reviews. This can give you an idea of the quality of customer service you can expect with a lender. Take reviews with a grain of salt – people typically don’t go to the Better Business Bureau or Trustpilot when they’re satisfied with a product. But if you notice a pattern of complaints, that could be a red flag.

Best personal loan rates and summary

LenderAPRBest for…What sets it apart
LoanConnect1.90% (secured), 1.9% – 46.96% (unsecured)Low interest ratesSecured loans start at 1.90% and you can expect to receive funds in as little as 24 hours of applying.
Borrowell Personal Loan5.6% – 29.19%Good creditBorrowell offers personal loans from $1,000 to $35,000 to Canadians with a credit score of at least 660.
Loans Canada2.00% (secured), 2% – 46.96% (unsecured)Bad creditYou will be able to qualify for a Loans Canada loan even if you have bad credit. Loan decisions are based on factors like your income.
Fairstone Personal Loan26.99% – 39.99%No feesYou can take out a Fairstone loan of anywhere from $500 to $20,000 without facing any application and origination fees and charges.
Debt.caVariesDebt reliefDebt.ca connects you with debt service providers near you based on your postal code and your individual financial situation to help you consolidate your debts.
LendDirect19.99% – 46.93%Fast fundingIf your LendDirect application has been approved, your loan will be funded within 15 minutes using INTERAC e-Transfer.
LoanConnect1.90% (secured), 1.9% – 46.96% (unsecured)Easy online applicationAll you need to do is fill in your personal details in a simple online application and you’ll be matched with a hand-picked list of lenders.
Loans Canada Vehicle Title Loan0% – 29.99%Title loansLoans Canada offers online title loans so you can apply, get approved and receive your funds entirely online.
Fairstone Secured Personal Loan19.99% – 23.99%Repayment termsFairstone offers several repayment options, including weekly, fortnightly or monthly payments, terms of 3 years to 10 years, and you can opt into setting up automatic repayments for convenience.
goPeer8% – 31%Peer-to-peer loansgoPeer is Canada’s first consumer peer-to-peer lending platform helping Canadians borrow for personal loans and not business ones.
Mogo5.9% – 46.96%Unsecured loansIf you’re looking for an unsecured personal loan, Mogo offers loans starting at $200 up to $35,000 for a term of 6 months to 5 years.
Easy Financial19.99% – 46.96%Secured loansIf you own your home and you need to borrow money, Easy Financial provides secured loans worth up to $45,000 if you use the equity in your property as collateral to score lower interest rates.
Cash Money Installment Loan46.93%No employment incomeCash Money provides installment loans of up to $10,000, accepting government assisted income if applicants aren’t employed.

How do personal loans work?

Personal loans are designed to let you borrow a fixed amount of money to cover personal expenses and unexpected costs. With many lenders, you can fill out an application online to request financing. Once you’re approved, you have to agree to make regular payments to pay back the money you borrowed over a set period of time.

Most lenders will give you the loan as cash or deposit the funds into your bank account using direct deposit or Interac e-Transfer. They will also collect your banking information so they can take repayments directly out of your account each month. Your repayment amount will include any money you borrow plus interest and applicable fees.

What’s the best personal loan type for me?

There are several types of personal loans for you to choose from, each with its own unique set of features. You can compare loan types below to find the best personal loan for you:

Secured vs unsecured loans

  • Secured loans. Secured loans involve some sort of collateral to secure your loan. They are the most traditional way to get approved for a personal loan and often come with the lowest interest rates. Assets such as your house or your car could be used as collateral. That means if you default on your loan or can’t keep up with repayments, your lender has the right to repossess the assets.
  • Unsecured loans. Unsecured loans come with higher interest rates because they don’t require any form of collateral. Instead, these loans rely on your credit score to determine your eligibility. If you fail to repay them then your credit score will suffer. Unsecured loans are commonplace for online lenders – the application and approval process is usually pretty fast, which means you could secure a loan within the same day of applying.

Individual vs cosigned loans

  • Individual loans. Individual loans are loans that are secured by your credit score alone. You are individually responsible for their repayment and they damage your credit if you fail to repay them.
  • Cosigned loans. If you can’t qualify for a traditional loan on your own, you can ask someone close to you to cosign on your loan and act as a guarantor. This guarantor must accept responsibility for repaying your loan if you default on your payments (and their credit score suffers when repayments aren’t made on time).

Fixed rate vs variable loans

  • Fixed rate loans. With fixed rate personal loans, you will lock in an interest rate at the beginning of your loan term so your repayments stay the same throughout the duration of your loan. Fixed rate personal loans usually last from 1 to 5 years, with some extending up to 7 to 10 years. Having a set repayment plan for the life of your loan is a big benefit, but fixed rate loans have their share of drawbacks. In some cases, you can’t make additional repayments or pay off your loan early without incurring fees.
  • Variable rate loans. Variable rate personal loans tend to come with lower annual percentage rates (APRs) compared to fixed rate counterparts. The catch? As the name suggests, variable rate loans have fluctuating interest rates throughout the term of your loan depending on market conditions. With variable rate loans, your monthly payments will vary as your interest rate shifts.

Installment vs payday loans

  • Installment loans. Installment loans are loans that you pay back in installments over a period of time. The terms for your loan are typically negotiated with or set by your lender, who will tell you how much you need to pay every month, with interest factored in. When you agree on the terms of a loan, you’ll get a lump sum of cash, and then you’ll be legally responsible for paying that amount back in the required timeframe. Installment loans typically have smaller amounts than the average personal loan.
  • Payday loans. Payday loans are unsecured loans that get repaid by your next payday rather than in regular installments. They tend to be for small amounts and most come with exorbitant interest rates.

    Which providers offer the best personal loans in Canada?

    • Bank loans. Bank loans are provided by Canada’s Big Five Banks and other major financial institutions. They often come with lower interest rates than other types of loans, but they have strict eligibility requirements. It’s usually very difficult to qualify for these loans if you have bad credit.
    • Credit union loans. Credit union loans are personal loans that are a little bit more flexible than big bank loans. You’ll usually need to apply to be a member of the credit union to get a personal loan. These loans typically have more competitive interest rates than big bank loans and some online lenders, and bad credit is often accepted.
    • Private loans. Private loans are usually offered by online and alternative providers. These loans tend to come with better interest rates when you deal with a reputable provider. They also offer flexible repayment terms and it’s easier to qualify with bad credit. That said, there are many predatory lenders that operate online so it can be more risky to borrow from private lenders. Compare personal loans in Canada.

    Who can qualify for a personal loan in Canada?

    Anyone who has a regular source of income and a bank account in Canada may be able to qualify for a personal loan in Canada. Most lenders will also run a credit check when you apply for a personal loan to assess your creditworthiness.

    If you have bad credit, you may still be able to qualify though you might need to secure your loan with collateral or enlist a co-signer to secure your payments. You may also need to pursue a secured or guaranteed loan if you already have a high debt-to-income ratio.

    What are the eligibility requirements for a personal loan?

    You will usually need to meet the following requirements to apply for 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 with a valid Canadian address.
    • Have a working bank account (this is sometimes not a requirement – it varies between lenders).
    • Have proof of regular income and ongoing employment.
    • Some lenders may have additional criteria that you’ll need to meet in order to apply for a 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 3-year loan right up to a 10-year loan.
    • 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.

    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, hands down, one of the most important factors in qualifying with a lender at a competitive rate. You generally have more options if you have good to excellent credit.

    How it affects your interest rate

    Your credit score plays a key role in determining the interest rate lenders will offer you for a personal loan. With a strong credit score, you’ll secure loans at a more favourable interest rate. If you have a low credit score, lenders may offer you a loan but at a high interest rate 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 it affects your ability to get a personal loan

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

    How to apply for a personal loan

    You can follow these steps for apply for the best personal loan for your unique situation:

    1. Compare personal loans. Compare loans from a number of providers to find the best personal loan for your unique set of needs and budget.
    2. Contact lenders directly. You may want to contact the provider you’re interested in to get more information about loan terms and interest rates.
    3. Apply for the loan of your choice. You can apply for the best personal loan for you by visiting the main application site for the provider you’re interested in.
    4. Fill out application details. Fill out personal details such as your full name, address, email and phone number to start your application.
    5. Provide financial details. Input details about your income, debts, assets and other necessary financial information.
    6. Submit relevant documents. You could be required to show bank statements, employment letters, tax assessments and other documents to support your application.
    7. Submit to a credit check. You’ll usually have to submit to a personal credit check (or search for a bad credit loan if your credit score isn’t in the best shape).
    8. Review final details. Read the fine print of your personal loan and make sure you understand what you’re getting yourself into before you hand in your application.
    9. Click submit. Once you’re ready to apply, click submit on your application or call in to your personal loan provider directly to apply over the phone.

    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. If you’re not sure you’re eligible, contact the lender to discuss your situation.
    • Get your credit report. Your credit report gives a true record of your financial history and what lenders will use to judge how much they should lend you. You can order a free copy from each of the major credit bureaus annually. Make sure there aren’t any errors or discrepancies and make any corrections ahead of applying.
    • Improve your finances. Increase your credit score before applying for a loan 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. Taking this initiative will help you as you make your case to lenders to borrow more money.
    • Compare options before applying. Lenders have their own eligibility criteria, interest rates, fees and charges. Shopping around and comparing different offers can help you get the best terms for your loan and save you money.
    • 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.
    • Earn more money. Some lenders may find that your current income might not be enough to cover loan repayments. If you’re worried this may be the case, you may need to earn more money to show them you have a sufficient income to service your debts.

    Benefits of personal loans

    There are many benefits to consider before choosing the best personal loan for your budget and lifestyle. The following features set personal loans above other forms of financing:

    • Quick financing. Get the funds you need to cover your daily or unexpected expenses in an emergency.
    • Affordable payments. Pay less in interest than you might have to with a credit card or short-term loan (unless you have bad credit).
    • Large amounts. Qualify for larger amounts of credit than you might be able to with a credit card, payday loan or line of credit.
    • Longer terms. Pay your loan off with consistent repayments over a longer term to make sure you stay within your allotted budget.
    • Multiple lenders. Compare personal loans from a number of different lenders to find the best terms and rates for your unique personal situation.
    • 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.

    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 or you borrow from a predatory lender.
    • Origination fees. Private lenders may charge an administrative fee to process your loan, which can sit anywhere between 1% and 5% of the total amount you borrow.
    • Prepayment penalties. You could be required to pay a fee if you pay your loan off early when you borrow from certain lenders.
    • Large debt load. You may end up not being able to pay back the money you owe if you lose your job or run into unexpected costs that derail your budget.
    • 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.

    Compare personal loans in Canada

    Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
    LoanConnect Personal Loan
    Secured from 1.90%, Unsecured from 9.90%-46.96%
    $500 - $50,000
    3 - 120 months
    Currents debts must total less than 60% of income
    Min. credit score: 300
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    An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
    ConsumerCapital Personal Loan
    19.99% - 32.99%
    $1,500 - $12,500
    24 - 60 months
    Min. income of $1,900 /month, 6+ months employed
    Min. credit score: 540
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    An online lender that provides fast unsecured personal loans. Complete an application in less than 10 minutes and get a decision within 24 hours.
    Spring Financial Personal Loan
    17.99% - 46.96%
    $500 - $15,000
    9 - 48 months
    No min. income or employment requirements
    Min. credit score: 400
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    An online lender offering unsecured personal loans and credit builder loans. Those filing for bankruptcy or a consumer proposal can also apply. If you're not eligible for an unsecured loan, you may be offered a loan to help rebuild your credit.
    goPeer Personal Loan
    8.00% - 31.00%
    $1,000 - $25,000
    36 - 60 months
    Min. income of $15,000 /year
    Min. credit score: 600
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    Canada's first regulated consumer peer-to-peer lending platform offering unsecured loans. Connects creditworthy Canadians looking for a loan with Canadians looking to invest. goPeer strives to offer the most competitive interest rates. Apply in minutes and get a response within 24 hours.
    FlexMoney Personal Loan
    18.90% - 46.93%
    $500 - $15,000
    6 - 60 months
    Min. income of $2,000 /month, 3+ months employed
    Min. credit score: 500
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    An online lender offering flexible unsecured loans. Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan at any time.
    Loans Canada Personal Loan
    Secured from 2.00%, Unsecured from 8.00% to 46.96%
    $300 - $50,000
    3 - 60 months
    No min. income or employment requirements
    Min. credit score: 300
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    An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
    SkyCap Financial Personal Loan
    12.99% - 39.99%
    $500 - $10,000
    9 - 36 months
    Min. income of $1,200 /month, stable employment
    Min. credit score: 550
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    An online lender offering unsecured personal loans to borrowers with a wide range of credit scores. Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
    Mogo Personal Loan
    5.90% - 46.96%
    $200 - $35,000
    6 - 60 months
    Min. income of $13,000 /year
    Min. credit score: 540


    Mogo offers a 100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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    An online lender who aims for a hassle-free process through same-day unsecured loan approval and funding. Get a loan fast and track your credit score for free.
    Fairstone Personal Loan (Unsecured)
    26.99% - 39.99%
    $500 - $20,000
    6 - 60 months
    Able to make monthly repayments on your loan
    Min. credit score: 560
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    An online lender with a team dedicated to professional service. Get a quote for an unsecured loan without impacting your credit score. Receive funds within as little as 24 hours. No prepayment fees.
    Loan Away Personal Loan
    19.90% - 45.90%
    $1,000 - $5,000
    6 - 36 months
    No min. income or employment requirements
    Min. credit score: 300
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    A lender that approves unsecured loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
    Fairstone Personal Loan (Secured)
    19.99% - 23.99%
    $5,000 - $50,000
    36 - 120 months
    Must be a homeowner
    Min. credit score: 560
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    Use your home equity to get a secured loan up to $50,000 with flexible repayment options and a long loan term. Get a quote without impacting your credit score.
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        Other borrowing options

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

        • Peer-to-peer loans. Peer-to-peer loans offer lower rates, more flexibility, quicker turnaround and fewer fees than many traditional banks.
        • Business loans. Business loans can be a good low-interest option if you’re taking out money to fund business expenses.
        • 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

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