Best Personal Loans in Canada in 2026

Need a personal loan to cover a major expense? Banks and credit unions are solid choices when you have good credit, but they’re not your only option. If you have bad credit, traditional lenders might be out of reach, but many alternative lenders in Canada are more lenient with their eligibility requirements.

This guide covers the best personal loans in Canada for various financial situations. Compare lenders to find the best rates and terms for your needs.

Summary: Best personal loans in Canada

1. easyfinancial: Best private direct lender
2. CIBC: Best bank personal loan
3. LoanConnect: Best loan search platform
4. Green Loans: Best no credit check installment loan
5. Fora: Best private line of credit
6. Loans Canada: Best bad credit loan
7. Innovation: Best credit union personal loan

Best private direct lenders of personal loans

Private direct lenders offer quick and easy online applications and sometimes operate branch networks across Canada. Their eligibility requirements aren’t as strict as banks and credit unions, so it’s possible to get a loan even if you don’t have strong credit.

Private lenders can also offer fast funding, so it’s possible to get your money the same day or within a few hours in some cases. However, you’ll need to settle for higher interest rates than bank and credit union personal loans, especially if you have bad credit.

Winner: easyfinancial

8.6 Great

Read review

$500 – $150,000
Loan amount

9.99% – 35%
APR

9 - 240 months
Term

• Our Take
• Pros + Cons
• Details

easyfinancial is one of the largest and most well-known alternative lenders in the country, offering personal loans to Canadians who can't access traditional financing because of their low credit score, low income or existing debts. You can apply for a loan with or without collateral.

Why choose it

• Lenient eligibility requirements. If you have bad credit, or if you're a student or newcomer to Canada with a limited credit history, you can still apply for a loan with easyfinancial.
• Fast access to funds. You can get approved within 30 minutes, then get your funds via e-Transfer as quickly as a few hours after applying.
• Established lender. easyfinancial was founded in 2006 and operates over 400 branches across Canada.

• Apply online or in person
• High approval rate
• Flexible repayment options
• Repay early without penalty
• Available across Canada

• High interest rates
• Watch out for additional fees
• Some mixed customer reviews on Trustpilot

Loan Amount	$500 – $150,000
APR Range	9.99% – 35%
Loan Term	9 - 240 months
Serviced Provinces/Territories	All provinces
Turnaround Time	Approval within 30 minutes
Min. Credit Score	300
Fees	Potential NSF fee, late payment fee, Credit Optimizer fee
Requirements	Min. monthly income of $1,200, min. credit score of 300

Runner-up: Spring Financial

8.5 Great

Go to site Read review

Spring Financial Personal Loan

$500 – $35,000
Loan amount

9.99% – 35%
APR

6 - 84 months
Term

• Info
• Pros + Cons
• Details

Established in 2014, Spring Financial is an online lender that works with borrowers who have all types of credit. You can borrow up to $35,000, choose a loan term ranging from 6 months to 7 years, and get your funds via e-Transfer the same day. You also get the security of dealing with a lender that has thousands of positive customer reviews on Trustpilot.

• Completely online borrowing process
• Fair or bad credit is OK
• Repay your loan early without penalty
• Available across Canada
• 4.6/5 stars based on 19,800+ Trustpilot reviews

• High interest rates if you have bad credit
• You could get offered a credit builder loan instead

Loan Amount	$500 – $35,000
APR Range	9.99% – 35%
Loan Term	6 - 84 months
Serviced Provinces/Territories	All of Canada
Turnaround Time	Within 24 hours
Min. Credit Score	550
Fees	No fees except a $30 NSF fee
Requirements	Min. income of $2,000, min. credit score of 550, 3+ months employed

Best bank personal loans

From the Big Five to a range of smaller financial institutions, many of us think of banks when we need a personal loan.

Bank personal loans offer some of the best interest rates around. You can borrow up to $50,000 (or more in some cases), choose a fixed or variable rate, and repay your loan over a term ranging from 1 to 5 years.

But you will need good to excellent credit to qualify for a bank personal loan, and banks tend to have slower approval and funding times than online private lenders.

Winner: CIBC

7.9 Great

Read review

$3,000 – $200,000
Loan amount

Undisclosed
APR

1 - 5 years
Term

• Our Take
• Pros + Cons
• Details

If you want the security and peace of mind that comes with borrowing from a Big Five bank, consider a CIBC personal loan. CIBC offers unsecured loans of up to $200,000, and even higher amounts if you opt for a secured loan. Terms range from 1 - 5 years, but you also have the flexibility to repay your loan early without penalty.

Why choose it

• Low rates. As one of the largest banks in Canada, CIBC can offer some of the best interest rates. However, you'll need to be in a strong financial position in order to get a low rate.
• Flexible loan options. Choose between a fixed and variable rate. Use your home or other assets as collateral to increase your chances of approval and to potentially borrow more, or get an unsecured personal loan for a faster approval process.
• Fast online application. Unlike some traditional lenders, CIBC has an online application that's easy to fill out and takes about five minutes.

• Apply online within minutes
• Large loan amounts
• Competitive interest rates
• Flexible repayment options
• No prepayment fees

• Bad credit is not OK
• High minimum loan amount of $3,000
• Slow approval process

Loan Amount	$3,000 – $200,000
APR Range	Undisclosed
Loan Term	1 - 5 years
Serviced Provinces/Territories	Across Canada
Requirements	Canadian citizen or permanent resident, of the age of majority in your province, with good to excellent credit (660 or higher), earn a minimum income of $17,000 annually, have not claimed bankruptcy within the last 7 years, have not been declined for any CIBC credit in the past 6 months.

Runner-up: BMO

7.7 Great

Read review

BMO Personal Loan

Starting at $2,000
Loan amount

Undisclosed
APR

1 - 5 years
Term

• Info
• Pros + Cons
• Details

BMO is a solid option if you have strong enough credit to qualify for a bank personal loan. You can choose a secured or unsecured loan, borrow amounts starting from $2,000, and opt for a fixed or variable rate. Terms range from 1 - 5 years, and you can choose a monthly, semi-monthly, bi-weekly or weekly repayment schedule.

• Competitive interest rates
• Secure your loan to get a lower interest rate
• Flexible repayment options
• Major bank

• You can't apply online
• You need good to excellent credit
• APR range not listed online

Loan Amount	Starting at $2,000
APR Range	Undisclosed
Loan Term	1 - 5 years
Serviced Provinces/Territories	All of Canada

Best loan search platforms

The best loan search platforms in Canada make it quick and easy to compare loan offers and choose one that’s right for you. Instead of filling out pre-approval applications at multiple lenders, you can fill out a single application to compare your loan options in one place.

Loan search platforms can help you access secured and unsecured personal loans as well as a wide range of other borrowing options. Loans are available for good and bad credit. Platforms are free to use too, but it’s worth noting that they don’t actually lend money, so your loan will be managed by a third party.

Winner: LoanConnect

8.8 Great

Go to site Read review

$500 – $50,000
Loan amount

8.99% – 35%
APR

3 - 120 months
Term

• Our Take
• Pros + Cons
• Details

LoanConnect is our winner as the best loan search platform for several reasons. It offers a user-friendly interface, easy access to a large network of lenders, and pre-approvals within a minute. Even better, you get the peace of mind of dealing with a Better Business Bureau accredited provider with an A+ rating.

Why choose it

• Fast and convenient pre-approvals. You can apply and get pre-approved for loans of up to $50,000 in 60 seconds, and doing so won't affect your credit score.
• Same-day funding. If you need money fast, it's possible to get approved and funded the same day.
• Free to use. There are no fees for using LoanConnect.

• Bad credit is OK
• Terms from 3 - 120 months
• Canadian Lenders Association Approved Vendor
• Compare offers from a network of lenders in one place

• Not a direct lender
• High interest rates for bad credit

Loan Amount	$500 – $50,000
APR Range	8.99% – 35%
Loan Term	3 - 120 months
Serviced Provinces/Territories	All provinces
Turnaround Time	Receive funds in as little as 24 hours.
Min. Credit Score	300
Fees	No application, origination or brokerage fees
Requirements	Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income

Runner-up: Loans Canada

8.6 Great

Go to site Read review

Loans Canada Personal Loan

$500 – $50,000
Loan amount

9.99% – 35%
APR

3 - 60 months
Term

• Info
• Pros + Cons
• Details

Loans Canada is a free loan search platform based in Toronto, Ontario. It has a large network of 60+ lenders for all types of borrowers. If you've been denied a personal loan by a bank or credit union or simply want to compare offers to find the best for you, Loans Canada is worth considering.

• Easy and free to use
• Large network of lenders
• Bad credit is OK
• Compare multiple loan offers

• Not a direct lender
• High rates if you have bad credit

Loan Amount	$500 – $50,000
APR Range	9.99% – 35%
Loan Term	3 - 60 months
Serviced Provinces/Territories	All of Canada
Turnaround Time	Receive funds in as little as 24 hours.
Min. Credit Score	300
Fees	No application, origination or brokerage fees
Requirements	Canadian resident, age of majority in your province of residence

Best no credit check installment loans

The best no credit check installment loans offer quick online applications and fast access to funds. Lenders will assess your income and employment situation to determine if you can afford a loan. And with no credit checks to worry about, you can often get approved and funded the same day.

You will then repay your loan plus interest in weekly, bi-weekly or monthly installments. But these lenient eligibility criteria come at a cost, so you’ll need to watch out for high interest rates and brokerage fees when applying for a loan.

Winner: Green Loans

7.9 Great

Read review

$300 – $1,000
Loan amount

22% – 35% + broker fee
APR

3 - 12 months
Term

• Our Take
• Pros + Cons
• Details

Green Loans is an online broker that connects you with lenders that offer small personal loans. You can borrow up to $1,000, apply online within minutes, and get funded even if you have poor credit. If approved, you'll get your money via e-Transfer or direct deposit and then repay it over a term ranging from 3 - 12 months. Watch out for a broker fee that's added to your payments.

Why choose it

• No credit checks. Bad credit won't stop you from getting a loan with Green Loans' network of lending partners.
• Fast funding. You can get approved online instantly and receive your loan the same day or within 24 hours.
• Accepts non-employment income. Green Loans accepts several types of non-employment income, including disability benefits, private pensions, CPP, OAS, workers' compensation and more.

• Apply online in minutes
• Get funded within 24 hours
• Bad credit is OK
• No collateral required
• Repay early without penalty
• Broker fee that can cost hundreds of dollars

• Not a direct lender
• 22.00% - 35.00% + broker fee APRs
• Small loan amounts won't suit everyone

Loan Amount	$300 – $1,000
APR Range	22% – 35%
Loan Term	3 - 12 months
Serviced Provinces/Territories	all provinces except Manitoba and Alberta
Turnaround Time	within 24 hours
Min. Credit Score	300
Fees	2.66% late fee
Requirements	• Share banking access via our secure IBV system (Instant Banking Verification) • Have a Canadian bank account open for 90+ days with online access • Be a Canadian citizen or permanent resident with a job • Be 18 or older (or provincial age of majority) • Earn at least $1,200 monthly in net income • Provide a valid phone number, email, and home address • You must not be in a bankruptcy or a consumer proposal. • You must not be planning to declare bankruptcy or a consumer proposal.

Runner-up: Vancity Fair and Fast Loan

7.8 Great

Read review

Vancity Fair and Fast Loan

$100 – $2,500
Loan amount

Starting at 19%
APR

12 - 24 months
Term

• Info
• Pros + Cons
• Details

Vancity's Fair and Fast Loan is an affordable alternative to a payday loan. Rather than worrying about your credit score, Vancity determines your eligibility based on your income. It offers a fixed interest rate of 19.00%, which is more competitive than similar loans. However, while Vancity doesn't do credit checks for this loan, that doesn't mean you'll qualify if you have bad credit. You still need to be creditworthy to get approved.

• Much cheaper than a payday loan
• No credit checks
• Get funded Within 10 minutes
• Pay your loan back early without penalty
• Cheaper than other no credit check loans from alternative lenders

• $2,500 may not be enough for your needs
• 19.00% is higher than the rates of traditional personal loans

Loan Amount	$100 – $2,500
APR Range	Starting at 19%
Loan Term	12 - 24 months
Serviced Provinces/Territories	BC
Turnaround Time	Within 10 minutes
Fees	No prepayment fees
Requirements	Unknown

Best private lines of credit

Leading alternative lenders offer flexible lines of credit for Canadian borrowers. These lenders have more lenient eligibility requirements than banks, and they offer fast online applications and approvals.

With a line of credit, you get access to a preapproved amount of money as and when you need it. You only pay interest on the money you use, not the entire credit limit, and you can borrow funds again after you have repaid them.

It’s also possible to qualify for a line of credit with less-than-perfect credit, but you’ll need to watch out for high interest rates.

Winner: Fora

7.9 Great

Go to site Read review

$1,000 – $15,000
Loan amount

19.9% – 34.9%
APR

Open
Term

• Our Take
• Pros + Cons
• Details

Fora's unsecured line of credit is designed for people who might not meet the strict eligibility criteria of traditional lenders. Credit limits of up to $15,000 are available, and you can apply online in a matter of minutes. Interest rates ranging from 19.9% to 34.9% apply, but there are no origination or annual fees to worry about.

Why choose it

• Fast access to funds. You can fill out an online application in minutes and get your loan funds the same business day.
• Lenient eligibility criteria. The Fora line of credit is worth checking out if you can't meet the strict eligibility requirements of traditional lenders.
• Positive reviews. Fora has an average rating of 4.6/5 stars based on over 600 Trustpilot reviews.

• Online ban verification for a fast application and approval process
• No hidden fees
• Only pay interest on the money you use
• Easy access to customer support

• High interest rates
• Not available in all provinces and territories

Loan Amount	$1,000 – $15,000
APR Range	19.9% – 34.9%
Loan Term	Open
Serviced Provinces/Territories	AB, BC, NB, NS, ON and SK
Min. Credit Score	550
Fees	Dishonoured payment fee may apply
Requirements	Steady source of income

Runner-up: MogoMini

7.1 Great

Go to site Read review

MogoMini Line of Credit

$300 – $5,000
Loan amount

Up to 34.37%
APR

Open
Term

• Info
• Pros + Cons
• Details

The MogoMini line of credit offers flexible access to funds for borrowers on a low income or with bad credit. Credit limits of up to $5,000 are available, and you can get pre-approved for funding within minutes of applying online. And if after 100 days you decide that this is not the right line of credit for you, you can repay the principal balance, and Mogo will refund the fees and interest you've already paid.

• Bad credit is OK
• Cheaper than a payday loan
• Flexible repayments
• Easy to manage your line of credit online

• High interest rates
• You may need more than $5,000
• Watch out for transfer fees and NSF fees

Loan Amount	$300 – $5,000
APR Range	Up to 34.37%
Loan Term	Open
Serviced Provinces/Territories	BC, AB, SK, MB, ON, NB, NS, NF, PEI, NU, NT
Min. Credit Score	600
Fees	None
Requirements	Canadian resident, age of majority in your province of residence, annual net income of $35,000

Best bad credit loans

Bad credit may stop you from qualifying for a loan from a traditional lender like a bank, but the good news is that there are plenty of alternative lenders that offer bad credit personal loans.

Rather than focusing on your credit history, these lenders will check your income to make sure you can afford to repay a loan. They offer easy online applications and fast approval, with funding often available the same day.

But high interest rates apply, and you’ll also need to watch out for other loan fees.

Winner: Loans Canada

8.6 Great

Go to site Read review

$500 – $50,000
Loan amount

9.99% – 35%
APR

3 - 60 months
Term

• Our Take
• Pros + Cons
• Details

Loans Canada isn't actually a lender but a loan search platform. When you fill out a Loans Canada personal loan application online, you'll get matched with offers from the platform's network of lending partners. These lenders offer loans for good and bad credit, and when you find the best offer, you can then complete the application process with that lender.

Why choose it

• Bad credit is OK. Loans Canada's lending partners offer loans for borrowers with all types of credit, so bad credit won't stop you from getting a loan.
• Large lending network. Loans Canada works with 60+ lenders, making it easy to compare multiple loan offers in one place.
• Free to use. There are no fees for using the Loans Canada platform.

• Loans for good or bad credit
• Apply online in minutes
• Quick and easy way to compare loan offers
• Better Business Bureau accredited with an A+ rating

• High interest rates
• Not a direct lender
• Watch out for loan fees

Loan Amount	$500 – $50,000
APR Range	9.99% – 35%
Loan Term	3 - 60 months
Serviced Provinces/Territories	All of Canada
Turnaround Time	Receive funds in as little as 24 hours.
Min. Credit Score	300
Fees	No application, origination or brokerage fees
Requirements	Canadian resident, age of majority in your province of residence

Runner-up: LoanConnect

8.8 Great

Go to site Read review

LoanConnect Personal Loan

$500 – $50,000
Loan amount

8.99% – 35%
APR

3 - 120 months
Term

• Info
• Pros + Cons
• Details

LoanConnect is well worth a look if you're searching for the best bad credit personal loans. This loan search platform allows you to fill out a single online application and then compare offers from a network of 30+ lenders. There are secured and unsecured loans available, you can borrow up to $50,000, and the platform makes it easy to connect with lenders that offer loans for good and bad credit.

• Loans for all types of credit
• Get pre-approved in a minute
• Compare multiple lenders in one place
• Free to use

• High rates for bad credit
• Not a direct lender
• You're limited to its network of lenders

Loan Amount	$500 – $50,000
APR Range	8.99% – 35%
Loan Term	3 - 120 months
Serviced Provinces/Territories	All provinces
Turnaround Time	Receive funds in as little as 24 hours.
Min. Credit Score	300
Fees	No application, origination or brokerage fees
Requirements	Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income

Best credit union personal loans

The best credit union personal loans often come with more lenient eligibility criteria than banks. They offer competitive interest rates too, but they typically offer slower application and approval times than online lenders.

You’ll typically be able to choose a fixed or variable rate, opt for a secured or unsecured loan, and repay the principal and interest over a term of 1 to 5 years. However, you will usually need good to excellent credit to qualify for a credit union personal loan, and you’ll also need to become a member to get funded.

Winner: Innovation Federal Credit Union

7.7 Great

Read review

$5,000 – $50,000
Loan amount

5.95% – 19.45%
APR

12 - 120 months
Term

• Our Take
• Pros + Cons
• Details

Innovation Federal Credit Union personal loans start at $5,000. You can apply online in minutes, take advantage of fast approvals, and repay your loan over a term of up to 10 years. You also have the option to pay your loan off early without being slugged with any extra fees.

Why choose it

• Fast approval. You can submit an application online and get approved within one business day, which isn't typical for a credit union.
• Choose your repayment schedule. Choose a repayment plan that suits your income—weekly, bi-weekly or monthly.
• Competitive interest rates. Innovation Federal Credit Union personal loan interest rates start at 5.95%.

• Simple online application process
• Low interest rates for excellent credit
• Flexible repayment options
• Available across Canada (except Quebec)

• Bad credit is not OK
• High minimum loan amount of $5,000
• Application fees may apply

Loan Amount	$5,000 – $50,000
APR Range	5.95% – 19.45%
Loan Term	12 - 120 months
Serviced Provinces/Territories	All provinces (excluding Quebec)
Turnaround Time	Approval in one business day
Min. Credit Score	640
Fees	$5 membership fee
Requirements	18 years of age and a Canadian resident

Runners-up: Prospera and Kindred

Prospera Credit Union and Kindred Credit Union both received the same score based on our methodology.

7.6 Great

Prospera Credit Union Personal Loan

Undisclosed
Loan amount

Starting at 8.98%
APR

12 - 60 months
Term

• Info
• Pros + Cons
• Details

BC-based Prospera offers competitive fixed-rate and variable-rate personal loans. You can apply online in 5 to 20 minutes and get pre-approved, with terms of 12 - 60 months available. Variable rates start at From Prime + 2.75%, while 5-year fixed rates start at 8.98%.

• Good interest rates
• Easy pre-approval
• Flexible repayment options

• BC only
• Bad credit is not OK
• You'll need to become a member to apply

Loan Amount	Undisclosed
APR Range	Starting at 8.98%
Loan Term	12 - 60 months
Serviced Provinces/Territories	BC
Turnaround Time	Varies
Fees	Unknown
Requirements	Unknown

7.6 Great

Read review

Kindred Credit Union Personal Loan

$5,000 – $35,000
Loan amount

5.45% – 13.7%
APR

1 - 5 years
Term

• Info
• Pros + Cons
• Details

Ontario-based Kindred also offers competitive rates, the choice of a fixed-rate or variable-rate loan, and terms of up to 5 years. Pre-approval is available as well to make it easier for you to compare your borrowing options.

• Very competitive interest rates
• Easy pre-approval
• Flexible repayment options

• Ontario only (Kindred)
• Bad credit is not OK
• You'll need to become a member to apply

Loan Amount	$5,000 – $35,000
APR Range	5.45% – 13.7%
Loan Term	1 - 5 years
Serviced Provinces/Territories	ON
Turnaround Time	Varies
Fees	Unknown
Requirements	Unknown

Best personal loans in Canada by the numbers

Compare the rates, loan amounts and loan terms of the best personal loans side by side.

What are the best personal loan rates in Canada?

Traditional lenders like banks and credit unions offer lower interest rates than alternative lenders, but you’ll need good to excellent credit to qualify. The rate you get will also be affected by factors like your credit score and income, but you can check out the table below for details on the best personal loan rates in Canada.

What are the best quick loans in Canada?

The best quick personal loans in Canada come from online lenders like Spring Financial and easyfinancial. Other options to consider for fast funding include Vancity’s Fair and Fast Loan, Blue Copper Capital and Fairstone. If you prefer to apply to a loan search platform, LoanConnect and Loans Canada are both solid picks.

To speed up the process, make sure to apply to a lender who offers instant decisions, bank verification and fast e-Transfer funding.

How to find the best loan companies in Canada

Consider taking the following steps to find the right loan for your needs.

1. Know your credit score

Knowing your credit score can help identify loans where you have a high rate of approval. Request your credit score from credit bureaus or fintech companies:

• Credit bureaus. Order a free copy of your credit report once a year from one of the two credit bureaus operating in Canada: Equifax or TransUnion. This free report will be sent through postal mail and takes approximately two weeks to arrive. Another option is to pay a fee to get instant access to an online copy of your credit report.
• Fintech companies: Lenders like Borrowell, Loans Canada and Nyble offer credit monitoring.

2. Decide what type of personal loan you want

What’s best will depend on your financial situation.

• Secured vs unsecured loans

  • Secured personal loans. Secured loans require you to use collateral, such as your house or car, to secure your loan. If you default on your loan or can’t keep up with repayments, your lender can repossess the asset. Secured loans often come with the lowest interest rates because you reduce the risk for the lender.
  • Unsecured personal loans. Unsecured loans come with higher interest rates because they don’t require any collateral. Instead, these loans rely on your credit score and other personal factors to determine your eligibility.

• Individual vs cosigned loans

  • Individual loans. These loans don’t require cosigners. You will be solely responsible for their repayments, and your credit score will suffer if you default or miss a payment.
  • 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 the loan if you default on your payments. Also, any missed payments or defaults will impact your credit score as well as the guarantor’s credit score. Your guarantor should know what they’re committing to before signing.

• Fixed-rate vs variable-rate loans

  • Fixed-rate personal loans. A fixed-rate personal loan has a set interest rate that doesn’t fluctuate over the loan term. Because your rate is fixed, your monthly payments will stay the same, which can help you budget. Banks, credit unions, P2P lenders and alternative lenders offer fixed-rate personal loans.
  • Variable-rate personal loans. A variable-rate personal loan has an interest rate that can change as market conditions fluctuate. The interest rate on these loans will increase when the Bank of Canada hikes interest rates — a situation that happened several times over the last 24 months. Banks and credit unions offer variable-rate personal loans, along with a handful of private lenders.

3. Decide on the best place to get a loan

Compare different types of lenders to find the best place to get a personal loan.

Banks and credit unions	Best for people with good to excellent credit	Competitive rates Secured/unsecured loans Fixed or variable In-person service Long wait times
Loan search platforms	Best for people with poor to fair credit who want to compare offers from multiple lenders in one place	Access a network of lenders Loans for all types of credit Secured and unsecured loans Entirely online Faster approvals than banks and credit unions but slower than applying directly with a private lender
Alternative, private lenders	Best for people with poor to fair credit or those who would prefer to apply online	Higher rates on average Less strict eligibility criteria Accepts bad credit Secured/unsecured loans Typically fixed rates Entirely online

4. Compare loan features

Compare the following features to find the top loan in Canada for your needs:

• Annual percentage rate (APR)

  APR is the annual interest rate plus the fees to finance your loan. It gives you a more realistic idea of how much your loan will cost. Aim to get pre-approved with a few lenders to find the best APR for your credit score. Some lenders, such as Mogo and Fairstone, can even give you a free quote within minutes without doing a hard credit check (which can impact your score).

• Loan amount

  Loan amounts vary among lenders, so make sure you can borrow the amount you need. With a personal loan, you can typically borrow as little as $500 and as much as $50,000, depending on your credit score.

• Loan term

  The length of time you have to repay your loan also varies among lenders. Loan terms are usually between 6 and 60 months, but they can be longer if you borrow a large amount or use an asset as collateral to secure your loan (for example, your house to secure a home equity loan).

• Extra costs to watch out for

  You may encounter costs beyond the interest rate. Here’s what you should watch out for:

  • Insufficient funds (NSF) fee. This is a common fee, usually between $25 and $50. Lenders charge this in addition to the NSF fee your bank will charge.
  • Late payment fee. Pay this fee for late or missed payments. The fee is either a fixed amount ($15 to $40) or a percentage of the unpaid balance.
  • Origination fee. This is a set-up or processing fee that is deducted from your loan amount. Typically, expect to pay between 1% and 5% of the loan amount.
  • Prepayment penalty. This is not at all common for unsecured personal loans.
  • Loan insurance. This is coverage for your loan repayments in the event of a job loss, critical illness, accident or death. It adds to the cost of your loan and is completely optional. Avoid lenders that pressure you to buy loan insurance.

• Repayment flexibility

  Think about the following when determining the right lender for you:

  • Frequency of repayments. Some lenders only allow monthly payments, while others give you a choice between weekly, bi-weekly, semi-monthly or monthly.
  • Flexibility of repayment schedule. Some lenders let you easily change your payment schedule and manage your payments online, while others are more restrictive.
  • Ease of prepayment. Check for prepayment fees to make sure you won’t incur fees for making early payments or paying your loan off ahead of schedule.

• Principal vs interest

  When discussing your loan offer, ask your lender how much of your monthly payment will go towards the principal vs interest (and double-check this against the fine print in your loan contract).

• Grace period and trial period

  If your finances aren’t stable, you may want to check out lenders that offer one of the following options:

  1. Skipping a payment: Some of the big banks let you skip a payment or two per year.
  2. Grace period: Some lenders give you a few penalty-free days after your payment due date (such as goPeer).
  3. Trial period. The odd lender may let you “test run” your loan. For example, Mogo gives you a refund on interest paid if you’re unhappy with your loan and return the full principal within 100 days (with certain loan types only).

• Reputation

  Checking a lender’s online presence and customer reviews, especially if it’s a lesser-known private lender, can give you a good indication of the quality of service you can expect to encounter with your loan. 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.

Video: 5 best personal loans

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How do I make sure a loan company is legit?

To make sure a loan company is legit, check the lender’s business registration, office address, phone number, terms and conditions, privacy policy, social media presence and customer reviews. Learn more about online loans.

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 personal loans. That’s why you’ll want to compare factors like how much you want to borrow, the interest rates you’re willing to pay and how long your loan term should be to find the right personal loan in Canada.

Frequently asked questions

• How can I find the best loan providers in Canada?

  You can find the best loan company in Canada by knowing exactly what you need in a personal loan, such as the loan type, loan amount, loan term, repayment flexibility and APR. From there, you can compare lenders and get pre-approval.

  Check to see how the lender conducts itself during the offer stage. A reputable lender will take the time to make sure you understand the terms of your loan and will not pressure you into signing the contract or buying additional products you don't want.

• What are the best small loans in Canada?

  The best small loans in Canada are from lenders of cash advances, installment loans and payday loans. Each comes with its pros and cons, so to find out what's best for your situation, read our small loans guide.

• What are the most common loans in Canada?

  The most common loans in Canada are personal loans, car loans, lines of credit and mortgages.

• Which banks give loans easily in Canada?

  Among the Big Six banks, CIBC and National Bank have the most convenient online applications. However, banks have strict eligibility requirements. You typically need a credit score above 660, stable income and a low debt-to-income ratio to get approved for a bank loan. Learn more about the easiest financial institutions to get a loan.

• How does my credit score influence my ability to get a personal loan?

  Your credit score is an important factor that providers look at to determine your eligibility for a loan. If you have a bad credit score, it can be more difficult to qualify for a loan or you could end up paying much higher interest rates than someone with good credit. That's why it's important to compare personal loans for your unique financial situation.

• What's considered a good credit score?

  A good credit score is usually any score that sits at 660 or above. Any score that falls below this number isn't necessarily bad, but it may cause you to have more difficulty getting approved for a personal loan. You can easily apply for a copy of your credit score with reputable credit bureaus such as Equifax or TransUnion.

• What's considered a good interest rate for a personal loan?

  That depends on your credit score, your debt-to-income ratio and other factors. If you have an excellent credit score and very little debt, an interest rate that's only a few points over the prime rate – currently 4.70% – would typically be considered good.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Tim Falk

Writer

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Tim Falk is a freelance writer for Finder. Over the course of his 20-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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