10 best personal loans in Canada

Compare the top 10 best personal loans in Canada to find the right loan for your unique situation. Learn what to look for when choosing the best loan, how to apply and what eligibility criteria you need to meet to qualify.

Best personal loans in Canada

1. LoanConnect: Best for comparing multiple offers

Finder Rating: ★★★★★ 4.6 / 5 Go to site Read review

$100 – $50,000
Loan amount

6.99% – 46.96%
APR

3 - 120 months
Term

• Info
• Pros + Cons
• Details

LoanConnect maintains a large database of lenders and matches you with several offers based on your unique profile. Get your loan as soon as the same day. Read more

• Easy online application
• Quick deposits
• 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

Loan amount	$100 – $50,000
APR	6.99% – 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.
Serviced Provinces	All provinces

2. SkyCap Financial: Best for customer service

Finder Rating: ★★★★★ 4.1 / 5 Go to site Read review

$500 – $15,000
Loan amount

19.99% – 39.99%
APR

9 - 60 months
Term

• Info
• Pros + Cons
• Details

SkyCap Financial is BBB-accredited and has received positive feedback from its clients for providing solid customer service. Read more

• Fast, easy application process
• Strong customer service
• No prepayment fees

• High rates for bad credit
• May not improve your credit score

Loan amount	$500 – $15,000
APR	19.99% – 39.99%
Term	9 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	600
Fees	No fees except a $50 NSF fee
Origination Fee	N/A
Turnaround Time	24 hours
Serviced Provinces	All provinces and territories except Quebec and Nova Scotia

3. Loans Canada: Best for bad credit

Finder Rating: ★★★★★ 4.5 / 5 Go to site Read review

$300 – $50,000
Loan amount

5.4% – 46.96%
APR

4 - 60 months
Term

• Info
• Pros + Cons
• Details

Loans Canada offers loans for all types of borrowers, including people with fair or bad credit. Fill out an application to get matched with lenders that are open to financing you. Read more

• Easy online application
• Quick deposits
• 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

Loan amount	$300 – $50,000
APR	5.4% – 46.96%
Term	4 - 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.
Serviced Provinces	All of Canada

4. FlexMoney: Best for easy application

Finder Rating: ★★★★★ 4 / 5 Read review

$500 – $15,000
Loan amount

18.9% – 46.93%
APR

6 - 60 months
Term

• Info
• Pros + Cons
• Details

FlexMoney offers an easy online application and approval process. You don't have to upload any documentation when you apply, and you can get approved within 15–30 minutes on average. Funds are usually released within 24 hours. Read more

• Fast approval
• No prepayment fees

• Interest rates can reach as high as 46.93%

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
Serviced Provinces	Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI and Saskatchewan

5. Mogo: Best for quick quotes

Finder Rating: ★★★★★ 4.5 / 5 Go to site Read review

$200 – $35,000
Loan amount

9.9% – 46.96%
APR

6 - 60 months
Term

• Info
• Pros + Cons
• Details

Mogo gives you an instant quote so you can see what you'll have to pay for your loan with no impact to your credit score. Read more

• Low starting rates
• Free quote with no impact to credit score
• Trial period to test out loan

• High rates for bad credit
• Some negative Mogo reviews online
• Loans are powered by Lendful and easyfinancial

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
Serviced Provinces	British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island

6. Loanz: Best for fast funding

Finder Rating: ★★★★★ 3.5 / 5 Go to site Read review

$100 – $50,000
Loan amount

29.9% – 46.9%
APR

12 - 60 months
Term

• Info
• Pros + Cons
• Details

Loanz has a streamlined application process so you can get your money on the same day you apply. All you need to do is select bank verification to connect your banking details through a secure portal to verify your income and identity. Read more

• Bad credit can apply
• Accepts multiple forms of income
• Instant approval
• Rebuild your credit

• Steep interest rates from 29.90% - 46.90%
• Unclear fees
• Loan amount limited to $50,000

Loan amount	$100 – $50,000
APR	29.9% – 46.9%
Term	12 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	570
Fees	N/A
Turnaround Time	24 hours or less
Serviced Provinces	All of Canada (excluding Quebec)

7. Symple: Best for low-interest bank alternative

Read review

$5,000 – $50,000
Loan amount

6.99% – 32%
APR

24 - 84 months
Term

• Info
• Pros + Cons
• Details

Symple Loans is a solid alternative to borrowing from a bank. It offers online personal loans to people with good credit. Read more

• Free quote with no impact to credit score
• Free prepayment

• Bad credit won't qualify
• Variable rate only
• Origination fee for riskier applications

Loan amount	$5,000 – $50,000
APR	6.99% – 32%
Term	24 - 84 months
Interest Rate Type	Variable
Min. Credit Score	650
Fees	0% - 5% loan establishment fees
Origination Fee	0-5%
Turnaround Time	Next Business day
Serviced Provinces	All of Canada (except NS, QC, SK)

8. Parachute: Best for consolidating high-interest loans

Read review

$2,500 – $25,000
Loan amount

19.99% – 29.99%
APR

36 - 60 months
Term

• Info
• Pros + Cons
• Details

Parachute lets you consolidate your high-interest loans into one easy payment. It provides each customer with a personalized roadmap to help them manage their debt and offers cash back and other rewards. Read more

• Rebuilds credit
• Free prepayment
• Cashback and rewards

• Minimum credit score of 580
• Only available in Ontario

Loan amount	$2,500 – $25,000
APR	19.99% – 29.99%
Term	36 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	580
Fees	Varies
Origination Fee	$0
Turnaround Time	Varies
Serviced Provinces	Ontario

9. goPeer: Best for good credit

Finder Rating: ★★★★★ 3.6 / 5 Read review

$1,000 – $35,000
Loan amount

8% – 54%
APR

36 - 60 months
Term

• Info
• Pros + Cons
• Details

goPeer is a peer-to-peer network that lets Canadians borrow from other Canadians instead of big lenders. It offers low-cost loans to borrowers with good to excellent credit. Read more

• Anonymous application
• 15-day grace period for unexpected events
• No prepayment penalties

• High credit score required
• Rates as high as 54%
• Origination fee baked into APR

Loan amount	$1,000 – $35,000
APR	8% – 54%
Term	36 - 60 months
Interest Rate Type	Fixed
Min. Credit Score	650
Fees	Origination fee varies No application or prepayment fees
Turnaround Time	Receive a response within 24 hours of your loan application
Serviced Provinces	All provinces

10. National Bank: Best for bank personal loan

Read review

N/A
Loan amount

9.65% – 13.2%
APR

6 - 60 months
Term

• Info
• Pros + Cons
• Details

National Bank is a solid choice if you want a bank personal loan with a smaller bank (not one of the Big Five). It offers bank-level security and an in-person application process. Read more

• Interest rates as low as 9.65%
• 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	9.65% – 13.2%
Term	6 - 60 months
Interest Rate Type	Fixed
Serviced Provinces	All

How to find the best personal loans in Canada

Consider taking the following steps to find the best personal loan for your needs:

1. Know your credit score

Knowing your credit score can help you identify loans you’ll be eligible for. You can request your credit score from the credit bureaus or other credit monitoring institutions:

• Credit bureaus. Order a free copy of your credit report once a year from one of the credit bureaus (Equifax or TransUnion). This is sent by mail and usually takes around two weeks to arrive. You can pay a fee to get instant access to an online copy.
• Credit monitoring institutions: You can sign up for a monthly subscription for credit monitoring (usually around $20 per month) with some services. Lenders like Mogo and Borrowell also offer free credit monitoring.

2. Decide what type of personal loan you want

The best personal loans in Canada will vary based on what type of personal loan you need:

• 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 repayment, 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 (and both your credit scores suffer when repayments aren’t made on time). 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. Because your rate is fixed, your monthly payments will stay the same throughout the loan term, which can help you budget. Banks, credit unions, P2P lenders and alternative lenders offer fixed rates.
  • Variable rate personal loans. A variable rate personal loan has an interest rate that changes with the markets. These loans will increase when the Bank of Canada hikes interest rates, which has happened several times in 2022. Banks and credit unions offer variable rates, along with a handful of private lenders.

3. Decide where you want to apply

The best personal loans in Canada for your needs will vary based on your credit score and how you want to apply for your loan.

Banks and credit unions	Best personal loans in Canada for people with good to excellent credit	Competitive rates Secured/unsecured loans Fixed or variable In-person service Long wait times
P2P lending platform	Best personal loans in Canada for people who have good to excellent credit and don’t want to go with a bank	Canadian investors fund your loan Competitive rates due to low operating costs
Alternative lenders	Best personal loans in Canada 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 best personal 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. You’ll pay it in addition to the NSF fee that your bank charges.
  • 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/processing fee that is deducted from your loan amount. It’s around 1–5% of the loan amount. Try to avoid lenders that charge this fee.
  • Prepayment penalty. You’ll pay a penalty for making extra loan payments or paying your loan off early with some lenders. Aim to avoid lenders that charge this fee.
  • 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. The lender should not be pressuring you to get it.

• Repayment flexibility

  Think about the following when deciding on 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). Some lenders will put more of your payment toward interest in the beginning of your loan. If you plan to pay your loan off early, it’s best to avoid these types of loans unless the lender will give you a refund for the interest paid.

• Grace period and trial period

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

  1. Skipping a payment: Many of the big banks let you skip one payment 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 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.

What are the best personal loan rates in Canada?

Based on the latest information available from the Bank of Canada, the average personal loan interest rate in Canada is 9.05%. However, this includes secured loans such as auto loans, so your rate may be higher if you’re applying for an unsecured personal loan.

Aiming for a rate that’s close to the average is a good step. But keep in mind, how much you’ll be charged will depend on personal factors such as your credit score, income and current debts. If you have a strong credit score, you qualify for low interest loans.

Compare a variety of personal loan interest rates for all credit scores

Who can get personal loans in Canada?

You can get personal loans in Canada if the following applies to you:

• You’re a Canadian citizen or permanent resident.
• You’re at least 18 years old.
• You have a steady source of income.

These are the basic requirements only. Exact criteria vary among lenders.

How to apply for personal loans in Canada

Follow these steps to apply for personal loans in Canada:

1. Fill out an application. Provide personal info such as your name, address, phone number, job, income and housing situation.
2. Wait for a decision. Online lenders can give fast pre-approval within minutes, while banks and credit unions can take one to three business days.
3. Pick the best personal loan. Compare offers and pick the best personal loan for your needs. Refer to the criteria above to pick the best personal loan in Canada.
4. Upload documents. You may need to provide bank statements, tax returns, government-issued ID and other documents.
5. Submit to a credit check. Some loans will require you to consent to a credit check. A hard credit check can affect your credit score so should be done sparingly.
6. Get a final loan offer. Review your loan agreement. Understand your payment schedule and how much the loan will cost you overall. Keep an eye out for extra fees.
7. Sign and submit. If you’re happy with the terms of your personal loan, sign and submit your contract. You’ll get your money via e-Transfer or direct deposit.

Plans to get a personal loan in the next 3 months

According to data released in the latest Finder: Consumer Sentiment Survey, more Canadians are planning to take out a personal loan in the next three months. In Q1 2023, only 7% of respondents planned to get a personal or installment loan. That number jumped to 20% of respondents who plan to take out a personal or installment loan in the next three months.

Learn more about the best personal loans in Canada

LoanConnect: Best for comparing multiple offers

• APR: 6.99% - 46.96%
• Loan amount: $100 – $50,000
• Loan term: 3 - 120 months
• Eligibility requirements: Currents debts must total less than 60% of income

• Other perks and what to watch out for

  • Free. You can see your matches for free (but the lender you choose may charge fees).
  • Large amounts with longer terms. Borrow as much as $50,000 with a loan term of up to 120 months.
  • Secured and unsecured options. Get a loan with or without collateral.

  • High rates. Potential for high interest rates of up to 46.96%.
  • Smaller network. Limited providers since LoanConnect only works with established partners.
  • Not a direct lender. You won’t get your loan directly from LoanConnect, but instead from a partner lender it works with.

SkyCap: Best for customer service

• APR: 19.99% - 39.99%
• Loan amount: $500 – $15,000
• Loan term: 9 - 60 months
• Eligibility requirements: Min. income of $3,333 /month, full time employment/pension

• Other perks and what to watch out for

  • Fast and easy application process. Get instant pre-approval for your loan and official approval in as little as 24 hours.
  • Low starting interest rate. SkyCap’s rates start at 19.99%, which is lower than most other lenders that offer subprime or short term loans.
  • Increase your financial knowledge. If you’re a client, you gain access to a free course on personal finances.
  • Support an ethical business. SkyCap has solid customer reviews and has a reputation for helping its local community through the “SkyCap Gives” program.

  • High rates for bad credit. You may have to pay up to a maximum rate of 39.99% if you have poor credit.
  • Not a credit repair service. On-time payments may or may not be reported to the credit bureaus, so there’s no guarantee your credit score will increase.

Loans Canada: Best for bad credit

• APR: 5.4% - 46.96%
• Loan amount: $300 – $50,000
• Loan term: 4 - 60 months
• Eligibility requirements: Steady source of income

• Other perks and what to watch out for

  • Easy application. Fill out a mobile-friendly application in less than 10 minutes.
  • Free. You don’t have to pay anything to get a list of matches.
  • Secured or unsecured. There are options to get a loan with or without collateral.
  • Secure. Loans Canada says your data is secure and your connection encrypted.

  • High rates. Interest rates can reach as high as 46.96%, which is typical for bad credit.
  • Not a direct lender. You won’t get your loan directly from Loans Canada but instead from a partner lender they work with. Your information will be shared with third-party lenders.
  • Threat of scams. Scammers regularly pose as Loans Canada so you have to be careful when applying for a loan.

FlexMoney: Best for easy application

• APR: 18.90% - 46.93%
• Loan amount: $500 – $15,000
• Loan term: 6 - 60 months
• Eligibility requirements: Min. income of $2,000 /month, 3+ months employed

• Other perks and what to watch out for

  • Automated approvals. Your application will be approved through an automated system.
  • Accepts alternative income. You can qualify if you’re receiving government assistance, including CPP and OAS, or if you’re self-employed. You just need to show a net income of at least $2,000 per month.
  • BBB accredited. FlexMoney is BBB-accredited with an A rating.

  • Steep interest rates. Interest rates start at 18.9% for FlexMoney installment loans but can creep up to 46.93% depending on your credit score and other factors.
  • High minimum age. You’ll need to be at least 20 years old to qualify for a FlexMoney loan (which is higher than the normal average age to qualify).
  • Income requirements. You’ll need to make at least $2,000 in income per month to qualify.

Mogo: Best for quick quotes

• APR: 9.90% - 46.96%
• Loan amount: $200 – $35,000
• Loan term: 6 - 60 months
• Eligibility requirements: Min. income of $13,000 /year

• Other perks and what to watch out for

  • Fast online application. Mogo aims to give approval and funding within one to two days.
  • Large amounts. Apply to borrow up to $35,000 and use the funds for any purpose, including vacations, renovations, major purchases or emergency bills.

  • Powered by third-party lenders. Mogo is partnered with lenders Lendful and easyfinancial to provide loans. The lender your application is sent to will depend on your credit score and other personal factors.
  • Negative reviews. There are some negative Mogo reviews online. Most of the comments are about the company’s high interest rates and lack of customer service.

Loanz: Best for fast funding

• APR: 29.90% - 46.90%
• Loan amount: $100 – $50,000
• Loan term: 12 - 60 months
• Eligibility requirements: Min. credit score 570, min. income $1,200/month, 3+ months employed

• Other perks and what to watch out for

  • Anyone can apply. Whether you have bad credit or no credit history at all, Loanz encourages Canadians to apply to receive an instant decision on their application.
  • Flexible loans. Get approved with multiple forms of income (including government assistance) and use the money you borrow for any reason, with no need for collateral to secure your loan.
  • Good Trustpilot score. Loanz has a Trustpilot score of 4.2 out of 5 stars, based on 130 Loanz reviews. Loanz reviews have been mostly positive.

  • High starting rate. Interest rates start at 29.9%, which is higher than other lenders offering personal loans to people with fair or bad credit.
  • Unclear fees. Loanz says there are no hidden fees, but doesn’t specify what fees might be charged. Check for fees such as late fees, NSF fees, prepayment penalties and origination fees.
  • Loanz may refer you to another lender. You could be referred to another lender that you’re less interested in working with if you don’t qualify with Loanz.

Symple: Best for low-interest bank alternative

• APR: 6.99% - 32.00%
• Loan amount: $5,000 – $50,000
• Loan term: 24 - 84 months
• Eligibility requirements:

• Other perks and what to watch out for

  • Instant offer. Get a response within minutes of applying.
  • Large amounts. Unlike with other lenders, you can apply for between $5,000 and $50,000.
  • BBB accreditation. Symple Loans is BBB-accredited with an A rating.

  • Bad credit won’t qualify. Only those with good to excellent credit. Bad credit won’t be eligible.
  • Variable rate. Your rate will go up or down depending on what Canada’s central bank does. Apply elsewhere if you prefer a fixed rate.
  • Origination fee. If Symple thinks you’re a riskier applicant, it may charge an origination fee.

Parachute: Best for consolidating high-interest loans

• APR: 19.99% - 29.99%
• Loan amount: $2,500 – $25,000
• Loan term: 36 - 60 months
• Eligibility requirements: Min. credit score of 580, $5,000+ in debt, min. income of $30,000 annual

• Other perks and what to watch out for

  • Apply with no impact on credit score. Your credit score won’t take a temporary hit when you apply since there’s no hard credit check to pre-qualify.
  • Large amounts. Apply to borrow up to $25,000 to consolidate your debt (many lenders only offer between $10,000 and $15,000).
  • Many unique perks. Get a personalized roadmap, earn cashback and rewards, access tailored financial advice, increase your credit score and manage your funds in the Parachute app.

  • Only for debt consolidation. You can only use these personal loans to consolidate your debt, so they won’t be useful if you need funds for another purpose.
  • Bad credit won’t qualify. You’ll need to have a minimum credit score of 580 to qualify, which can be limiting for some borrowers.
  • Only available in Ontario.

goPeer: Best for good credit

• APR: 8.00% - 54.00%
• Loan amount: $1,000 – $35,000
• Loan term: 36 - 60 months
• Eligibility requirements: Recommended income of $40,000 /year, no payday loan debt

• Other perks and what to watch out for

  • Large amounts. Apply for up to $35,000 with good to excellent credit and potentially get lower rates than you might with the bank.
  • Secure platform. goPeer uses state-of-the-art security protocols with advanced end-to-end encryption to protect your data.

  • Bad credit won’t qualify. It’s not possible to get funded through goPeer if your credit score is below 600.
  • Not suitable for newcomers. You’ll need to have been a Canadian resident for at least three years to qualify, which is not typically required with other lenders.
  • Origination fee. There’s a one-time origination fee baked into your loan cost so you may pay more than you might with a no-fee lender.

National Bank: Best for bank personal loan

• APR: 9.65% - 13.20%
• Loan amount: N/A
• Loan term: 6 - 60 months
• Eligibility requirements: Must be employed or have a source of income

• Other perks and what to watch out for

  • Low starting rates. You may be able to qualify for rates as low as 9.65% depending on your credit score, how much you borrow and the length of your term.
  • Free prepayment. If you have the means, you can pay off your loan early at any time without penalty.
  • Defer payments. If needed, you can defer a payment by contacting a National Bank representative. However, to be eligible, you must have made regular payments for the last six months and the interest portion is still charged as scheduled.

  • Not as fast as online lenders. You may need to wait for up to two days before you get a response on your application, which is slower than online lenders.
  • Stricter eligibility criteria. You’ll need to meet a certain credit score, income and debt-to-income ratio to qualify.

Summary of the best personal loans in Canada

Alternatives to the best personal loans in Canada

If you don’t think one of the best personal loans in Canada is the right fit for you, there are other personal financing options you can consider.

• Personal line of credit. Lines of credit are a revolving credit account where you can borrow as much as you need to at any given time up to your credit limit. You then only pay interest on what you borrow. The interest rates on lines of credit and qualification requirements tend to be comparable to personal loans.
• Home equity line of credit. A home equity line of credit (HELOC) is a specific type of line of credit that is secured with your home. You can typically borrow up to a percentage of your home’s value. Because HELOCs are secured, it’s less risky for the lender, which means you’ll often be offered relatively low interest rates compared to standard lines of credit or personal loans.
• Credit cards.
  Credit cards are typically more expensive than personal loans, but also provide more flexibility and convenience since you can easily pay for purchases directly from your credit card and only pay interest on what you borrow. The interest rate on a credit card is typically around 20%, which makes it more expensive than the interest rate you can typically get on a personal loan with good to excellent credit.
• Bad credit installment loans. If you’re having trouble qualifying for some of the best personal loans in Canada, you may have better luck qualifying for an installment loan. These types of loans are similar to personal loans, but are offered by alternative lenders who have more lenient eligibility criteria, offer higher interest rates and have lower loan amounts than traditional personal loans. Learn about the best installment loans.
• Debt relief. If you’re experiencing financial hardship and struggling to get approved for a loan, it may be time to consider debt relief options.

Survey Methodology

The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.

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 best personal loan in Canada for your needs.

Frequently asked questions about the best personal loans in Canada

• How can I find the best personal loans 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.

• Can I get a loan online in Canada?

  Yes. There are many online lenders in Canada that allow you to borrow money online without ever having to visit a branch. When you apply online, these lenders use technology to review your application, make a decision and fund your loan.

• 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 Five banks, CIBC and BMO 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.

• 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 the best 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 a number of 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 6.70% – would typically be considered good.