CIBC Personal Loans Review

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Sometimes you need to rely on a personal loan to consolidate debts, make a home renovation or pay for a milestone, such as a wedding or a down payment on a house. Regardless of your situation, CIBC is a solid lender worth your consideration. Here’s a look at the major bank’s personal loan highlights:

• Think of a CIBC personal loan if you’re looking for flexibility and the ability to customize your loan. You can decide on whether you’d like a secured or unsecured loan, a variable or fixed interest rate, how often you’d like to make repayments on your loan and whether you’d like to automate payments. You can even apply online, in person or over the phone.

• Pick something else if your credit score and financial situation aren’t in great shape. CIBC will typically only work with borrowers who have good to excellent credit (around 660 and higher), earn a minimum of $17,000 annually and have not claimed bankruptcy within the last 7 years.

• Keep in mind, CIBC lets you make early repayments without charging any penalties, so you can save interest by paying off your loan early.

What makes CIBC Personal Loans unique?

CIBC takes pride in the flexibility it offers in its personal loan products. For starters, there are 3 ways you can apply: online, in person or over the phone. You can use the funds from your personal loan however you’d like, whether that’s to take a vacation, buy furniture, make an investment or consolidate high interest debts.

You can also customize your loan according to your preferences. If you’re a homeowner, you can opt to secure your loan with your home equity or other assets for a lower interest rate, or you can borrow up to $200,000 in an unsecured loan. You can also choose between variable and fixed interest rates. You get to choose how often you make payments, with weekly, fortnightly or monthly payments available. If you have your finances in check, you can even make more frequent payments and pay off all or part of your loan at any time without penalty.

Ultimately, this makes the CIBC personal loan product one that accommodates a wide range of borrowers.

What are the benefits of a CIBC personal loan?

If you qualify for a CIBC personal loan, there is a lengthy list of perks awaiting you, including the following:

• Flexibility to customize your loan. Choose between secured or unsecured loans and variable or fixed-rate interest.
• Wide range of loan amounts. You can borrow up to $200,000 for unsecured loans, which is a large sum compared to other big banks. You can even borrow more if you’re willing to secure your loan with a home or another asset.
• Varying loan terms. Borrowers can choose between 1- and 5-year terms for unsecured loans. With secured loans, you can take on even longer terms, although the range is not listed online.
• Competitive interest rates. CIBC doesn’t disclose its interest rates on its website; however, you can count on lower interest rates compared to what’s on offer by online lenders. If you’re a long-time CIBC customer with a great credit score and stable income, you may even be able to score an even lower interest rate.
• Flexible repayment options. Borrowers can choose from weekly, fortnightly or monthly repayment schedules to suit your pay schedule and budget. You can also choose to automate your payments so you can set it and forget them.
• Use your funds as you’d like. There are no restrictions for how you use the funds from your personal loan, so you can use the cash to consolidate debts, buy a new car, pay for home renovations or tackle any other financial goals.
• Repay your loan without additional fees. CIBC says borrowers can repay some or all of their personal loans before their term ends without incurring any prepayment penalties.
• Variety of banking options. CIBC customers can receive customer care in-person in branches all across Canada, over the phone or online. You can even download the bank’s app to manage your loan from your smartphone.

What to watch out for

If you’re signing up for more debt, you should tread carefully and understand the terms and conditions you’re agreeing to. Here are some of the downsides of a CIBC loan borrowers should be wary of:

• Minimum borrowing amounts. CIBC says its lower threshold for a personal loan is $3,000. For some people, this may be too much debt to shoulder.
• APRs are not listed online. You’ll have to apply for a loan to learn what interest rate you’ll receive because CIBC does not list its interest rates and fees online.
• Specific eligibility criteria. CIBC doesn’t list its credit score requirement, but for the most part, major banks typically require borrowers to have good to excellent credit (a score of 660 or higher) to qualify. This means some borrowers may not get approved for a CIBC personal loan. You also must earn a minimum income of at least $17,000 annually, you must not have declared bankruptcy within the last 7 years, and you must not have been declined for credit within the last 6 months from CIBC.
• You may have to secure your loan. If you’re looking for a personal loan of more than $200,000, you may have to put your property on the line as collateral.
• Fees and charges are not listed online. Whether you have to pay an origination fee for setting up a secured loan, or whether you’ll have to pay late fees, NSF fees or other charges are unclear. CIBC does not list its charges online, so you’ll need to ask your loan specialist about these penalties and how much they’ll cost you before you agree to your loan’s terms.

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Am I eligible?

To qualify for a loan through CIBC, you must meet the following criteria:

• Be a Canadian citizen or a permanent resident.
• Be at least 18 years of age or the age of majority in your province or territory.
• Earn a minimum of $17,000 annually.
• Meet CIBC credit lending criteria.
• Have not claimed bankruptcy within the last 7 years.
• Haven’t been declined for any CIBC credit in the past 6 months.

How do I apply for a CIBC personal loan?

If you’re interested in learning more about CIBC loans or you’re ready to apply, you can do so in person at a local branch, over the phone or online. CIBC suggests applying online for faster approval.

You’ll also need to gather the following information before applying:

• Your name, contact information, Social Insurance Number and date of birth.
• How much you want to borrow, the type of loan you’d like and the purpose of the loan.
• Your monthly income and employment details.
• Your banking details (if you’re currently not a CIBC customer).

Simply head to the CIBC website and follow these steps:

1. Click on “Lending” on the home page, then click on “Apply Now” under the CIBC Personal Loans” option.
2. On the next page, select “CIBC Personal Loan” and choose between a secured or unsecured loan. CIBC will prompt you to ensure you meet all of the eligibility criteria for the type of loan you’ve selected. Click “Continue.”
3. On the next page, declare how much you’d like to borrow, and check off whether you have a co-borrower, if you’re transferring your balance from an existing loan or credit card, and whether you’re interested in insurance for your new loan. Click “Continue” after you’ve made your selections.
   On the next page, either log in with your CIBC Online Banking credentials if you’re an existing customer or fill in your personal details if you’re a new customer. This information includes your full name, Social Insurance Number, date of birth, home address, residential status, email and phone number. Click “Continue.”

   On the next page, provide your employment details, including your employment status, occupation description, current employer, employer address, start date and monthly gross income. You can add another employer if you have more than one job. Click “Continue.”

   On the next page, read through CIBC’s Terms and Conditions. Choose to agree to the terms and click “Continue” to proceed with your application.

   On the final page, you can review your loan application and click “Submit” once you’re ready.

   Once you’ve submitted your loan application, you will be given a pre-approval decision. If you’re approved for a loan, remember to review the terms and conditions of the contract before signing and accepting the offer. Take some time to compare other loan providers to ensure you’re getting the most competitive offer out there.

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Is a CIBC personal loan legit?

CIBC is classified as one of the “Big Five” banks in Canada, alongside Scotiabank, RBC, TD and BMO, so you don’t have to worry about its legitimacy and safety. It has more than 43,000 employees, 11 million customers around the world and more than 1,100 branches across Canada. You can also get help 24 hours a day, 7 days a week by calling CIBC’s customer service line at 1-866-525-8622.

I got the CIBC personal loan. Now what?

If you’ve qualified for and secured a CIBC personal loan, your job is to stay on top of payments. When you set up your loan, you can choose weekly, fortnightly or monthly payments – pick the option that best suits your payment schedule and budgeting plans. After that, you can either automate repayments, ensuring you have the cash in your account for automatic withdrawals or you can make payments manually. Either way, circle your due dates on your calendar to avoid late or missed payments.

Ultimately, this is a great opportunity to rebuild or maintain your credit score with a major Canadian bank. If you keep the account in good standing, it could open the doors to securing a competitive interest rate on other loan products in the future, including a car loan, mortgage or business loan.

Ask your loan representative about fees and charges, too. While CIBC indicates that you won’t face any prepayment penalties for paying off your loan early, it doesn’t list its charges for late, missed payments and NSF charges.

Bottom line

If you’re shopping for a personal loan and you have a strong credit score, CIBC is a worthy option, especially if you’re already a customer. Borrowers get to choose how much they’d like to borrow, whether they’d like to secure their loan, how long they’d like to take to repay their loan, and how often they’d like to make repayments each month. You can even pay off some or the entirety of your loan without facing any penalties.

As always, shop around before deciding which lender is offering the best rates and loan options. Check out our guide to comparing personal loans to help you with your search.

Frequently asked questions

• Do I have to accept the loan offer once I've applied?

  No, you are not obligated to accept a pre-approved loan offer. Once you sign and return the loan contract to the lender, you are responsible for paying the funds back plus interest and fees.

• Can I qualify for a loan through CIBC if I'm self-employed?

  Yes. You’re still eligible to apply for a personal loan with CIBC if you’re self-employed. You’ll need to provide details such as your income, job title and sector of work. You can also include other income sources, such as pension or government benefits, on your application.

• Can I borrow secured and unsecured personal loans from CIBC?

  Yes, CIBC offers both secured personal loans and unsecured personal loans. Secured personal loans come with lower interest rates; however, you must put up collateral, such as equity in your home, in order to get a lower rate. Should you fail to pay back your loan, your collateral can be taken to cover the costs. Unsecured personal loans are less risky for the borrower; however, you’ll be looking at paying a higher interest rate.

• Can I cancel my application?

  Yes, you can cancel your application by calling CIBC or visiting a branch in person. If you’ve already received your loan, you can pay off your loan early without facing any penalties. However, if any interest has accrued on your loan, you will have to pay it plus the principal amount.