Personal loans in Alberta: Compare rates & terms

What are the best personal loans in Alberta?

Some of the best personal loans in Alberta include:

This list focuses on lenders with the highest Finder Scores in the private lender and financial institution categories. The Finder Score measures a wide range of loan features, such as interest rates, loan amounts, loan terms, eligibility criteria and speed.

What are the interest rates for personal loans in Alberta?

Personal loan rates in Alberta usually range from 6.99% to 35%. How much you’ll be charged will depend on personal factors like your credit score, income and existing debts.

Financial institutions generally have lower personal loan rates than online private lenders. Rates for banks and credit unions start around 4.70%. This is the current prime rate, but you’ll need collateral to get a rate this low.

Related: Personal loan rates in Canada

Personal loan requirements

The following are the basic requirements for personal loans in Alberta:

• Be 18 years old or older.
• Have an active bank account.
• Have proof of a regular income, preferably from employment.
• Some lenders may have additional criteria that you’ll need to meet in order to qualify for a loan. If you’re applying for a secured loan, for example, you will need collateral, such as proof of home equity or a car title.

Required documents

While the application process will vary from lender to lender, have these documents ready for a seamless process:

• 2 pieces of identification. This could include your passport or driver’s licence.
• Employment and income verification. This could be via pay stubs and bank statements.
• Banking information. This could be a void cheque or your bank account details.

If you opt for instant bank verification, you won’t need to send any documents.

Where to get small loans in Alberta

Only need to borrow a small amount? You can get a personal loan as small as $500 from many online private lenders and some credit unions. Banks tend to be less flexible as they often start their loan amounts at $3,000-$5,000.

How to compare the best personal loans in Alberta

To make sure you end up with the right lender, keep the following in mind to help you narrow down your top picks:

Loan type

You can choose between secured and unsecured personal loans. Secured loans typically come with higher loan amounts and lower interest rates, but borrowers must put up collateral, such as home equity. Unsecured loans come with higher interest rates, but they don’t require collateral.

Loan amounts

Loan amounts of personal loans in Alberta vary among lenders. Lenders may approve you for an amount lower or higher than your original ask based on their review of your finances.

Loan terms

Lenders may offer you from 3 to 60 months or more to repay your personal loan. Longer terms give you lower monthly payments, but you’ll pay more interest overall.

Annual percentage rate

The APR represents the annual cost of your loan and gives you a truer view of its cost because it includes the interest rate and the fees you must pay to get the loan. Ultimately, you want the true cost of borrowing to be as low as possible. People with bad credit will end up paying higher interest rates compared to those with a strong credit history.

Fees

Don’t fixate solely on the interest rate your lender is charging you. Look for NSF fees, late payment fees, early repayment penalties and administration fees.

How to apply online for loans in Alberta

1. Fill out the application. Provide personal details such as your name, address, housing situation and employment. Make sure your application doesn’t have errors that could result in an automatic denial.
2. Get pre-approved. Once you submit, get a tentative loan offer from the lender based on a quick review of your finances.
3. Get verified. If you wish to proceed, provide documents to verify your income and identity or agree to instant bank verification.
4. Get an official loan offer. Review your contract carefully, taking into account the overall cost and payment schedule, and sign.
5. Get funded. Receive your money through e-Transfer or direct deposit.

What credit score do I need to get a personal loan?

If you have good to excellent credit above 660, borrowers have a wide range of low-interest options, from banks to credit unions to online lenders. A fair credit score is between 560 and 660, and a bad credit score is anything less than 560. If you have a low credit score, you can apply for bad credit loans in Alberta, but be ready to encounter higher interest rates between 18% and 35% in exchange for lenient eligibility requirements.

Signs of a legitimate private lender in Alberta

Private lenders offer loans that are easier to get approved for than banks and credit unions, but make sure to apply to a legit lender. Here are some green flags to look out for:

• The lender has an address, phone number and email as well as online profiles such as a Google profile, BBB profile or Trustpilot profile.
• The lender takes the time to explain the loan to you and doesn’t pressure you to sign.
• The lender is transparent about all the costs of the loan, such as rates and fees.
• The lender does not guarantee approval.
• The lender never asks you to pay any upfront fees or requires you to pay for loan insurance.

Related: Personal loan scams to watch out for

What is the monthly payment on a personal loan?

That depends on your total loan amount, your loan term and your APR. Suppose you want to get a personal loan for $5,000 with terms of either 1 or 2 years. Here are some examples of how much this loan may cost you, at varying interest rates and terms:

Loan amount	Term	Sample interest rate	Monthly amount	Total cost
$5,000	12 months	9.99%	$439.35	$5,272.16
$5,000	24 months	9.99%	$230.70	$5,536.84
$5,000	12 months	19.99%	$463.15	$5,557.78
$5,000	24 months	19.99%	$254.45	$6,106.91

Frequently asked questions

• What is the maximum interest rate in Alberta?

  The maximum personal loan interest rate in Alberta is 35% APR.

• What can I use a personal loan for?

  You can use personal loans in Alberta for any legitimate purpose, such as to buy a car, consolidate debt, finance a major expense or improve a home.

• Can I get approved for a personal loan in Alberta with bad credit?

  This depends on where you apply and your personal situation. If you have bad credit, you have a higher chance of approval if you apply to online lenders instead of banks and credit unions. Online lenders have more flexible eligibility requirements, and some even specialize in bad credit loans. However, they also charge higher rates.

• Can I get a personal loan in Alberta without a credit check?

  Some lenders provide loans with no credit check. Instead of looking at your credit score, they'll focus on your income. It's worth noting that there are predatory or unlicensed lenders that offer no credit check loans, so be sure to apply to a legitimate lender.

• How fast can I get a personal loan in Alberta?

  You can get a personal loan as soon as the same business day. Online private lenders are overall faster than banks and credit unions. Read our emergency loans guide to learn more.