Personal loans in BC: Compare rates & terms

Types of personal loans in BC

You’ll need to choose one loan type out of each of the two categories in the table below when you apply for personal loans in British Columbia. For example, you could choose an unsecured fixed-rate loan or a secured variable-rate loan or any other combination.

Unsecured vs secured loans

Fixed-rate vs variable-rate loans

What makes a successful personal loan application?

You’ll need to fill out your application correctly and meet certain criteria to successfully apply for most personal loans in BC. Eligible applicants will usually need to meet the following criteria:

• Be at least 19 years old (the age of majority in BC)
• Be a Canadian citizen or a permanent resident with a valid Canadian address
• Be employed and have a steady income
• Meet credit score and income requirements
• Have a debt-to-income (DTI) ratio at or below 40%

• How to calculate your debt-to-income (DTI) ratio

  Your debt-to-income ratio is the amount of money you owe each month to pay your debts and bills divided by your monthly income. You can figure out your DTI ratio using these steps:

  1. Add up all your debt payments for the month, including what you pay for rent, credit cards (minimum payments), student loans, alimony, child support and car loans.
  2. Divide the sum of all your monthly debt payments by your gross monthly pay.
  3. Convert that number into a percentage and that is your DTI ratio.

Documents you’ll need to provide

To apply for personal loans in British Columbia, you’ll usually need to provide the following documents:

• Identity documents. Personal identification such as your passport or driver’s licence.
• Proof of income. Pay stubs, employment records, tax records, proof of government benefits (such as EI) or other documents.
• Debt-to-asset ratio. Lists of assets and debts to make sure you can qualify for funding.
• Credit score. Consent for your lender to run a credit check.

Can you get a personal loan with bad credit?

You can, but banks and credit unions might be out of reach, so you’ll need to apply to an alternative lender. Be prepared for high interest rates as well. Borrowers with bad credit are charged steeper rates because they’re more likely to default on a loan. Learn more about bad credit loans in BC.

How to compare personal loans in BC

Think about the following features when deciding on which personal loan in BC is best for you:

• Interest rates. Rates can be fixed or variable and usually range between 6.99% and 35%. Compare multiple lenders to make sure you get the best deal.
• Loan amounts. Figure out how much you want to borrow before you apply. Some personal loans in BC max out at $50,000 while others will limit you to $25,000 or $15,000.
• Turnaround time. Think about how fast you need the money. For a quick turnaround time, you may want to consider same-day loans.
• Loan terms. Loan terms often range from 3 – 60 months. Aim for the shortest term you can afford to keep your interest costs low.
• Fees. Some lenders charge origination fees, late fees and early repayment fees on your loan. Read the fine print to make sure you don’t end up with hidden charges.

Steps to apply for personal loans in BC

Follow these steps for how to apply for a personal loan to qualify for the loan you want.

How much are personal loans in British Columbia?

Personal loan interest rates in BC generally range from 6.99% to 35%.

The overall cost of your personal loan in BC will depend on multiple factors, including

Credit score

You’ll have a higher chance of getting decent interest rates if you have a credit score above 660. You’ll usually pay higher rates with a lower score.

DTI ratio

You may get better rates with a low DTI ratio. Many lenders will require a ratio of less than 40%, but you’ll typically pay less interest if your DTI ratio is 20% or under.

Collateral

You’ll pay less if you secure your loan with an asset such as your home or vehicle. Just be aware that your assets can be repossessed if you fail to repay your loan.

Loan term and amount

You’ll pay less interest over time if you take out a smaller loan over a shorter time frame. Larger and longer-term loans will cost more.

Fees

You may have to pay fees with some lenders that can drive up your overall loan cost. Read your contract carefully before signing to check if there are any fees, including loan insurance, late payment fees, a prepayment penalty and origination fees. Choose a lender that doesn’t charge fees to save money.

What can you use a personal loan for in BC?

With the cost of living on the rise – and Vancouver being named the second-most expensive city to live in Canada, according to Mercer’s 2024 Cost of Living City Ranking – it’s no wonder BC residents are looking for supplemental financing in the form of personal loans.

Personal loans are a flexible type of financing, and BC lenders generally don’t put restrictions on what you can use the loan money towards.

Primary reasons for getting a personal loan

According to data released in the Finder: Consumer Sentiment Tracker Q3 (CSTQ3), the three biggest reasons why Canadians planned to get a personal loan were:

1. Pay for bills and everyday expenses (34%)
2. Pay off credit cards (31%)
3. Improve their home (24%)

Types of lenders in British Columbia

There are four types of lenders offering personal loans in BC:

Banks

Bank loans are provided by Canada’s Big Six banks and other major financial institutions. These loans come with competitive interest rates, but you’ll need a good credit score (660+) and an acceptable amount of income to qualify. You can qualify for lower rates if you secure your loan with an asset.

• How it works. Apply for a loan with the bank in person or by submitting your personal information online. If approved, money will be deposited into your bank account as a lump sum and you’ll pay the loan back over a set term (usually 5 years).
• How to qualify. You must be a Canadian citizen or resident and be the age of majority in BC. You’ll also need to meet credit score and revenue/income requirements and have a working bank account.
• Sample lenders. BMO, TD Bank, RBC, CIBC, Scotiabank and National Bank.

Credit unions

Credit unions are membership-only financial institutions that typically offer smaller personal loans in BC than banks. These loans also come with favourable interest rates, but like banks you need a good to excellent credit score.

• How it works. Apply for credit union personal loans in BC by filling out an application in person or online. If approved, money will be deposited into your bank account as a lump sum and you’ll pay the loan back over a set term.
• How to qualify. You must be a Canadian citizen or resident and be the age of majority in BC. You’ll also need to meet credit score and revenue/income requirements and have a membership with the credit union you apply with.
• Sample lenders. Coast Capital, Vancity, Coastal Community Credit Union, Greater Vancouver Community Credit Union, Island Savings and Community Savings Credit Union.

Private lenders

Private or alternative lenders are companies that offer personal loans in BC with less strict eligibility criteria. You may be able to apply with bad credit or low income as long as you can prove you’ll be able to make your repayments. You’ll get your funds very quickly (sometimes in less than 24 hours) and there’s less administrative work involved.

• How it works. Apply with an online private lender by submitting your personal info online. Upload the required documents and get approved quickly if you qualify. Get your funds deposited into your bank account and make repayments over a set term.
• How to qualify. You must be a Canadian citizen or resident and be the age of majority in BC. You’ll need to meet credit score and revenue/income requirements and have a working bank account. You’ll also need to be comfortable with applying for and managing your loan online
• Sample lenders. Spring Financial, SkyCap Financial, Money Mart.

Peer-to-peer lenders

P2P loans are usually offered through an online platform. This platform connects you to other Canadians who want to give you financing and collect interest on the money you borrow. Interest rates for P2Ps are usually lower than banks or private personal loans in BC. Your rates will be lower if you have a good credit score, but you can still apply with bad credit.

• How it works. You’ll connect directly with investors via the P2P platform. The site usually sets the rates and terms and enables the transactions. You’ll then receive a lump sum and repay your loan in the same way you would with the bank.
• How do I qualify? You must be a Canadian citizen or resident and be the age of majority in BC. You’ll also need to have a decent credit score and a regular source of income as well as a working bank account and be comfortable working entirely online.
• Sample lenders. Providers include goPeer and the r/borrow subreddit (but be aware that r/borrow is not regulated in Canada).

Bottom line

You can take out personal loans in BC if you have a good credit score and decent income. You can also apply for bad credit personal loans in BC with some lenders if you’re willing to pay higher interest rates. To compare more personal loans, head over to our personal loans guide.

Frequently asked questions

• Where can I get a small loan in BC?

  You can get small loans in BC from many online private lenders and some credit unions.

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

  You'll usually need a credit score of 660 or above to qualify for traditional personal loans in BC. You may be eligible for fair or bad credit loans if you have sufficient income, are willing to secure your loan with an asset or can enlist a cosigner to help back up your loan in case you default on your payments.

• How much can I borrow with a personal loan in BC?

  You can borrow up to $50,000, but not all lenders go up to this amount. You'll need to do a bit of research to find out which lender can give you the amount you need at a price you can afford.

• Will my personal loan repayments improve my credit score?

  Your repayments will usually build up your credit score as long as you make them on time. However, your credit score could go down if you make late payments or miss your payments all together. This is why it's essential to make sure you pay on time or inform your lender if you're struggling to make ends meet.

• Can I get a personal loan in BC with no credit check?

  You may be able to get a no credit check loan if you secure your payments with your vehicle. That said, most reputable lenders will perform a credit check to determine your loan eligibility.

Written by

Leanne Escobal

Publisher

Leanne Escobal is a publisher at Finder with more than 12 years of experience in financial products and services, with a focus on content strategy and marketing. She has completed the Canadian Securities Course (CSC®) as well as the Personal Lending and Mortgages course through the Canadian Securities Institute. Leanne holds a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio

Leanne's expertise

Leanne has written 175 Finder guides across topics including:

• Personal Loans
• Car Loans
• Business Loans
• International Money Transfers
• Make Money Online

Co-written by

Claire Horwood

Associate editor

Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio

Claire's expertise

Claire has written 360 Finder guides across topics including:

• Banking
• Personal Loans
• Car Loans
• Business Loans
• Credit Cards