Scotiabank personal loans review

If you’re a new customer, you must book an appointment and meet with a loan specialist at a Scotiabank branch in person, but existing customers can usually apply for a personal loan online via their online banking account.

What types of personal loans does Scotiabank offer?

Scotiabank has a wide range of personal loan options. They include:

• Secured loans. If you’re willing to use your home as collateral, you can borrow up to with terms of up to 25 years. You’ll also secure a lower interest rate.
• Unsecured loans. For borrowers who don’t want to put up any assets as insurance, unsecured loans of up to $50,000 are up for grabs with terms between 12 months and 5 years.

With unsecured and secured loans, borrowers can choose between variable and fixed interest rate options.

It’s worth noting that Scotiabank, like most major banks, doesn’t disclose its rates for personal loans online. You’ll have to apply for a personal loan to determine how much you’d qualify for and at what interest rate.

Why should I consider taking out a loan with Scotiabank?

If you can qualify for a Scotiabank personal loan, you can take advantage of a lengthy list of perks. They include:

• Flexible options to customize your loan. Scotiabank’s range of personal loan options allows you to choose between secured and unsecured loans, and fixed and variable interest rates. If you opt to secure your loan with your home equity, you’ll score a lower interest rate.
• Wide range of loan amounts. You can borrow up to $50,000 for unsecured loans and up to for a secured loan.
• Wide range of loan terms. Borrowers can choose from 12 months to 5 years terms for unsecured loans and terms of up to 25 years for secured loans, so you can design smaller or bigger loan repayments, depending on the length of your term.
• Competitive interest rates. While Scotiabank doesn’t disclose its interest rates on its website, qualified borrowers will secure a lower interest rate on their personal loan compared to what’s on offer by online lenders. You can guarantee even lower interest rates if you have a great credit score and a longstanding relationship with Scotiabank.
• Flexible repayment schedule. Borrowers can choose from weekly, fortnightly or monthly repayment schedules to suit your pay schedule and budget. You can even rearrange your payment schedule, choosing a different date for payment or different routine.
• 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. Scotiabank says borrowers can repay some or all of their personal loans without incurring any prepayment penalties.
• Defer a payment. Postpone one payment a year on your loan without facing any late fees.
• Variety of banking options. Scotiabank 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.

Where does Scotiabank fall short?

Consumers should always tread carefully before they sign up for a loan, especially a personal loan that’s a large sum of money. Here are some red flags to watch out for:

• High minimum borrowing amounts. While it isn’t disclosed on its website, you can count on Scotiabank having a minimum amount you must borrow. For most major banks, it’s at least $5,000, which may be too much for some consumers.
• APRs are not listed online. You’ll have to apply for a loan to learn what interest rate you’ll receive because Scotiabank does not list its interest rates and fees online.
• Your credit score needs to be high. Major banks typically require borrowers to have good to excellent credit (a score of 650 or higher) to qualify. This means some borrowers may not get approved for a Scotiabank personal loan.
• You may have to secure your loan. If you’re looking for a personal loan of more than $50,000, you may have to put your property on the line as collateral.

Alternatives to a bank loan

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Compare more personal loans

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How much will it cost me to borrow with Scotiabank?

It depends on the interest rate you’ll secure. Scotiabank doesn’t disclose its interest rates for personal loans online or on its website. To find out what rate you’d receive for a personal loan, you’ll need to apply for a loan by contacting Scotiabank to book an appointment with a loan specialist. If you’re an existing customer, you can skip this step and apply online via your online or mobile banking account or over the phone to receive your loan quote, too.

Keep in mind, your interest rate is determined based on a number of factors, including your credit score, current financial situation, such as your monthly income and existing debts you need to service, and the type of loan and interest rate you choose. If you opt to secure your loan, you can count on a lower interest rate, for example.

Scotiabank won’t charge loan origination fees, and it doesn’t charge prepayment fees if you decide to pay off some or all of your loan early. However, it will charge you fees for late and missed payments, and NSF charges.

Are Scotiabank loans safe?

Scotiabank is absolutely safe to bank with. It’s one of the “Big Five” banks in Canada, alongside RBC, TD, BMO and CIBC, so you won’t have to worry about its legitimacy. It even has reach around the world, with more than 25 million customers globally. It trades on the Toronto and New York stock exchanges.

Scotiabank also offers a variety of other products and services, including bank accounts, mortgages, investment accounts, savings and borrowing options, insurance, business solutions and financial advice.

How to apply for a loan with Scotiabank

The process to apply for and borrow a personal loan from Scotiabank will vary depending on whether you’re a new or existing customer. Existing customers can typically apply for a personal loan over the phone, online by signing into online banking or via appointment at a Scotiabank branch. On the other hand, new customers have to book an appointment to visit a local branch in order to begin the loan process.

If you’re already a Scotiabank customer, applying online for a personal loan will be the quickest way to get your hands on your funds.

Once you have the loan, you can make repayments directly from your bank account and set up automatic payments if you wish.

Eligibility requirements

Before applying for a personal loan, you will need to meet some eligibility criteria, which includes:

• Being at least 18 years of age, or the age of majority in your province or territory. You’ll need one piece of ID for verification (passport, driver’s licence, birth certificate, citizenship card, etc.)
• Being a Canadian citizen or a permanent resident
• Meeting any minimum income requirements, which aren’t listed online. You will need to provide proof of employment via salary slips or an employment letter
• Meeting any minimum credit score requirements, which aren’t listed online. Typically, major banks require borrowers to have good to excellent credit, which is a credit score of at least 650
• If you’re self-employed, you’ll need to provide your recent CRA My Account Assessment, and a recent Notice of Assessment and corresponding T1 General 4-page summary.

You’ll also need to gather additional information before applying, such as:

• Your name, contact information, Social Insurance Number and date of birth
• How much you want to borrow and the purpose of the loan
• Your monthly net income
• Your banking details (if you’re not already an existing Scotiabank customer)

Once you’ve submitted your loan application, you will be given a pre-approval decision. Before signing and returning the loan contract, carefully review the terms and conditions before accepting an offer. Compare your other loan options to be sure you’re getting the most competitive loan offer you qualify for.

Bottom line

If you’re shopping for a personal loan and you have a strong credit score, Scotiabank is a lender worth considering. Borrowers can 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. With that kind of flexibility, you can truly customize your loan to suit your needs and your lifestyle.

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

Frequently asked questions

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

  Yes, you can. You’re still eligible to apply if you’re self-employed; however, you will need to submit information regarding your self-employment, including your recent CRA My Account Assessment, and a recent Notice of Assessment and corresponding T1 General 4-page summary.

• What's the difference between a secured and an unsecured personal loan?

  A secured personal loan is “secured” with collateral, which might include equity in your home, an expensive piece of jewellery or your vehicle. While secured loans usually come with lower interest rates, you run the risk of losing your collateral should you fail to make your loan repayments.
  An unsecured loan does not require any collateral in order to get the loan, but since it’s riskier for the lender, a higher interest rate is usually charged. If you’re not willing to risk an asset to use as collateral, an unsecured loan may be an option to consider.

• What's the difference between a fixed interest rate and a variable interest rate?

  A fixed rate stays the same for the life of your loan. Every time you make a loan repayment, the amount will be the same. A variable rate loan can fluctuate throughout your loan term. The rate is typically expressed as a fixed percentage plus the prime rate, which changes with the market. Your loan repayments can constantly change if you choose to have a variable rate.

• Can I cancel my application?

  Yes, you can usually cancel your application by contacting Scotiabank. If you’ve already received your loan, you can pay off your loan early without facing any penalties; however, you will need to pay any interest that has accrued plus the principal amount.

• How do I contact Scotiabank?

  You can get in touch by asking Scotiabank a question online via its website, calling its 24/7 customer service line on 1-800-4SCOTIA (1-800-472-6842) or via Twitter DM @ScotiabankHelps 8am to 11pm every day.