Finder makes money from featured partners, but editorial opinions are our own.

Compare unsecured loans up to $50,000

Whether you have good or bad credit, find out where you can get unsecured loans in Canada with fast decisions and funding.

Unsecured loans in Canada let you borrow a lump sum of cash without having to put up collateral to secure your loan. The upside is that you won’t risk losing an asset if you default on your payments. The downside is that they come with higher rates compared to secured loans.

Follow this guide to learn more about types of unsecured loans and where you can apply.

⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.

Compare unsecured loans

Whether you’re looking for a personal, installment or payday loan, explore your loan options here.

Unsecured loanInterest rateLoan amountLoan termKey features
Loans Canada

Unsecured personal loan

8.00% - 46.96%$300–$50,0004 - 60 monthsInstant pre-approval, accepts bad credit
gopeer

Personal loan

8.99% - 34.99%$1,000–$35,00036 - 60 monthsOnline peer-to-peer lender, for good to excellent credit borrowers
Spring Financial

Personal loan

10.8% - 46.99%$500–$35,0006 - 60 monthsSame-day approval and funding, accepts bad credit
SkyCap Financial

Personal loan

12.99% - 39.99%$500–$10,0009 - 36 monthsApproval and funding within 24-48 hours
LoanConnect

Personal loan

8.99% - 46.96%$100–$50,0003 - 120 monthsInstant pre-approval, accepts bad credit, no credit check loan available
Mogo

Personal loan

9.90% - 46.96%$500–$35,0006 - 60 monthsQuotes in 3 minutes, flexible eligibility requirements
Loans Loans

Installment Loan

28.00% - 32.00% + broker fee$500–$1,0003 monthsFunding within 24 hours of approval, no credit check
Fat Cat Loans

Personal loan

6.99% - 46.96%$300–$50,0003 - 84 months84% chance of approval even with bad credit
Spring Financial

Installment loan

10.8% - 46.99%$500–$35,0006 - 60 monthsFast application, same-day funding
Loans Canada

Installment loan

8.00% - 46.96%$500–$50,0004 - 60 monthsLoan broker, largest lender network
LoanConnect

Installment loan

32.00%$500–$2,5003 - 6 monthsLoan broker, pre-approval in 5 minutes
SkyCap Financial

Installment loan

12.99% - 39.99%$500–$10,0009 - 36 monthsExcellent service, fast approvals
iCash

Payday Loan

Varies by province$100 – $1,5007 - 62 days24/7 approval and e-Transfer, accepts bad credit
Symple Loans

Personal loan

6.99% - 32.00%$5,000–$50,00012 - 84 monthsFree quote with no impact to credit score, for good credit borrowers
Money Mart

Payday Loan

Varies by province$120 – $1,5001 - 62 daysDeposited in as soon as 24 hours (excluding weekends)
Cash Money

Payday Loan

Varies by province$100 – $1,5005 - 40 daysInstant approval, e-Transfer in as little as 15 mins, accepts bad credit

Magical Credit

Installment Loan

19.99% - 46.80%$1,500 – $20,00012 - 60 monthsApproval in 24 hours, funding in 24 hours, accepts many types of income and bad credit
Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Province Max. cost of borrowing a $100 payday loan Cooling off period to cancel loan Max. penalty for returned cheque or pre-authorized debit
Alberta $15 2 business days $25
British Columbia $15 2 business days $20
Manitoba $17 48 hours excluding Sundays and holidays $20
New Brunswick $15 48 hours excluding Sundays and holidays $20
Newfoundland and Labrador $14 2 business days $20
Nova Scotia $15 Next business day (2 days for online loans) $40 (default penalty)
Ontario $15 2 business days $25
Prince Edward Island $15 2 business days N/A
Quebec Limit of 35% AIR N/A N/A
Saskatchewan $17 Next business day $25

Types of unsecured loans in Canada

The 3 main types of unsecured loans are personal loans, installment loans and payday loans. Depending on the type you choose, it’s possible to get these loans from banks, credit unions and online lenders.

Banks and credit unions generally offer better rates than online lenders. That said, banks and credit unions typically only cater to borrowers with good to excellent credit scores.

If you have bad credit or your finances aren’t in the best shape, you’re going to have a higher chance of approval if you apply with online lenders – although that means you’ll be charged a higher interest. There are also select online lenders that offer competitive rates if you have good to excellent credit.

Option 1: Compare unsecured personal loans in Canada

Unsecured personal loans in Canada are large loans offered by banks, credit unions and alternative lenders. This loan doesn’t require collateral and is paid back through equal payments over a period of time.

Overall representative example
If you borrowed $20,000 over a 5-year term at 9.50% APR (variable), you would make 60 monthly payments of $420.04 and pay $25,202.23 overall, which includes interest of $5,202.23. The overall cost for comparison is 9.50% APR representative.

Features of unsecured personal loans

  • Who are they for? These unsecured loans are best for people with good credit scores above 660, who need to borrow large amounts of money and can wait a few days to weeks for fudning.
  • Loan term. 3–60 months
  • Loan amount. $500–$50,000+
  • Interest rates. 9.75%–46.96%
  • Fees. NSF fees and late payment fees
  • Minimum credit score. Usually 600+
  • Turnaround time. 2 days to 3 weeks

Compare unsecured personal loans

Option 2: Compare installment loans

Installment loans are a type of unsecured personal loan offered by alternative lenders. They are specifically designed for people with fair to bad credit. Installment loans come with smaller loan amounts, higher interest rates and easier eligibility criteria than regular unsecured personal loans.

Features of unsecured installment loans

  • Who are they for? Installment loans are suited for people who need to borrow quickly and don’t qualify for personal loans at lower rates.
  • Loan term. 3–60 months
  • Loan amount. $500–$10,000
  • Interest rates. 18%–46.96%
  • Fees. NSF fees and late payment fees
  • Minimum credit score. Usually 500+
  • Turnaround time. 1-2 business days

Compare unsecured installment loans

Option 3: Compare payday loans

Payday loans are very small loans that are offered exclusively by payday lenders. They are always unsecured. You’ll typically need to repay these loans in full by your next paycheque. These loans are easier and faster to get than unsecured personal loans. However, they come with extremely high interest rates and are often considered predatory, so they should only be a last resort.

Features of payday loans

  • Who are they for? These loans are for people who have bad credit and need to borrow money fast. Before getting a payday loan, make sure you can repay your loan by your next payday and you’ll have enough money left to pay for other debts and expenses.
  • Loan term. By your next paycheque, usually within 2-3 weeks (up to 62 days)
  • Loan amount. $1,500 or less
  • Interest rates. Between $14 to $17 for every $100 borrowed, which can be equivalent to an incredibly steep APR of 400%-800%
  • Fees. NSF fees and late payment fees
  • Credit score requirements. No minimum credit score
  • Turnaround time. Under 24 hours, often within an hour

Compare unsecured payday loans

What is an unsecured loan?

An unsecured loan is a debt that is not backed with collateral. While secured loans are usually backed by the house or car the loan is financing, an unsecured loan is not backed with any asset from the borrower.

These loans typically come with higher interest rates compared to secured loans. That’s because these types of loans are more risky for lenders, since they cannot sell the collateral to recover lost revenue should you default on the loan.

What is the interest rate for an unsecured loan?

Interest rates for unsecured loans vary depending on the following factors:

  • Credit score. Borrowers with good to excellent credit scores (above 660) will get lower rates than borrowers with fair to bad credit scores (below 660).
  • Loan amount. How much you decide to borrow will influence your rates. The more you borrow, the more interest you’ll pay over time.
  • Loan term. You may pay higher interest rates on shorter term loans, but you’ll pay more interest overall on longer term loans.

You’ll usually pay higher interest rates for unsecured loans vs secured loans. This is because your lender takes on more risk to give you funding since it won’t be able to sell your assets if you default on your payments.

Interest rate vs APR (annual percentage rate): What’s the difference?

The interest rate is the percentage the lender charges you for borrowing money. When you make your monthly payments, a portion will go towards the amount you borrowed and the other portion will go toward interest.

APR is the interest rate plus other fees you must pay to get the loan, such as origination or set-up fees (around 0-5%), expressed as an annual cost.

How do unsecured loans compare?

When you compare the APRs of the 3 types of unsecured loans, you’ll find that payday loans are the most expensive.

  • Unsecured personal loans: 9.75%–46.96%
  • Installment loans: 18%–47%
  • Payday loans: 300%-800%

Sample of how much you’ll pay for an unsecured personal loan with various interest rates

See how the overall cost of an unsecured loan for $20,000 over 5 years will fluctuate based on your interest rates:

FeaturesLoan 1Loan 2Loan 3
Total amount$20,000$20,000$20,000
Interest rate6%9%12%
Fees$0$0$0
Monthly payment$386$415$444
Total interest over time$3,199$4,910$6,693
Total repayment$23,199$24,910$26,693

Calculate your unsecured loan monthly payment

Calculate how much you could expect to pay each month
Your loan
Loan amount
$
Loan terms (in years)
Interest rate
%

Fill out the form and click on “Calculate” to see your estimated monthly payment.

or

Compare personal loans
You can expect to pay back $ per month
Based on your loan terms
Principal $
Interest $
Total Cost $

Are there unsecured loans for bad credit in Canada?

It is possible to get unsecured loans for bad credit in Canada if your credit score falls below 660. You’ll usually be eligible for unsecured installment loans and payday loans for bad credit, but expect to pay very high interest rates.

If you have bad credit, you may also qualify for alternative types of unsecured loans, such as prepaid credit cards or cosigned loans. However, you’ll typically get better rates if you apply for secured loan products such as home equity loans or lines of credit.

Where can I get unsecured loans in Canada?

Many financial institutions in Canada offer unsecured loans including banks, online lenders and brokers. Online lenders tend to have more lenient eligibility requirements, such as a lower minimum credit score threshold, compared to banks.

Some popular online Canadians lenders offering unsecured personal loans are Spring Financial, SkyCap Financial, Loanz, Mogo, Fairstone, Symple Loans and Magical Credit.

Alternatively, when you apply with a broker, you’ll fill in one online application, and then be matched with a number of loans you qualify for from different lenders. You can then conveniently compare multiple loan offers at once.

Some example Canadian loan brokers offering unsecured loans are Loans Canada and LoanConnect.

Can I get an unsecured bank loan?

You may qualify for an unsecured bank loan if you have good to excellent credit, or a score above 660. It will be much more difficult to get a bank loan with bad credit.

  • How do unsecured bank loans work? Apply online or in person. Book an appointment to discuss your loan requirements and submit required documents such as 2 valid pieces of ID, recent pay stubs, most recent T4, personal tax return and list of assets and liabilities. Agree to a credit check.
  • Types of unsecured bank loans. Unsecured personal loans, lines of credit, debt consolidation loans, credit cards.
  • Which banks offer unsecured loans? Unsecured loans are a common product, and you’ll easily find them among the Big Five and other major banks. You may want to check with your current bank first and see if they can offer you a relationship discount.

Fixed vs variable rate

If you apply for an unsecured loan from a bank or credit union, you may get a choice between fixed and variable rates:

  • Fixed rate loans. Fixed rate loans give you a locked-in interest rate so that your monthly payments don’t change for the duration of your loan. These are the most common types of unsecured personal loans in Canada.
  • Variable rate loans. Variable rate loans have fluctuating interest rates that depend on market conditions. The breakdown of your monthly payments will vary as your interest rate shifts. If your rate goes up, more of your payment will go toward interest than towards the principal of your loan.

Pros and cons of unsecured loans

Pros

  • Simple application. Apply online in less than 5 minutes. Simply fill out your personal details and submit to a credit check.
  • No assets required. There’s no need to secure your loan with collateral or risk losing an asset if you default on your payments.
  • Flexible loan amounts. Qualify for more money with an unsecured loan since the amount you borrow won’t depend on the value of your assets.
  • Use funds for whatever you want. Spend the money you borrow on whatever you want – you don’t need to share this information with your lender.

Cons

  • Higher interest rates. Unsecured loans come with higher interest rates than secured loans since your lender can’t repossess your assets to cover losses if you default.
  • Difficult to qualify with bad credit. You may have a harder time qualifying for an unsecured loan if you have bad credit (except for payday loans).
  • Damage to credit score if you default. Your credit score will go down by a significant margin if you don’t make your payments on time.

How to compare unsecured loans in Canada

Compare the following features to help narrow down your options and find the best loan for your needs.

Loan amounts

Personal loan lenders typically cap unsecured loans at $50,000 with minimum loan amounts starting at $500. That said, some lenders may allow you to borrow more depending on your credit score, income and debt-to-asset ratio.

Unsecured installment loan amounts typically range between $500 and $10,000. Loan amounts are smaller compared to personal loans because installment loans are designed for bad credit borrowers.

Payday loans are regulated at the federal or provincial level, which means the maximum loan amount cannot exceed $1,500. The minimum amounts can vary by lender but usually start at $100.

Interest rates

Compare providers to make sure you lock in competitive rates, and check the annual percentage rate (APR) of various loans to get a better idea of how much it will cost.

If you have a good credit score, you can often lock in a lower interest rate by opting for a personal loan. If speed is priority, installment loans and payday loans often have quicker turnaround times, but come with higher interest rates.

The interest rates for these types of unsecured loans in Canada are typically:

  • Unsecured personal loans: 9.75% – 46.96%
  • Unsecured installment loans: 18% – 47%
  • Payday loans: $14 to $17 for every $100 borrowed (typically equivalent to an APR of 300% or more)

Loan terms

Most loan terms for ubsecured personal loans range from 3 months to 60 months. Keep in min that shorter terms come with larger monthly payments while longer terms give you smaller payments (but you’ll pay more in interest over time).

Unsecured installment loan terms tend to range between 3 months and 60 months.

Payday loans have the quickest repayment timeline compared to other unsecured loans. Your payday loan will have to be paid back when you receive your next paycheque (or up to 62 from when you received the loan).

Fees

Fees for unsecured loans can include application and origination fees as well as any ongoing annual or monthly fees. Double check the fee schedule for your loan before you sign up. Some fees you can keep an eye out for in your loan contract include NSF fees, late payment fees and early repayment fees. Learn more about loan fees here.

Repayment flexibility

Repaying your loan early can potentially save you a lot of money in interest charges. However, you may have to pay extra fees to pay your loan off early with some lenders. Aim to choose a lender that gives you the flexibility to prepay your loan for free whenever possible.

Eligibility criteria

Many lenders have specific criteria such as a minimum income or credit score that you need to meet to qualify. Make sure you’re eligible for the loan you’re interested in before you take the time to apply.

If you’re worried that your credit score, income or other personal financial factors may prevent you from getting an unsecured loan, look into alternative, online lenders that tend to have more lenient eligibility requirements.

Compare unsecured loan options

How to apply

Learn more about how to apply and qualify for unsecured loans in Canada:

Steps to apply for unsecured loans

  1. Apply in person or online. Apply by first visiting the physical location or website of the provider you’re interested in.
  2. Fill out application details. Fill out personal details such as your full name, address, email and phone number to start your application.
  3. Provide financial details. Input details about your income, debts, assets and other necessary financial information.
  4. Provide employment information. Provide the name of your employer, your job title, length of service and annual gross income.
  5. Submit to a credit check. Give permission for your lender to check your credit to determine your loan eligibility and interest rates.
  6. Review final details and submit. Check your amount, rates, repayment term and fees. Provide required loan documents and submit your application.

What documents do you need to apply?

You may need to submit the following documents to apply for unsecured loans.

Type of documentExamples
Government-issued ID
  • Government-issued ID
  • Driver’s licence
  • Passport
  • Birth certificate
  • Social Insurance Number (SIN)
  • Certificate of Citizenship
Income verification documents
  • Pay stubs
  • Bank statements
  • Employment letters
  • Tax assessments
Proof of debts and assets
  • Credit card and loan statements
  • Secondary sources of income
  • Estimation of your current expenses
  • Current rent or mortgage statement

Eligibility requirements

To qualify for an unsecured loan, you may need to meet the following eligibility requirements:

  • Age of majority. Be at least 18 years old or the age of majority in your province or territory.
  • Resident or citizen. Be a Canadian citizen or a permanent resident with a valid Canadian address and 2 pieces of identification.
  • Proof of income and employment. Make the minimum income specified by your lender (usually over $1,200 per month) and show proof of long-term employment.
  • Decent credit score. Submit to a credit check and meet credit score requirements (usually a score of 600 or higher is required for many loans).
  • Working bank account. Submit direct deposit information so you can receive payment and organize withdrawals to repay your loan.

Unsecured vs secured loan

Compare the main differences between secured and unsecured loans in the table below:

Unsecured loansSecured loans
  • Qualify based on credit score
  • Typically higher interest rates
  • Credit score goes down if you default
  • Qualify based on collateral/assets
  • Typically lower interest rates
  • Assets can be repossessed if you default

Other types of unsecured loans in Canada

Take advantage of other types of unsecured loans to get the money you need:

Loan typeHow it worksWhat it costs
Credit cardsYou’ll usually have a set limit you can spend on your card. You’ll pay interest on your outstanding balance.Interest rates sit around 19.99% for purchases and 21.99% for cash advances.
Lines of creditYou’ll borrow a set amount that sits in your account. Access all or a portion of it whenever you need and only repay the amount you take out, with interest.Average line of credit rate in Canada is 7.09% for an unsecured personal line of credit.
Debt consolidation loansBorrow a lump sum to pay off your debts. Then repay that loan with a single payment and hopefully lower interest rates.Rates may range from 7% to 12% for debt consolidation loans, depending on your credit score.
Peer-to-peer loansPeer-to-peer loans let you submit an application online on a P2P network. Other Canadians can then lend you money. You’ll usually need good to excellent credit to apply.Rates can range anywhere from 8% to 35%.

Bottom line

Unsecured loans don’t require collateral; they include personal loans, installment loans and payday loans. You need a good to excellent credit score to qualify for competitive interest rates, and your credit score will go down if you default on your payments. You’ll also have to pay higher interest rates for unsecured loans vs secured loans, especially if you have bad credit.

Frequently asked questions about unsecured loans

Back to top

More guides on Finder

Go to site