The good news is that there are plenty of options out there when it comes to finding an unsecured loan in Canada. We’ve compiled a list of some of the best lenders out there to help you get quick access to the loan you need.
The bad news is that you may encounter high interest rates if lenders consider you a risky borrower. Watch out for hidden fees with any lender you’re considering, and take care to avoid predatory payday loans.
Summary of the best unsecured personal loans in Canada
Loans Canada is an online search and comparison website for personal loans. It boasts one of Canada's largest lender databases.
Why it's one of the best
Easy application. You can apply once online and get matched with suitable lenders within minutes.
Huge lender network. With just a single application, you can search a large network of lenders to quickly find the best loan for your needs.
Loans Canada community. Loans Canada has an active community that enables users to rate and review lenders, giving you the opportunity to feel well informed and confidently choose a lender.
Easy online application
Fast deposits
High loan amounts
Large lender network
High rates for bad credit
Potential penalties for early repayment
Origination fees with certain lenders
Loan Amount
$500 – $35,000
APR Range
9.99% – 35%
Loan Term
6 - 60 months
Serviced Provinces/Territories
All of Canada
Turnaround Time
Receive funds in as little as 24 hours.
Min. Credit Score
300
Fees
No application, origination or brokerage fees
Requirements
Canadian resident, age of majority in your province of residence
Spring Financial provides lending services aimed at helping Canadians build credit and improve their finances through competitive personal loans and credit-building programs.
Why it's one of the best
Credit building. Spring Financial reports loan payments to the credit bureaus to help improve your credit score. If you don't qualify for an installment loan, Spring Financial will offer you its credit-building services to get you on the right track. However, make sure its credit builder loan is right for your current financial situation.
Local established lender. Spring Financial has been providing loan and credit-building products for Canadians since 2015 and is headquartered in Vancouver, BC.
Fast funding. Successful loan applications can be funded on the same day up to $35,000.
Established lender
Credit building program
Fast funding
100% online application
Poor BBB rating
Complaints about credit building
High rates for bad credit
Loan Amount
$500 – $35,000
APR Range
9.99% – 34.95%
Loan Term
6 - 84 months
Serviced Provinces/Territories
All of Canada
Turnaround Time
Within 24 hours
Min. Credit Score
550
Fees
No fees except a $30 NSF fee
Requirements
Min. income of $2,000, min. credit score of 550, 3+ months employed
easyfinancial provides lending services to Canadians via several types of loan, including unsecured personal loans, with a focus on quick approval and credit building.
Why it's one of the best
Fast quote. You can submit an application in a matter of minutes, with no changes to your credit score.
Well-established. easyfinancial is one of the biggest and most well-known alternative lenders in Canada.
Credit building. easyfinancial can help you build your credit by reporting your repayment history to credit bureaus.
Unsecured loan options
2% reduction when co-applying
A+ BBB rating
High rates for bad credit
Some negative customer reviews
Loan Amount
$500 – $150,000
APR Range
9.99% – 35%
Loan Term
9 - 240 months
Serviced Provinces/Territories
All provinces
Turnaround Time
Approval within 30 minutes
Min. Credit Score
300
Fees
Potential NSF fee, late payment fee, Credit Optimizer fee
Requirements
Min. monthly income of $1,200, min. credit score of 300
Innovation Federal Credit Union offers online personal loans across Canada, which is not typical for a credit union.
Why it's one of the best
Competitive rates. Get an unsecured personal loan with rates at Prime + 1.5% to Prime + 15%.
Easy process. Get a decision in as little as one business day, which is faster than other traditional lenders.
Fixed or variable rate. Lock in an interest rate for the entire term when you choose a fixed rate, or potentially save on interest if you choose variable.
Quick application
Funding within 24hrs
Minimal documentation required
High interest rates
Loan Amount
$5,000 – $50,000
APR Range
5.95% – 19.45%
Loan Term
12 - 120 months
Serviced Provinces/Territories
All provinces (excluding Quebec)
Turnaround Time
Approval in one business day
Fees
$5 membership fee
Requirements
18 years of age and a Canadian resident
How we found the best loans
Finder experts collected 11 points of data for more than 50 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. The providers shown on the best list are those who scored highest based on this data-driven methodology. They are providers that are available and not available through Finder. While we aimed to review a wide range of lenders, the loans listed do not reflect the entire market. Read more about the Finder personal loan ratings and review methodology.
Key takeaways
Unsecured loans do not require collateral but often come with higher interest rates than secured loans.
Loan eligibility depends on factors such as credit score, income and debt-to-income ratio, with options available for various credit profiles.
Types of unsecured loans include installment loans, cash advance apps and payday loans. They vary in cost.
What is an unsecured loan?
Personal loans are generally either secured or unsecured. An unsecured loan is one that is lent without the borrower being required to provide collateral (such as a vehicle, home or other asset). A secured loan is a loan that does require collateral, i.e. as a form of security for the lender.
Unsecured loans are supported primarily by the borrower’s creditworthiness and overall financial situation, as opposed to a collateral asset. Because of this, unsecured loans will often come with higher interest rates than secured loans, since the lender is taking on more risk.
Types of unsecured loans
Unsecured personal loans in Canada generally fall into three categories:
Cash advance apps in Canada allow you to borrow small amounts in advance of your next paycheque without the need for a hard credit check.
Payday loans are short-term, high-interest loans intended to provide quick cash to borrowers who will repay the loan with their next paycheque.
Pros and cons of unsecured loans
Pros
Simple and quick application. Most lenders allow you to apply online and submit a loan application in a matter of minutes.
No assets required. With an unsecured loan, you won’t need to provide any assets as collateral, which makes funding much more accessible. There’s no need to worry about losing your valued property if you default on repayment.
Flexible spending. You’ll have the freedom to use your loan however you choose, unlike a secured loan which is typically intended for a specific purchase category. The exceptions are car title loans and home equity loans or HELOCs, which require your car or house as collateral, but you can use the loan funds for any purpose.
Quick funding. Unsecured loans can generally be processed within a day or two, making it a great option when you need to access emergency funding.
Cons
Higher rates. Unsecured loans come with higher interest rates compared to secured loans. That’s because, with no collateral, lenders are taking on greater risk.
Hard to qualify with bad credit. If your credit score is less than average, it can be difficult to get approved for an unsecured loan. If you do find options, you’ll likely be faced with high interest rates.
Credit score damage if you default. Missing unsecured loan repayments will result in an immediate hit to your credit score, so managing your repayments is key.
Bottom line
An unsecured loan can help you access the cash boost you need without having to put your home, car or any other valuable assets on the line. However, you’ll need a good credit score to access the best interest rates. Online pre-approval with most lenders makes the application process quick and easy.
Frequently asked questions
The amount of loan funding available varies between lenders and may also depend on your credit score, income and current debt. Generally, unsecured loans are available from $500 to $50,000, depending on the lender you choose.
There are lenders out there who will approve borrowers as long as they can show evidence of a consistent history of payment. Some lenders will also accept CPP, Canada Child Benefits, EI and other sources of income as proof of funds. Learn more about unemployment loans.
The exact rate you're offered when applying for a loan will vary depending on your credit score, income, debt levels and history of payments. Banks often advertise their best available rates, but you'll need a very good credit score and low debt-to-income ratio to access these.
If you've got a bad credit score, your options for fast unsecured loan funding are limited. While payday loans could get you a $1,500 loan, anything greater than that may be difficult to secure. Keep in mind that payday loans are the most expensive type of loan out there, typically offering high APRs in the triple digits.
Steven Brennan is a freelance finance writer working from Vancouver, B.C. He has a BA and an MA in English Literature at the University of Ireland, Maynooth, and also spent time working in Italy and Vietnam as an English teacher. Today, he writes regularly on a range of personal finance topics including banking, loans, mortgages, insurance and tax. His work has appeared on sites such as LowestRates.ca and WealthRocket, as well as in print with Canadian MoneySaver.
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Leanne Escobal is a senior publisher at Finder with more than 13 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.
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Compare lenders in Canada that can approve you quickly for unemployment loans.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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