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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 of unsecured loans 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.

Option 1: Compare unsecured personal loans in Canada

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

1 - 7 of 7
Name Product Ratings Interest Rate Loan Amount Loan Term Requirements
Loans Canada Unsecured Personal Loan
Customer Survey:
8.00% - 46.96%
$300 - $50,000
4 - 60 months
Requirements: min. credit score 300
goPeer Personal Loan
Not yet rated
8.99% - 34.99%
$1,000 - $35,000
36 - 60 months
Requirements: recommended income $40,000/year, no payday loan debt, min. credit score 650, min. 5-year credit history. (Avg. approved rate of 15.80%)
Spring Financial Personal Loan
Customer Survey:
9.99% - 46.96%
$500 - $35,000
6 - 60 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
Symple Personal Loan
Not yet rated
6.99% - 32.00%
$5,000 - $50,000
12 - 84 months
Requirements: min. credit score 650, min. income $50,000/year, no history of bankruptcies
SkyCap Financial Personal Loan
Customer Survey:
19.99% - 39.99%
$500 - $10,000
9 - 60 months
Requirements: min. income $3,333/month, full time employment/pension, min. credit score 600, no bankruptcy
LoanConnect Unsecured Personal Loan
Customer Survey:
5.99% - 46.96%
$100 - $50,000
3 - 120 months
Requirements: min. credit score 300
Mogo Personal Loan
Customer Survey:
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500

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 in Canada

  • Who are they for? These loans are best for people with good credit scores above 660, who need to borrow large amounts of money in a few days to weeks.
  • Loan term. 6–60 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

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. This means they have smaller loan amounts, higher interest rates and easier eligibility criteria than regular unsecured personal loans. Installment loans don’t require collateral, and they are paid back in installments.

1 - 6 of 6
Name Product Ratings Interest Rate Loan Amount Loan Term Requirements Installment Loan
Not yet rated
28.00% - 32.00% + broker fee
$500 - $1,000
3 months
Requirements: min. income $1,200, 2+ months employed. No credit check required.

Note: You may be charged a broker fee up to $300.
Fat Cat Loans Personal Loan
Not yet rated
6.99% - 46.96%
$300 - $50,000
3 - 120 months
Requirements: min. income $1,000/month, min. credit score 300
Spring Financial Installment Loan
Customer Survey:
9.99% - 46.96%
$500 - $35,000
6 - 60 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
Loans Canada Installment Loan
Customer Survey:
8.00% - 46.96%
$500 - $50,000
4 - 60 months
Requirements: min. credit score 300
LoanConnect Installment Loan
Customer Survey:
$500 - $2,500
3 - 6 months
Requirements: min. credit score 300
SkyCap Installment Loan
Customer Survey:
19.99% - 39.99%
$500 - $10,000
9 - 60 months
Requirements: min. income $3,333/month, full time employment/pension, min. credit score 600, no bankruptcy

Features of unsecured installment loans

  • Who are they for? These loans are 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

Option 3: Compare unsecured payday loans

⚠️ 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. 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.

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.

1 - 2 of 2
Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces Offer Table description
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer®
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.
Same day cash up to $1,500 for car payments, rent, mortgage, home & appliance repair, and more. 24/7 instant approval and e-Transfer funding. Income of at least $800/month required.
GoDay Payday Loan
$100 - $1,500
Up to 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer®
To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.
Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs as they may vary from our results.
Province Maximum allowable cost of borrowing
Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island $15 per $100 borrowed
Manitoba, Saskatchewan & Nova Scotia $17 per $100 borrowed
Newfoundland and Labrador $14 per $100 borrowed
Quebec Limit of 35% annual interest rate (AIR)

Features of payday loans

  • Who are they for? They 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. Usually 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

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.

Unsecured loans in Canada 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?

As you search for unsecured loans in Canada, you may encounter these two terms. 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%
  • Unsecured installment loans: 18%–47%
  • Unsecured payday loans: 400%-800%

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

    See how the overall cost of a $20,000 loan 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%
    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 on an unsecured loan
    Your loan
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    Fill out the form and click on “Calculate” to see your estimated monthly payment.


    Compare personal loans
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    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.

    You may also qualify for alternative unsecured loans for bad credit in Canada 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.
    Best personal loans for bad credit in Canada

    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 loans

    If you apply for an unsecured personal loans from a bank or credit union, you’ll 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


    • Simple application. Apply for an unsecured loan 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.


    • 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

    • Loan amounts. Many lenders cap unsecured loans at $35,000 to $50,000. That said, some lenders may allow you to borrow more depending on your credit score, income and debt-to-asset ratio.
    • Interest rates. Compare providers to make sure you lock in competitive rates, and check the annual percentage rate (APR) of your unsecured loan to get a better idea of how much it will cost.
    • Loan terms. Most loan terms range from 6 to 6 months. Shorter terms come with larger payments while longer terms give you smaller payments (but you’ll pay more in interest over time).
    • 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. Learn more about unsecured loan fees.
    • Repayment flexibility. You may have to pay extra fees to pay your loan off early with some lenders. Aim to choose a lender that will let you prepay your loan for free wherever 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.

    How to apply for an unsecured loan

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

    Steps to apply for an unsecured loan

    1. Apply in person or online. Apply for an unsecured loan by 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.

    Eligibility requirements for an unsecured loan

    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.

    What documents do you need to apply for an unsecured loan?

    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

    Learn more about documents required to get an unsecured loan

    Unsecured vs secured loan

    Compare the main difference between a secured and unsecured loan 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

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