A personal loan can help you consolidate debts, pay bills, pay for emergency expenses and more. You can typically borrow between $500 and $50,000 with loan terms between 6 and 60 months. Use this guide to browse personal loans in Montreal and to learn about key information before signing on the dotted line.
Compare personal loans in Montreal
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Where can I get a personal loan in Montreal?
You can personal loans in Montreal from banks, credit unions, online lenders and peer-to-peer lenders. By law, your loan provider isn’t allowed to charge more than 60% interest annually, which includes all fees, costs and interest that you’ll need to pay to get the loan.
Montreal law requires all personal lenders be licensed in the province and comply with federal and provincial regulations governing financial institutions.
Types of personal loans
There are generally two types of personal loans available in Montreal: secured and unsecured.
Secured personal loans rely on collateral, like your vehicle or your home, to cover the costs of the loan if you fail to make repayment. Unsecured loans require no financial backing, but your lender can sue you or file a claim with a collection agency if you fail to meet your repayment terms.
Most personal loans are unsecured and can have either a fixed or variable interest rate. A fixed rate loan will charge the same interest rate for the duration of your term while a variable interest rate loan will charge a fluctuating or “floating” interest rate that moves in tandem with the prime rate and economic conditions.
What are the interest rates on personal loans in Montreal?
Lenders in Montreal aren’t allowed to charge more than the federal maximum limit of 60% interest on personal loans. The cheapest lenders are typically the credit unions and banks, which can charge fees as low as 6% – 12% on loans. Private companies usually come in second place, offering interest rates between 10% and 40%.
Compare personal loan rates from different types of lenders
Interest rates charged by lenders can vary by customer and institution, depending on factors like credit history, the type of lender and the type of loan (secured or unsecured). The following example compares the potential costs of taking out an unsecured personal loan with three different providers, assuming the loan is worth $2,000 on a 36-month term.
Option
Interest rate
Monthly amount
Total cost
Credit Union
8.99%
$64
$2,304
Bank
19.99%
$75
$2,700
Private lender
39.99%
$97
$3,492
When you tally up the difference, you realize that you can save over $1,000 on the total cost of your loan by choosing to take out a loan with your credit union. That’s why it pays to compare a number of different options before settling on your lender.
Can I get a no credit check loan in Montreal?
Yes, some lenders offer no credit check loans. But you should be careful that they’re not a predatory or unlicensed lender looking to take advantage of unsuspecting customers. If you’re worried about your credit score, your best bet is to look into a lender that relies on a soft credit check, which doesn’t affect your credit score. Getting a soft credit check takes less than a minute, so it won’t add time to your application. And many lenders are willing to work with bad- or poor-credit customers, so it won’t necessarily get you rejected.
The vast majority of lenders will run a credit check when you apply for a personal loan, as your credit report helps lenders evaluate your ability to meet your repayment terms. Your credit report, credit score and debts may also affect the terms of your loan, including your interest rate, the type of loan you qualify for and the loan term.
How can I apply for a personal loan in Montreal?
You can apply for a personal loan online or at your nearest financial institution or lending facility. You can submit an online application from just about anywhere, so long as you have can prove that you’re at least 18 years of age and have a regular income, a bank account and a permanent address.
To complete your application successfully, you will also likely need to submit some other basic information such as:
Personal details, including your name, date of birth, Social Insurance Number and a valid form of ID
Contact details, such as your residential address, email address and phone number
Details about your employment and income
How can I tell if a lender in Montreal is legit?
Borrowing money from an unlicensed lender can have far-reaching consequences, including unauthorized debits and identity theft. Look for the following signs to make sure you’re working with a legitimate lender.
The lender displays a Quebec license number. Private lenders should be licensed by the province; be aware that there are some companies that pose as lenders but are actually just collecting your personal details for fraudulent reasons.
It provides contracts in the language you use to speak with your lender. This means that if you and your lender communicate in English, your contract must be in English. If it’s French, your contract must also be in French.
It follows rate and fee regulations. Stay away from lenders who charge more than 60% interest on loans, and be sure to compare 3 – 4 providers to lock in the best deal.
Watch out for unlicensed lenders in Montreal
Many unlicensed or fraudulent lenders operate online, while a select few carry out shady in-person transactions. Consumer Protection Quebec warns against borrowing from an unlicensed lender due to the following risks:
Illegally high interest rates or fees. Many unlicensed lenders will jack up their rates and charge exorbitant fees on personal loans. Compare 3 – 4 services to make sure you know the average cost of taking out a loan and settle on a provider that’s been vetted by a reputable source.
Identity theft. Unlicensed and online lenders have been known to steal customers’ personal information to sell to third parties, which could potentially lead to identity theft or a hacked bank account.
Funds taken from your bank account without your permission. Lenders that don’t play by the rules are more likely to break provincial and federal laws, including withdrawing money from borrower’s bank accounts if they’re unable to make repayments.
Unlicensed lenders can operate out of the province or even outside of Canada, making it difficult for Quebec to prosecute them. That’s why it’s so important to make sure your lender is licensed to operate in Montreal before you borrow.
How to file a complaint against a lender
If you want to file a complaint against a lender, you can contact Consumer Protection Quebec, who will act on your behalf to contact the lender. If they find that your lender violated federal or provincial law, they could take legal action against the business. This includes revoking its license, slapping it with a penalty and even filing a civil action to get a settlement for customers if the lender is facing numerous complaints.
Financing alternatives for personal loans in Montreal
If you’re not sure you want to take out a personal loan, you have other options. Here are some programs you might want to check out.
Montreal assistance programs
Montreal has some programs that can help lower the costs of everyday expenses for some residents and newcomers who are struggling to make ends meet.
Social Assistance provides last-resort financial assistance to individuals who do not have a severely limited capacity for employment and who are unable to provide for their basic needs because of their financial situation.
Child assistance payment provides low-income families with financial assistance to cover expenses like medical bills, food, rent and utility bills.
Resettlement Assistance Program provides financial assistance to refugees and protected persons for accommodations, essential clothing, household effects and living expenses.
Disability Income Support helps people with disabilities who are in financial need pay for living expenses, like food and housing.
Credit counselling
If you feel weighed down by your financial obligations and need a bit of a helping hand, you might like to consider enrolling in a credit counselling program. These can help you make a budget and manage your debts.
Bottom line
Taking out a personal loan can help you make a large purchase, payoff unpaid bills or consolidate your debts. Be sure to compare lenders and familiarize yourself with the laws of Quebec to make sure you’re getting the best terms for your loan, and pay back your loan on time to avoid paying additional fees or interest.
Frequently asked questions about personal loans in Montreal
You could, although it’ll depend on the lender and you’ll need some form of income. You might be able to get approved for a loan if you receive a pension, disability, social security or other government benefits because many lenders consider these to be a type of regular income. You will have more trouble securing a loan if you don’t have any money coming in at all.
Depending on the lender, you may be able to receive your loan as soon as the next business day if you apply online. Some lenders may even be able to get you your money the same day, while banks and credit unions may take a few days to approve and disburse your loan funds.
No. Lenders can sue for damages if you don’t repay your loan, but this won’t result in your arrest.
Claire Horwood is 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.
Find out the benefits and drawbacks of taking out a personal loan with a credit union.
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