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Personal loans in Quebec
Apply online for a personal loan in Quebec and get funded as soon as the same day.
We compare the following personal loan providers
Personal loans in Quebec give you access to a set amount of money of anywhere between $500 and $50,000 with a repayment period of around 6 to 60 months or longer. You can find personal loans in Quebec typically from banks, credit unions and online lenders.
Types of personal loans in Quebec
There are several types of personal loans in Quebec. From secured loans to unsecured loans, to fixed rate loans and variable rate loans, each type comes with its own set of features worth considering if you’re going to narrow down your options to find the right loan for your needs.
How to choose the right personal loan in Quebec
You know you need financing, but with many personal loans in Quebec, how do you decide? There are several factors that will help you narrow down your shortlist. Here’s what to keep in mind.
Best places to get a personal loan in Quebec
Personal loans come with a handful of important decisions to make, including choosing your lender. Because personal loans come in so many different shapes and sizes, you can narrow your scope by deciding on the type of lender you want to work with to secure your funding. Here are the top places to get a personal loan in Quebec.
How much does a personal loan in Quebec cost?
Between interest rates, origination fees and other charges, the cost of your loan can quickly add up.
Lenders in Quebec 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 rates as low as 9% on loans. However, they work mainly with borrowers who have good credit scores.
Online lenders can offer loans to borrowers with good or bad credit. They also have a much wider interest rate range, with rates between 6.99% and 46.96%. If you have great credit, your interest rate should fall on the lower end of the range. But keep in mind, the lowest rate that lenders advertise are usually reserved for the best type of borrower (excellent credit score, very high income, many assets and minimal debt).
Compare costs for types of personal loan providers in Quebec
Interest rates can vary from person to person, depending on their credit score. They can also vary by institution and type of loan (secured or unsecured). The example below illustrates the overall cost of a $5,000 loan over a 36-month term when comparing three different providers.
|Personal loan provider||Interest rate||Monthly amount||Total cost|
Personal loan monthly payment calculatorCalculate how much you could expect to pay each month for a personal loan in Quebec
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Benefits of personal loans in Quebec
Personal loans can be a godsend if you’re stuck with a big-ticket purchase or emergency repair that you can’t afford. But they also come with other benefits too, including:
- Flexibility for using the funds. Whether you’re consolidating debts, buying a car, paying for a home renovation or taking a vacation, once your funds are sent over to you, you can use the cash at your discretion.
- Quick financing. After getting approved, lenders typically transfer over funds within one to two business days.
- Affordable payments. Pay less in interest than you might have to with a credit card or short-term loan (unless you have bad credit).
- Large amounts. Qualify for larger amounts of credit than you might be able to with a credit card or payday loan.
- Longer terms. Pay your loan off with consistent repayments over a longer term to make sure you stay within your allotted budget.
- Multiple lenders. Compare personal loans from a number of different lenders to find the best terms and rates for your unique personal situation.
- Bad credit can qualify. Quebecers may still be able to qualify for a loan with bad credit if you’re willing to accept higher interest rates, secure your loan with assets or enlist a cosigner.
- Build up your credit history. Taking out a personal loan and staying on top of payments creates a perfect opportunity to build up your credit score. As long as your account stays in good standing, you can show lenders you can responsibly manage a loan, and you may qualify for better interest rates and terms in the future.
What to watch out for
While personal loans can be convenient when you’re in a sticky situation with your finances, you should always tread carefully when you’re taking on more debt. Here are some red flags to pay attention to before you take out a personal loan in Quebec:
- High interest rates. You may end up paying high interest rates on your personal loan if you have bad credit or you borrow from a predatory lender.
- Origination fees and other charges. Between origination fees, administrative fees, prepayment fees, late fees and other charges, make sure you double check your contract so you’re aware of all the additional charges that may crop up with your loan.
- Large debt load. You may end up not being able to pay back the money you owe if you lose your job or run into unexpected costs that derail your budget.
If you do decide to take out a personal loan, it’s important to borrow only as much as you’ll be able to repay and to budget your repayments accordingly. If you default on your loan or the loan goes into collections, you’ll receive a negative mark on your credit score that can stay there for up to six or seven years. Make sure to use a licensed lender and budget for the amount of money you plan to take out.
Can I get personal loan in Quebec with bad credit?
Yes. Don’t be dissuaded if you have bad credit or no credit at all because you can still qualify for bad credit loans in Quebec. Your best bet to secure a bad credit personal loan in Quebec is through online lenders.
Simply apply online, providing information such as your employment history and income, and you should get a decision within the same day. Because you have bad credit or no credit history at all, these lenders will shift the focus to your monthly income and existing debts to determine if you can manage loan repayments.
Some online providers accept borrowers with credit scores that are as low as 300 to 550. They include Loans Canada and LoanConnect.
Keep in mind, these bad credit loans will come with higher interest rates. Be sure to compare rates, broker fees and admin fees before agreeing to a bad credit loan in Quebec.
Can I get a no credit check loan in Quebec?
Yes, but it’s not common since most personal loan lenders in Quebec will run a credit check to evaluate your ability to repay the loan. Lenders often use your credit score to help determine your loan’s features like term length, interest rate and the type of loan you qualify for. While some legit lenders offer no credit check loans, watch out for predatory or unlicensed lenders who often offer these types of loans as well.
If you’re worried about your credit score, a good option is to look into a lender that relies on a soft credit check since it doesn’t affect your credit score and takes less than a minute to complete. Many lenders are willing to work with bad- or poor-credit customers, so it won’t necessarily get you rejected.
Online broker LoanConnect, for example, can show you lender matches without affecting your credit score. Once you choose a lender, that lender will do a soft credit check. If the lender requires the extra step of a hard credit check, it will ask for your consent before proceeding.
How to apply for an installment loan in Quebec
You can apply for a personal loan online or at your nearest financial institution.
To complete your application successfully, you will need to submit some basic information such as:
- Personal details, including your name, date of birth, housing situation and a valid form of ID
- Contact details, such as your address, email address and phone number
- Details about your employment and income
How long does it take to get approved for installment loans in Quebec?
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 up to a few weeks to approve and transfer your loan funds.
How can I tell if a lender in Quebec is legit?
Look for the following signs to make sure you’re working with a legitimate lender.
- The lender displays a Quebec licence number. Private lenders should be licensed by the province and display their licence number online and at all on-site locations.
- It provides contracts in the language you use to speak with your lender. Your lender should only provide contracts in a language that you speak fluently.
- It follows rate and fee regulations. Stay away from lenders that charge more than 60% interest on loans, and be sure to compare three to four providers to find the best deal.
Watch out for unlicensed lenders
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. If you’re being charged an above-average rate to take out a personal loan, it’s likely you’re dealing with an unlicensed or predatory lender. Look for a cheaper service or check with Consumer Protection Quebec to make sure your lender is licensed to operate in the province.
- 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 borrowers’ bank accounts if they’re unable to make repayments.
Unlicensed lenders can operate outside of Quebec or even out of Canada, making it difficult for the province to prosecute them. That’s why it’s so important to make sure your lender is licensed to operate in Quebec before you borrow.
Why choose a personal loan in Quebec over other financing alternatives?
When you’re in a financial bind, it’s a relief to know that you have options in Quebec to help you secure funding, such as home equity loans, lines of credit, credit cards and other alternative ways to source financing. Personal loans have their perks, though. If you’re on the fence, here’s a look at some key reasons to opt for a personal loan over other financing options.
- Lower interest rates. If you’re using a credit card to deal with a financial emergency or to make a large-scale purchase and you don’t have the funds to pay it all off, you could be committing to significantly high interest rates. This cost will drive up the price tag of whatever it is you’re buying. Personal loans tend to come with much lower interest rates.
- Long repayment terms. Personal loans in Quebec often come with repayment terms that are as short as 6 months up to 10 years. You can work with your lender to set the amount of time you’ll have to repay your loan. For this reason, personal loans are much more flexible compared to payday loans and credit cards, in which you may be making payments in a much more condensed period of time.
- Unsecured lending. If you don’t want to put your home, car or other assets on the line, unsecured personal loans are your best bet, especially compared to home equity lines of credit that let you borrow against the equity you’ve built in your home. If you default on your loan, you won’t put any of your assets in jeopardy.
- Processing time. With the rise of online lenders providing personal loans to Quebec residents, you may find it much easier to qualify for and receive funding for a personal loan, especially compared to home equity loans, credit union loans and small business loans. These loans tend to require more paperwork and more time to consider your application, while some lenders provide instant decisions on personal loans with funds released on the same day.
Personal loan alternatives in Quebec
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.
Quebec assistance programs
Quebec 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 accommodation, essential clothing, household effects and living expenses.
- Disability Income Support helps people with disabilities in financial need to pay for living expenses, like food and housing.
If you seem to be paying off your debts using more debt, or you can’t get your head above water, it might be time to enrol in a credit counselling program. These not-for-profit programs are designed to help low-income residents stay afloat, while managing and consolidating their debts.
If you want to make a large purchase or consolidate your debts, taking out a personal loan might be a possible solution. 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.