{"id":744934,"date":"2018-08-17T03:18:02","date_gmt":"2018-08-17T07:18:02","guid":{"rendered":""},"modified":"2026-03-09T18:35:52","modified_gmt":"2026-03-09T22:35:52","slug":"credit-union-personal-loans","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/personal-loans\/credit-union-personal-loans","title":{"rendered":"Credit union loans"},"content":{"rendered":"

There are many well established credit unions in Canada \u2013 like Meridian, FirstOntario and Servus \u2013 who offer a variety of loan options. Credit union loans usually have less strict eligibility requirements, offer lower rates, and have quicker application processes than banks. However, you\u2019ll usually need to be a member of the credit union in order to be eligible.<\/p>

What is a credit union?<\/h3>

Credit unions are financial institutions similar to traditional banks, but operate as nonprofit organizations owned by all of its members (instead of a small group of owners). Credit unions have a strong focus on their community of members and use a democratic approach.<\/p>

Members get to elect a board of directors who provide general oversight of keeping the best interest for the credit union\u2019s members. Since credit unions are nonprofit, the earnings are put back into the members pockets in the form of lower interest rates, reduced fees and typically better terms for the financial products on offer, including credit union loans.<\/p>

Personal loans from credit unions in Canada<\/h3>
Credit union<\/th>Interest rate<\/th>Loan term<\/th><\/tr><\/thead>
\"Servus<\/td>Not specified online<\/td>Undisclosed <\/td><\/tr>
\"FirstOntario<\/td>Fixed rate, secured: 6.89%
Fixed rate, unsecured: 8.49%
Variable rate, secured: 6.99%
Variable rate, unsecured: 7.49%<\/span><\/span><\/span><\/span><\/td>		6 months \u2013 25 years<\/td><\/tr>
\"Steinbach<\/td>Fixed: 5.45% and up <\/td>Undisclosed<\/td><\/tr>
\"Prospera\"<\/td>Variable: From Prime + 2.75%<\/span>

Fixed: 9.08% (5 year, fixed)<\/span><\/p><\/td>

12 - 60 months<\/td><\/tr>
\"Kindred<\/td>Variable: 5.45% - 13.70%<\/span>

Fixed: 6.55% - 13.70%<\/span><\/p><\/td>

Unspecified<\/td><\/tr><\/tbody><\/table>

How do credit union loans work?<\/h3>

The main difference between a credit union and most other kinds of lending institutions is that credit unions are nonprofits. That means their end game isn\u2019t making profits for its shareholders, but instead providing its members with more competitive services.<\/p>

Before you get a personal loan from a credit union, you\u2019ll have to become a member<\/strong>. Some credit unions offer membership to limited groups of people, so be sure to check if you qualify.<\/p>

What types of credit union loans can I get?<\/h4>

Credit unions can offer the same types of loans as banks or online lenders. Credit unions in Canada offer a wide variety of personal financing including:<\/p>