Our Services
- Home
- Our Services
Personal Loans in Canada: Types, Rates & How to Qualify
A personal loan provides you with a fixed amount of money that you repay through predetermined monthly installments over an agreed period. This guide explains the different types of personal loans available in Canada, their associated costs—including the 35% legal interest-rate cap—provincial lending regulations, and the eligibility requirements you may need to meet, even if you don’t have perfect credit.
Standard loans
From banks and credit unions for good credit (650+). Competitive rates, amounts up to about $50,000, terms of 9–84 months.
No-credit-check loans
Approval based on income and banking instead of a hard credit pull. Smaller amounts, faster funding.
No-credit-check loans
Approval based on income and banking instead of a hard credit pull. Smaller amounts, faster funding.
A personal loan lets you borrow a fixed amount of money and repay it over a predetermined period, typically ranging from 1 to 5 years, through regular and predictable payments. Most personal loans are unsecured, meaning you don’t need to provide collateral. The funds can generally be used for a variety of purposes, such as consolidating debt, covering home repairs, or handling unexpected expenses. Unlike a credit card, a personal loan comes with a structured repayment schedule, making it easier to plan and manage your monthly budget.
What personal loans cost — and the 35% cap
Compare loans by APR (interest + fees), not the monthly payment. interest rate is 35% APR — no legitimate Canadian lender may charge more than that on a personal loan. A smaller, faster loan carries a higher.
What Personal Loans Actually Cost Per Month: A Worked Example
Make sure you understand the total cost of a loan before making a decision. Multiply the payment amount by the number of payments in your term.
For example, suppose you want to get a personal loan for $10,000. The interest rate is 19.99% on a monthly payment plan. The example below shows the total cost of a loan with different terms.
Table 1: Example of the total cost of personal loan with different terms
| Option | Monthly Payment | Loan Term (Months) | Total Loan Cost |
|---|---|---|---|
| 1 | $926.40 | 12 | $11,116.80 |
| 2 | $371.64 | 36 | $13,379.04 |
| 3 | $264.90 | 60 | $15,894.00 |
This example shows that the longer you take to pay off your loan, the more expensive it’ll be.
Interest rates
The interest rate on a personal loan impacts the overall cost of the loan. By law, lenders may not charge more than 35% interest annually. This includes all fees, costs and interest that you’ll pay to get the loan.
For example Suppose you want to get a personal loan of $10,000 for 36 months. The example below shows the total cost of the loan with different interest rates.
| Option | Interest Rate | Monthly Payment | Total Loan Cost |
|---|---|---|---|
| 1 | 8.99% | $320 | $11,520 |
| 2 | 19.99% | $375 | $13,500 |
| 3 | 34.99% | $460 | $16,560 |
This example shows that a higher interest rate may significantly increase the total cost of your personal loan.
The interest rate a lender offers you may vary depending on:
- your credit history
- the type of lender
- the type of loan (secured or unsecured)
Just 3 Steps to get your loan
We kept it simple as possible. Get the money on your terms – Receive funds in as little as 60 minutes.
1
2
3
