10 best personal loans in Canada

If you’re searching for a personal loan, you have many options in Canada. Banks, credit unions and select alternative lenders have competitive rates if you have good to excellent credit. If you have fair to bad credit, you can get approved by alternative lenders, but watch out for higher interest rates.

In this guide, we go through the best personal loans in Canada for different types of borrowers. No single loan is best for everyone, so compare options for your unique situation.

Best personal loans in Canada

1. LoanConnect

2. Loans Canada

3. Spring Financial

4. Mogo

5. Symple Loans

6. Vancity

7. Kindred Credit Union

8. ATB Financial

9. Fairstone

10. easyfinancial

Honourable mentions

National Bank

Nyble

Consolidated Credit (non-profit organization)

Summary of the best personal loans in Canada

Compare the top personal loans side by side.

LenderAPRLoan amountLoan termLoanConnect6.99% – 46.96%$500 – $50,0003 – 120 monthsLoans Canada6.99% – 46.96%$300 – $50,0003 – 60 monthsSpring Financial6.99% – 46.96%$500 – $35,0006 – 60 monthsMogo9.90% – 46.96%$200 – $35,0006 – 60 monthsSymple Loans6.99% – 32.00%$5,000 – $50,00012 – 84 monthsVancity11.95% + Increment$5,000 – $50,0006 months – 7 yearsKindred Credit Union7.05% – 16.20%$5,000 – $35,00012 – 60 monthsATB7.20% – 14.20%Varies12 – 60 monthsFairstone19.99% – 39.99%$500 – $50,0006 – 120 monthseasyfinancial9.99% – 46.96%$500 – $100,0009 – 120 monthsNational Bank9.65% – 13.70%Varies6 – 60 months

How to find the best personal loans in Canada

Consider taking the following steps to find the right loan for your needs.

1. Know your credit score

Knowing your credit score can help you identify loans you’ll be eligible for. You can request your credit score from the credit bureaus or other credit monitoring institutions:

  • Credit bureaus. Order a free copy of your credit report once a year from one of the credit bureaus (Equifax or TransUnion). This is sent by mail and usually takes around two weeks to arrive. You can pay a fee to get instant access to an online copy.
  • Credit monitoring institutions: You can sign up for a monthly subscription for credit monitoring (usually around $20 per month) with some services. Lenders like Mogo and Borrowell also offer free credit monitoring.
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2. Decide what type of personal loan you want

What’s best will depend on your personal financial situation.

3. Decide where you want to apply

The best loan in Canada for your needs will vary based on your credit score and how you want to apply for your loan.

Banks and credit unionsBest for people with good to excellent credit

  • Competitive rates
  • Secured/unsecured loans
  • Fixed or variable
  • In-person service
  • Long wait times

P2P lending platformBest for people who have good to excellent credit and don’t want to go with a bank

  • Canadian investors fund your loan
  • Competitive rates due to low operating costs

Alternative lendersBest for people with poor to fair credit or those who would prefer to apply online

  • Higher rates on average
  • Less strict eligibility criteria
  • Accepts bad credit
  • Secured/unsecured loans
  • Typically fixed rates
  • Entirely online

4. Compare loan features

Compare the following features to find the top loan in Canada for your needs:

What are the best personal loan rates in Canada?

Based on the latest information available from the Bank of Canada, the average personal loan interest rate in Canada is 9.39%. However, this includes secured loans such as auto loans, so your rate may be higher if you’re applying for an unsecured personal loan.

Aiming for a rate that’s close to the average is a good step. But keep in mind, how much you’ll be charged will depend on personal factors such as your credit score, income and current debts. If you have a strong credit score, you qualify for low interest loans.

Compare a variety of personal loan interest rates for all credit scores

Who can get personal loans in Canada?

You can get personal loans in Canada if the following applies to you:

  • You’re a Canadian citizen or permanent resident.
  • You’re at least 18 years old.
  • You have a steady source of income.

These are the basic requirements only. Exact criteria vary among lenders.

How to apply for personal loans in Canada

Follow these steps to apply for personal loans in Canada:

  1. Fill out an application. Provide personal info such as your name, address, phone number, job, income and housing situation.
  2. Wait for a decision. Online lenders can give fast pre-approval within minutes, while banks and credit unions can take one to three business days.
  3. Pick the best loan. Compare offers and pick the best for your needs.
  4. Upload documents. You may need to provide bank statements, tax returns, government-issued ID and other documents.
  5. Submit to a credit check. Some loans will require you to consent to a credit check. A hard credit check can affect your credit score so should be done sparingly.
  6. Get a final loan offer. Review your loan agreement. Understand your payment schedule and how much the loan will cost you overall. Keep an eye out for extra fees.
  7. Sign and submit. If you’re happy with the terms of your personal loan, sign and submit your contract. You’ll get your money via e-Transfer or direct deposit.
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Plans to get a personal loan in the next 3 months

According to data released in the latest Finder: Consumer Sentiment Survey, Canadians are less likely to take out a personal loan in the next three months. In Q2 2023 20% of respondents planned to take out a personal or installment loan. The number dropped to 5% of respondents who plan to take out a personal or installment loan in the next three months.

10 best personal loans

LoanConnect

  • APR: 6.99% – 46.96%
  • Loan amount: $500 – $50,000
  • Loan term: 3 – 120 months
  • Eligibility requirements: Currents debts must total less than 60% of income

Loans Canada

  • APR: 6.99% – 46.96%
  • Loan amount: $300 – $50,000
  • Loan term: 3 – 60 months
  • Eligibility requirements: Steady source of income

Spring Financial

Spring Financial

  • APR: 9.99% – 46.96%
  • Loan amount: $500 – $35,000
  • Loan term: 6 – 60 months
  • Eligibility requirements: Min. income of $1,800 /month, 3+ months employed

Mogo

Mogo

  • APR: 9.90% – 46.96%
  • Loan amount: $200 – $35,000
  • Loan term: 6 – 60 months
  • Eligibility requirements: Min. income of $13,000 /year

Symple Loans

Symple

  • APR: 6.99% – 32.00%
  • Loan amount: $5,000 – $50,000
  • Loan term: 12 – 84 months
  • Eligibility requirements: Min. credit score 650, min. income $50,000/year, no history of bankruptcies

Vancity

Vancity

  • APR: 11.95% + Increment for fixed, Vancity Prime + Increment for variable
  • Loan amount: $5,000 – $50,000
  • Loan term: 6 months – 7 years
  • Eligibility requirements: Recurring eligible income

Kindred Credit Union

Kindred Credit Union

  • APR: 7.05% – 16.20%
  • Loan amount: $5,000 – $35,000
  • Loan term: 12 – 60 months
  • Eligibility requirements: Recurring eligible income

ATB

ATB Financial

  • APR: 7.20% – 14.20%
  • Loan amount: Varies
  • Loan term: 12 – 60 months
  • Eligibility requirements: Recurring eligible income

Fairstone

  • APR: 19.99% – 39.99%
  • Loan amount: $500 – $50,000
  • Loan term: 6 – 120 months
  • Eligibility requirements: Meet minimum income and credit score requirements
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easyfinancial

  • APR: 9.99% – 46.96%
  • Loan amount: $500 – $100,000
  • Loan term: 9 – 120 months
  • Eligibility requirements: Meet minimum income and credit score requirements

National Bank

National Bank

  • APR: 9.65% – 13.70%
  • Loan amount: N/A
  • Loan term: 6 – 60 months
  • Eligibility requirements: Must be employed or have a source of income

Alternatives to personal loans in Canada

If you don’t think a personal loan is the right fit for you, there are other personal financing options you can consider.

  • Lines of credit. Lines of credit are a revolving credit account where you can borrow as much as you need to at any given time up to your credit limit. You then only pay interest on what you borrow. The interest rates on lines of credit and qualification requirements tend to be comparable to personal loans.
  • Bad credit installment loans. If you’re having trouble qualifying for some of the top personal loans in Canada, you may have better luck qualifying for an installment loan. These types of loans are similar to personal loans, but are offered by alternative lenders who have more lenient eligibility criteria, offer higher interest rates and have lower loan amounts than traditional personal loans. Learn about the best installment loans.
  • Debt relief. If you’re experiencing financial hardship and struggling to get approved for a loan, it may be time to consider debt relief options.

Survey methodology

The results of the Finder: Consumer Sentiment Tracker Q3 (CSTQ3) were collected through an online Pollfish survey conducted between August 10 to 21, 2023. In the survey, 1,013 Canadians from across the country were asked about their current debt obligations, among other questions regarding money goals and financial confidence. The estimated margin of error for the survey is +/- 3%, 90% of the time.

The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.

Bottom line

Personal loans are a quick and affordable way to get access to financing, especially if you have good credit. There are many different types of personal loans. That’s why you’ll want to compare factors like how much you want to borrow, the interest rates you’re willing to pay and how long your loan term should be to find the right personal loan in Canada.

Frequently asked questions