A personal loan gives you one lump sum that you repay in fixed instalments over a set term, at a fixed or variable rate. The Financial Consumer Agency of Canada (FCAC) notes that most personal loans range from $100 to $50,000, with terms between 6 and 60 months. Where you borrow makes the biggest difference to what the loan costs: the big banks quote a rate only after a credit check, credit unions set their own terms for members, and online lenders and marketplaces serve a wider range of credit scores at higher rates. This page compares those lenders, explains how they decide, and lists the fees and checks to go through before signing. The rest of our personal loans and lines of credit guides cover calculators, bad credit borrowing and specific loan types.
Personal loan lenders in Canada compared
| Lender | Rate | Loan amount | Term | Type |
|---|---|---|---|---|
| RBC | Not published, quoted after application | $1,000-50,000 | 1-5 years | Unsecured |
| TD | Not published, quoted after application | $2,000-50,000 | 1-5 years | Unsecured |
| BMO | Not published, quoted after application | $2,000-50,000 | 1-5 years | Unsecured |
| Scotiabank | Not published, quoted after application | $1,000-50,000 | 1-5 years | Unsecured |
| CIBC | Not published, quoted after application | $2,000-50,000 | 1-5 years | Unsecured |
| Credit unions | Set by each credit union | Varies | Varies | Unsecured or secured |
| Loans Canada, LoanConnect (marketplaces) | 8.99-35%, depending on the matched lender | $1,000-50,000 | 3 months-10 years | Online |
| easyfinancial | Up to 35%, the legal maximum | $500-25,000 | 1-5 years | Alternative lender |
The big banks don’t publish personal loan rate ranges: each applicant gets an individual quote after a credit check, so the only way to compare them is to get quotes. Credit unions are member-owned and are regulated provincially, so their products and disclosure rules differ from the federally regulated banks. Marketplaces such as Loans Canada and LoanConnect are not lenders themselves: they pass one application to several lenders and show the offers that come back.
At the high-cost end, no lender may charge more than 35% a year once all fees are included. Our guide to bad credit loans explains how that criminal rate cap works and which lenders serve lower credit scores. A loan backed by a car, savings or a GIC usually costs less than one with no collateral; secured loans explains the trade-off.
How lenders decide: personal loan eligibility
FCAC lists what lenders generally ask for: proof of a regular income, a bank account and a permanent address. Most lenders also run a credit check, and they look at the debts you already carry, because your credit report, credit score and existing debts affect both whether you’re approved and the rate and type of loan you’re offered.
In practice, lenders weigh four things:
- Credit history and score. Bank personal loans are generally aimed at borrowers with good credit, often a score in the mid-600s or higher. Below that, the options move toward credit unions, online lenders and bad credit lenders.
- Income and its stability. Salaried applicants show pay stubs; applicants without T4 income show tax assessments and bank statements, as described in personal loans for self-employed Canadians.
- Existing debt payments. Lenders compare your monthly debt payments with your income. Our guide to the debt-to-income ratio shows how it is calculated.
- Collateral or a second borrower. Pledging an asset or adding a co-signer can help an application that falls short on its own, though a co-signer takes on the full debt; see co-signing a loan for what that commits them to.
Getting quotes without hurting your credit
Many online lenders and marketplaces show an estimated rate after a soft credit check, which doesn’t affect your score; the formal application that follows triggers a hard check. Personal loan pre-approval explains what an estimate does and doesn’t promise. If timing matters, same-day personal loans covers how quickly each lender type funds a loan and the warning signs of fast-cash scams.
What a personal loan costs: rate, term and fees
FCAC says the rate a lender offers depends on your credit history, the type of lender and whether the loan is secured or unsecured. The term matters too: a longer term lowers the monthly payment but adds to the total interest paid. Our personal loan calculator shows the payment and total interest for any amount, rate and term, with a table for $10,000 and $20,000 loans over five years.
Fees can add as much to the cost as a higher rate. These are the ones to look for in the agreement:
| Fee | What to check |
|---|---|
| Origination or administration fee | Whether it is charged up front or added to the loan, and whether it is included in the quoted APR |
| Prepayment fee | FCAC notes that some lenders charge a fee if you pay the loan off early; others allow it without a penalty |
| Insufficient funds (NSF) fee | What the lender charges if a pre-authorized payment bounces, on top of your bank’s own NSF fee |
| Late payment fee | The fee per late payment, and whether a missed payment changes the rate |
| Loan insurance | FCAC: you don’t have to take loan insurance with a personal loan. Creditor insurance offered at signing is optional and adds to the cost |
Checking that a lender is legitimate
FCAC lists what a federally regulated lender such as a bank must tell you when you take a personal loan: the amount of the loan, the interest rate and whether it is fixed or variable, the term, the payment amount, other fees and service charges, and any optional services you accepted. Lenders under provincial rules, including some credit unions, may not have to provide the same information, so it is worth asking for it in writing.
Before signing, these checks catch most problem lenders:
- The lender is licensed or registered in your province and gives a physical address you can confirm
- The annual percentage rate (APR), including fees, is disclosed in writing before you sign
- The APR is no higher than 35%, the criminal rate cap
- No fee is asked for before the money is released (an upfront fee, often by gift card or e-transfer, is the pattern of a loan scam)
- The total interest over the full term is shown, not just the monthly payment
- The agreement is one you can read and understand, and optional products are marked as optional
When a personal loan makes sense
A personal loan suits a known, one-time cost with a clear repayment plan. It works less well when the payment would squeeze an already tight budget.
| Situation | How a loan fits |
|---|---|
| Replacing higher-rate debt | Saves money only if the loan’s rate, after fees, is lower than the rates on the debts it pays off; our guide to debt consolidation works through the numbers |
| An essential purchase with no cheaper option | A car needed for work, a necessary appliance or a medical cost |
| Bridging a confirmed gap in income | Income that is certain to arrive, where only the timing is the problem |
| A planned renovation | A fixed amount and a fixed end date, for homeowners without home equity to borrow against |
| Discretionary spending | Interest raises the price of the purchase; saving first avoids it |
| Borrowing to make another loan’s payment | A sign of a debt spiral, the situation non-profit credit counselling is set up to help with |
| Payments already take a large share of income | A new payment leaves less room for every other expense and for future borrowing |
Personal loan, line of credit or credit card
A personal loan has a fixed end date, while a line of credit lets you borrow, repay and borrow again, and a credit card suits short-term spending that is paid off quickly. Our comparison of a personal loan vs a line of credit vs a credit card sets the three side by side, and line of credit rates lists what lenders charge for a personal line of credit. Choosing between just a line of credit and a credit card has its own guide. Homeowners can also borrow against their home at lower rates through a home equity line of credit; see HELOC rates.