Loan Companies

Financing plays such a large role in Canada. Think about it, with over 36 million citizens, each one of them is affected by a loan whether it’s a mortgage or business or secured personal loan. That is why it is absolutely crucial for folks to be aware of the options ahead of them when it comes to work with loan companies. At Smarter Loans, we have a wide range of personal loan companies we work with that specialize in a variety of circumstances. Whether it is a personal loan or business applications, our loan companies handle it all.

When connecting with our personal loan companies, you can expect friendly rates to work with and fantastic customer service. In fact, most of our applicants are able to see their funds within days of applying. It’s normal to be concerned your credit score before applying but the truth is that as long as you connect with the right personal loan company, you have a high chance of being approved. This is because every provider specializes in different types of loans and is prepared to handle applicants in unique circumstances. In order to ensure your success, we’ve created a much more efficient method for you to discover and apply directly to a loan company that can handle your personal loan request. You can review all of you need to within the directory below. Things like interest rates, offerings and customer reviews are available for you directly below.

After choosing a suitable option, you can apply for private loan directly by clicking “Apply Now” and after completing a set of questions to qualify, your loan will be on it’s way. However, if you can’t seem to decide, you can alternatively pre-apply with Smarter Loans. We’ll select the best personal loan company in Canada for you and your current predicament!

We can help connect you with the top loan providers in Canada.

Pre-Apply For A Personal Loan Now

Top Loan Companies Providers in Canada

Interest Rate
Up to $1600
29.78% - 44.80%
36 months
$500 - $35,000
9.99% - 46.96%
9 - 78 Months
$1,000 - $5,000
19.9% - 45.9%
12 - 36 months
$500 - $1,000
3 - 6 months
$250 - $7,000
6 - 60 Months
$1,000 – $10,000
19.9% - 46.9%
Line of Credit
$500 - $15,000
29.99% - 47.72%
12 - 60 Months
$400 - $1500
4 months to 12 months
$10,000 and up
Varies (Home Equity Loans)
12 Months
$100 - $1,500
2 months
$300 - $20,000
12 - 60 Months
$1,500 to $10,000
12 months to 60 months
$500 - $15,000
18.9% - 46.93%
6 months - 5 years
$500 - $1,000
29.99% - 46.96%
84 - 120 days
$500 - $10,000
12.99% - 39.99%
9 - 36 Months

Loans: The Basics

What Is a Loan?

A loan is a sum of money (or asset) which is borrowed from an institution, bank, company or person, to be repaid at a future date. The vast majority of loans in Canada are provided by dedicated financial institutions, and have well-defined terms and expectations. There is a wide range of loan companies in Canada, ranging from banks to online money lenders. Almost all loans come with an interest rate on the amount borrowed, so it costs money to borrow money.

Applicant/borrower is you, the person hoping to get a loan from money lender.

Lender/provider is the bank account or company giving you the loan.

Secured refers to loans that are backed by an asset or collateral, so that in the event of default the private lender can seize the asset in lieu of payment.

Fees are the one-off amounts you pay to borrow money from private lenders for certain actions, such as applying for a loan, starting a loan, and so on.

Interest is the amount you pay for the loan, calculated as a percentage of the amount borrowed. Interest rates can be fixed (meaning you pay the money lender the same amount of interest over the life of the loan) or variable (meaning the interest rate varies over time). The APR is the annual percentage rate.

Downpayment is the amount of money you contribute towards a purchase, on top of the loan you use to complete the purchase. A downpayment can help you secure better loan terms, and some loans require a downpayment – for example, a mortgage.

Penalties are amounts you pay when you do not meet the loan terms.

Principal is the core amount of money borrowed, excluding interest.

Default is what happens when you do not make your loan payments, and are considered private money lenders to have broken the loan contract.

Unsecured refers to loans that do not have any backing, so in the event of a default the private lender is left with nothing.

Loan term is the lifetime of the loan – how long you have it for. Some loans are open-ended (like a credit card) while others have a set term (like a mortgage).

Payment schedule gives details of your payments on the loan – how often you must make payments, and how much those payments are. Payments are usually principal plus interest.

Loans in Canada: The Stats

  • 73.2% of Canadians have some type of outstanding debt.
  • A mortgage is the most common and the largest type of debt held by Canadians. 40% have one, and the median amount owed is $200,000.
  • 56% of Canadians have outstanding debt other than a mortgage or home equity line of credit.
  • The median non home related debt amount owed by Canadians is $30,000.
Source: Statistics Canada 2019

Types of Loans

Loan types fall into two main categories: a secured loan, and unsecured. But after this designation, there also comes short term and long term loans, open-ended and closed-ended loans, personal and business loans, and so on. Different loan companies will typically specialize in one or two types of loans. There are many different designations and ways to look at loans, so for simplicity we have grouped them by use:

Personal, General Loans

Personal, general loans are loans that are for personal use, but that can be utilized for almost any reason: one off expenses, emergency funds, to pay monthly bills, to aid with cash flow, as a money management mechanism, or to aid with a purchase. There are few restrictions on how these loans can be spent, and they can be either secured or unsecured.

Specifics vary by private lender, but interest rates can range from 4% to 20%+, with the average sitting at 9.5%. Most personal loans have an upper borrowing limit of $50,000. Terms range from weeks to years (or open-ended), and eligibility criteria depend on the private lender and the borrower’s personal circumstances.

Popular types of personal loans from a private lender include:

  • Payday Loans
  • Online Loans
  • Same Day Loans
  • Home Equity Lines of Credit
  • Lines of Credit

Personal, Purpose-Specific Loans

There also exist loans for personal use, but that are geared towards a specific need – either a purchase or a problem. Two of the most common loans in Canada (mortgages and auto loans) fall into this category, and while these two are secured, many others are not.

Loan terms vary widely depending on the type of loan; mortgages can have interest rates as low as 2% and terms that last 25 years, while others, such as debt consolidation loans, have much higher rates and shorter lifespans. Eligibility requirements also fluctuate depending on the loan’s use; mortgages are large, long term instruments with a lot of requirements, while auto loans can be short-lived and easy to qualify for.

Loan companies that offer unsecured loans will typically charge higher interest than lenders offering secured loans.

Purpose-specific loans include:

  • Appliance Loans
  • Dentist Loans
  • Wedding Loans
  • Home Improvement Loans
  • Vacation Loans

Business-Related Loans

If you are not seeking financing for personal use but for your business, then there are plenty of options for you too. Business loans have some different eligibility requirements than most personal loans do, but can be used for just as varied reasons. Loans companies that offer business financing will often look at the performance and revenue of the business.  Terms depend entirely on your business’s circumstances, need, size, assets, revenues and age.

Common types of business loans include:

Stats on Loan & debt levels in Canada
Source: Statistics Canada 2019

Types of Loan Providers

Loan providers come in many shapes and sizes. Broadly speaking, they fall into one of a few major categories:

Online Lenders

Lastly, there exist a fairly new category of payday lenders: online-only. These are companies who offer, service and manage all of their loan offerings via an online platform, with no brick-and-mortar locations at all. These companies have the advantage of lower overheads, and so can sometimes offer better rates or more flexible terms than more traditional lenders. However there are predatory online lenders even in this category, so it’s important to always check a company’s reputability before borrowing from them.

Other Financial Companies

There are literally hundreds of other financial service providers and companies in Canada apart from banks and credit unions, of all sizes and in every conceivable specialty. These include general loan companies, payday lenders, credit unions, card companies, equipment or vehicle specialists (or even dealers, who sometimes offer their own financing), merchants, and financial service providers of all kinds. They can have quite diverse loan terms, depending on the specialty (if any) and the type of borrower they cater to.

Banks and Credit Unions

Banks and credit unions are perhaps the most obvious source of financing, and they cater to the majority of Canadians seeking a loan – especially when the loans are large and long term, as with mortgages. However banks and the credit union unions typically have stricter eligibility requirements than other types of lender.

Source: Statistics 2019

What Affects Loan and Provider Type?

When applying for a loan, there are some factors to take into account that will influence what kind of loan you can get, from whom, and what the terms are likely to be. Make sure you have a good grasp of:

  • Your credit score
  • Your past financial history, including any bankruptcies or consumer proposals
  • Your income level
  • Your existing debt levels
  • Your assets and existing savings

Once you know all of this, you can narrow down your list of possible providers and start comparing loans to find the best option for your needs.

Benefits of Getting a Loan in Canada

Loans have become an integral part of our financial journeys. Whether you’re in Canada or elsewhere, understanding the benefits of obtaining a personal loan, especially amidst the varied lending landscape, is essential. Here’s what stands out:

Flexible Options with Various Lenders:

In Canada, you’re not limited to traditional banks. Beyond traditional financial institutions, private lenders and private money lenders play a pivotal role. Whether you’re looking at unsecured loans from private loans providers or secured personal loans from more established banks, there’s a spectrum to choose from.

Tailored to Your Needs:

Personal loans in Canada can be customized based on the amount you need. Whether it’s a minimal loan amount to tide you over a rough patch or a heftier sum for significant expenditures, lenders provide flexibility in determining the perfect loan amount for you.

Competitive Interest Rates:

One of the perks of having both traditional lenders and private lenders in the mix is the competitive interest rates they offer. It’s always advisable to compare lenders to ensure you get the best loan interest rate that fits your budget and debt to income ratio.

Secured and Unsecured Options:

Canada boasts a plethora of both secured and unsecured loans. While home equity loans and secured loans require collateral, many private lenders offer unsecured personal loans where just your credit score might be the main determinant.

Transparent Loan Agreements:

Whether you’re borrowing from a private lender or a more traditional entity, clarity is crucial. In Canada, the emphasis on clear loan agreement documentation ensures that terms, loan payment schedules, and interest details are transparent.

Accommodating for Varied Credit Scores:

Not everyone has a pristine credit score. Recognizing this, many private money lenders and even some traditional banks offer loans for those with bad credit. So, it’s not just your credit score that decides your eligibility.

Robust Financial Products:

Beyond the standard personal loan, Canada’s lending landscape includes varied offerings like home equity loans and specialized private loans, ensuring there’s something for every financial need.

Convenience of Money Transfer:

Upon approval, many lenders directly deposit the loan into your bank account, making the process of lending money smooth and hassle-free.

Rebuilding Credit:

Obtaining an unsecured personal loan and repaying it diligently can be a strategic move for those looking to rebuild or enhance their credit score.

From the flexibility offered by most private lenders to the robustness of traditional banks, the advantages of securing a loan in Canada are numerous and tailored to fit diverse needs.

How to Apply and Qualify for a Loan in Canada

Canada’s financial ecosystem, consisting of both traditional lenders and private lenders, offers a diverse range of options when it comes to borrowing money. Whether you’re facing unexpected expenses or planning a significant purchase, understanding the loan application and qualification process is paramount.

Understanding Loan Types:

First, acquaint yourself with the various types of personal loans available. This includes unsecured personal loans, which don’t require any collateral, and secured personal loans, like a mortgage or car loan, which do. Your choice will often hinge on the amount you need, the term duration, and your comfort with offering collateral.

Checking Your Credit:

Your credit score is a significant factor for most lenders, whether they’re a traditional financial institution or a private lender. Obtain your credit report from credit bureaus to gauge where you stand. Those with good credit will typically find it easier to secure loans from private lenders with favorable interest rates, while those with poor credit might have to explore alternative private lenders who might be more flexible.

Decide on the Loan Amount:

Determine how much you need and what you can afford in monthly payments. Remember, the interest rate will affect the total amount you’ll pay back.

Choosing the Right Lender:

Traditional lenders, like banks, often have stringent criteria but might offer more competitive rates. However, many private lenders or alternative lenders in Canada specialize in catering to those with bad credit history or poor credit scores or those seeking a short term loan.

Filling Out the Application:

Many loans Canada providers offer an online loan application process for a private lender, streamlining the steps and saving time. You’ll typically need to provide personal details, evidence of income, and sometimes, details of your bank account.

Review Loan Terms Carefully:

After you apply for a loan, carefully read through the loan agreement. This loan request will detail your loan’s interest rate, any associated fees, and your monthly payment obligations.

Alternative Lender Options:

If you find that traditional financial institutions are not approving your application due to bad credit score, or other reasons, don’t be disheartened. Alternative lenders and money lenders in Canada can often provide solutions, especially if you’re looking for a private loan or have a unique financial scenario.

Stay Informed:

Keep abreast of changing interest rates, emerging lending trends, and the evolving offerings of both money lenders. a private lender and traditional entities for loans Canada.

Securing secured personal loan and other types of loans involves a mix of preparation, understanding your financial standing, and choosing the right lending partner. With the plethora of options available, from both secured and unsecured loans to personal loans to secured loans, ensuring you’re well-informed will pave the way for a smooth borrowing experience.

Frequently Asked Questions About Loans

What’s the average interest rate on a loan?

Interest rates on personal loans vary based on the lender, your credit history, and other personal circumstances. Rates can range from as low as 2% to as high as 20%+. On average, the interest rate for a personal loan sits at around 9.5%.

What are the types of loan provider?

There are numerous loan providers out there. Traditional banking institutions are the most common sources, but private lenders and money lenders are becoming increasingly popular. While banks and credit unions are mainstream options, online private lenders also provide various loans. Then, there are specialized lenders, like payday lenders, auto loan specialists, predatory lenders, and more.

What kind of loan do I need?

The type of loan best suited for you hinges on its purpose. Is it a personal loan for a one-time expense, or is it for ongoing business operations? Your requirement, repayment capability, and purpose determine the ideal loan for you.

What do I need to apply for a loan?

In Canada, the essentials include proof of residency, age verification through an ID, and proof of address. Private lenders, in particular, may ask for proof of income or other financial data. While your bank account details are typically required for fund transfer, the exact prerequisites can vary depending on the private lender.

How much can I borrow with a personal loan?

A personal loan usually tops out at $50,000, although larger amounts than this are available to those with good credit or other extenuating circumstances. My bank won’t lend to me. What can I do? Banks have strict lending requirements that usually start with a minimum credit score. If you don’t pass this threshold, it’s likely your bank won’t be able to help you. But never fear, there are still plenty of bad credit lenders, who have bad credit loans will work with you. Bad credit lenders exist purely to service those with poor credit scores, a history of bankruptcy, and other difficult circumstances.

My bank won’t lend to me. What can I do?

Banks often have stringent requirements online loans, including a minimum credit score benchmark as determined by credit bureaus. If you don’t meet their criteria, don’t fret. Private lenders and money lenders specialize in assisting individuals with bad credit or challenging financial histories.

Can I get a loan if I have no income?

Yes, although it is worth remembering you may not be able to get a loan for as much as if you had a salary, and the interest rates may be higher to offset the lender’s risk.

How much will my loan payments be?

Your loan payments depend on the amount you borrowed, your interest rate, and your loan term. Your payments will include the principal you’re paying down, plus interest charges. Check online loan calculators to see what the exact numbers will be.

Written By Smarter Loans Staff

The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada’s highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the “GPS of Fintech Lending” by the Toronto Star in 2019.

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