Consider a personal loan if you need to finance a larger expense such as debt consolidation, home renovations, or a car purchase and want predictable monthly payments. Personal loans are less suitable for small or non-urgent purchases, where saving up might be better. If you are new to Canada, explore our immigrant loan options.

You can obtain personal loans from banks, credit unions, online lenders, or private lenders. Smarter Loans partners with trusted Canadian lenders, allowing you to compare offers for the best rates and terms in one place. Compare lenders here.

Rates vary widely. Prime borrowers with excellent credit may see rates starting around 6% APR. Borrowers with fair or poor credit may face rates of 20%–35% or higher. Always compare multiple lenders before deciding.

To qualify, you typically need:

• Canadian residency and government-issued ID
• Proof of steady income
• A reasonable credit score (higher = better rates)

For smaller loans ($500–$1,000), qualification is easier. If your credit score is low, you may need a cosigner, collateral, or a specialized lender.

Many online lenders approve applications within minutes, with funds deposited in your bank account in as little as 24 hours. These lenders are convenient and often provide more flexible terms than banks.

At 10% APR, a $10,000 loan over 5 years has monthly payments of about $212. Total repayment is approximately $12,720, meaning you pay about $2,720 in interest. Use our calculator above to test different rates and terms.

A 15% APR is considered high compared to prime rates, but may be normal for borrowers with fair or poor credit. Improving your credit score can help you access better offers.

In Canada, personal loan rates generally range from 6% to 46.96%. Your rate depends on your credit profile, income, and lender type. Some lenders offer variable rates, while others offer fixed-term stability.

At 10% APR over 5 years, monthly payments are about $1,060. Total repayment is roughly $63,600. Shorter terms increase monthly payments but reduce total interest.

Most lenders allow early repayment, but some may charge a prepayment penalty. Always check your loan agreement. Paying early can save you significant interest if no penalty applies.

Yes. Applying creates a hard inquiry, which can temporarily lower your score. However, making on-time payments builds positive credit history and can improve your score over time.

Unsecured loans require no collateral but usually have higher rates. Secured loans require an asset (like a car or savings account) as collateral and may offer lower rates if you qualify.