Personal Loan Rates in Canada

Knowing the rates, you are going to have to pay on a personal loan in Canada is a good thing to have in mind before borrowing. These personal loans have a lot that they offer to the borrower, so it is important to know more about them, as well as what you’re expected to pay back. You can plan things better when you have the knowledge needed to make the most informed decision.

We’ve gathered the information you need to find out if a personal loan is the best choice for you to go with. Learn more about these loans here to find out if they’re the best fit for you and your needs.

What is a Personal Loan?

A personal loan is a loan that you can borrow from a financial institution to cover almost anything with. They come with different stipulations, repayment terms, and requirements depending on what you want from the personal loan.

A personal loan has been found to be a harder to obtain loan, but one of the most flexible options that you can go with when you need funding for something.

What Can I Use My Personal Loan for?

The use of a personal loan is plentiful. You can easily find that these loans are ideal to use for many things you need to purchase. Here are some of the reasons why you’d want to use a personal loan.

  • Consolidate debt to pay off your bills
  • Cover any emergency expenses, whether planner or unplanned 
  • Cover moving costs 
  • Home repairs and renovations
  • Funeral or other end of life expenses 
  • Make a very large purchase 
  • You’ve lost your job or have cut hours and need to pay for expenses 
  • Wedding costs

The things you can use the loan for are plentiful, so you choose which works the best for you and the needs you have. Enjoy being able to have the funds necessary to cover the costs of the many things you might need to cover.

What is an Interest Rate and Why is it Important?

Interest rates are important because they’re able to tell you how much of a fee you’re going to be paying the lender on top of the amount you’re borrowing. This amount could be large depending on the interest rate that you get and the amount you’re borrowing from the lender overall.

The interest rate is going to change depending on market conditions, so depending on the time of year and the year itself that you’re going to be borrowing in; this can change the amount you’re going to pay back to the lender.

However, personal loans can come in handy with the right needs and financial background, so keep this in mind. Planning for the loan is a good thing to do before you go to borrow it from the lender.

The Interest Rates to Expect on a Personal Loan

The interest rates are some of the most important parts to think about and investigate when you’re borrowing any loan from any financial institution. You need to know the extra fees and charges you’re going to be paying in addition to the money you are borrowing from the lender.

Currently, the rates are between 1.99% to up as high as 46.96%. The rate that you end up getting depends on your credit score and history. This is important because you want to make sure you’re not spending too much on top of the amount you’re borrowing when you are making your monthly payments back.

Additionally, the amount you borrow is also going to matter in the amount you pay back in fees because the more you borrow, the more fees you will have to pay on the interest of that amount. The amounts you can borrow range from $500 to up to $35,000 depending on the bank or lender that you choose to work with.

The loan terms may also range in the amount of time you have to pay the loan back. This is generally up to 60 months, and as low as 6 months to pay the loan back. This is dependent on how much you borrow, how much you make, and any additional factors that go into borrowing this type of personal loan from the company.

You will want to make sure you are getting the best deal on a personal loan for the needs that you have. Being able to enjoy the benefits of working with a lender that cares about you and the money you’re borrowing is good to do. Search through the many available options and lenders to choose the right one for you to work with given your situation.

Even if you don’t have perfect credit, we can find the right lender to help you get approved for a personal loan. Pre-apply for a personal loan online here!

Frequently Asked Questions About Personal Loan Rates in Canada

Can I borrow more than one personal loan?

Depending on your income, the amount you borrow, the debt you have, and your credit score and history; you might find that you can borrow more than one personal loan. If you do not have good enough credit, income, or other factors then generally the lender is not going to want to put more debt onto your plate.

This is something that is done on a case-by-case basis depending on the person.

Should I just borrow from the bank that I bank with?

You can borrow a personal loan from any lender that you feel comfortable working with. It does not have to be the bank you usually use. You should definitely look into more than one lender to borrow from to compare the fees, interest rates, and terms of payment. You might find a better option than your bank.

Are personal loans through online lenders actually loans I could use?

Yes. These are legitimate places for the most part. It is recommended that you do the research needed to learn more about the place before you decide to borrow from them. You want the best interest rates and extras, and this is the best way to learn more about the lenders, as well as the interest rates, etc. that they are offering.

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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.