Personal Loans

Personal Loans in Canada

A personal loan can be a great solution when you need a lump sum of money to catch up on overdue bills, cover an emergency expense, or pay for a major purchase. Smarter Loans does the heavy lifting for you by reviewing and qualifying only the best loan providers in Canada. By connecting borrowers directly with Canada’s most trusted lenders, we help you get the funds you need quickly and easily, no matter your financial situation.

Check & Compare Your Best Interest Rate

Personal loans come in all shapes and sizes. Because Smarter Loans partners with a wide range of providers, we can find the right lender to help you get approved—even if you don’t have a perfect credit score.

Pre-apply online (right corner), or check out our roster of reputable Canadian lenders below to find the best rate for you.

Let Smarter Loans connect you with Canada’s top personal loan providers.

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Top Personal Loans Providers in Canada

Interest Rate
$500 - $15,000
9.99% - 46.96%
6 - 60 Months
$1,000 - $5,000
19.9% - 45.9%
12 - 36 months
$500 - $1,000
3 - 6 months
$500 - $15,000
29.99% - 47.72%
12 - 60 Months
$1,000 – $10,000
19.9% - 46.9%
Line of Credit
$1,500 - $20,000
19.99% - 46.8%
12 - 60 Months
$1,000 - $5,000
46% (Ontario Only)
9 - 24 months
$1,500 to $10,000
12 months to 60 months
$500 - $15,000
18.9% - 46.93%
6 months - 5 years
$100 - $15,000
12 - 60 Months
$500 - $10,000
12.99% - 39.99%
9 - 36 Months

Why Choose a Personal Loan?

A secured or unsecured personal loan can be your best choice when you need to borrow money for a specific purpose. At Smarter Loans, we make it easy to shop around and find the right payment plan for your needs.

Here are some common reasons for choosing a personal loan.

Debt consolidation

When you’re juggling creditors, making a stack of regular payments every month can become overwhelming. Borrowing money to consolidate debt lets you pay off creditors and exchange multiple bills for a single monthly payment.

Home improvement and repairs

A secured personal loan can provide the payment you need to cover emergency house repairs (such as fixing a roof damaged by rain) or fund a renovation project to boost your home’s value.

Vehicle purchase or repair

Whether you need to repair your old car or purchase a new one, a monthly payment plan can get you behind the wheel faster in many cases—even with a poor credit score.

Weddings and vacations

With its carefully structured payments, a personal loan alleviates the financial burden of funding major purchases or once-in-a-lifetime events—like that dream vacation or family wedding.

Student loan debt

Is your student loan rate higher than the fixed interest rate you can get borrowing personal funds? If so, using those funds to pay off your loan could reduce your overall interest costs.

Medical bill coverage

Late or unpaid medical bills can quickly impact your credit score. A personal loan can help you manage emergency expenses by paying off the total cost you owe in smaller instalments.

New venture funding

Are you a budding entrepreneur? With the help of personal loan payments, you can get the lump sum startup capital you need to get your new business off the ground.

How Personal Loans Work with Smarter Loans

Smarter Loans connects you with your best loan interest and payment options when you need to borrow money.

Looking for funds to pay off utility bills, catch up on missed rent payments, buy a reliable vehicle, or cover emergency expenses like home repairs, medical bills, payday loans, or credit card debt?

Here are just some of the personal loans we can help you access when you connect with one of our partner lenders or pre-apply online:

  • Mortgages
  • Car title loans

Pre-apply for a personal loan in 3 easy steps

  • Take 30 seconds to complete our application online

    Simply fill in the form by choosing the options that apply to you.

  • We find you a lender

    We’ll find the most suitable online personal loan provider for your needs.

  • You get your loan

    Our partner lender will get in touch with you to process your application and get you the funds you need (often in just a few days).

How To Estimate Your Monthly Payment

While amounts vary with interest rates, you can expect the monthly payments on your personal loan to work a lot like other loan types.

Here’s a simple example:

Let’s say you want to borrow $5,000 at an annual interest rate (APR) of 15% over 2 years (the loan term/amortization). If the payment frequency is monthly, your personal loan payment amount would be $242.43 per month.

Use the personal loan calculator below to get an estimate of what your loan payments will look like when you apply to a lender through Smarter Loans.

Personal Loan Calculator

1 year2 year term5 years

Your Payment Details

Your Payment Details

"Below you will find a detailed breakdown of your payments in each month and each year. Find out how much interest, principal and total you'll be paying with the information you entered. Change your term length, interest rate and loan amount to see how it impacts your payment breakdown."

How To Compare Your Loan Options

With so many loan options and providers in Canada, it’s worth using Smarter Loans to compare and choose the right loan and lender for you.

Here are some important factors to consider when comparing the total cost of different loan options and payment terms:

Loan amount. Personal loan offerings vary in size depending on their purpose. Unsecured loans are typically between $500 and $10,000, but can go up to $30,000 and more. Secured loans (like home equity loans) can be over $100,000.

Term length. Repayment periods for a short-term fixed rate loan or variable rate loan typically range from 3 months to 5 years. If a lender permits extra payments (without a prepayment penalty) you can often save money by repaying your loan sooner.

Interest rate. Personal loan rates currently range from 6.99% (with good credit) to 47.72%. A competitive interest rate can be either fixed or variable (a fixed rate stays the same for the term of the loan, while a variable rate fluctuates with Canada’s prime rate).

Repayment structure. Although monthly payments on personal loans are more common than bi-weekly, semi-monthly, or weekly payments, repayment amounts vary with the loan terms and interest.

Fees. These could include administration fees, origination fees, or a prepayment penalty for paying off your loan early.

Type of loan. A personal loan may be secured (by your personal asset) or unsecured.

Secured Loan vs Unsecured Loan

What is a secured personal loan?

A secured personal loan (or title loan) is “secured” by putting up an asset (like your house or car) as collateral in the event you can’t repay the money you owe. Because secured loans are considered less risky by lenders, you can often borrow a larger sum of money at a lower interest rate, or get approved even when you have a poor credit score.

Secured loan examples: Car Title Loan, Home Equity Loan

What is an unsecured personal loan?

Most personal loans take the form of an unsecured instalment loan, with no collateral required. Because this makes them a riskier proposition for lenders, unsecured personal loans tend to be for smaller amounts and have higher interest rates and stricter payment schedules than secured loans.

Unsecured loan examples: Debt Consolidation Loan, Automotive Repair Loan, Medical Expense Loan

How to Get a Personal Loan: What to Expect

Banks and other lenders will consider a number of factors before approving your personal loan. Since each loan application counts towards your credit score (even if it’s declined), it’s worth knowing what qualification criteria and required documents to expect.


The higher your income, the easier it will be to qualify for a personal loan. If you can’t qualify on your own, you could consider adding a co-signer or guarantor to your application.

Documents you might need to show:

  • Online banking statements
  • Pay stubs
  • Tax returns

Employment status

Do you have steady employment income? Salaried employees will usually have an easier time getting approved than someone who’s a self-employed or contract worker.

Documents you might need to show:

  • Self-employment tax returns for the last two years
  • Proof of additional or alternate income from current projects or contracts

Financial commitments

If you pay alimony, spousal, or child support, these amounts will be factored into your application. Alternatively, if you receive support, counting it as income could help you qualify for a higher loan amount.

Documents you might need to show:

  • Statement of current financial obligations


Does your credit report show at least a fair credit rating? In general, the better your credit score, the more reliable you’ll appear in terms of making a regular payment. You could still qualify for a loan with poor credit, but you might have to pay a personalized rate at higher interest.

  • Current credit card statements
  • Breakdown of ongoing expenses


If you’re carrying other debt (like a mortgage, line of credit, student loan or car loan, for example) these loan details and payment amounts will be compared against your monthly income. Too much debt could result in your loan amount being reduced (or denied).

Documents you might need to show:

  • Full details of any loans
  • Current mortgage statement


If you own a valuable asset—like property, for example—you can often use this as collateral to secure better loan terms (like a lower, personalized rate of interest).

Documents you might need to show:

  • Recent real estate assessment

Key Features of a Personal Loan

  • You can choose the repayment term based on what works best with your cash flow (the period to pay off your loan will typically be 6 to 60 months)
  • A personal loan can be great for consolidating debt (this is often referred to as debt consolidation loans)—not only can you end up with a lower interest rate, you’ll only have one payment to worry about.
  • Getting a personal loan through Smarter Loans can be ideal for covering large, one-time fixed expenses such as costly repairs or major life events
  • By showing exactly when funds must be repaid, the loan payment date, repayment amounts, and other terms associated with your personal loan help you stay on track

Things to keep in mind

  • Unsecured instalment loans tend to come with higher interest rates than secured lines of credit and secured loans
  • Since these loans also tend to include strict repayment schedules, if you need more payment flexibility, you might consider applying for a line of credit instead

Frequently Asked Questions About Personal Loans

What Do I Need to Get a Personal Loan in Canada?

While banks and other lenders will have different requirements for minimum credit scores, credit histories, and income levels, the baseline loan requirement for borrowers includes Canadian residency, steady employment, a minimum age of 18+, and a Canadian bank account.

How Much Can I Borrow with a Personal Loan?

The precise loan amounts you can borrow will depend on your level of income, credit history, and willingness to put up a personal asset as collateral. Personal loans are typically between $500 and $10,000, but can be much higher.

How Are Personal Loan Interest Rates Calculated?

Personal loan rates are calculated using a combination of borrower-specific (income, credit score, assets, etc.) and macroeconomic (central bank rates, inflation) factors. Annual interest rates (APR) on personal loans can be as little as 4%, but may be as high as 40% or more.

Can I Pay Off a Personal Loan Earlier Than the Loan Term Requires?

While some personal loans have origination fees, they don’t typically come with prepayment penalties. An early payout could lower interest costs over the life of your loan, but it’s important to verify that your lender permits this before making a prepayment.

Pre-Apply for a Personal Loan Here

Sean Cooper
Personal Loans Expert
Published: 20/03/2019
Last Updated: 28/11/2023

Vlad Sherbatov
Expert Reviewer
On: 26/04/2023

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