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.