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💼 Personal Loans in Canada
Compare trusted Canadian lenders, estimate your payments, and apply online. Whether you’re consolidating high-interest debt, planning home repairs, or covering a major purchase, Smarter Loans helps you find the right personal loan with transparent terms and a straightforward application.
🧮 Personal Loan Calculator
Estimate monthly payment, total interest, and payoff. Tap a preset or adjust the inputs. Press Calculate to see results.
⭐ Quick Presets
Tap a tile to auto-fill a typical borrow amount for that scenario. You can still edit APR, term, and frequency after.
This is the total you plan to borrow before fees. Borrow only what you need.
APR is your yearly borrowing cost including interest. Comparing APRs shows the true cost.
Shorter terms raise the payment but reduce total interest. Longer terms do the opposite.
Biweekly or weekly spreads payments out. Total cost shown below.
📊 Results
Monthly Payment
Total Interest
Total of Payments
Payoff Date
📄 Show full breakdown
| Metric | Value |
|---|
ℹ️ What is a Personal Loan
A personal loan is a fixed-term installment loan that provides a lump sum upfront which you repay over time with regular payments. Most personal loans in Canada have a fixed interest rate and a defined schedule, so your payment stays predictable for budgeting. Unlike lines of credit or credit cards, a personal loan does not revolve.
Personal loans can be used for almost any legal purpose. Canadians commonly use them for debt consolidation, home improvement, medical expenses, travel, weddings, vehicle purchase or repair, and emergency bills.
🧰 Types of Personal Loans in Canada
🛡️ Secured personal loans
Backed by collateral such as a vehicle, investment account, or home equity. Lower rates are possible, but collateral can be seized if you default.
🧷 Unsecured personal loans
No collateral required. Approval depends on credit, income, and debts. Fast and convenient, but rates may be higher.
🧾 Debt consolidation loans
Replace multiple balances with one fixed payment to simplify budgeting and reduce interest costs.
🚗 Auto and vehicle loans
Use-specific financing with collateral in the vehicle, often better for car purchases.
⏱️ Emergency and short term loans
Prioritize speed for urgent expenses. Compare carefully and avoid borrowing more than needed.
🧩 Other options
Guarantor loans, personal lines of credit, home equity loans, and specialized loans for boats or RVs.
✨ Get matched to lenders in minutes
Answer a few questions and see options from vetted Canadian providers.
Start Matching🎯 Common Uses and Who Benefits Most
🔗 Debt consolidation
Roll revolving balances into a fixed payment with a clear payoff date.
🛠️ Home repairs and upgrades
Finance renovations or emergency fixes with predictable payments.
🛒 Large purchases
Spread the cost of major items over time. Choose a term that fits your budget.
🦷 Medical and dental
Cover procedures not fully insured and compare with provider plans.
🎓 Education and training
Bridge gaps for tuition or certifications. Compare with government options.
🎉 Travel, weddings, life events
Use sparingly, plan payoff, and confirm affordability with the calculator.
💲 Personal Loan Rates and Fees
Personal loan interest rates in Canada range from single digits for highly qualified borrowers to higher rates for riskier profiles. Your APR depends on credit, income, debts, collateral, amount, and term. Market conditions also influence pricing.
📃 Common fees
- Origination or administration fee
- Late payment fee
- NSF fee
- Prepayment charge where applicable
Compare the APR, not just the nominal rate.
🧪 Example scenario
| Amount | $10,000 |
| APR | 9.99% |
| Term | 36 months |
| Estimated payment | Use the calculator |
✅ Approval & Interest Rate Checker
Enter a few details lenders commonly review to see an illustrative APR range and eligible loan types. Educational only, not a credit decision.
Higher scores generally qualify for lower APRs.
Income helps gauge affordability alongside debts.
DTI is monthly debt payments divided by gross monthly income.
📈 Estimated APR Range & Eligible Types
Low End
High End
Fit Score
Eligible Types
📄 Show how we estimated this
| Factor | Effect |
|---|
Heuristics only. Real APRs depend on lender underwriting, credit file details, and market conditions.
🧭 Compare Personal Loan Types
| Type | Typical APR | Typical Amount | Term / Repayment | Speed | Pros | Cons | Best For |
|---|---|---|---|---|---|---|---|
| 🧷 Unsecured installment | ~7% to 29.99% | $1k to $50k+ | 12 to 60 mo, fixed | Fast | Predictable payments | Higher cost at lower scores | General purposes |
| 🛡️ Secured installment | Lower than unsecured | $5k to $100k+ | 12 to 120 mo, fixed | Moderate | Larger amounts, lower rate | Collateral at risk | Big projects, lower cost |
| 🔁 Personal line of credit | Variable (prime +) | Flexible | Revolving, interest on draws | Moderate | Pay only what you use | Rate risk; variable bill | Ongoing / uncertain needs |
| 💳 Credit card | ~18% to 25%+ | $500 to $20k+ | Revolving, minimums | Instant | Rewards, convenience | High APR if carried | Small purchases |
| ⚠️ Payday loan | Very high | ~$100 to $1,500 | Due next payday | Very fast | Access with thin credit | Extremely expensive | Last-resort emergencies |
Tip: Compare total cost (APR and fees) and choose the shortest affordable term.
✅ Eligibility and Requirements
🧾 Basic qualifications
- Age of majority in your province or territory
- Valid government ID and proof of Canadian residence
- Active Canadian bank account
📑 Common documents
- Photo ID and proof of address
- Recent bank statements
- Pay stubs or tax returns
- List of current obligations
- Collateral details if secured
🔍 Signals lenders review
- Income stability and employment history
- Credit score and utilization
- Debt-to-income and payment history
- Savings buffer and overall financial health
📝 How to Apply for a Personal Loan
- Set your goal: amount needed, use of funds, and desired monthly payment.
- Estimate costs: use the calculator to test rate and term scenarios and confirm affordability.
- Gather documents: ID, address, bank statements, income proof, and debt details.
- Compare lenders: APR, fees, term, prepayment rules, and reputation.
- Apply online: complete a secure application and upload documents.
- Review approval: confirm schedule, fees, and options.
⚖️ Pros and Cons of Personal Loans
✅ Pros
- Predictable fixed payments and clear payoff date
- Often lower APR than credit cards for qualified borrowers
- Wide range of amounts and terms to fit your budget
- Fast online application and funding with many lenders
⚠️ Cons
- Higher cost for lower credit scores
- Some lenders charge origination and other fees
- Longer terms can increase total interest paid
- Secured loans risk collateral if you cannot repay
❓ Frequently Asked Questions
How do I get a personal loan in Canada?
You can apply online with trusted lenders in minutes. Compare offers, choose the best APR and term, and submit documents like ID, bank statements, and proof of income.
What documents do I need for a personal loan?
Typically ID, proof of address, bank account details, recent pay stubs or tax returns, and a list of current debts. Secured loans also require collateral information.
How much can I borrow?
Amounts range from a few hundred dollars to $100,000 plus depending on credit, income, and whether the loan is secured or unsecured.
What is a good interest rate for a personal loan?
Rates vary widely by profile and market. The best way to compare is by APR across multiple lenders. Secured loans generally offer lower rates than unsecured loans.
Will applying hurt my credit score?
Most final applications involve a hard inquiry which may cause a small, temporary dip. Prequalification checks are often soft inquiries and do not affect your score.
Can I repay early without penalty?
Many lenders allow early or extra payments. Always check prepayment policies to see if any fees apply.
Do newcomers qualify?
Some lenders consider permanent residents and newcomers with Canadian credit histories. Requirements vary by lender.
What credit score do I need?
There is no single minimum, but scores of 670 and above typically qualify for more competitive rates. Specialized lenders serve lower scores at higher cost.
🚀 Ready to compare personal loans?
See options from vetted Canadian lenders and apply online in minutes.
Start your applicationDisclosure: Smarter Loans is not a lender. Tools provide estimates only and are not credit offers. Terms, eligibility, and pricing vary by lender and province.
Written by:
Amy Orr
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Reviewed by:
Jenna West
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
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