Trusted by More than 2,000,000 Canadians since 2016

Unsecured Loans Canada

  • chBorrow from $300 to $35,000 with no collateral
  • chRates from 9.99% - 34.99% APR
  • chAccess to over 50 lenders in one place
up Last updated

November 11, 2025

up Written by:

Amy Orr

up Reviewed by:

Jenna West

An unsecured loan in Canada means that there is no collateral that you have to put up in order to get the financing. As long as you qualify, you can get a personal or business loan in cash, and pay it back over a period of time with more interest. These loans are very popular and are used for a variety of purposes. For example, you may be looking to pay off unexpected bills or consolidate your credit cards. Or if you are a business owner, you may need an unsecured loan to pay for renovationsinventory or expand with a new location.

At Smarter Loans, you can apply online for your unsecured loan, and we will connect you to the most suitable unsecured loan provider that can process your application. You can also choose a specific provider of your choice below and click “apply now” to submit an application directly to them.

Compare Lenders

AMOUNT
$300 - $35,000
INTEREST RATE
9.99% - 34.95%
TERMS
6 - 84 Months
AMOUNT
Up to $20,000
INTEREST RATE
19.8% - 34.99%
TERMS
36 months
AMOUNT
$1,000 - $5,000
INTEREST RATE
19.9% - 34.5%
TERMS
12 - 36 months
AMOUNT
$500 - $2,500
INTEREST RATE
18.99%
TERMS
Variable
AMOUNT
$500 - $1,000
INTEREST RATE
Varies
TERMS
3 - 6 months
AMOUNT
$30 - $250
INTEREST RATE
0%
TERMS
N/A
AMOUNT
$20-$500
INTEREST RATE
0%
TERMS
N/A
AMOUNT
$150-$1000
INTEREST RATE
30.4% APR
TERMS
30 Days
AMOUNT
$500 - $150,000
INTEREST RATE
9.99% - 34.99%
TERMS
9 - 240 months
AMOUNT
$500 - $25,000
INTEREST RATE
34.56% - 34.95%
TERMS
6 - 84 Months
AMOUNT
$500 - $15,000
INTEREST RATE
34.37%
TERMS
12 - 60 Months
AMOUNT
$100 - $1,500
INTEREST RATE
Varies
TERMS
2 months
AMOUNT
$500 - $10,000
INTEREST RATE
34.99%
TERMS
Open Line of Credit
AMOUNT
$100 – $15,000
INTEREST RATE
34.99%
TERMS
Open Line of Credit
AMOUNT
$100 - $20,000
INTEREST RATE
34.37%
TERMS
6 - 84 Months
AMOUNT
$1,000 – $15,000
INTEREST RATE
19.9% - 34.9%
TERMS
Line of Credit
AMOUNT
Up to $250
INTEREST RATE
0% APR (Has Fees)
TERMS
Varies
AMOUNT
$100 - $1,500
INTEREST RATE
Varies
TERMS
2 months
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What Is an Unsecured Loan?

Unsecured loans represent a financial solution predominantly driven by the borrower's credit profile, as opposed to requiring collateral such as a property or vehicle. Both businesses and Canadian citizens can avail these loans, which depend solely on the borrower's creditworthiness for the loan's approval. Once the credit check is completed, the funds are transferred without needing to secure the loan with tangible assets like home equity or car title loans.

However, these loans' terms, including the interest rate and the repayment period, are significantly influenced by the borrower's credit score. A high credit score often translates into more favourable loan terms, including lower interest rates, thus reducing the monthly payments. On the other hand, a lower credit score could inflate the interest rates as lenders seek to offset the heightened risk.

Who Offers Unsecured Loans?

These types of loans in Canada can be obtained from a variety of lenders, including big banks and digital, FinTech lenders and private lenders. Many providers can be found online. However it is important to do your due diligence and ensure that you are dealing with a reputable provider and avoid any surprises when it comes to fees and interest rates.

Forms of Unsecured Loans

These come in a variety of types, tailored to accommodate diverse financial situations, lending purposes, and borrower requirements. While these loans are typically smaller than secured loans, they offer flexibility through different forms, particularly for borrowers with high credit scores.

Unsecured Revolving Loans

personal line of credit

Unsecured Term Loans

Unsecured Debt Consolidation Loans

payday loans
Take control of your finances and liberate yourself from the burden of multiple debts with a debt consolidation loan.

How to Qualify for an Unsecured Loan?

Qualifying for an unsecured loan, whether it's an unsecured personal loan or a line of credit, typically requires demonstrating to lenders a solid financial profile. Lenders consider several factors when assessing a potential borrower's creditworthiness, primarily focusing on credit history, consistent income, and occasionally, the availability of a co-signer.

Qualification Considerations

Your credit history is a key element that lenders scrutinize when processing your application. It provides insight into your past borrowing behavior, revealing patterns of spending and repayment. A credit history reflecting diligent, timely repayments and managed debt contributes to a higher credit score, making you an appealing candidate for unsecured personal loans. However, if your credit score is low or non-existent, don't despair. There are ways to improve or build your credit over time, such as consistently paying bills and loans on time, even if they're small payday loans or car payments.

While your credit score is crucial, your income stability is equally, if not more, significant. Lenders need to ascertain that you have a reliable income stream that ensures you can meet your loan payments after covering your everyday expenses. If you're able to demonstrate a steady paycheck and sufficient surplus to service your loan, you'll strengthen your chances of loan approval.

In certain circumstances, particularly if your credit score is low or if you lack a regular income, lenders might require a co-signer as a safety net. This is a person who agrees to repay the money you borrowed if you default. Having someone with a good credit score can make it easier for you to qualify for a personal loan, even if you have bad credit. This option, however, should be considered carefully due to the potential financial and relationship strain it could cause.

Consequences of Defaulting on Unsecured Loans

Unlike secured loans where the lender has the right to take possession of the pledged assets to recover their losses, unsecured personal loans don't provide lenders with the same security. However, defaulting on an unsecured personal loan doesn't mean the borrower is off the hook. Lenders have various methods to recover their losses.

Wage Garnishment

Placing a Lien on Assets

Government of Canada.

Benefits of Unsecured Loans

Unsecured loans, whether in the form of personal loans, lines of credit, or payday loans, come with a unique array of benefits for borrowers, particularly those in need of smaller to medium-sized loans. The advantages include:

Non-Recourse

One of the most attractive features of unsecured loans is their non-recourse nature. Since these types of loans don't require collateral, borrowers aren't at risk of forfeiting personal assets if they fail to meet loan repayments on time. However, as previously highlighted, other legal avenues may be used by lenders to recover the debt, especially if the matter escalates to court.

No Collateral Requirement

Unsecured loans are particularly beneficial for borrowers who do not possess any tangible assets to offer as collateral. This aspect expands access to credit for a larger pool of borrowers, enabling them to secure funding for their needs. It's a boon for people who might not own significant assets, yet require financial assistance.

Potential Discharge in Bankruptcy

Accessible for Those with Bad CreditFlexibility in RepaymentsAvailability to Non-Property Owners

Limitations of Unsecured Loans


Higher Interest Rates

Strict Qualification Criteria

Impact on Credit Score

credit score

Potential for Higher Overall Costs

Reduced Borrowing Amounts

 There are a multitude of unsecured loan types in our day-to-day environment as well. Some of the cases where debt is provided without any asset backing are as follows: student loans, credit cards, personal lines of credit, payday loan, personal installment loans, and  working capital loans for small business.

What Are Unsecured Loans Used For?

 These loans tend to have a good interest rate and be pretty versatile in the sense that they can be used for a range of purposes. Unlike some types of secured loans such as a mortgage or auto loan, which can be solely used to buy properties and cars respectively, unsecured loans can be used for purposes such as: consolidating debt, obtaining a payday loan, getting a line of credit, medical expenses, car repairs, starting a new venture or investing into a business, wedding or vacation, big ticket purchases and much more.

Frequently Asked Questions (FAQs)


What Documents Are Needed for Personal Unsecured Loans?

How Much Can I Borrow with an Unsecured Loan?

What Kind of Fees Do Unsecured Loans Come with?

Is There a Particular Credit Score Threshold I Need to Meet to Qualify for a Loan?

Can I Qualify for an Unsecured Personal Loan with Bad Credit?

unsecured bad credit loanshome equity loan car title loan

What's the Difference Between an Unsecured and Secured Personal Loan?

Expert Review & Editorial Standards

This page was researched, written, and reviewed by financial professionals with expertise in Canadian lending regulations. All information is regularly updated to reflect current rates, terms, and regulatory changes.

Jenna West
Reviewed By

Jenna West

Financial Writer & Content Director

Jenna has covered the Canadian FinTech and consumer lending industry since 2017. She specializes in regulatory updates, consumer protection, and helping Canadians navigate complex financial products.

  • 8+ years analyzing Canadian consumer lending
  • Monitors FCAC and provincial regulatory changes
  • Specializes in personal loans and alternative lending
Amy Orr
Written By

Amy Orr

Financial Content Specialist

Amy is a financial writer with 10+ years covering Canadian, U.S., and U.K. financial markets. She holds a Masters in Finance from the University of Edinburgh Business School and formerly worked in the hedge fund sector.

  • Masters in Finance, University of Edinburgh
  • Former hedge fund professional
  • Published in major financial publications

About Smarter Loans

Canada's independent lending comparison platform since 2016. Trusted by over 2 million Canadians and recognized by the Toronto Star as "the GPS of FinTech Lending." Featured in the National Post and major Canadian publications.

Verified Lenders Only All lenders verified for proper licensing and regulatory compliance
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Regular Updates Content monitored and updated for rate changes and new regulations
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Our Editorial Process

Every page undergoes research, expert writing, fact-checking, and review by our Financial Content Director. We verify all rates, terms, and regulatory information against official sources including FCAC guidelines and provincial lending regulations.

Last Updated: November 11, 2025 | Next Review: Ongoing monitoring

Awesome G. profile pictureAwesome G.
04:46 26 Feb 25
I’m very honoured to shear my experience with this illustrious platform. To be able to systematically choose from a list optional to one’s profile without doing much leg work is truly rewarding. This platform allowed to expand my options and chose which lenders fit my profile, thank you and continue doing what you do best,, connecting people to available wealth opportunities.
Pat M. profile picturePat M.
03:10 26 Feb 25
Good place to get a loan
Chris “Stufphr” H. profile pictureChris “Stufphr” H.
02:07 26 Feb 25
When you feel in need of a loan do it smart and make it a Smarter Loans.
Dan Bott (. profile pictureDan Bott (.
01:41 26 Feb 25
Very Helpful, was assisted in a timely fashion and was ultimately able to receive assistance; I highly recommend!!!
joel K. profile picturejoel K.
22:59 25 Feb 25
I have recommended this place to many friends I feel that this company goes out of their way to help people that they can and they are very easy to work with
Nate C. profile pictureNate C.
13:22 27 Oct 24
This company is reliable, quick, and just has the best customer service and rates it is a easy process with quick results. Would definitely recommend to anyone that needs the help.
Vincent J. profile pictureVincent J.
07:08 23 Oct 24
Good place for borrowing a bit of money 😁
Kels H. profile pictureKels H.
06:41 23 Oct 24
Personally love this opportunity and app. Super convenient and easy to use and super awesome variety of great loans. Thanks so much guys for making such an awesome site and app and being there for me over the years. :)
Tara H. profile pictureTara H.
16:23 16 Oct 24
From beginning to end, my experience was great! Very professional and personable agents. They only asked questions that were needed for the loan and payments were extremely reasonable. Would recommend to anyone who needs emergency funds.
A S. profile pictureA S.
19:43 11 Oct 24
“ Thank you SO very much! My situation was tricky and you guys made the whole process so effortless. The way you guys handle the whole process so discreetly. That truly speaks to how well your office is run and the caliber of specialists who handled the processing of my entire loan!”

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