Personal loans are the go-to when you’re in need of some cash. You may need money to fund home renovations, finance your wedding, consolidate debt, or deal with an emergency, but might not have enough savings for these situations. A personal loan lets you borrow the money you need and pay it back over a defined period of time. Like any other loan, you must pay interest on the money you borrow.
Personal loans can be secured, meaning backed by collateral, or unsecured, meaning loans that don’t require collateral. You can get a personal loan from a bank, a credit union, or an online lender. Online lenders are the fastest in approving personal loans as they don’t require in-person meetings and often have lower eligibility requirements than banks and credit unions. We will discuss the different online lenders offering personal loans to Canadians on this page.
|Lender||Funding Amount||Term length||Updated June 2022||Updated June 2022|
|10.8% to 46.99%||$500 to $35,000||6 - 60 months|
|12.99% to 39.99%||$500 to $10,000||9 - 36 months|
|29.9% or 46.9%||$500 to $15,000||6 - 60 months||N/A|
|19.99 to 46.93%||Up to $15,000||Open-ended line of credit||N/A|
|19.99% - 46.80%||$1,500 - $20,000||12 - 60 months|
|29.9% or 46.9%||$1,000 - $15,000||12 - 60 months||N/A|
|19.99% to 39.99%||$500 to $25,000*||6 - 60 months**||N/A|
|6.99% to 33.08%||$5,000 - $50,000||12 - 84 months|
|29.99% to 46.96%||$500 - $20,000||9 - 84 months||N/A|
*Annual Percentage Rate
** The term length is for unsecured loans. Fairstone also offers secured loans with term lengths of up to 120 months, but such loans take a few days to process.
Spring Financial is a popular online lender that facilitates getting a loan from your home. The application takes approximately three minutes to complete, and you may receive the funds in your account the same day. The interest rate and the amount you qualify for depend on several factors, such as your credit history, current income, and current debt load.
SkyCap is an online lender in Canada. The application process takes less than five minutes, and your application is assessed on three factors; credibility, stability, and current income. You can receive the funds in your account almost instantly after approval.
Money Mart lets you apply for a loan online or at one of its 500 stores spread across Canada. The application takes less than 10 minutes, and you can receive approval almost instantly. You can get the funds in your account within 24 hours. If you want to pick up cash from their store, you may be able to do so within 15 minutes of the approval. To be able to apply, you need to be at least 19 years of age, have a valid government-issued ID, have a chequing account, and have a stable income.
If you are looking to get a line of credit, Lend Direct can be your go-to lender. The loan remains open as long as you need, and you can keep borrowing money up to your credit limit and keep repaying it. The lender gives a decision within 60 minutes, and you can receive the fund in your account via Interac e-Transfer in as little as 15 minutes after the approval.
Magical Credit is a Canadian lender offering short-term loans and short-term government subsidy loans. Applicants can expect a decision from them within 24 hours, and the funds deposited in their account shortly after.
Loanz is an online lender that offers instant personal loans to Canadians. The online application takes only three minutes to complete, and you can get approved instantly if you provide your banking details. If you accept the offer immediately, you can get the funds in your account in as little as 15 minutes.
Fairstone is a popular lender that allows you to apply online or through one of 240+ branches across Canada. Generally, they provide loans to those with fair to good credit scores. Fairstone offers online loans of up to $25,000; however, you can also get a secured loan of up to $50,000 from them. You can get a loan quote within minutes and get the funds in your account within 24 hours.
Borrowers with a good credit score can get a personal loan from Symple Loans for an interest rate as low as 6.99%. The lender originated in Australia in 2018 and launched in Canada in 2021. You can get a loan quote within 2 minutes, submit an application within 7 minutes, get a loan offer within 60 seconds, and receive funds in your account by the next business day.
Easy Financial lets you apply for a loan online, over the phone and at any of its 400 physical locations. If you have a co-applicant, you can seek a 2% reduction in the interest rate. If you complete all the formalities quickly, you can receive the funds in your account the same day.
There are several ways you may be able to get the borrowed money from the lender. The lender may give you some options to pick from. The most common ways of getting the money are:
To get approved for a personal loan, individuals need to provide some personal as well as financial information. The required information may vary based on the lender; however, some of the common requirements include:
|Typically have lower credit requirements||Often have high-interest rates|
|No need to visit in person||The borrowing limit may be lower|
|You can get the money within a day or two||Online loans are usually unsecured loans, and secured loans take a few days to process|
|Can help you improve your credit score||Difficult to qualify without proof of stable income|
The application process for online personal loans is fairly straightforward. The process can be explained in three simple steps.
Apply Online: The first and foremost step is to submit an online application. Some lenders let you request an online quote before you can submit an application without impacting your credit score. The applications typically take 3 - 10 minutes. The application will usually include your personal details, income information, and contact information. You should typically receive a communication from the lender in the next few minutes or days.
Complete the Formalities: After you receive a decision, you may have to submit some additional information, such as proof of income. You may also have to select your payment schedule, select the mode for receiving funds, and review the offer before finalizing the loan.
Receive the Funds: After accepting the offer, you can get the money in your account in as little as 15 minutes, depending on how you choose to receive the funds.
Before applying for an online personal loan, you must understand the loan characteristics. The main aspects of the loan you should be aware of are listed below.
Interest Rate: Online personal loans are generally unsecured loans and have a higher interest rate than secured personal loans. The average interest rates start at around 19.99%. APR (Annual Percentage Rate) accounts for the interest as well as additional fees and can provide a better idea about the total borrowing cost.
Fees: Apart from the interest, you also pay different kinds of fees to the lender for processing and administering the loan. You may have to pay application fees and origination fees. You might also have to pay closing costs that may include fees for credit checks, fees for title searches, and other miscellaneous costs. You may also have to pay late fees when you are late for a payment and prepayment fees when you repay your loan early.
The fees can add a significant amount to your final cost of borrowing and must be accounted for before you get the loan. It is always better to compare loans based on the APR instead of the interest rate, as it accounts for all the additional fees as well. You must read the fine print of the loan offer to understand all the fees you may have to pay.
Term Length: Online personal loans typically have a term length ranging from 6 months to 5 years. Some lenders offer term lengths of up to 7 years. The term length that you select affects your monthly payments and the total interest that you pay. A shorter term means that your monthly payment would be higher, but the interest you pay over time would be lower. A longer term loan has lower monthly payments, but you will end up paying more interest over the term of the loan.
Processing Speed: Processing speed is the time it takes to process the application and receive the funds. Online loans are typically processed very fast, and you can usually receive the funds in your account within a day or two of applying.
Repayment Schedule: You have the option to select from monthly, bi-monthly, weekly, and bi-weekly payments to repay your loan. You should always make the payments according to the schedule. Some loans may allow you to skip a payment or give you a grace period to make payments without any penalty. Some loans require you to set up automatic payments from your account.
Lenders typically perform a credit check before approving you for a loan, which affects your credit score. However, some ‘no credit check’ loans are also available in the Canadian market. Such loans typically have high interest rates and low borrowing limits. Some lenders may conduct a soft credit check when you apply, only to determine a rate for you. This won’t affect your credit score. However, the lenders may perform a hard credit check before the final approval.Do online lenders offer secured or unsecured personal loans?
Most online lenders typically offer unsecured personal loans. Secured personal loans are backed by collateral and require more paperwork. Thus, it takes a few days to process a secured loan. Online lenders offer funds to borrowers almost immediately, and therefore such loans are usually unsecured loans.How long will it take to receive the funds?
Most online lenders provide you with the funds within a day or two. Some lenders also claim that they can transfer the funds to your account within 15 minutes of the approval.What is a personal line of credit?
A line of credit is a revolving loan that lets you borrow money when you need (up to the set maximum limit), repay it, and borrow from the line of credit again. You can use the money from a personal line of credit for any personal expense. You can choose to use only a fraction of the amount you are approved for and pay interest only on that. The interest starts only when you start using the money. There is no schedule to repay the borrowed amount; however, you are required to make monthly interest payments on the amount you borrow.