Installment loans are unsecured personal loans offered by financial institutions. They are often less stringent and are readily available to borrowers online.
If you are looking for some of the best installment loans for bad and good credit, alternative lenders and comparison sites like Loans Canada, Fairstone, and LoanConnect can help.
See the list of direct lenders for installment loans in Canada below and find out which one offers the best loan solution for your needs.
Key Takeaways
- Online lenders like Loans Canada, Mogo, AimFinance, and LoanConnect provide access to some of the best installment loans for bad credit.
- An installment loan is a personal finance tool used to pay off debts, make a big purchase, consolidate debts, spend on home repairs, and deal with unexpected expenses.
- Installment loans from online lenders are the easiest to get due to less stringent requirements and faster application and approval.
Best Online Installment Loans in Canada
Online installment loans in Canada are loans you borrow and repay in equal monthly payments with a fixed interest rate.
Below are 17 online lenders offering the best online installment loans in Canada.
1. Loans Canada
Established in 2012, Loans Canada is a BBB-accredited specialty online platform that connects borrowers with lenders.
Loan amounts can be anywhere from $500 to $50,000, with terms ranging from 4 to 60 months or longer.
APRs range from 1.99% to 46.96%, depending on how a lender assesses your credit profile.
Applying for an installment loan at Loans Canada is as simple as submitting a request using a fast and secure online application process.
Once you submit your application, Loans Canada’s technology will match you with a lender that fits your needs.
Accept the quote sent by a lender. Review the terms and plan offered and see if it works for you.
When you approve the quote, your lender will deposit the funds into your account, which you can access on the same day. Schedule your repayments through automated debits.
Loans Canada has the biggest lender network in the country, so borrowers can find an option whatever their credit situation or profile may be.
Here’s an in-depth Loans Canada review.
2. LoanConnect
LoanConnect is a search engine Canadians use to look for unsecured loans from a network of lenders.
The platform has partnered with lenders that offer loans to borrowers with good, bad, or no credit.
It uses secure web technology to take the information you provide and query lenders that match those requirements.
When you select a loan, LoanConnect sends you to the lender’s website to finish your application.
Once approved, you will receive your funds in your account in as little as 12 hours.
To be eligible, you must be the age of majority in your province and a Canadian citizen or a permanent resident.
To apply for an installment loan, complete the online application form on the LoanConnect website.
The maximum loan amount is $50,000. APR ranges from 6.99% to 46.96%, and loan repayment terms from 3 to 120 months.
Depending on your chosen lender, origination and administration fees may apply.
Check out this LoanConnect explainer.
3. AimFinance
AimFinance is an installment loan provider that gives consumers in Ontario and BC access to affordable credit through its loan options.Â
The online lender offers unsecured installment loans you can use to consolidate your debts, conduct home or car repairs, use for unexpected expenses and spend on large purchases.
It provides borrowers with a fast, safe and secure process, from loan application to loan decision and funding.
Installment loans are available in the amounts of $1,000 to $5,000 based on a borrower’s completed application, net pay and other eligibility requirements.
Installment loan terms range from 9-24 months and are based on the loan amount. The APR/Annual Interest rate is 46.00%.
The requirements to qualify for an installment loan include personal and employment details. AimFinance likewise requires customer verification and a credit check.
Should AimFinance find you eligible, your loan application will be approved, and the funds will be deposited into your bank account.
Learn more in our review of AimFinance.
4. Fairstone
Fairstone is a lender that offers unsecured and secured personal loans to Canadians with fair to good credit scores.
Unsecured loans range from $500 to $25,000, with terms from 6 to 60 months and interest rates from 26.99% to 39.99%.* Secured loans range from $5,000 to $50,000, with terms from 36 to 120 months and interest rates from 19.99% to 24.49%.**
You can get a personalized loan quote by supplying a few basic details. Connect with a Lending Specialist for a customized loan solution and complete the application online or at one of 250 branches.
Once you submit the required documents and finalize your loan application, you could receive the funds in as little as 24 hours.
Learn more in this Fairstone review.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC, 31.99% in MB, and 34.99% in QC.
**On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821. In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
5. Mogo
Mogo is a Canadian financial technology company that provides installment loans and other products aimed at helping clients with their finances.
It offers MogoMini, a line of credit you can use to manage your finances. Borrow up to $3,500 for last-minute financial needs or debt consolidation.
Open a MogoAccount and get a loan pre-approval in minutes. Apply for a loan from your dashboard and get alerts about your payments.
Loan amounts range from $200 to $35,000, with interest rates ranging from 9.90% to 46.96%. Loan terms are from 6 to 60 months.
Related: Mogo Loans review.
6. Loanz
Loanz is an online direct lender that offers installment loans to borrowers with credit scores ranging from fair to bad (Ontario).
If you want to take out a loan to pay bills, consolidate debts, pay off your credit cards, buy a car or deal with an unexpected expense, Loanz can assist you with the loan solution you need.
Loanz takes out the hassle of applying for loans by making the application process quick and easy through a short online application.
The lender offers loan amounts between $1,000 and $15,000. Terms are 12 to 60 months, while APRs can be 29.9% or 46.9%.
Once approved, your funds will arrive in your bank account in minutes.
If you are over 18, have a chequing account and have a steady source of income, you can apply for a Loanz installment loan that you can use for whatever purpose you need.
To learn more, read our Loanz guide.
7. Symple Loans
Symple Loans is an online lender that specializes in providing unsecured loans to prime borrowers (or those with a credit score of at least 660).
Loan amounts are from $5,000 to $50,000, with rates from 6.99% p.a. to 33.08% p.a. and terms ranging from 1 to 7 years.
Once Symple Loans approves your loan, you can receive the funds in your account the next business day.
To be eligible for a loan, you must have a minimum annual income of $50,000 and have no history of bankruptcies or current consumer proposals.
8. iCASH
If you are looking for lenders offering no-refusal installment loans in Canada, short-term loan direct lender iCash may be able to provide what you need.
Applying for an installment loan on iCash involves completing an online application form, getting instant approval and receiving your loan funds within minutes.
In applying for an iCash loan, the requirements include a minimum combined net monthly income of at least $800 and a Canadian bank account.
You can borrow up to $1,500 at interest rates of up to 23%. Release of loan funds is via direct deposit e-transfer. Repayments are through automatic debit.
9. SkyCap Financial
SkyCap Financial is an alternative financing company that offers personal loans of up to $10,000 to people with low or bad credit scores.
To apply for a SkyCap loan, complete the online application form, which takes only a few minutes.
When your application is approved, usually within 24 hours, SkyCap will deposit the funds directly into your bank account.
Loan amounts range from $500 to $10,000. Payment terms range from 9 months to 60 months. APR ranges from 12.99% to 39.99%.
10. GoPeer
GoPeer is a peer-to-peer (P2P) lending platform in Canada that offers collateral-free loan options to individuals who want to start a business.
Loans range from $1,000 to $25,000. Repayment periods range from 36 to 60 months, with the option to pay earlier without penalties. Interest rates average 7% to 25%.
Upon loan approval, GoPeer will deposit the funds into your bank account. For loan amounts less than $10,000, approval can take up to 5 days.
If you default on your payments, GoPeer gives you a 15-day grace period to organize your finances. To qualify for a loan at GoPeer, you must have a credit score of 600+.
Related: GoPeer overview.
11. Lendful
Lendful Financial Inc. offers unsecured personal loans to borrowers with a credit score of 600 (650 in QC and AB).
Loan amounts are from $5,000 to $35,000, with terms of 6 months to 5 years. Payment terms are weekly, bi-weekly or monthly.
Loan rates start from 9.9%, while total APRs range from 10.78% to 22.48%. Flexible prepayment options with no penalties are available.
Lendful requires borrowers to have proof of income and a credit history of 3 years.
12. Smarter.Loans
Smarter.Loans is an independent loan comparison website that connects lenders with Canadians looking for personal loan options.
The platform connects you to over 80 loan providers from whom you can borrow funds, which you pay back in installments over a fixed period.
Applying involves completing a quick online application. Smarter.Loans will conduct a soft credit check to pre-qualify you for loan offers from its network of lenders.
You will then complete your pre-approved loan request at the lender’s website and receive the funds via direct deposit within 24 hours.
13. LoansLoans
LoansLoans is a Canadian brokerage services company that helps customers find short-term personal loans.
Its partner lenders offer loans from $300 to $1,000 and interest rates of 28% to 32% (APR).
Repayment terms are 12 weekly payments, 6 bi-weekly payments, and 6 semi-monthly payments. Borrowers can pay off loans early without penalties.
One of the requirements to be eligible for a short-term loan is that you must have an after-tax (net) salary of at least $1,200 monthly.
14. Magical Credit
Magical Credit specializes in installment loans for people with bad credit, whether employed or currently receiving government subsidies.
Short-term loan amounts range from $1,500 to $20,000, with a fixed interest rate of 3.9% per month. Loan amortization is between 12 and 60 months.
Applying for a Magical Credit loan requires filling out an online application form. The funds may be available in your bank account a few hours after loan approval.
Magical Credit offers installment loans in Ontario and other provinces and territories. The service is not available in Manitoba, Quebec and Saskatchewan.
15. FlexMoney
FlexMoney is a digital lender that specializes in automating loan transfers to employed individuals.
Loans are from $500 to $15,000, terms are 6 to 60 months, and rates start from 18.9% APR. There are no prepayment penalties.
When your loan application is approved, FlexMoney processes your payout immediately and sends the funds directly into your bank account.
Getting a FlexMoney installment loan requires a net income of at least $2,000 per month for at least 3 months.
16. Friendly Lender
Friendly Lender is a lead referral company (not a lender) that helps customers obtain short-term loans through one of its direct lending partners.
Application takes a few minutes, with lending decisions made within minutes. Loans range from $100 to $1,000, with terms from 4 months to 24 months or longer.
Funds are typically released the next business day or within 24 hours. Friendly Lender does not charge an upfront fee nor deposit on a loan.
To qualify, you must have a steady income source, an active bank account, and take in a minimum of $800 in monthly payments.
17. Spring Financial
Spring Financial is a direct online-only lender of installment loans for people who need funds for various financial needs.
Loan amounts are from $500 to $35,000. Interest rates range up to 46.99%, and terms from 6 to 60 months.
After loan approval, you can sign the loan documents immediately. Funds are available on the same day via e-transfer or can take 1 to 2 days.
The lender reports every repayment you make to the credit bureaus, helping you to build your credit.
What is the Easiest Installment Loan To Get?
Installment loans offered at loan broker services, like Loans Canada or LoanConnect, are often the easiest installment loans to get.
They have less stringent requirements and offer flexible terms. Their extensive network of lenders makes it easier for borrowers to find what they need.
They also have the technology to match the needs of a creditor with a lender that can provide them with the best loan solution.
What are Installment Loans?
An installment loan is a type of personal loan that you receive as a lump sum, which you repay over time with a fixed number of scheduled payments.
These loans are usually unsecured, which means there is no need to put up any asset as collateral.
They are handy personal finance tools to pay off debts, buy a big-ticket item, consolidate debts, spend on home repairs, and deal with unexpected expenses.
How To Apply For An Installment Loan
Follow these simple steps to apply for an installment loan online:
- Complete the online loan application by supplying your personal details and employment information.
- Wait to get pre-approved by the lender. The process can be instant or within a day. A loan pre-approval is vital in comparing loan options.
- Submit the necessary documents to verify your identity and income.
- Wait for the lender to give you a final offer. Make sure to review your loan agreement before signing it.
- Receive your funds within minutes or a few days via direct deposit or e-transfer, depending on your lender.
How To Choose the Best Installment Loan
In picking out the right loan, take these vital factors into account:
- Purpose of Your Loan. Determine what you need the loan for to help you select a loan and a lender.
- Interest Rates. Compare interest rates, APRs and the monthly rate from various potential lenders.
- Repayment Plans. The repayment options are weekly, bi-weekly, and monthly. Choose the option that can save money and pay off your loan quickly.
- Additional fees. Check your quote for fees added to the cost of your installment loan.
Pros and Cons of Installment Loans
Checking out the pros and cons of installment loans helps you to know what you are getting into and understand the process.
Pros:
- Flexible loan amounts, terms and payment schedules
- Predictable monthly payments
- Fast online application and release of funds
- No prepayment penalty (for some lenders)
- Easy to qualify
- Accepts bad credit
- Helps build your credit
Cons:
- High-interest rates
- Not direct lenders
- Non-sufficient funds fees of up to $50
- Potential late or missed payment fees
- Personal information sent to third-party
Are Installment Loans Good?
It depends on your purpose for taking out an installment loan. If you use it to make home repairs, finance a purchase, and consolidate debts, it may be practical to get an installment loan.
If you have a good credit score, it is likely you will have lower interest rates. Repayment terms can also be flexible to suit your situation.
With some lenders, an installment loan can be a way to build your credit. By making timely payments, your credit score will improve.
The risk of an installment loan is if you default on your payments since it will hurt your credit score.
Lenders typically report negative information to credit bureaus. Thus, if you intend to take out an installment loan, it is best not to default on your payments.
FAQs
Depending on your credit profile or lender, you can borrow anywhere from $100 to up to $100,000 or more if it is a secured loan such as a mortgage. The amount you can borrow depends on your lender, the type of installment loan, and your credit score.
No. On the contrary, these loans can help you build credit through on-time payments. Your lender reports every timely payment you make to the credit bureau, which boosts your credit score in the process.
Mortgages, car loans, and personal loans are three of the most common types of installment loans. With mortgages, your loan term can range from 15 to 30 years, while car loans are to buy a car. Personal loans are those that you can use toward any type of expense, such as debt consolidation.
Depending on your lender, it can save you hundreds of dollars worth of interest over the life of your installment loan. Some lenders, however, may charge a prepayment penalty if you pay off your loan early. The average prepayment fee is around 4% to 5% of your unpaid balance.
