7 Best Personal Loan Rates in Canada in October 2022

Finding out who has the best personal loans in Canada has never been easier. With the advent of financial technology companies, you can simply go online to compare and apply for the best personal loan rates available.

A personal loan can be handy for managing a variety of financial situations.

Need emergency cash for car or home repairs? Want to purchase a car, finance a wedding, consolidate credit card debt or pay for a home renovation, medical bills, or vacation?

A personal loan can cover these costs in part or fully, depending on your money needs.

While there are options to use a low-interest credit card, finding the best personal loan interest rate will help save you on interest fees.

Read on to learn about lenders who offer secured and unsecured personal loans, plus the best personal loan rates in Canada.

Best Personal Loan Rates in Canada

LoanConnectLoans CanadaLoanzMogo
Max. loan amount$50,000$50,000$15,000$35,000
Loan term6-60 months4-60 months12-60 months6-60 months
Interest rate5.75% – 46.96%1.99% – 46.96%29.9% – 46.9%9.9% – 46.96%
Min. credit scoreNoneNoneNoneNone
Minimum incomeNone – varies by lenderNone$1,200/mo$13,000/yr
Learn moreReview

Compare Best Personal Loans in Canada

These online loan providers offer some of the best personal loan interest rates in Canada.

1. LoanConnect Personal Loans

Loan Connect is Canada’s leading personal loan search engine for comparing loan rates across multiple lenders.

After completing the short application form, pre-approval with a suitable lender takes about 5 minutes and you have funds deposited in your bank account in as little as 12 hours.

Loan Connect lenders offer rates as low as 5.75% APR and you can borrow up to $50,000 on a 6-month to a 5-year term.

Loan Connect does not charge a fee, however, some lenders on the platform may charge a small origination fee.

Apply for a Personal Loan or read our Loan Connect review.

2. Loans Canada Personal Loans

Loans Canada was established in 2012 and is Canada’s first loan comparison platform.

The company works with a variety of financial institutions that provide personal loans, bad credit loans, installment loans, car loans, and debt consolidation loans.

After you complete the simple application online, you are matched up with a lender that suits your financial needs. There is no obligation to borrow and you decide whether to accept the quote and terms offered.

Loan amounts range from $500 to $50,000 and interest rates are from 1.99% to 46.96% depending on the strength of your credit profile.

The loan can be paid off between 4 months and 60 months depending on your contract.

Apply for a Personal Loan.

3. Loanz Personal Loans

Loanz is a lending platform for individuals with bad credit or no credit at all. You can use it to access unsecured personal loans in Canada.

The company is owned by Consumer Genius Inc., a well-known loans comparison firm across North America.

To get started, complete the short online application, choose how much you would like to borrow ($1,000 to $15,000) and for how long (12-60 months).

Loan interest rates range from 29.9% to 46.9% depending on your credit situation.

This platform requires applicants to earn at least $1,200 per month and have a steady job. They must also not have filed for bankruptcy.

Apply for a Loanz Personal Loan.

4. Mogo Personal Loans

Mogo was founded in 2003 and is traded on the TSE under the ticker symbol “MOGO.”

The company offers several financial products including free credit scores, personal loans, mortgages, spare-change investing, and more.

You can access personal loans ranging from $2,000 to $35,000 for a 1-5 year term. Interest rates start at 9.9% APR up to 46.96% APR.

A Mogo loan requires that you earn a net income of at least $13,000; live in BC, AB, MB, ON, NB, NS, PEI, or NL, and be the age of the majority in your province.

Apply for a Loan.

Secured Personal Loans in Canada

A secured loan is a personal loan that requires collateral.

In the case of these personal loan lenders below, you may be required to put down a security deposit that is usually equivalent to your credit limit or you may be required to provide a guarantor.

5. Refresh Financial Credit Builder Loan

Refresh Financial offers a Credit Builder Loan loan. This is useful for repairing credit and functions differently from a regular personal loan.

For the Refresh Financial loan, you first repay the loan before you can access it and your payments are reported to the credit bureaus.

You can borrow up to $25,000 for 3-5 years and the interest rate is 19.99% APR.

You can read more about the Refresh Financial loan.

Other personal loan options in Canada include:

6. Spring Financial

Spring Financial is another online lender you can use to access a personal loan, credit building products, and more.

Its personal loan offers up to $15,000 for a 9-month to 60-month term and the interest rate ranges from 19% to 46.96%.

To qualify for a loan from Spring Financial, you need to be at least 21 years old and earn a minimum of $28,000 per year.

This company does not offer loan products in Saskatchewan, Quebec, and New Brunswick.

7. Borrowell Personal Loans

Borrowell offers unsecured personal loans up to $35,000 from its partners with rates ranging from 19.99% to 46.96% APR and a 6-month to 5-year term.

To qualify for a Borrowell loan, you should:

  • Have a credit score of 660 or higher
  • Not have a bankruptcy, consumer proposal, or active collection on your credit file
  • Earn at least $20,000 per year
  • Have at least 12 months of credit history
  • Have a debt service ratio of less than 48%

Your loan application approval takes 1-2 business days and you may be charged a 1-5% one-time origination fee that is included in your loan amount.

Read our Borrowell Loans review.

Loan Payoff Calculator

What is a Personal Loan?

A personal loan is a fixed amount of money borrowed from a lender with an agreement to pay back (principal, interest, and fees) through regular installments.

The lender can be a bank, credit union, private lender, online lender, or payday lender.

Personal loans come in different forms including:

Secured Loan: For a secured personal loan, you are required to provide the lender with collateral i.e. an asset that secures the loan e.g. car, house, bank savings account.

Unsecured Loan: An unsecured loan does not require collateral. The lender may charge a higher interest due to the increased risk of default.

Car Loan: A car loan is a type of personal loan used to purchase a new or preowned vehicle.

A personal loan can have a fixed or variable interest rate. With a fixed rate, the interest you pay stays the same throughout the loan term. If your loan has a variable rate, your interest payment will vary with the lender’s prime rate can go up or down.

How To Apply For a Personal Loan

Applying for a personal loan with the lenders featured in this post is an easy process and completely online.

To expedite the process and to increase the chances you will qualify for a personal loan, you should meet the following basic requirements:

  • Be at least 18 years or older
  • Be a resident of Canada
  • Have a Canadian bank account and have proof of your residency e.g. recent utility bill
  • Have proof of income e.g. paystub. Most lenders want to see that you have a regular income and earn at least $15,000 per year
  • Have an established credit history and credit score
  • Have a government-issued photo ID e.g. driver’s license or Passport

The personal loan interest rate you qualify for will depend on your overall financial picture and credit score.

For the most competitive interest rates available, you should have a credit score of 650 or higher and your debt-to-income ratio should be 40% or less.

It also helps if you don’t have a history of bankruptcy. Don’t know what your credit score is? Find out for free here.

When you have completed the application form of the lenders online, they typically get back to you within minutes to hours and you can have access to funds in as little as 24 hours.

Generally, the cash is deposited directly into your bank account using e-Transfer.

Do You Need a Personal Loan?

You should ask yourself this question before applying for credit of any kind.

Do you actually need a personal loan?

Perhaps, you could access funds via other means and not have to go into debt. If financing is the way to go, consider paying off your loan as soon as possible to lower the interest payments and get out of debt.

Can you afford a personal loan?

Only apply for a loan amount that your budget can handle i.e. you should really be able to make the monthly payments on time. You can use the personal loan calculator to estimate your monthly payments excluding extra fees.

Related Posts

Best Personal Loans in Canada FAQs

What is the difference between secured vs. unsecured loans?

A secured loan is ‘secured’ against your assets e.g. cash savings, car, or home. If you are unable to repay your loan, the lender takes possession of the security deposit. An unsecured loan is not protected using any collateral and may come with a higher interest rate.

What is the current interest rate on a personal loan?

Personal loan rates in Canada vary based on the lender, your credit score, creditworthiness, debt-to-income ratio, prime rate, and more. For the most current rates available, visit the lenders’ website via the links to confirm what’s being offered.

What is the best online loan for bad credit?

You can read about personal loan offers for bad credit here.

Will a personal loan hurt my credit score?

Your credit score may cause a small temporary drop in your credit score. If you make your payments on time, a personal loan can actually help to raise your credit score over time. Late or missed payments will damage your credit score.

How does my credit score affect my interest rate?

Your 3-digit credit score is based on your credit report and is a measure of your creditworthiness. Lenders look at your credit rating and are willing to offer more competitive rates if you have a good to excellent credit score.

What is the maximum amount I can borrow with a personal loan?

Generally, you can borrow up to $35,000, however, LoanConnect has lenders offering up to $50,000.

Do I need to pay to check my credit score?

No, you can check it for free here.

Do I need a guarantor to get a personal loan?

Only if you are applying for a guarantor loan because your credit is really poor or bad.

Can I check my credit score without affecting it?

Yes. When you check your own credit score, it is seen as a “soft inquiry” and does not affect it. If a lender pulls your credit file in order to assess your loan application, it is seen as a “hard inquiry” and affects it.

Have questions about the best personal loans in Canada? Leave them in the comments.

7 Best Personal Loan Rates in Canada in October 2022

Top Loan Offer this month

Compare the best loans for good and bad credit in Canada

Get the best loan rates from lenders regardless of credit score.

Quick online application from the comfort of your home.

Borrow up to $50,000 for 3 months to 60 months.

Loans for any reason with rates from 2.99% to 46.96%.

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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