Personal Loans · Canada
Personal Loans in Canada
A personal loan is a lump sum you borrow from a lender and repay, with interest, in set payments over an agreed term. In Canada these loans can be secured or unsecured, and the offer you get depends on your income, your existing debts and your credit history.
- Product family Personal Loans
- Availability Canada-wide, licence-dependent
- Cost basis Lender-set, within federal limits
- Where it is regulated Federal ceiling + provincial rules
If you need money for a car repair, a move, a course or a wedding, a personal loan spreads the cost over a schedule you agree to up front. That predictability is the main reason people choose one over a revolving product. LoanGoose is a matching and comparison service, not a lender, so you can look at several offers without opening an account with every provider. We do not make loans, and we do not decide whether you qualify.
How a personal loan works
You apply for a fixed amount, the lender reviews your file, and if approved you receive the funds and repay on a schedule. Unsecured offers rest on your promise to pay. Secured offers are tied to an asset, which can lower the rate but puts that asset at risk if payments stop.
- Unsecured: no collateral, usually a higher rate.
- Secured: backed by a vehicle or savings, often cheaper.
- Fixed payments: the same amount leaves your account each period.
- Open or closed: some let you pay early without a penalty.
What lenders look at before they decide
Applications are not judged on one number. Lenders weigh several things together, and a strong point can partly offset a weak one.
- Your income and how steady it is.
- Your existing debt payments compared with that income.
- Your repayment record, as shown on your credit report.
- How much you are asking for and over how long.
You can order a free copy of your credit report from each national bureau to check it for errors before you apply. The FCAC — personal loans page explains the basics in plain language.
Choosing a payment you can live with
A longer term lowers each payment but usually costs more in total. A shorter term does the opposite. Before you sign, add up the full cost, not just the payment, and ask what happens if you pay late or want to pay the balance off early. Nobody can tell you which choice is right for your household; a licensed professional is the right person for significant decisions. Everything here depends on your circumstances and on what each lender offers you.
LoanGoose is a loan matching and comparison service, not a lender. The lowest rates are only available to the most qualified applicants.
What it costs
| Rule | Figure | What it means | Publisher |
|---|---|---|---|
| Criminal rate of interest (federal ceiling) | 35% per year | Above this, an agreement is a criminal offence. | Government of Canada (Justice Laws) |
No amount, term or rate is attached to any link on this page. Anything a lender offers you depends on your file and their own criteria.
What you need before you compare
- Your goal in one sentence. The amount, the date you need it, and the date you can repay it.
- Your real monthly surplus. What is genuinely left after every fixed cost — not what you hope is left.
- A current picture of your credit file. You can request a free copy of your report from each national bureau, and correcting an error is free.
- Every existing debt and its rate. Consolidation maths only works when you can see the whole board.
- The total cost of each option. Compare total repayment, not the headline rate.
- A check that the lender is licensed. Federally regulated banks fall under FCAC; provincial regulators license most other lenders.
Rules where you live
| Province or territory | Payday lending status | Local page |
|---|---|---|
| Newfoundland and Labrador | Licensed regime — federal cap applies | Personal Loans in Newfoundland and Labrador |
| Prince Edward Island | Licensed regime — federal cap applies | Personal Loans in Prince Edward Island |
| Nova Scotia | Licensed regime — federal cap applies | Personal Loans in Nova Scotia |
| New Brunswick | Licensed regime — federal cap applies | Personal Loans in New Brunswick |
| Quebec | Payday lending not licensed | Personal Loans in Quebec |
| Ontario | Licensed regime — federal cap applies | Personal Loans in Ontario |
| Manitoba | Licensed regime — federal cap applies | Personal Loans in Manitoba |
| Saskatchewan | Licensed regime — federal cap applies | Personal Loans in Saskatchewan |
| Alberta | Licensed regime — federal cap applies | Personal Loans in Alberta |
| British Columbia | Licensed regime — federal cap applies | Personal Loans in British Columbia |
| Yukon | Province-dependent | Personal Loans in Yukon |
| Northwest Territories | Province-dependent | Personal Loans in Northwest Territories |
| Nunavut | Province-dependent | Personal Loans in Nunavut |
Provincial rules change. Confirm the current position with the regulator before relying on it — see the sourced rules table.
Compare personal loans options
This is a matching step, not an application with us — we are not a lender. Checking does not commit you to anything, and no amount, term or rate is promised here.
LoanGoose is a loan matching and comparison service, not a lender. We do not make loans, set rates or make credit decisions. We may earn a commission when you click or apply through our links. The lowest rates are only available to the most qualified applicants.
Questions people actually ask
How much can I borrow with a personal loan in Canada?
There is no single national figure. Lenders set their own minimums and maximums, and the amount you are offered depends on your income, your existing debts and your repayment history. Some lenders work in smaller sums, others in larger ones. Compare a few offers before you decide what to request.
Do I need collateral to get a personal loan?
Not always. Many personal loans are unsecured, which means the lender relies on your promise to repay rather than on an asset. Secured versions are tied to something you own, such as a vehicle, and may come with a lower rate. The trade-off is that the asset is at risk if you stop paying.
Will applying hurt my credit score?
A lender usually checks your file when you apply, and that check can leave a small, temporary mark. Shopping around within a short window is often treated as a single search by scoring models. Checking your own report is different and does not affect your score.
How long does approval take?
Timing varies by lender, by how complete your application is, and by whether your details need a second look. Some applications are reviewed the same day, others take longer. You can help by having your income and banking details ready before you start.
Can I get a personal loan with a poor repayment history?
Possibly, but expect the terms to reflect that history. Lenders may offer a smaller amount, a shorter term or a higher rate. Some will decline. If your record has errors, fixing them first is worth the effort. Start with the <a href="https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score.html">FCAC — credit reports and scores</a> guide.
Should I pay off a personal loan early?
Sometimes. Paying early can cut the interest you owe, but some lenders charge a prepayment penalty or an interest differential. Read your agreement and ask the lender directly what an early payoff would cost. Then compare that figure with the interest you would save before deciding.
Where to go next
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Payday Loans
How payday loans work in Canada, what they cost, and why cheaper options are worth checking.
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Cash Advances
What a cash advance really costs, and how it differs from a short-term loan or an instalment loan.
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Instalment Loans
Compare instalment loans with fixed payments spread over a set schedule you agree to up front.
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Short-Term Loans
Compare short-term loan options in Canada and see how repayment timing drives the real cost.
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Loans for Bad Credit
How borrowing works when your credit history is uneven, and what to check before you apply.
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No Credit Check Loans
How no credit check loans work in Canada, what they really cost, and the alternatives worth comparing first.
All loan types · Borrowing by province · Calculators
Sources for this page
Every figure on this page is attributed to the publisher above. Where a value could not be verified against the publisher's own publication, it is left out rather than estimated.