Whether you need money for home renovations, debt consolidation, a car, or unexpected expenses, here are the best personal loan options in Canada in 2025 with real rate comparisons.
| Lender | APR Range | Loan Amount | Term | Credit Required |
|---|---|---|---|---|
| EQ Bank Personal Loan | 9.99%–19.99% | $5K–$50K | 1–5 years | Good (680+) |
| Scotiabank STEP | Prime + 1–3% | $1K–$50K | 1–5 years | Good |
| RBC Personal Loan | 8.99%–19.99% | $1K–$50K | 1–5 years | Good |
| TD Personal Loan | 8.99%–19.99% | $2K–$50K | 1–5 years | Good |
| Borrowell | 9.99%–35.99% | $1K–$35K | 1–5 years | Fair (660+) |
| Spring Financial | 14.99%–46.96% | $500–$35K | 6–60 months | Poor–Fair |
| Loans Canada | 6.99%–46.96% | $500–$50K | 3–60 months | Poor–Good |
| Fairstone | 19.99%–39.99% | $500–$50K | 6–120 months | Poor–Fair |
Unsecured loans don't require collateral. They have higher interest rates because the lender takes on more risk. Most personal loans are unsecured.
Secured loans are backed by collateral (home equity, car, savings). They offer lower rates but you risk losing your collateral if you can't pay.
| Feature | Personal Loan | Line of Credit |
|---|---|---|
| Structure | Fixed lump sum | Revolving credit |
| Interest | On full amount | Only on amount used |
| Payment | Fixed monthly | Minimum payment only |
| Best for | One-time expenses | Ongoing needs |
| Rate | Fixed or variable | Usually variable |
Most banks require a credit score of 660+ for a personal loan. For the best rates (under 10%), you'll want 720+. Online lenders like Borrowell and Loans Canada will work with scores as low as 550–600 but at higher rates.
Online lenders can approve and fund personal loans in as little as 24–48 hours. Bank personal loans typically take 2–5 business days. Same-day funding is available from some online lenders.
Yes. Lenders like Fairstone, Spring Financial, and Loans Canada specialize in bad-credit personal loans, though rates are much higher (20–47% APR). Secured loans or credit-builder programs are better alternatives for building up to better rates.
If you have good credit, banks typically offer lower rates. If you have fair or poor credit, online lenders and credit unions may be more accessible. Always compare multiple offers before accepting.
Personal loans can be used for almost anything: debt consolidation, home renovations, medical expenses, education, car repairs, or major purchases. Unlike a mortgage or car loan, they are not restricted to a specific purpose.