The best personal loans in Canada charge 6–18% interest depending on your credit score and lender. Here’s how to find the lowest rate for your situation.
Best Personal Loan Lenders
| Lender | Rate Range | Loan Amount | Credit Score |
|---|---|---|---|
| Big 5 banks (TD, RBC, etc.) | 6–12% | $5K–$50K | 680+ |
| Credit unions (Meridian, Vancity) | 5.5–11% | $5K–$35K | 650+ |
| Borrowell/Spring Financial | 9–35% | $500–$35K | 550+ |
| Fairstone | 19–39% | $500–$50K | 500+ |
| LendDirect | 19–35% | $500–$15K | 500+ |
| goPeer (peer-to-peer) | 8–18% | $1K–$25K | 620+ |
What Rate to Expect
| Credit Score | Expected Rate | Monthly Payment ($15K, 5 yr) |
|---|---|---|
| 750+ (Excellent) | 6–9% | $290–$312 |
| 680–749 (Good) | 9–14% | $312–$349 |
| 600–679 (Fair) | 14–24% | $349–$430 |
| Below 600 (Poor) | 24–35% | $430–$520 |
Secured vs. Unsecured Personal Loans
| Feature | Unsecured | Secured |
|---|---|---|
| Collateral required | No | Yes (car, savings, etc.) |
| Interest rate | Higher (6–35%) | Lower (5–15%) |
| Approval difficulty | Harder | Easier |
| Risk | None beyond credit impact | Lose collateral if default |
| Best for | Good credit, smaller amounts | Lower credit, larger amounts |
How to Get Approved
- Check your credit score — free through Borrowell or Credit Karma Canada
- Gather documents — ID, proof of income, employment letter, bank statements
- Compare rates — apply to 2–3 lenders (multiple inquiries in 14 days count as one)
- Consider a co-signer — can lower your rate by 5–10 percentage points
- Start with your bank — existing customers often get preferred rates
Bottom Line
For personal loans in Canada, start with your bank or credit union — they offer the best rates for good credit (6–11%). Online lenders fill the gap for fair-to-poor credit, but expect to pay 15–35%. Always compare at least 3 offers before accepting, and avoid any lender charging upfront fees.
See our debt consolidation guide if you’re borrowing to combine existing debts.
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