4 Best Personal Loans in Canada Reviews in 2024 | Compare the Rates & Terms

January 22, 2024 | Editorial Team

A personal loan is when you borrow a fixed amount and agree to pay it back over a set time. Payments are made per month or bi-weekly.

As the borrower, you must pay back your loans in full, along with any interest and applicable fees. You do this by making regular payments, referred to as instalments.

Most financial institutions offer personal loans. Personal loans range in length from six to sixty months and are usually between $100 and $50,000.

You can use a personal loan for a wide variety of purposes. You can pay for home renovations, new furniture, or consolidate high-interest debt. Unsecured personal loans are loans that do not have an asset backing them. These loans have higher interest rates than secured loans.

Before signing up for a personal loan, make sure you understand the loan agreement. Review the loan amount, interest rate, term, payment amount, and fees you are required to pay.

Find out if it has a fixed or variable interest rate. With a fixed interest rate, your loan’s interest rate will stay the same during the entire term. Meanwhile, with a variable interest rate, the rate can change.

Beware of short-term personal loans with high fees, known as payday loans. Payday loans can be convenient. They also prove costly because of their high-interest rates and fees.

Try not to borrow more than you need or more than you can afford to pay back. Otherwise, you could find yourself in financial trouble.

Table of Contents

  1. Personal Loan Calculator
  2. Loans Canada
  3. Loan Connect
  4. Borrowell
  5. Ferratum
  6. Types of Personal Loans
  7. Which is the Right Type of Personal Loan for You?
  8. The Bottom Line

Personal Loan Calculator

In Canada, loan calculators will help you work out the monthly payment plus interest. These calculators ask for your credit score, the interest rate, and the term of the loan.

Your credit history will impact both the amount of money you can borrow and the personal loan’s interest rates.

When choosing an institution to get a loan, using a loan calculator can help you get the best deal. A loan calculator will help you calculate how much interest you are going to be paying.

Calculate the loan amount with three easy steps if you want to do it yourself.

1. Divide your interest by the number of payments you’ll make in the year, weekly or monthly. Interest on these personal loans is calculated annually.

2. Multiply the amount by the balance of your loan, which will be your whole principal amount for the first payment. This amount will give you the interest for that month.

3. Add that interest to your monthly payment, and you have the full monthly payments. This amount will decrease as you continue to pay off the loan principal.

You can use many online loan calculators as well, giving you a good picture of the interest you will pay.

Loans Canada

Loans Canada is an online lending platform with personal loan options for any loan needs. Moreover, you can get a loan in all parts of Canada like Alberta, Ontario, Toronto, or Edmonton just to name some. For a loan from Loans Canada, you will need the following basic things. A regular income is often required. You will also need a bank account and address.

Loans Canada offers options for a personal loan in Canada that can be applied for in three simple steps.

Loans Canada will run a credit check to look at your credit history before offering a personal loan. Loans Canada is going to check your credit when offering you interest rates on their loans. If you have poor credit due to credit card debt or unpaid bills, chances are you will not get a low-interest rate (see also best credit cards for bad credit).

While Loans Canada does not give out loans themselves, they can help find the best option. They are a loan platform, meaning they apply your information to show you loan options.

Loans Canada is a great option for someone who worries about how a credit rating will affect personal loans. Your personal loan list will include online lenders giving you more loan options. Not only do they offer personal loans, but they also offer loans on cars, home and business.


LoanConnect is a financial institution in Canada that offers personal loans. The Better Business Bureau accredits them with a high rating on customer satisfaction.

Their website provides a pre-approval process for a loan. That will take about a minute to complete and can be done online.

Working with various banks, LoanConnect can offer loans with different options. There will be a loan that suits your needs. LoanConnect says it works with partners who provide loans to those with bad credit.

By filling out the form on their website, you can look through the personal loan options. By answering a few questions about your credit, you will see loans from different lenders.

LoanConnect offers many loans, including personal loans, cash loans, bad credit loans, and online loans. Their website is full of helpful information on loans.

Their website has information and tips for anyone applying for a personal loan. What to look for in the terms and conditions of a loan, and the advantages of personal loans.

If you are looking to see different loans and options for anyone with bad credit, LoanConnect is an excellent option for a loan.


Not sure what your credit score is and not sure it’s good enough for a loan? No problem. Borrowell not only offers personal loans, but they also offer free credit reports.

They offer several unsecured loans ranging from $3,000 to $35,000. The interest rate on their personal loans ranges from 5.3% to 25.5%.

If you are considering Borrowell, their sign-up process for loans is relatively easy. Start by signing up and get your credit score.

Any personal loans from Borrowell also come with free credit rate monitoring. Then they will give you a list of personal loans with an interest rate that reflects your credit score.

They do offer loans to you if you have bad credit. In Canada, loans may have higher interest rates. The monthly payment might be higher because of this.

Borrowell’s website also has a blog section that teaches you about money. Articles cover different loans and how to improve your credit score. They even offer comparisons, from credit cards and mortgages.

Borrowell has been operating in Toronto since 2016. They are one of the top online lenders for loans.

Sign up for all their services within a few minutes online. You will need ID, a bank account, and your SIN number.


Ferratum is an international business providing mobile banking. They launched their mobile bank in 2016. Their mobile app was one of the first of its kind.

Ferratums’ personal loans can be applied for in 10 minutes on any device. Once you apply, you could have your funds in an hour or the next day if you are outside the more traditional banks’ hours. Their website states they will say yes when others may say no to a loan.

Pick the amount for the loan. Payments can be bi-weekly or per month. Interest rates range from 18.9% ARP to 54.9%. Many factors go into determining the rate.

If you are looking for a personal loan with options to pick the amount and the loan terms, this is a great choice. You can pay off the loan with no fees, as soon as you have the full amount to pay back.

Take out loans for a little as five months, or as long as six months. Pick a repayment plan the works for you, or pay it all off when you are able to with no extra fees.

Their simple and easy website and mobile app will allow you to apply for loans or access their other services 24/7. Apply for an online loan with no credit check. If you have a job, and your credit rating is over 600, you qualify.

Types of Personal Loans

If you need money for whatever reason, there are many loans you can get for support. When we talk about loans in Canada and say personal loans, there are many loan options within that term.

There are three main options for loans: unsecured loans, secured loans, and reverse loans. Another way to borrow money is by using a credit card or a line of credit.

An unsecured loanis the name used for a loan when you did not put any money to guarantee the loan itself. This form of loan is generally offered to those with a higher credit rating.

If you have a lower credit because of card debt, you will be applying for a secured loan. This form of a loan requires you to pledge something as collateral. For anyone with lower credit, you will be required to secure your house, your car or other valuables as a form of insurance to the lender.

This way, if you default on the loan payments, you take the chance of losing whatever you put as collateral. If you have had credit card debt in the past, then be ready to need collateral. This is something to consider when your credit is not high enough for a secured loan.

Another personal loan is a reverse loan, also called a Cash Secured Savings Loans. This is an interesting kind of loan where you would put up the amount of money you are going to borrow. Then at a later date, you can use the amount of money you provided as a loan.

This personal loan is a good option for someone who wants to bring their credit rating up while saving money. You can be approved for this type of loan without a credit check since the amount in the loan is your own.

One of the other ways to borrow is using a line of credit. They are different from a loan because it is an ongoing source of credit. Your financial institution will give you a maximum amount you can use at any time.

For homeowners, there is another option called the Home Equity Line of Credit. HELOC is a type of loan where you borrow money secured against your house. If you own your home, this is another option for you to think about.

While a line of credit and HELOC are not considered personal loans, they are something to be considered when looking for a loan. The more common with a personal loan is secured and unsecured, and there also are other loan options.

Which is the Right Type of Personal Loan for You?

Ferratum offers loans for those with a score above 600. If it is lower, there is a chance you will still get approved. If you have a job, meet their minimum income requirement and have no loans in collections, you are approved.

Suppose your credit is on the higher end, then consider unsecured loans from a company like Borrowell. The higher your score, the lower the interest rate, and the higher the loan amount.

If you are not sure what kind of loan you need, try Loans Canada. With one application, you can see different options. This way, you can see the best loan option for you.

If you need the money quickly, consider an online application through companies like Borrowell or Furratum. They make the loan process easy, and you can have your loan in as little as 24 hours.

The Bottom Line

If you are looking for a personal loan, the type of loan you qualify for will depend on your credit rating. The better your credit score, the more options you will have, and the lower your monthly payment.

If you do not have the best credit, then the options can be more limited. The companies we covered at the beginning of this guide have options for those with a lower score.

Whatever your personal circumstances are in Canada, there are loan options available for you.