Personal Loans Canada – What Is a Personal Loan?

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Personal Loans Canada helps Canadians connect with the most appropriate money lenders for their specific needs and credit scores. It’s a great option for those who might not have the time to visit a bank in person or who have poor credit histories that might prevent them from getting approved for loans with traditional banks.

What Is a Personal Loan?

A personal loan provides you with a lump sum of money that you pay back in installments over an agreed upon term, along with interest. You can get a secured personal loan that uses an asset, such as your car or cash savings, as collateral, or you can opt for an unsecured one where the lender approves you based on your credit score alone.

Rates for personal loans vary widely depending on your credit score. Borrowers with excellent credit might enjoy rates as low as 5% to 7%, while those with poor credit could see rates as high as 20% to 30%.

Most online lenders partnered with Loans Canada pledge to process unsecured personal loan applications within 48 hours. After approval, you can arrange to receive your funds, which will usually be deposited into your bank account or issued as a cheque. However, some secured loans, such as home equity loans, require longer processing times because they involve more due diligence and paperwork than other personal loan types.