Best Personal Loans in Canada for 2026

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A personal loan in Canada can cover a big expense or replace high-interest card debt with one fixed payment. The catch is the price: the same $10,000 can cost very different amounts depending on who lends it.

We compared two big banks, two alternative lenders and one comparison tool, using only what each one publishes on its own website.

Quick answer: If your credit is strong, start with your own bank: TD lends from $2,000 over 1 to 7 years and RBC from $5,000 over 1 to 10 years, with fixed or variable rates quoted after you apply. If a bank says no, Fairstone’s unsecured loans run 29.99% to 34.99% and Spring Financial’s run 9.99% to 34.95%, as of September 2026. Borrowell is not a lender; it shows offers from partners and your approval chances.

Updated on September 23, 2026 · Sources: TD, RBC, Fairstone, Spring Financial, Borrowell

Key takeaways

Banks don’t publish personal loan rates. You see your rate only after a credit review.
Alternative lenders publish ranges near the legal ceiling. Under the criminal interest rate in the Criminal Code, lenders may not charge more than 35% a year, fees included, as FCAC explains.
Fairstone, Spring Financial and RBC say you can repay early with no prepayment penalty.
A quote is not a loan. Soft-check quotes don’t affect your score; the full application usually does.

Personal loans in Canada at a glance

Lender	Best for	Key numbers
TD Personal Loan	Good credit, smaller amounts	From $2,000 · 1–7 years
RBC Personal Loan	Good credit, longer terms	From $5,000 · 1–10 years
Fairstone	Fair credit, branch support	29.99%–34.99% unsecured
Spring Financial	Rebuilding credit online	9.99%–34.95% · $500–$35,000
Borrowell	Comparing before applying	Free Equifax score · 50+ partners

Terms as of September 2026, from each lender’s official page. Banks quote rates individually.

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1. TD Personal Loan

A plain instalment loan from a big bank. It suits borrowers with steady income and a clean file who want a clear payoff date.

At a glance

Amount: from $2,000.
Term: 1 to 7 years.
Rate: fixed or variable, your choice. TD does not publish a rate; you get one after you apply.
Uses TD names: a large purchase or consolidating higher-interest debt into one payment.

Pros and cons

Low minimum amount for a bank loan.
You can check your TransUnion score in the TD app without affecting it.
No published rate, so you can’t compare before applying.
Bank approval standards are usually stricter.

How to apply

Apply online, by phone or in a branch. TD asks for government-issued ID and proof of income.

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2. RBC Personal Loan

RBC’s loan starts at a higher amount but allows longer terms. It fits a bigger, planned expense.

At a glance

Amount: loan limits begin at $5,000.
Term: generally 1 to 10 years.
Rate: fixed or variable. The variable rate moves with the RBC Prime Rate, which RBC lists at 4.450% as of September 2026.
Flexibility: weekly, bi-weekly, semi-monthly or monthly payments; no prepayment penalty, and you can switch between fixed and variable.

Pros and cons

Longest term of the banks here, so lower payments.
No prepayment penalty on fixed or variable loans.
$5,000 minimum is too much for small needs.
A longer term means more total interest.

How to apply

Apply in RBC Online Banking, by phone or at a branch. Have proof of employment, income, address and ID ready.

3. Fairstone

Fairstone says it focuses on Canadians in the fair to good credit range, often people who don’t meet their bank’s criteria.

At a glance

Unsecured loan: $500 to $25,000 over 6 to 60 months, at 29.99% to 34.99% a year.
Secured loan (homeowners): $5,000 to $60,000 over 36 to 120 months, with rates from 19.99%.
Cost example from Fairstone: $10,000 unsecured at 34.99% over 60 months is $354.84 a month.
Prepayment: no prepayment penalty on unsecured loans.

Pros and cons

Online quote uses a soft check, with no impact on your score.
Branch network and a Lending Specialist to talk to.
Unsecured rates sit just under the legal ceiling.
Secured loans put your home on the line and carry fees that vary by province.

How to apply

Get an online quote, then a Lending Specialist calls to review options. A hard check happens only if you move ahead.

4. Spring Financial

An online lender that says it looks at income and ability to repay, not only your score.

At a glance

Amount and term: $500 to $35,000, over 6 to 84 months.
Rate: 9.99% to 34.95% interest; Spring’s disclosed all-in cost of borrowing runs from 9.99% to 35.00%.
Cost example from Spring: $5,000 over 48 months at 9.99% costs $1,066.48 in interest.
Reporting: loans are reported to Equifax and TransUnion.

Pros and cons

Wide range of amounts and terms, fully online.
All loans are open: no prepayment penalty.
The 9.99% floor goes to the strongest files; many borrowers pay far more.
Spring also advertises short-term products that cost far more than a loan. Read the product name before you sign.

How to apply

The online form takes a few minutes and doesn’t affect your score. An associate then reviews documents. Spring says funds arrive within 1 to 2 business days of approval.

5. Borrowell (comparison tool)

Borrowell doesn’t lend its own money. It shows loans from partners and estimates your approval chances.

At a glance

Network: works with over 50 financial partners in Canada.
Cost to you: free sign-up with a free Equifax credit score, updated weekly.
How it’s paid: some partners pay Borrowell a referral fee.

Pros and cons

Checking your own score won’t hurt it.
One place to see several offers.
You only see partner lenders, not the whole market.
Each lender you then apply with may run a hard check.

How to use it

How to choose

Choose TD or RBC if your credit is good and you can wait for a bank decision. Ask your own bank first: an existing relationship often helps.
Choose Fairstone if a bank declined you and you want a branch and a person to talk to.
Choose Spring Financial if you want an online process and plan to rebuild credit with on-time payments.
Use Borrowell first if you don’t know where you stand and want to compare before any hard check.

If a bank loan is out of reach, a credit union loan outside the big banks may price better than an alternative lender. And if you mainly want to pay down card balances, a low-interest or balance transfer card can cost less than a 30% loan.

Before you apply: checklist

Check your Equifax and TransUnion reports for errors. Our guide to checking your credit score in Canada for free shows how.
Decide the exact amount you need. Lenders may offer more.
Compare the total cost of the loan, not just the payment.
Ask if optional loan insurance is included. You don’t have to take it.
Confirm there is no prepayment penalty.
Apply with one lender at a time.

Red flags: unregulated lenders and “no credit check” offers

Be wary of any lender that promises a loan with no credit check, asks for a fee before you get the money, or has no Canadian address. Legitimate lenders don’t charge upfront fees to process an application; Spring Financial says so on its own page. FCAC warns that online lenders located outside Canada can be hard to deal with if problems arise. Our guide to fraud and scams in Canada covers the warning signs.

How we compared these loans

Sources: each lender’s official page, checked on September 23, 2026 for every offer.
Criteria: amount, term, published interest range, prepayment rules and how the credit check works.
Order: not a ranking. Banks come first because they usually cost less for good credit, then alternative lenders, then the comparison tool. See the Quick answer for our starting point.
Scope: Canada only. Rates and rules differ by province.
Independence: no lender paid for placement.

Not financial advice. Rates and terms checked on September 23, 2026 with each provider’s official page; confirm before applying.

FAQ

What interest rate can I expect on a personal loan in Canada?

It depends on your credit and the lender. Banks quote individually. Fairstone’s unsecured loans run 29.99% to 34.99% and Spring Financial’s 9.99% to 34.95%, as of September 2026. No lender may charge more than 35% a year, fees included.

How do I use a personal loan calculator?

Enter the amount, term and rate to see the payment and total interest. TD and Fairstone both offer calculators. Run it at two or three rates, since your real rate comes after the credit check.

What do Reddit threads say about personal loans in Canada?

Common advice is to ask your bank or a credit union first and avoid rolling debt into a new high-rate loan. Treat forum tips as opinions and check every number on the lender’s page.

Can I get a personal loan in Canada with bad credit?

Often, yes, but at a higher cost. Lenders like Fairstone and Spring Financial serve lower scores. Approval is never automatic, and the price can be close to 35%.

Does checking my rate hurt my credit score?

Soft-check quotes don’t. Fairstone, Spring Financial and Borrowell say their first step won’t affect your score. A full application usually adds a hard inquiry.

For the full picture, see our hub Best Personal Loans in Canada 2026, our guide to loans for bad credit in Canada and our step-by-step debt consolidation guide.

Sources

Ieveera SEO is an independent publisher, not a bank or financial advisor; content is for information only and may include paid affiliate links that never affect our rankings — always confirm current rates and terms with the provider. Rates shown in CAD; verify with the issuer.