Best Banks to apply for Personal Loan in Canada

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Do you need a personal loan in Canada? We present best banks in Canada that offer personal loans..but before that, how do you know the best bank?

  1. The best bank is one with low interest rates
  2. Flexible repayment period
  3. Few application requirements

Based on the factors listed above, here are the best banks to go for a personal loan in Canada

HSBC

HSBC ranked first, is the number one choice for Canadians who need urgent loan for personal spending.

If you are planning to purchase a new car, renovate your home or pay down debt. Whatever you have in mind, you can make it happen quickly and easily with an HSBC Personal Loan.

Key features and benefits

Choose an HSBC Personal Loan to:

  • Make a major purchase such as a car or a boat
  • Renovate your home
  • Save money by consolidating or paying down higher-rate debts
  • Take a well-deserved vacation
  • Pay for your children’s school or further your own education
  • Get a competitive interest rate1

Repayment details:

  • Fixed or variable interest rate options
  • to 5-year terms
  • Weekly, bi-weekly, or monthly payment options
  • Determine your monthly loan payments using the Loan Payments Calculator.
  • You can also receive preferential Personal Loan rates if you are an HSBC Premier2 or HSBC Advance3 customer.

Additional details to know before you apply

  • You are at least the age of majority, 18 or 19 years of age depending on your province of residence
  • You are a Canadian resident
  • You will be asked to provide personal details and gross annual income (pre-tax)
  • You will be asked to consent to us obtaining your credit report

TD PERSONAL LOAN

TD is  a well-known credit provider that gives loans to persons who want to do projects.The loans attract fixed monthly interest rates.

To apply for a personal loan at TD you need the following:

  • Social Insurance Number (optional)
  • Current address and previous address (if current address is less than 3 years)
  • Your income (sources and amount)
  • Your monthly mortgage or rent amount
  • Your monthly payments (loans, credit cards, lines of credit)
  • Household costs (utility, property tax, insurance, etc)

The loan is ideal for individuals who are not willing to change the fixed interest rates.

SCOTIA BANK

Scotia Bank gives you up to $150,000 personal loan. The loan attracts low interest rates and has flexible payment period.

As an applicant, you can choose either fixed interest rate or variable interest rate depending on how the rates suit you. After you have applied for the loan, you receive the loan that will require repayment period of up to 5 years.

You can customize payment plan:

  • Pick a weekly, bi-weekly or monthly payment plan.
  • Change how much you pay, how often, or even what days you make a payment.
  • Make extra payments or pay off your loan at any time without a penalty.5
  • Feel confident knowing exactly when your loan will be paid off.

The good thing about Scotia Bank loan is that it’s not a must to have collateral to qualify for the loan.

Features of the loan include:

  • Subject to credit approval, loan term, principal amount and security provided.
  • Amortization is based on the security provided; to a maximum of 25 years.
  • Example: Based on $5000.00 loan at 6.00% amortized over 60 months; $94.36 monthly payment; $661.60 total interest cost over 60 months
  • Maximum APR 19.50%
  • Excluding real estate secured loans.
  • Interest will continue to accrue during any payment deferral period.

ROYAL BANK

Royal Bank is another trusted bank in Canada for offering personal loans. The loan has the following features:

  • Flexible terms. Terms generally range from 1 to 5 years.
  • Fixed and variable rates. You could switch from a fixed rate to a variable rate at any time if prime rate goes down.
  • Easy payment options. Make your payment monthly, semi-monthly, bi-weekly or weekly.
  • No early payment penalties. You can pay off your loan in full without penalty.
  • Skip-a-Payment option. Skip up to the equivalent of 1 monthly payment each year, without penalty.1

While choosing interest rates, it’s advisable to select fixed rates because:

With a fixed rate loan:

  • You know for the duration of your loan the exact payment amount you will be making each month.
  • Your interest rate is locked in for the duration of your term—up to 5 years.
  • You could choose an amortization and payment schedule that meets your budget.
  • You could switch to a variable rate loan or pre-pay your loan at any time without penalty.

CIBC PERSONAL LOAN

This personal loan is for you if you want:

  • To borrow for a specific purchase, and to pay the loan off within a set period of time
  • Specific monthly payment amounts, making it easier to budget
  • To take a vacation, buy furniture, make an investment, or even consolidate your higher interest debt
  • A loan that’s secured against the equity in your home or other assets
  • To pay off all or part of the loan at any time without penalty
  • The ability to lower your interest costs by making more frequent payments
  • To apply online for a faster approval

Other loan details:

  • Borrow a minimum of $3,000
  • Make scheduled payments from your CIBC account at no charge with an Electronic Fund Transfer (EFT)

Benefits of a secured vs. unsecured personal loan:

Secured loan

  • Get a lower interest rate that’s secured by your home or other assets
  • Get a higher credit limit for major purchases like renovations or a vacation property

Unsecured loan

  • Get access to credit faster with an expedited approval process
  • Borrow up to $200,000

BMO BANK OF MONTREAL

BMA Bank of Montreal offers you the option of choosing between secured and unsecured loan. The loans attract flexible monthly interest rates.

The following is what you can do with the loan

  • Home improvement
  • Family needs or unexpected life events
  • Healthcare and emergencies
  • Car or large purchases
  • Wedding or travel
  • Debt consolidation
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