Loans in Canada

Your Source for Online Loans in Canada

Maybe you’re low on cash, have mounting bills, and don’t know where to turn. Perhaps, you’re in no financial peril but need some money for an investment opportunity. The good news is that regardless of your needs, Canada has to offer an array of online loans. Whether you’re talking short term loans, installment loans, a payday loan, or loans for bad credit (but with forgiving interest rates), there are digital options. You don’t have to stand around, waiting in line at the bank. Across Canada – from British Columbia to Nova Scotia – you can procure your much-needed funds with the press of a few mouse buttons.

Get Approved for a Loan Up to $50,000 in Under 60 Seconds

Quickly and easily search LoanConnect’s lender network to find a competitive loan offer that best suits your needs.

Apply Now
We earn a commission if you make a purchase, at no additional cost to you.

While the options might be plentiful, you must know what kinds of loans to look for, so you can find the most favourable terms.

What Type of Loan Do You Need?

Fortunately, you can procure any loan or financial assistance online. You’ll notice each loan described below has unique characteristics and might speak to your current circumstances:

Personal Loans

A personal loan can be a catch-all for any immediate expense that has you nearing your financial rope’s end.

Banks, credit unions, and online lenders all dole out these kinds of loans that you’ll usually pay back in monthly installments. Typically, the terms last between 2 and 7 years, with rates varying between 6% and 36% APR.

Lenders will subject you to a credit check. But in many cases, they’ll approve an online loan application even from candidates with low scores. In those instances, the APR is usually expensive. Furthermore, the funds can regularly be made available in 24 hours.

Most often, personal loans don’t require collateral—meaning, they are unsecured.

Student Loans

Below, are the two kinds of student loans in Canada:

Canada Student Loan Program (CSLP): 

  • These loans are for both full-time and part-time students.
  • An approval makes you eligible to receive up to 60% of your tuition amount in federal aid.
  • The maximum available amount is subject to change.
  • You’ll need to pay back the loan with interest back to the government once you graduate.

Canada Student Grants Program (CSGP):

  • You must demonstrate financial need in your application.
  • If approved, you’re potentially eligible for grant money that will not require repayment back to the source.

Small Business Loans

Small business loans can be secured or unsecured, depending on the lender. The distinguishing factor is that only businesses and their owners can be approved.

It’s another kind of installment loan. The borrower is responsible for paying back the amount – plus interest – over a predetermined period.

Business owners should use these loans for issues such as increasing their working capital, paying wages, renovations, and debt consolidation. The amount you’re allowed to borrow will depend on your credit score and your lender’s limits.

Lastly, there are different kinds of small business loans, such as lines of credit, commercial mortgages, and equipment financing, to name a few.

Bad Credit Loans

These loans are for people with a low credit score and can’t get approved by traditional institutions.

Often, applicants with low ratings from credit unions (e.g., Equifax) don’t have options when needing a cash advance. Bad credit lenders tend to look at the entire credit history of an applicant versus only their score, giving down-on-their-luck applicants a viable alternative.

Bad credit loans typically appeal to people that require significant assistance to right their financial situation:

If you can successfully pay off this installment loan (usually with APRs between 2.99% and 46.99%), it shows a favourable credit history. Thus, a bad credit loan can improve your credit rating in the long run—provided you remain disciplined and responsible.

Loans for Debt Consolidation

In layman’s terms, debt consolidation takes all your many smaller loans and turns them into one lump sum installment payment.

Smaller loans come with higher interest. Therefore, debt consolidation can save tons of money in the long run and short term—since you’ll make lower monthly payments.

Grouping your debts also makes it far more straightforward and less overwhelming to track your payments, drastically streamlining the process.

Your Guide to Online Loans: FAQ

Let’s answer some frequently asked questions about online loans:

How to Get a Loan?

Getting a loan is a matter of completing the given application process offered by a traditional financial institution or online lenders.

Double-check that your credit score meets the requirements of the institution in question. After all, filling out loan applications can reflect poorly in your credit score.

How to Get a Loan with Bad Credit?

Getting a loan with bad credit can be done through payday lenders or credit unions who specialize in such transactions.

Payday loans tend to have unfavourable terms—so, you’d be best suited to look for more reputable organizations.

Another option is finding a co-signer – someone with a high credit score – which will likely lead to a more favourable APR.

How to Apply for Student Loans?

If you want to apply for a student loan through the various federal aid programs, you need to do so through the government’s website. Merely fill out the form that coordinates with your province or territory.

After filling out the requisite form, you’ll have the available amount calculated for you.

Also, it’s worth mentioning that even if you aren’t eligible for a student loan, it’s still possible to procure personal loans to help with tuition and other pesky fees.

How to Calculate Interest Rate on a Loan?

This process is quite straightforward (especially if you have a loan payment calculator—though any calculator will do).

All you must do is divide your interest rate by the number of payments made in a year.

Here’s an example:

Imagine you’re paying in monthly installments. In this case, you’ll be dividing by 12. Then multiply that number by your loan’s overall balance—which is your whole principal amount upon your first payment.

What is a Bridge Loan?

Bridge loans typically appeal to people or businesses in need of funding for the short-term—usually between two weeks and three years. It’s pending the arrangement of long-term financing, meant to be transitional by nature.

Wisdom from our Financial Sages

Check out the latest resources from our investing spellbook to become a financial wizard