A personal loan is an unsecured installment loan with fixed payments over a set term. Canadian personal loan rates typically range from 7-15% at major banks for prime borrowers, climbing to 20-35% for subprime or online lenders.
APR vs interest rate
The APR (Annual Percentage Rate) is legally required to include most fees, giving you the true cost of borrowing. Always compare APR rather than headline interest rate, a 9% rate with a $500 origination fee can cost more than an 11% rate with no fees, depending on term.
Secured vs unsecured
- Unsecured: no collateral. Higher rates. Most common for debt consolidation.
- Secured: backed by GIC, vehicle, or other asset. Lower rates, more forgiving approval.