Types of Loans in Canada

Compare loan options across Canadian provinces

⚡

Payday Loans

Provincial regulators (FSRA, BCFSA, etc.)

Short-term loans up to $1,500, due on your next payday. Fee caps vary by province: Ontario $15/100, BC $15/100, Alberta $15/100.

APR

391–442%

Amount

$100 – $1,500

Term

14 days

✅ Pros

• Fast approval
• No credit check
• 2-day cooling-off

⚠️ Cons

• Extremely high APR
• Provincially regulated fees
• Rollover banned

📅

Installment Loans

Provincial + FCAC

Loans repaid in scheduled payments. Better rates than payday loans. Available from licensed lenders across all provinces.

APR

19–46%

Amount

$500 – $15,000

Term

3–36 months

✅ Pros

• Fixed payments
• Lower APR
• Credit building

⚠️ Cons

• Income verification
• Possible fees
• Credit check possible

💳

Personal Loans

FCAC + OSFI

Unsecured loans from banks and credit unions. Best rates for credit scores above 700. Major banks and online lenders compete.

APR

5–20%

Amount

$1,000 – $50,000

Term

12–60 months

✅ Pros

• Competitive rates
• Flexible terms
• No collateral

⚠️ Cons

• Good credit required
• Slower approval
• Bank fees

🏦

Lines of Credit

FCAC + OSFI

Flexible borrowing with a set limit. Pay interest only on amount withdrawn. Available secured (home equity) or unsecured.

APR

5–15%

Amount

$1,000 – $100,000

Term

Revolving

✅ Pros

• Pay interest only on used amount
• Reusable credit
• Lower rates (secured)

⚠️ Cons

• Variable interest
• Requires qualification
• Home equity risk (secured)

FAQ

What is the maximum cost for payday loans in Canada?

Payday loan fees are capped by province. Ontario: $15 per $100 borrowed. British Columbia: $15/$100. Alberta: $15/$100. Saskatchewan: $17/$100. Manitoba: $17/$100. Quebec effectively bans payday loans by capping criminal rate interest.

Is charging over 60% APR illegal in Canada?

Under Section 347 of the Criminal Code, charging over 60% effective annual rate is a criminal offense. However, regulated payday loan products are exempt from this limit under provincial regulations.

Can I get a loan with bad credit in Canada?

Yes — payday loans don't require a credit check. Some installment lenders also serve borrowers with poor credit (below 600), though at higher rates. Always compare total cost of borrowing.

Canadian Financial Authorities: FCAC·FSRA (ON)·AMF (QC)·BCFSA