1-Year Personal Loans for April 2024

Get a 1-year personal loan at one of the lenders verified by our specialists. On 23.04.2024 there are 3 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 3
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Mr. Payday
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Rating by Finanso®

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Recommended FinScore™
up to $10.000
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Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™

Effective interest rate on the product

up to 46.96%

Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™

Effective interest rate on the product


Loan term for the financial product

60 months
Royal Bank of Canada
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Royal Bank of Canada
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Royal Bank of Canada
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Royal Bank of Canada
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Royal Bank of Canada
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Royal Bank of Canada
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.

What are 1-Year Personal Loans?

Personal loans in Canada offer individuals the flexibility to access a fixed amount of money and repay it over a specified period, typically ranging from 6 to 60 months. These loans, also known as long-term financing plans, installment loans, or consumer loans, require borrowers to make regular payments, known as installments, covering the principal amount, interest, and any applicable fees. With loan amounts varying between $100 and $50,000, individuals can utilize unsecured personal loan option for various purposes, including home renovations, purchasing furniture or vehicles, or consolidating other debts with higher interest rates.

Lenders, such as banks and credit unions, play a crucial role in providing unsecured personal loans in Canada. While these financial institutions may extend loan offers exceeding the borrower's needs, it is essential for individuals not to borrow more than they can afford. Federally regulated banks are obligated to offer products and services suitable for the borrower's circumstances, and they must inform if a particular product or service is deemed inappropriate.


  1. Short Repayment Period. The defining characteristic of such a personal loan is its brief term, requiring borrowers to repay the entire loan amount within a 12-month period.

  2. Higher Annual Percentage Rate. While these personal loan interest rates may be higher compared to longer-term loans, the overall interest paid may be lower due to the shorter payback period.

  3. Small to Medium Loan Amounts. The way short-term personal loans work is they typically involve smaller to medium-sized loan amounts, suitable for covering immediate expenses, emergencies, or short-term financial needs.

  4. Fixed Personal Loan Payments. Borrowers are required to make fixed monthly payments throughout the 1-year term, providing predictability and aiding in budgeting.

Pros and Cons


Quick Debt Repayment. The short-term nature allows borrowers to pay off their debt quickly, reducing the financial burden in a relatively short period.

Lower Total Interest Costs. While the interest rates may be higher, the overall interest paid is often lower due to the shorter duration, making it cost-effective in the long run.

Fast Funding. Borrowers can access funds swiftly, making short-term personal loans suitable for addressing urgent financial needs or emergencies.


Higher Monthly Payments. The shorter repayment period results in higher monthly payments compared to longer-term loans, potentially straining the borrower's budget.

Potential for Higher Interest Rates. Short-term loans may come with higher interest rates, especially for borrowers with lower credit scores, leading to increased personal loans cost and potential high-interest debt.

Limited Borrowing Amounts. Due to the short-term nature, the loan amounts available may be limited, restricting the ability to address larger financial needs.

How to Get a Loan with a 1-Year Term

Apply for a Loan

  1. Assess Your Financial Needs. Clearly define the purpose of the loan and determine the exact amount needed. Evaluate your financial situation to ensure you can comfortably repay the loan within a 1-year period.

  2. Check Your Credit Score. Obtain a copy of your credit report to understand your creditworthiness. A higher credit score may increase your chances of approval and result in better loan terms.

  3. Research Lenders. Explore various lenders offering personal loans with one-year term. Compare interest rates, fees, and terms to find a lender that suits your financial needs.

  4. Gather Necessary Documentation. Prepare documents such as proof of identity, proof of income, bank statements, and any other documentation required by the lender.

  5. Prequalify with Lenders. Many lenders offer prequalification processes that allow you to check your eligibility without affecting your credit score. Prequalification provides an estimate of the loan amount, interest rate, and terms you may qualify for.

  6. Submit Loan Application. Complete the loan application with the chosen lender. Provide accurate information and ensure all required documents are attached.

  7. Wait for Approval. Once your application is submitted, the lender will review your information and make a decision. Approval timelines vary, but some lenders may provide fast approvals for short-term loans.

  8. Review Loan Terms. Carefully review the terms and conditions of the loan offer. Pay attention to the interest rate, fees, repayment schedule, and any other relevant details.

  9. Accept the Loan Offer. If satisfied with the terms, formally accept the loan offer. Read and understand the loan agreement before signing.

  10. Receive Funds. After accepting the offer, the lender will disburse the funds. Funds may be deposited directly into your bank account or provided through another method specified by the lender.


  1. Proof of Identity. Borrowers typically need to provide a government-issued photo ID to verify their identity.

  2. Proof of Income. Lenders may require proof of regular income, such as pay stubs or bank statements, to assess the borrower's ability to repay the loan.

  3. Bank Account. Having an active bank account is usually a requirement for the disbursement of loan funds and setting up automatic payments.

  4. Permanent Address. Borrowers may need to provide proof of a permanent address for documentation purposes.

  5. Employment Stability. Some lenders may require evidence of stable employment, often with a minimum duration of employment.

  6. Debt-to-Income Ratio. Lenders may assess the borrower's debt-to-income ratio to ensure they can afford the loan payments.

  7. Minimum Age. Borrowers typically need to be at least 18 years old to qualify for a loan.

  8. Canadian Residency. Lenders may require borrowers to be Canadian residents or citizens.


  1. Loan Amount. Lenders specify the maximum and minimum loan amounts they are willing to provide based on the borrower's needs and financial capacity.

  2. Interest Rate. The interest rate, whether fixed or variable, is a crucial condition. It determines the cost of borrowing over the 1-year term.

  3. Term of the Loan. Lenders outline the specific duration of the loan, in this case, a 1-year term.

  4. Monthly Payments. The lender provides details about the amount of monthly payments, helping borrowers plan their budgets.

  5. Origination Fees. Some lenders charge origination fees, and these are specified in the loan terms.

  6. Early Repayment Terms. Conditions related to making early payments, including whether there are penalties for early repayment or if it's allowed without additional charges.

  7. Late Monthly Payment Fees. Lenders may specify the fees associated with late payments, emphasizing the importance of timely payments.

  8. Prepayment Penalties. Some lenders may impose penalties for repaying the loan before the end of the term.

Best Places to Get a Loan with a 1-Year Term

  1. Easyfinancial serves as a crucial bridge for individuals facing challenges in obtaining loans due to a lack of credit history. The company distinguishes itself with same-day funding, ensuring prompt financial relief for urgent needs. While acknowledging a relatively higher APR range, easyfinancial provides valuable perks such as autopay and loyalty discounts. The flexibility of loan terms, spanning from 9 to 120 months, along with the absence of prepayment penalties, empowers borrowers to manage their repayments at a pace that aligns with their financial preferences.

  2. Spring Financial stands out for offering fast online personal loans with an APR range between 9.99% and 46.96%. Catering to a diverse range of borrowers, the company provides loan amounts ranging from $500 to $35,000 and flexible repayment terms spanning from 6 to 60 months. With a focus on efficiency, Spring Financial enables a swift and convenient online application process, making it a practical choice for those in need of rapid financial solutions.

  3. SkyCap Financial positions itself as a provider of online personal loans, emphasizing excellent service in its offerings. With an APR range of 19.99% to 39.99%, the company accommodates loan amounts ranging from $500 to $10,000. The repayment terms extend from 9 to 60 months, providing borrowers with a reasonable timeframe for settling their loans. SkyCap Financial's commitment to service excellence adds an extra layer of appeal to its online personal loan solutions.

  4. Fairstone caters to non-prime borrowers by offering unsecured and secured personal loans with an APR range between 19.99% and 39.99%. The company provides a broad spectrum of loan amounts, starting from $500 and reaching up to $50,000. Fairstone stands out for its flexibility in loan terms, spanning from 6 to 120 months, allowing borrowers to choose a repayment plan that suits their financial circumstances. The inclusion of both unsecured and secured options enhances the company's versatility in meeting the needs of diverse borrowers.

Things to Pay Attention to

  1. Early Repayment Options. Check whether the lender allows early repayment without penalties. Understanding these options can provide flexibility if your financial situation improves.

  2. Credit Score Impact. Understand how taking out a loan may impact your credit score. Responsible repayment can positively affect your credit, while defaults may have negative consequences.

  3. Loan Purpose. Ensure the loan purpose aligns with your financial needs. Some lenders may have restrictions on how funds can be used.

  4. Additional Requirements. Be aware of any specific requirements, such as minimum income, employment stability, or residency status. Ensure you meet these criteria.

  5. Customer Reviews. Research customer reviews and feedback about the lender. This can provide insights into the lender's reputation and customer satisfaction.

  6. Financial Impact. Assess the overall financial impact of the loan. Consider whether the benefits of the loan outweigh the costs and if it helps you achieve your financial goals.

  7. Regulatory Compliance. Verify that the lender complies with relevant regulations. Federally regulated lenders, for example, must adhere to specific guidelines.

How to Repay a Personal Loan

  1. Understand Loan Terms. Familiarize yourself with the terms and conditions of the loan agreement. This includes the interest rate, repayment schedule, and any fees associated with the loan.

  2. Set Up Automatic Payments. If possible, set up automatic payments with your bank. This ensures that the monthly installment is deducted from your account on the due date, reducing the risk of late payments.

  3. Consider Making Extra Payments. If your financial situation allows, consider making extra payments towards the loan. This can help you pay off the loan faster and reduce the total interest paid.

  4. Keep Track of Payments. Maintain a record of all payments made. This can be useful for tracking your progress and resolving any discrepancies that may arise.

  5. Communicate with the Lender. If you encounter financial challenges that may affect your ability to make payments, communicate with your lender. Some lenders offer assistance programs or can provide guidance on managing temporary financial difficulties.

  6. Monitor Your Credit Score. Regularly check your credit score to ensure that loan payments are positively impacting your credit history. A positive credit history can open up better financial opportunities in the future.

  7. Verify Loan Statements. Review loan statements provided by the lender. Ensure that the information aligns with the terms agreed upon in the loan agreement.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. A low credit score indicates a history of financial challenges and may lead lenders to view the borrower as a higher risk. Some lenders have minimum credit score requirements, and falling below this threshold can result in rejection.

  2. Insufficient Income. Lenders evaluate the borrower's income to ensure they have the financial capacity to repay the loan. If the income is deemed insufficient in relation to the requested loan amount, the application may be rejected.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, where a significant portion of the borrower's income is already committed to existing debts, can be a red flag for lenders. It may suggest a limited ability to take on additional debt, leading to rejection.

  4. Unstable Employment History. Lenders prefer borrowers with stable employment history as it indicates a reliable source of income. Frequent job changes or periods of unemployment may raise concerns about the borrower's ability to repay the loan.

  5. Recent Late Payments or Defaults. Recent late payments on existing debts or a history of defaults can negatively impact creditworthiness. Lenders may view such behavior as an indication of financial instability, leading to rejection.

  6. Lack of Collateral (for Secured Loans). Secured personal loan options require collateral, such as a car or property, to secure the loan. If the borrower lacks suitable collateral, it may result in rejection for a secured loan.

  7. Bankruptcy or Foreclosure History. A history of bankruptcy or foreclosure on the credit report can significantly impact creditworthiness and result in rejection.

  8. Loan Purpose. If the intended purpose of the loan is not in line with the lender's policies or if the borrower fails to provide a clear purpose, the application may be rejected.


  1. A line of credit is a flexible financial arrangement that allows individuals or businesses to borrow funds up to a predetermined limit. Unlike traditional loans, a line of credit permits borrowers to withdraw and repay funds as needed, providing ongoing access to capital. Interest is typically charged only on the amount borrowed, and the credit limit is replenished as the borrower repays the borrowed amount. Lines of credit are versatile financial tools that offer liquidity for various purposes, such as managing cash flow, covering unexpected expenses, or seizing investment opportunities.

  2. Credit unions are financial institutions that operate as member-owned cooperatives, providing banking services to their members. Unlike traditional banks, credit unions are nonprofit entities, and members, who are also customers, have ownership stakes. Credit unions offer a range of financial products, including savings accounts, loans, and other banking services, often with favorable terms and lower fees. The cooperative structure of credit unions fosters a sense of community and a focus on meeting the financial needs of their members.

  3. Peer-to-peer (P2P) lending, also known as social lending or crowdlending, is a form of online lending that connects individual lenders with borrowers, bypassing traditional financial institutions. P2P platforms provide a marketplace where borrowers can request loans, and individual investors or lenders can fund those loans in exchange for potential returns. This decentralized lending model often results in more competitive interest rates for borrowers and attractive investment opportunities for lenders. P2P lending has gained popularity as a alternative to conventional lending channels.

  4. A Home Equity Line of Credit (HELOC) is a form of revolving credit that leverages the equity in a homeowner's property. With a HELOC, borrowers can access funds up to a certain percentage of their home's appraised value, minus the outstanding mortgage balance. Unlike a traditional loan, a HELOC allows borrowers to draw funds as needed during the draw period, typically 5 to 10 years. Borrowers can repay and redraw funds during this period. HELOCs often have variable interest rates tied to an underlying benchmark. This financial tool is commonly used for home renovations, education expenses, or debt consolidation.

Editorial Opinion

Personal loans with one-year term offer borrowers a short-term financial solution with a fixed repayment period, providing a defined timeline for debt repayment. These loans can be beneficial for individuals seeking to address immediate financial needs or unexpected expenses within a constrained timeframe. The fixed term allows for a clear and structured approach to budgeting, and the relatively short duration may appeal to those who prefer not to commit to long-term financial obligations. However, potential borrowers should carefully consider the associated interest rates and fees, as short-term loans often come with higher costs.


Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.


At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.


Can I pay a personal loan after 1 year?

Yes, most personal loans with a 1-year term allow borrowers to repay the loan earlier than the stipulated period. Early repayment is generally encouraged by lenders, and many do not impose penalties for paying off the loan before the agreed-upon term. However, borrowers should review the terms and conditions of the specific loan agreement, as some lenders may have policies regarding early repayment, including potential fees or restrictions.

What is the most common type of loan with a 1-year term?

The most common type of loan with a 1-year term is often an installment loan. Installment loans involve borrowing a fixed amount and repaying it over a predetermined period in regular installments, usually on a monthly basis. These loans can be secured or unsecured, with the borrower making equal payments until the loan is fully repaid. Installment loans are versatile and may be used for various purposes, including covering short-term expenses, consolidating debt, or addressing immediate financial needs.

What is the shortest term you can get for a personal loan?

The shortest term available for a personal loan can vary among lenders but is commonly around six months. Short-term personal loans are designed for individuals who require quick access to funds and prefer to repay the loan within a brief timeframe. While these loans offer rapid financing, borrowers should be mindful of higher monthly payments associated with shorter terms and ensure that the repayment schedule aligns with their financial capabilities. As always, it is essential to carefully review the terms and conditions of the loan agreement before proceeding.

Loan Terms