2-Year Personal Loans for April 2024

Get a 2-year personal loan at one of the lenders verified by our specialists. On 12.04.2024 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
Updated
04.04.2024
17:07
Best Quick Loan Today 12.04.2024*
Mr. Payday
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Rating by Finanso®
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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™
0
300
650
1000
up to $10.000
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Mogo
Personal Loan
Rating by Finanso®
i

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™
0
300
650
1000
$500-$15,000
Rate
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Effective interest rate on the product

up to 46.96%
Term
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Loan term for the financial product

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

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™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
i

Loan term for the financial product

60 months
Reviews
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review
Royal Bank of Canada
4.6
Great service and quick processing of my loan request.
Review
Royal Bank of Canada
1.8
I found the process of getting a loan with RBC to be quite slow and confusing.
Review
Royal Bank of Canada
4.4
RBC provided me with a loan at a very low interest rate, helping me save on loan payments.
Review

What are 2-Year Personal Loans?

When considering personal loans in Canada, borrowers have the option to secure a fixed amount of money and repay it over a set period, specifically 24 months. These loans, also known as installment loans or consumer loans, provide individuals with financial flexibility. Borrowers can utilize the funds for various purposes such as home renovations, purchasing furniture or vehicles, or even to consolidate debt with higher interest rates.

Personal loans in Canada are offered by various lenders, including banks and credit unions. It's essential for borrowers to carefully evaluate their financial requirements before borrowing, ensuring they do not exceed their repayment capacity. Federally regulated banks are obligated to offer products and services that align with the borrower's circumstances. Borrowers are encouraged to discuss their financial situation with lenders, ask questions, and thoroughly understand the terms and conditions of the personal loan agreement, covering aspects such as interest rates, loan amounts, payment details, and applicable fees.

Features

  1. Loan Term. An unsecured personal loan with a 2-year term provides borrowers with a fixed repayment period, allowing them to plan and budget over a defined timeframe.

  2. Fixed Interest Rate. Typically, these unsecured loans come with a fixed interest rate, providing borrowers with predictability in monthly payments, as the interest rate remains constant throughout the 2-year duration.

  3. Purpose Flexibility. The funds from a personal loan can be used for various purposes, including home improvements, purchasing items like furniture or vehicles, or consolidating high interest debt.

Pros and Сons

Pros

Structured Repayment. The fixed 2-year term offers a clear and structured repayment plan, making it easier for borrowers to manage their finances and budget effectively.

Flexibility in Use. Borrowers have the flexibility to use the funds for various purposes, whether it's consolidating debts, making significant purchases, or covering unexpected expenses.

Quick Funding. Short-term personal loans are designed for quick approval and funding, providing borrowers with timely access to the funds they need, often within 24 hours.

Cons

Higher Interest Rates. Short-term loans may come with higher interest rates compared to longer-term loans, potentially increasing the overall cost of borrowing.

Limited Loan Amounts. While personal loans offer flexibility, the loan amounts may be limited compared to longer-term options, which might not be sufficient for certain high-cost needs.

Potential for Fees. Borrowers should be aware of any origination fees or other applicable fees, which can add to the overall cost of the loan.

How to Get a Personal Loan with a 2-Year Term

Apply for a Loan

  1. Assess Your Financial Situation. Determine the specific amount you need to borrow and the purpose of the loan. Evaluate your ability to repay the loan within a 2-year timeframe.

  2. Check Your Credit Score. Obtain a copy of your credit report to understand your creditworthiness. Address any discrepancies or issues on your credit report that may affect your loan application.

  3. Research Lenders. Explore various lenders, including banks, credit unions, and online lenders. Compare personal loan interest rates, terms, and fees offered by different lenders to find the most favorable terms for your needs.

  4. Gather Documentation. Prepare necessary documents, including proof of identity, proof of address, proof of income, and employment stability records. Ensure you have a valid bank account, as most personal loans require it for fund disbursement and repayment.

  5. Pre-qualify with Lenders. Some lenders offer pre-qualification processes that allow you to check your eligibility without affecting your credit score. Use pre-qualification tools to get an idea of the loan amount and interest rate you may qualify for.

  6. Submit Loan Application. Complete the loan application form provided by the chosen lender. Provide accurate information about your financial status and the purpose of the loan.

  7. Review Loan Offers. Once approved, carefully review the loan offers, including the loan amount, interest rate, and any associated fees. Ensure you understand the terms and conditions outlined in the loan agreement.

  8. Accept the Loan Offer. If satisfied with the terms, accept the loan offer by signing the agreement. Read and understand the terms and conditions thoroughly before proceeding.

  9. Funds Disbursement. After accepting the offer, the lender will disburse the funds. This may be done through a direct deposit into your bank account or other agreed-upon methods.

Requirements

  1. Credit Score. Lenders typically have minimum credit score requirements. While some lenders may consider borrowers with lower credit scores, a higher score often results in more favorable terms.

  2. Proof of Identity. Borrowers must provide a valid government-issued photo ID to verify their identity.

  3. Proof of Address. Lenders may require proof of residence, such as utility bills or a lease agreement.

  4. Proof of Income. Borrowers need to demonstrate a regular source of income, usually through pay stubs, bank statements, or tax returns.

  5. Employment Stability. Many lenders prefer borrowers with stable employment, often requiring proof of employment for a certain duration, such as three months.

  6. Active Bank Account. Borrowers must have an active bank account where the loan funds can be deposited and from which payments can be debited.

  7. Minimum Age. Borrowers are typically required to be at least 18 years old or 19 years old depending on province to qualify for a personal loan.

  8. Debt-to-Income Ratio. Lenders may assess the borrower's debt-to-income ratio to ensure that they can comfortably manage the loan payments.

Conditions

  1. Loan Amount. Lenders specify the maximum and minimum loan amounts they offer based on the borrower's qualifications and financial situation.

  2. Interest Rate. Lenders disclose the interest rate for the loan, which can be fixed or variable. Fixed rates remain constant, while variable rates may change based on market conditions.

  3. Loan Term. The loan term represents the duration over which the borrower must repay the loan. For such personal loan, the term is fixed at 24 months.

  4. Repayment Schedule. Lenders outline the repayment schedule, indicating the frequency and amount of payments, whether monthly, bi-weekly, or another agreed-upon schedule.

  5. Origination Fees. Some lenders charge origination fees, which are upfront fees for processing the loan. Borrowers should be aware of any additional fees associated with the loan.

  6. Prepayment Penalties. Lenders may specify whether there are penalties for repaying the loan before the end of the term. Some loans allow early repayment without penalties, while others may charge fees.

  7. Late Monthly Payment Fees. Lenders outline any fees or penalties associated with late payments. Borrowers should be aware of the consequences of missing payments.

  8. Additional Services. Some lenders may offer optional services, such as debt consolidation or insurance. Borrowers should be informed of these services and their costs.

Best Places to Get a Personal Loan with a 2-Year Term

  1. Spring Financial offers installment loans with an interest rate ranging from 9.99% to 46.96%. Borrowers can access funds in the range of $500 to $35,000, with flexible repayment terms spanning from 6 to 60 months. The company prides itself on a swift application process, providing same-day funding for approved loans. Spring Financial aims to streamline the borrowing experience for individuals seeking efficient and accessible financial solutions.

  2. SkyCap Financial specializes in installment loans, featuring interest rates between 19.99% and 39.99%. Borrowers can secure loans ranging from $500 to $10,000, with repayment terms spanning from 9 to 60 months. The company distinguishes itself with a reputation for excellent service and swift approvals. SkyCap Financial is positioned as a reliable option for individuals in need of timely financial assistance with a commitment to providing a seamless borrowing experience.

  3. Easyfinancial provides installment loans with an interest rate varying from 9.99% to 46.96%. Borrowers can access a broad spectrum of loan amounts, ranging from $500 to $100,000, and choose repayment terms extending from 9 to 120 months. Noteworthy for catering to individuals with low credit scores, easyfinancial offers both secured and unsecured personal loans. The company aims to empower borrowers by providing diverse loan options tailored to their unique financial situations.

  4. FlexMoney specializes in quick installment loans, featuring interest rates ranging from 18.90% to 46.93%. Borrowers can obtain loans in the range of $500 to $15,000, with flexible repayment terms spanning from 6 to 60 months. FlexMoney stands out for its emphasis on providing speedy solutions for individuals in need of immediate financial assistance. The company strives to simplify the borrowing process, making it accessible and efficient for a diverse range of borrowers.

Things to Pay Attention to

  1. Fees and Charges. Be aware of any origination fees, late payment fees, or prepayment penalties associated with the loan. These fees can significantly impact the overall cost of borrowing.

  2. Repayment Schedule. Review the repayment schedule, including the frequency and amount of payments. Ensure that the schedule is manageable within your budget.

  3. Loan Term. Confirm that the loan term is indeed 2 years (24 months) and understand the implications of this fixed duration on your financial commitments.

  4. Credit Score Impact. Understand that applying for a personal loan involves a credit check, which may temporarily affect your credit score. Be mindful of this impact when considering multiple loan applications.

  5. Early Repayment Options. Check if the lender allows early repayment without penalties. Some borrowers may want the flexibility to pay off the loan before the end of the term.

  6. Customer Reviews and Reputation. Research the lender's reputation and read customer reviews. Positive reviews indicate a trustworthy lender, while negative reviews may highlight potential issues.

  7. Customer Support. Evaluate the customer support services provided by the lender. Responsive and helpful customer support can be crucial in addressing concerns or issues.

  8. Regulatory Compliance. Ensure that the lender is compliant with relevant regulations. Federally regulated lenders, such as banks, must adhere to specific guidelines.

How to Repay a Personal Loan

  1. Understand the Loan Terms. Familiarize yourself with the terms and conditions outlined in the loan agreement. Pay attention to the interest rate, loan amount, repayment schedule, and any associated fees.

  2. Set Up Automatic Payments. Many lenders offer the option to set up automatic payments from your bank account. This ensures that your monthly payments are made on time, reducing the risk of late fees.

  3. Review Repayment Schedule. Confirm the repayment schedule, including the frequency (monthly, bi-weekly, etc.) and the amount of each payment. Ensure that it aligns with your budget.

  4. Prepay or Make Extra Payments. If your financial situation allows, consider making extra payments or prepaying the loan. This can help you save on interest and pay off the loan faster.

  5. Check for Prepayment Penalties. Review the loan agreement for any prepayment penalties. Some lenders charge fees for repaying the loan before the end of the term.

  6. Monitor Your Account. Regularly monitor your bank account to ensure that automatic payments are processed correctly. Address any issues promptly.

  7. Communicate with the Lender. If you anticipate difficulty in making a payment, contact your lender in advance. They may offer solutions such as temporary relief or restructuring the repayment plan.

  8. Take Advantage of Online Tools. Many lenders provide online tools and portals for borrowers to manage their loans. Use these tools to check your balance, track payments, and access important documents.

  9. Keep a Record of Payments. Maintain a record of all loan payments, including confirmation receipts or statements. This documentation can be useful for reference and may be needed for tax purposes.

  10. Explore Repayment Assistance Programs. In case of financial hardship, inquire with your lender about any available repayment assistance programs. Some lenders offer temporary relief options for qualified borrowers.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. One of the primary factors lenders consider is the borrower's credit score. A low credit score indicates a higher risk for the lender, making it more challenging to secure approval.

  2. Insufficient Income. Lenders assess the borrower's income to ensure they have the financial capacity to repay the loan. If your income is insufficient to cover the loan amount and meet other financial obligations, it may lead to rejection.

  3. Unstable Employment History. Frequent job changes or a lack of stable employment history can be red flags for lenders. A consistent employment history demonstrates financial stability and a higher likelihood of repaying the loan.

  4. High Debt-to-Income Ratio. Lenders evaluate the borrower's debt-to-income ratio, comparing the total debt obligations to the income. A high ratio may suggest a borrower is overextended and could struggle to meet additional debt obligations.

  5. Incomplete Documentation. Providing incomplete or inaccurate documentation during the application process can result in rejection. Ensure you submit all required documents, including proof of income, identification, and other relevant information.

  6. Recent Bankruptcy or Default. A recent history of bankruptcy, foreclosure, or loan default signals financial distress and may lead to rejection. Lenders prefer borrowers with a stable financial track record.

  7. Multiple Loan Applications. Applying for multiple loans within a short period can negatively impact your credit score and raise concerns for lenders. It may suggest financial instability or desperation for credit.

  8. Collateral Issues (For Secured Loans). If applying for a secured loan and there are issues with the collateral, such as insufficient equity or concerns about the collateral's value, it may lead to rejection.

  9. Not Meeting Specific Lender Criteria. Different lenders have varying criteria for loan approval. If you do not meet specific criteria set by a particular lender, your application may be rejected.

Alternatives

  1. Credit cards are financial tools that allow users to make purchases on credit. When individuals use a credit card, they borrow money from the issuing financial institution up to a predetermined credit limit. Users are required to repay the borrowed amount within a specified period, usually monthly. Credit cards offer convenience for everyday transactions, and they often come with additional features such as rewards programs, cashback incentives, and interest-free grace periods. However, users should manage their credit responsibly to avoid accumulating high-interest credit card debt.

  2. A Home Equity Line of Credit (HELOC) is a form of revolving credit that leverages the equity in a homeowner's property. It allows individuals to borrow against the value of their home, with the property serving as collateral. Unlike a traditional loan, a HELOC provides a flexible line of credit that can be drawn upon as needed. Borrowers can access funds up to a predetermined credit limit and repay the borrowed amount over time. The interest rates on HELOCs are often variable and tied to a benchmark rate. This financial tool is commonly used for home renovations, debt consolidation, or other major expenses.

  3. Peer-to-peer (P2P) lending, also known as social lending, is a financial model that connects borrowers directly with individual lenders through online platforms. These platforms facilitate the borrowing and lending process, allowing individuals to either borrow money from a network of individual investors or lend money to other individuals. P2P lending eliminates the need for traditional financial institutions, offering potentially lower interest rates for borrowers and attractive returns for lenders.

  4. Credit union loans are financial products offered by credit unions, which are member-owned financial cooperatives. These loans include various types such as personal loans, auto loans, mortgages, and more. Credit unions operate as not-for-profit entities, and their primary goal is to serve their members rather than generate profits for shareholders. Members of a credit union, who are also its owners, may have access to more favorable loan terms and interest rates compared to traditional banks.

Editorial Opinion

Loans with two-year term can be a practical financial option for individuals seeking relatively short-term borrowing solutions. The fixed 24-month term provides a clear timeline for repayment, allowing borrowers to plan and budget more effectively. The manageable duration of these loans may be suitable for those with specific financial needs or projects requiring prompt funding without committing to a longer-term obligation. However, the suitability of a loan with two-year term depends on individual circumstances, and borrowers should carefully assess their ability to meet monthly payments within this timeframe.

Important

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.

Methodology

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.

FAQ

What is the shortest term on a personal loan?

The shortest term on a personal loan can vary among lenders, but generally, terms as short as six months are available. Short-term personal loans are designed for individuals who need to borrow a smaller amount of money and can commit to repaying it quickly. These loans often come with higher monthly payments but may be suitable for those looking to minimize the overall interest paid and settle their debt in a brief period.

What is the best personal loan with a two-year term?

Determining the best personal loan with a two-year term depends on individual preferences, financial needs, and creditworthiness. Various lenders offer competitive terms, interest rates, and loan amounts. Borrowers should compare options, considering factors such as APR, fees, and customer reviews. Established financial institutions, online lenders, and credit unions may all have appealing personal loan options, but the "best" choice will depend on the borrower's specific circumstances and requirements.

Do personal loans affect your credit score negatively?

Personal loans can affect your credit score, both positively and negatively. Initially, applying for a personal loan results in a hard inquiry on your credit report, leading to a minor and temporary decrease in your credit score.

However, if you manage the loan responsibly by making on-time payments, it can contribute positively to your credit history and improve your credit score over time.

Conversely, missing payments or defaulting on the loan can have a detrimental impact, leading to a lower credit score and potential long-term consequences.

Loan Terms