3-Year Personal Loans for April 2024

Get a 3-year personal loan at one of the lenders verified by our specialists. On 24.04.2024 there are 3 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
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Mr. Payday
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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 3-Year Personal Loans?

In Canada, 3-year personal loans provide borrowers with a structured financial solution for their immediate needs. Most lenders adhere to fixed interest rates, ensuring predictability in monthly payments. Whether it's addressing unexpected expenses, consolidating high-interest debt, or making a significant purchase, a personal loan offers a fixed-term commitment with a clear repayment plan. These loans typically span 36 months, during which borrowers make monthly, bi-monthly, bi-weekly, or weekly payments, ensuring predictability and ease of budgeting.

When considering a personal loan with a three-year term in Canada, prospective borrowers should familiarize themselves with the eligibility criteria set by lenders. Citizenship or permanent residency in Canada, meeting the age of majority in the respective province or territory, and fulfilling minimum income, debt, and credit score requirements are common prerequisites.


  1. Structured Repayment Period. Such personal loan provides a well-defined repayment timeline, consisting of 36 equal installments. This structure allows borrowers to plan and budget for their monthly payment obligations effectively.

  2. Fixed Interest Rates. Many lenders offer fixed interest rates on personal loans. This means that the interest rate remains constant throughout the entire repayment period, offering predictability and ease of calculation for borrowers.

  3. Flexibility in Payment Frequency. Borrowers can choose from various payment frequencies, including monthly, bi-monthly, bi-weekly, or weekly payments. This flexibility accommodates different financial preferences and helps align payments with income cycles.

Pros and Cons


Wide Availability. Almost every type of lender, including banks, credit unions, and alternative lenders, offers unsecured personal loans, providing borrowers with diverse options.

Shorter Payment Terms. The relatively short 3-year term typically results in paying less interest overall compared to longer-term loans, helping borrowers save money.

Predictable Monthly Payments. Fixed interest rates and a structured repayment plan lead to consistent monthly payments, facilitating budgeting and financial planning.


Income and Account Requirements. Approval may be challenging for individuals without a steady income or a chequing account, potentially limiting accessibility for some borrowers.

Higher Monthly Payments. Larger loans with shorter terms may result in higher monthly payments, which could be a challenge for those with limited financial flexibility.

Prepayment Fees. Some lenders impose prepayment fees for making early or lump-sum payments on a personal loan, limiting the flexibility of borrowers who wish to pay off the loan ahead of schedule.

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

Apply for a Loan

  1. Assess Your Financial Situation. Review your current financial standing, including income, expenses, and existing debts. Calculate the amount you need to borrow and determine your ability to repay over three years.

  2. Check Your Credit Score. Obtain a copy of your credit report to assess your credit score. Address any discrepancies and work on improving your credit if necessary.

  3. Research Lenders and Loan Options. Explore various lenders, including banks and online lenders. Compare personal loan interest rates, fees, and terms offered by different institutions to find the most favorable option.

  4. Understand Eligibility Criteria. Review the eligibility criteria set by potential lenders, which may include citizenship, age requirements, minimum income thresholds, and credit score benchmarks.

  5. Gather Required Documents. Collect necessary documentation, such as government-issued ID, social insurance number (SIN), proof of employment and income, purpose of the loan, and bank statements.

  6. Choose Between Unsecured and Secured Loans. Decide whether a secured or unsecured personal loan is more suitable for your financial situation. Secured personal loan options may require collateral but offer potentially lower interest rates, while unsecured loans do not involve risking assets.

  7. Submit Your Loan Application. Complete the loan application with accurate and truthful information. Provide all required documents and details to facilitate the approval process.

  8. Wait for Loan Approval. Be patient during the loan approval process, which may involve a credit check and assessment of your financial details. Lenders will evaluate your creditworthiness, income stability, and ability to repay the loan.

  9. Review Loan Terms. Once approved, carefully review the terms of the loan agreement. Pay attention to interest rates, fees, and any other relevant details.

  10. Understand Repayment Terms. Familiarize yourself with the repayment terms, including the frequency of payments (monthly, bi-monthly, bi-weekly, or weekly). Confirm whether there are prepayment penalties for paying off the loan early.

  11. Sign the Loan Agreement. If satisfied with the terms, sign the loan agreement. Ensure you understand all clauses and obligations outlined in the agreement.

  12. Receive Loan Funds. Once the agreement is signed, the loan funds will be disbursed to your bank account.


  1. Citizenship or Permanent Residency. Borrowers typically need to be either Canadian citizens or permanent residents to qualify for a personal loan.

  2. Age of Majority. Applicants must be at least the age of majority in their province or territory, which is 18 or 19 years old depending on the location.

  3. Minimum Income Criteria. Lenders often set minimum income requirements to ensure borrowers have the financial capacity to repay the loan over the three-year term.

  4. Documentation. Applicants are required to provide essential documents, including government-issued ID, social insurance number (SIN), proof of employment, purpose of the loan, and bank statements.


  1. Interest Rates. Lenders specify the interest rates associated with the personal loan. Rates can be fixed or variable, with fixed rates providing predictability throughout the repayment term.

  2. Loan Amounts. The amount a borrower can qualify for depends on individual eligibility criteria, such as income, credit score, and debt-to-income ratio.

  3. Repayment Terms. Lenders outline the repayment terms, including the frequency of payments (monthly, bi-monthly, bi-weekly, or weekly) and the total number of payments over the three years.

  4. Origination Fees. Some lenders charge origination fees, which are one-time fees deducted from the loan amount to cover administrative costs.

  5. Prepayment Penalties. Lenders may impose prepayment penalties if borrowers choose to pay off the loan before the end of the three-year term. Borrowers should be aware of any associated fees.

  6. Late Payment Fees. If borrowers fail to make timely payments, lenders may charge late payment fees. It's crucial to adhere to the agreed-upon repayment schedule to avoid additional costs.

  7. Credit Check. Lenders may conduct a credit check as part of the approval process. While some alternative lenders offer no-credit-check options, traditional institutions often consider credit history in their decision-making.

  8. Conditions for No-Refusal Loans. Some lenders may offer no-refusal loans, approving borrowers without inspecting credit beforehand. However, these loans may come with higher interest rates and fees.

  9. Flexible Loan Purpose. Borrowers can typically use the loan for various purposes, including debt consolidation, unexpected expenses, or significant purchases.

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

  1. Spring Financial offers installment loans with competitive interest rates 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 application process is swift, and successful applicants can benefit from same-day funding. Spring Financial's commitment to efficiency and accessibility makes it a good option for those seeking financial solutions with a broad range of loan amounts and durations.

  2. SkyCap Financial provides installment loans with interest rates between 19.99% and 39.99%. Borrowers can secure funds ranging from $500 to $10,000, and the repayment period spans from 9 to 60 months. SkyCap Financial stands out for its excellent service and fast approvals, making it a reliable choice for individuals in need of efficient financial solutions. The company's focus on customer satisfaction and quick processing sets it apart in the installment loan market.

  3. Magical Credit specializes in installment loans with interest rates varying from 19.99% to 46.80%. Borrowers can access funds ranging from $1,500 to $20,000, with flexible repayment terms extending from 12 to 60 months. What distinguishes Magical Credit is its rapid approval process, providing decisions within 24 hours and funding within the same timeframe. Additionally, Magical Credit is known for its inclusive approach, accepting various types of income and providing individuals with bad credit personal loans.

  4. Fairstone offers installment loans with interest rates falling between 19.99% and 39.99%. Borrowers have the flexibility to access funds in the range of $500 to $50,000, and the repayment terms extend from 6 to 120 months. Fairstone stands out by providing both unsecured and secured personal loans, catering to non-prime borrowers. This diversity in loan options allows individuals with varying credit profiles to find suitable financial solutions tailored to their needs.

Things to Pay Attention to

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

  2. Repayment Terms. Review the repayment terms, including the frequency of payments and the total number of payments over the three years. Ensure it aligns with your budget and financial capabilities.

  3. Eligibility Criteria. Check and meet the eligibility criteria set by the lender. This includes citizenship or permanent residency, age requirements, minimum income thresholds, and credit score benchmarks.

  4. Credit Score Impact. Understand how applying for a personal loan may impact your credit score. Multiple applications within a short period can have negative effects.

  5. Prepayment Options. If you plan to pay off the loan early, check for prepayment options and any associated penalties. Some lenders charge fees for early repayment.

  6. Late Payment Policies. Familiarize yourself with the lender's policies on late payments. Late fees can add up, and consistently missing payments may negatively impact your credit score.

  7. Loan Purpose. Ensure that the loan can be used for your intended purpose, whether it's debt consolidation, covering unexpected expenses, or making a significant purchase.

  8. Lender Reputation. Research the reputation of the lender. Look for customer reviews, ratings, and testimonials to gauge the lender's reliability and customer service.

  9. Financial Impact. Assess the overall financial impact of the loan, considering the total interest paid and any additional fees. Ensure that the loan is affordable within your current financial situation.

  10. Customer Support. Evaluate the level of customer support offered by the lender. Responsive and helpful customer service can be crucial in addressing concerns or issues during the loan term.

How to Repay a Personal Loan

  1. Understand Repayment Terms. Familiarize yourself with the terms outlined in the loan agreement. This includes the frequency of payments (monthly, bi-monthly, bi-weekly, or weekly) and the total number of payments over the three years.

  2. Set Up Automatic Payments. Opt for automatic payments by linking your loan account to your bank account. This reduces the risk of missing payments and incurring late fees.

  3. Prepayment Considerations. If you have the financial capacity, consider making extra payments or paying off the loan early. However, check for prepayment penalties in the loan agreement.

  4. Monitor Your Account. Regularly check your bank account to ensure that loan payments are processed correctly. Report any discrepancies or issues to your lender promptly.

  5. Communicate with Lender. If you face financial challenges or anticipate difficulties in making a payment, communicate with your lender in advance. They may offer temporary solutions or modifications to help you through a difficult period.

  6. Financial Counseling. Seek financial counseling if needed. Professionals can guide budgeting, debt management, and strategies to handle financial challenges.

  7. Loan Payoff Confirmation. Once the loan is fully repaid, obtain confirmation from the lender, ensuring that all obligations have been met.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. A low credit score indicates a higher risk for lenders, making it challenging to secure a personal loan. Lenders may prefer applicants with a demonstrated history of responsible credit use.

  2. Insufficient Income. If the borrower's income is deemed insufficient to cover the loan payments, lenders may reject the application. Adequate income is crucial to demonstrate the ability to repay the loan.

  3. High Debt-to-Income Ratio. A high ratio of existing debt to income can signal financial strain and may lead to rejection. Lenders prefer borrowers with a manageable debt load.

  4. Incomplete Documentation. Failing to provide all required documentation during the loan application process can result in rejection. Complete and accurate information is essential for a thorough assessment.

  5. Recent Bankruptcy. Individuals who have recently filed for bankruptcy may face challenges in obtaining a personal loan. Lenders may perceive recent financial difficulties as a higher risk.

  6. Numerous Loan Applications. Making multiple loan applications within a short period can signal financial instability and may negatively impact the credit score. Lenders may view this as an increased risk.


  1. A Home Equity Line of Credit (HELOC) is a financial product that allows homeowners to leverage the equity they have built in their property. It operates as a revolving credit line where borrowers can access funds up to a predetermined limit, usually tied to the home's appraised value. HELOCs provide flexibility, allowing homeowners to borrow, repay, and re-borrow as needed during the draw period. Interest rates are often variable, and the borrower's home serves as collateral, making it a secured form of credit.

  2. Credit union loans are financial products offered by member-owned, not-for-profit credit unions. These loans encompass various types, including personal loans, auto loans, mortgages, and more. Credit unions typically prioritize member interests, offering competitive interest rates and favorable terms. Eligibility often requires membership in the credit union, and decisions are influenced by factors such as credit history, income, and the borrower's relationship with the credit union.

  3. A credit card is a financial tool that allows individuals to make purchases on credit, up to a predetermined limit. Cardholders can use the card for transactions and repay the borrowed amount either in full by the due date or over time, incurring interest on the outstanding balance. Credit cards often offer additional benefits such as rewards, cashback, or travel perks. They are a form of revolving credit, and the credit limit is determined based on the cardholder's creditworthiness. Responsible use of credit cards can help build credit, while misuse can lead to debt accumulation and financial challenges.

Editorial Opinion

A three-year loan term can be a reasonable financial option for individuals seeking a balance between the benefits of a shorter commitment and manageable monthly payments. The relatively shorter duration provides borrowers with the opportunity to pay off the loan efficiently, potentially saving on overall interest costs compared to longer-term loans. The fixed nature of interest rates often associated with three-year loans adds a layer of predictability, making budgeting and financial planning more straightforward.


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.


What is the longest you can take out a personal loan for?

While the standard terms for personal loans often range from one to seven years, the maximum duration can vary among lenders. In some cases, lenders may offer extended loan terms, particularly for larger loan amounts or specific purposes.

However, opting for a longer loan term may result in higher overall interest costs. Borrowers should carefully evaluate their financial situation and consider the trade-off between lower monthly payments and the total interest paid over an extended period when choosing the duration of a personal loan.

What factors influence the interest rates on a 3-year personal loan?

The interest rates on a personal loan with three-year term are influenced by several factors, with the borrower's creditworthiness playing a pivotal role. Lenders assess the individual's credit score, which reflects their credit history and reliability in repaying debts. A higher credit score typically results in lower interest rates, as it signals a lower risk for the lender. Other factors include the loan amount, the purpose of the loan, and the borrower's debt-to-income ratio. Additionally, prevailing market conditions and the lender's policies contribute to determining the interest rates on a 3-year personal loan.

How much can I borrow with a 3-year personal loan?

The amount a borrower can secure with a personal loan varies based on several factors. Lenders consider the individual's income, credit score, and debt-to-income ratio when determining the loan amount. Higher incomes and stronger credit profiles generally qualify for larger loan amounts. It's essential for borrowers to carefully assess their financial needs and ensure that the requested loan amount aligns with their ability to make monthly payments comfortably.

Loan Terms