4-Year Personal Loans for April 2024

Get a 4-year personal loan at one of the lenders verified by our specialists. On 11.04.2024 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 11.04.2024*
Mr. Payday
Need a Quick Loan Now?
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
up to $10.000
Get Your FREE Quote Today!
Get Your FREE Quote Today!

Take advantage of our loan selection system with a free credit check!

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
i

Effective interest rate on the product

up to 46.96%
Term
i

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 4-Year Personal Loans?

In Canada, personal loans with 4-year term offer individuals a flexible financial solution, allowing them to borrow a fixed amount of money and repay it over a specified period. These loans, also known as installment loans or long-term financing plans, have become a popular choice for those seeking funds for various purposes, ranging from home renovations and major purchases to debt consolidation.

Lenders, including banks and credit unions, provide Canadians with the opportunity to get either unsecured or secured personal loan options, tailoring the terms to meet diverse financial needs. As borrowers navigate the landscape of personal loans, understanding key elements such as interest rates, monthly personal loan payments, and loan terms becomes crucial in making informed financial decisions.

Features

  1. Loan Term. Such personal loan in Canada provides borrowers with a structured repayment period of 48 months. This fixed term allows for predictability in managing monthly finances.

  2. Interest Rates. Personal loans come with either fixed or variable interest rates. A fixed interest rate ensures consistent monthly payments throughout the loan term, providing stability in budgeting.

  3. Monthly Payments. Borrowers make regular monthly payments, known as installments, throughout the 4-year term. The amount is predetermined, providing clarity and helping individuals plan their budgets effectively.

Pros and Cons

Pros

Versatile Use. Most personal loans work in such a way that they can be utilized for various purposes, including home renovations, major purchases, or debt consolidation, offering flexibility to address different financial needs.

Predictable Payments. Fixed personal loan interest rates ensure consistent monthly payments, allowing borrowers to plan and anticipate their financial obligations without the uncertainty of rate fluctuations.

Quick Access to Funds. Once approved, borrowers can receive the loan amount swiftly, addressing immediate financial requirements without extensive delays.

Cons

Interest Costs. While fixed interest rates offer stability, they may be higher than variable rates. Borrowers should carefully assess the total interest cost over the 4-year term.

Eligibility Criteria. Meeting the stringent eligibility criteria, including credit score and income requirements, can be a challenge for some individuals, limiting access to favorable loan terms.

Potential Fees. Lenders may charge origination fees, prepayment penalties, or administration fees. Borrowers should be aware of these additional costs, which can impact the overall affordability of the loan.

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

Apply for a Loan

  1. Assess Your Financial Situation. Review your financial needs and determine the amount required. Evaluate your ability to make regular monthly payments for a 4-year term.

  2. Check Eligibility. Ensure you meet basic eligibility criteria, including being a Canadian citizen or permanent resident. Verify that you are of the age of majority in your province or territory (18 or 19 years old). Confirm the lender's minimum income, debt, and credit score requirements.

  3. Gather Necessary Documents. Prepare essential documents such as government-issued ID, social insurance number (SIN), proof of employment, bank statements, and details of the loan purpose.

  4. Research Lenders. Explore various lenders, including banks and online lenders, to find the one offering terms that align with your needs. Consider factors such as interest rates, fees, and customer reviews.

  5. Check Credit Score. Obtain a copy of your credit report to understand your credit score. A higher credit score may increase your chances of securing a loan with more favorable terms.

  6. Prequalify with Lenders. Many lenders offer prequalification processes that provide an estimate of the loan amount and interest rate you may qualify for without impacting your credit score.

  7. Compare Loan Offers. Review loan offers from different lenders, considering interest rates, loan amounts, and any applicable fees. Choose the offer that best suits your financial needs and capabilities.

  8. Complete the Application. Fill out the loan application with accurate and truthful information. Provide details about your income, employment, and financial situation.

  9. Await Approval. Lenders will review your application, run a credit check, and assess your eligibility. Approval times vary, and some lenders may provide decisions within a few days.

  10. Review Terms and Conditions. Before accepting the loan, carefully review the terms and conditions, including the interest rate, loan amount, monthly payments, and any applicable fees.

  11. Sign the Agreement. If satisfied with the terms, sign the personal loan agreement. Ensure you understand all aspects of the agreement before committing.

  12. Receive Funds. Once approved, funds may be deposited into your bank account, provided on a prepaid card, or delivered in another agreed-upon method.

Requirements

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

  2. Age of Majority. Individuals must meet the age of majority in their province or territory, which is 18 or 19 years old.

  3. Minimum Income. Lenders often set a minimum income requirement to ensure borrowers have the financial capacity to repay the loan.

  4. Credit Score. A good credit score is commonly required. Lenders assess creditworthiness based on the borrower's credit history, and a higher score may result in more favorable terms.

  5. Debt-to-Income Ratio. Lenders may evaluate the borrower's debt-to-income ratio to assess their ability to manage additional debt.

  6. Documentation. Borrowers need to provide necessary documents, including government-issued ID, social insurance number (SIN), proof of employment, bank statements, and details of the loan purpose.

  7. Bank Account. Having a valid bank account is often a requirement for receiving loan funds and setting up automatic monthly payments.

Conditions

  1. Loan Amount. Lenders specify the minimum and maximum loan amounts they offer, providing borrowers with a range based on their financial needs.

  2. Interest Rate. Lenders disclose the interest rate for the personal loan, and it can be fixed or variable. Fixed rates remain constant throughout the term, while variable rates may fluctuate.

  3. Loan Term. The loan term, in this case, is four years. Lenders outline the duration over which the borrower is expected to repay the loan.

  4. Monthly Payments. Lenders provide information about the monthly payment amount, offering predictability for borrowers in managing their budgets.

  5. Unsecured and Secured Loans. Borrowers have the flexibility to choose between secured and unsecured personal loans based on their financial circumstances, providing tailored solutions for different individuals.

  6. Fees and Charges. Lenders specify any origination fees, administration fees, or other charges associated with the loan. Borrowers should be aware of these costs to evaluate the overall affordability.

  7. Optional Services. Some lenders may offer optional services, and borrowers should be informed about any additional features or insurance options available.

  8. Credit Reporting. Lenders may report the borrower's payment history to credit bureaus, impacting their credit score. Borrowers should be aware of the potential impact on credit.

  9. Default and Penalties. Conditions related to default, late payments, and penalties for early repayment or renegotiation should be clearly stated in the loan agreement.

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

  1. FlexMoney offers quick installment loans with an interest rate ranging from 18.90% to 46.93%. Borrowers can access funds in the range of $500 to $15,000, with repayment terms spanning from 6 to 60 months. The company provides a convenient solution for those in need of swift financial assistance through their installment loan offerings.

  2. Fairstone specializes in both secured and unsecured personal loan options, catering to non-prime borrowers. With interest rates ranging from 19.99% to 39.99%, Fairstone provides financial flexibility. Borrowers can access loan amounts ranging from $500 to $50,000, with repayment terms extending from 6 to 120 months. The company aims to address the diverse needs of individuals seeking personal loans, even in non-prime financial situations.

  3. Magical Credit distinguishes itself by offering online personal loans with interest rates between 19.99% and 46.80%. The company provides loans in the range of $1,500 to $20,000, with flexible repayment terms spanning from 12 to 60 months. Magical Credit is known for its approach to accommodating borrowers with varying requirements, making online personal loans accessible to a wide range of applicants.

  4. Easyfinancial stands out for providing both unsecured and secured personal loans, particularly catering to individuals with low credit scores. Offering competitive interest rates from 9.99% to 46.96%, easyfinancial allows borrowers to access funds in the range of $500 to $100,000. With flexible repayment terms ranging from 9 to 120 months, the company addresses the financial needs of individuals with varying credit profiles.

Things to Pay Attention to

  1. Eligibility Criteria. Review the lender's eligibility criteria, including credit score, income requirements, and any specific documentation needed. Ensure that you meet all criteria before applying to increase the likelihood of approval.

  2. Credit Score Impact. Understand how the personal loan may impact your credit score. Be aware of the consequences of late payments or defaults on your credit history.

  3. Repayment Flexibility. Check whether the lender allows for extra payments or early repayment without incurring significant penalties. Understand the terms for renegotiating the loan agreement if your financial situation changes.

  4. Purpose of the Loan. Confirm that the intended use of the funds aligns with the lender's guidelines. Be aware of any restrictions on using the loan for specific purposes.

  5. Customer Reviews. Research and read customer reviews about the lender's reputation, customer service, and overall satisfaction. Consider feedback from others who have had similar borrowing experiences.

  6. Documentation and Verification. Ensure that you have all the required documentation ready for the application process. Verify the accuracy of the information provided to avoid delays or complications.

  7. Prepayment Penalties. If considering early repayment, check for any prepayment penalties or fees. Understand the potential costs associated with paying off the unsecured loan before the end of the term.

  8. Alternative Lenders. Explore options beyond traditional lenders, such as online lenders or credit unions, to find competitive rates and terms.

How to Repay a Personal Loan with a 4-Year Term

  1. Understand Loan Terms. Familiarize yourself with the terms and conditions of your loan agreement. Take note of the interest rate, monthly payments, and the total loan amount.

  2. Set Up Automatic Payments. Opt for automatic payments through pre-authorized debits from your bank account. Automatic payments ensure that you never miss a due date, reducing the risk of late fees or negative impacts on your credit score.

  3. Make Payments on Time. Pay your monthly installment on or before the due date. Timely payments contribute positively to your credit history and help maintain a good credit score.

  4. Explore Extra Payments. If your financial situation allows, consider making extra payments to pay off the loan faster. Confirm with the lender whether there are any penalties for early repayment.

  5. Monitor Your Bank Account. Regularly check your bank account to ensure that automatic payments are processed correctly. Address any discrepancies or issues promptly by contacting your lender.

  6. Communicate with the Lender. If you encounter financial difficulties or anticipate challenges in making payments, communicate with your lender. Some lenders may offer temporary solutions or modifications to assist borrowers facing difficulties.

  7. Keep Records. Maintain records of all loan-related documents, including the original agreement, statements, and proof of payments. These records may be useful for future reference or in case of disputes.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. A low credit score is a significant factor in loan approval decisions. Lenders view a lower credit score as an indicator of higher risk, making it challenging to secure favorable loan terms.

  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 or unstable, it may result in rejection.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, indicating that a significant portion of your income is already committed to existing debts, may lead to rejection.

  4. Incomplete Documentation. Failure to provide all necessary documentation or providing inaccurate information during the application process can result in rejection.

  5. Employment Status. Unstable employment or a lack of steady income may raise concerns for lenders, making them hesitant to approve the loan.

  6. Recent Late Payments or Defaults. A history of recent late payments, defaults, or other negative marks on your credit report can significantly impact your loan approval chances.

  7. Multiple Loan Applications. Applying for multiple loans within a short period may signal financial distress to lenders and result in rejection.

  8. Overborrowing. Applying for a loan amount significantly higher than your financial capacity may lead to rejection. Lenders assess your ability to repay based on your income and existing debts.

  9. Collateral Issues. If you're applying for a secured loan and the collateral's value is insufficient or there are issues with the collateral, it can lead to rejection.

Alternatives

  1. A Home Equity Line of Credit (HELOC) is a financial product that allows homeowners to leverage the equity in their homes as collateral for a line of credit. Unlike a traditional loan, a HELOC provides a revolving line of credit that can be drawn upon and repaid repeatedly. The credit limit is determined by the home's equity, and borrowers can use the funds for various purposes, such as home improvements, education expenses, or debt consolidation. Interest is typically variable, and borrowers only pay interest on the amount withdrawn, making HELOCs a flexible financial tool for homeowners.

  2. A credit card is a financial instrument that allows cardholders to borrow funds up to a predetermined credit limit to make purchases. Users can pay off the balance in full each month or carry a balance, incurring interest charges. Credit cards offer convenience and a revolving line of credit, allowing individuals to make purchases both in-person and online. They often come with additional benefits such as rewards programs, cashback, and travel perks. Responsible use of credit cards can contribute to building a positive credit history, while misuse may lead to debt accumulation and financial challenges.

  3. Peer-to-peer lending, often abbreviated as P2P lending, is a decentralized lending model that connects individual borrowers with individual lenders through online platforms. These platforms act as intermediaries, facilitating the borrowing and lending process without the involvement of traditional financial institutions. Borrowers create loan listings specifying their borrowing needs, and investors can fund portions of these loans. P2P lending platforms assess the creditworthiness of borrowers and assign interest rates based on risk. This form of lending offers an alternative to traditional banking, providing both borrowers and lenders with potentially favorable terms and returns.

  4. Credit union loans are financial products offered by credit unions, which are member-owned financial cooperatives. Unlike traditional banks, credit unions are not-for-profit organizations that prioritize serving their members. Credit union loans may include personal loans, auto loans, mortgages, and other financial products. Members of the credit union can often benefit from competitive interest rates and favorable terms. Credit unions typically consider the financial well-being of their members, and eligibility may be based on factors such as membership, employment, or residence within a certain community.

Editorial Opinion

When considering loans with a 4-year term, it's important to acknowledge both their advantages and potential drawbacks. On the positive side, a 4-year term provides borrowers with a structured and predictable repayment schedule, allowing for better financial planning. The extended duration also often results in lower monthly payments compared to shorter-term loans, making it more manageable for individuals with varying income levels. However, it's crucial to be mindful of the potential drawbacks, such as the overall interest cost being higher compared to shorter-term loans. Additionally, the extended commitment may limit flexibility for borrowers who prefer shorter repayment periods.

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

How much do personal loans cost?

The cost of personal loans can vary based on several factors, including the lender, the borrower's creditworthiness, and the terms of the loan.

Typically, personal loans involve interest rates, which may be fixed or variable, and additional fees such as origination fees or administrative charges. The annual percentage rate (APR) serves as a comprehensive measure, incorporating both interest and fees, allowing borrowers to assess the overall cost of the loan. Factors such as the loan amount, repayment term, and the borrower's credit score can influence the cost.

How does a 4-year personal loan impact my credit score?

A personal loan with a four-year repayment term can impact your credit score in both positive and negative ways. Timely and consistent payments contribute positively to your credit history and may improve your credit score. On the other hand, late payments or defaults can have a detrimental effect. Additionally, the new credit inquiry associated with the loan application may cause a temporary dip in your credit score. It's essential to manage the loan responsibly, make payments on time, and avoid accumulating additional debt to ensure a positive impact on your credit profile.

Can I use a 4-year personal loan for any purpose?

Yes, in most cases, a personal loan can be used for a variety of purposes.

Borrowers commonly use personal loans for home renovations, major purchases, debt consolidation, medical expenses, or other significant personal needs. However, it's important to check with the lender to understand if there are any specific restrictions on the use of funds.

While personal loans offer flexibility, ensuring that the intended purpose aligns with the lender's guidelines helps avoid potential issues during the application process.

Loan Terms