5-Year Personal Loans for April 2024

Get a 5-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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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 5-Year Personal Loans?

A personal loan with 5-year term in Canada serves as a flexible financial tool, offering borrowers access to a lump sum of funds without the need for collateral. Unlike mortgages or car loans, personal loans are unsecured, providing individuals with the freedom to use the borrowed amount for various purposes. Whether it's debt consolidation, home improvements, significant purchases, covering medical expenses, or managing life events, such personal loan offers a structured repayment plan.

Borrowers commit to paying back the loan, along with interest, through fixed monthly installments over the agreed-upon term, typically spanning one to seven years. Understanding the dynamics of personal loans is crucial for borrowers seeking financial assistance.


  1. Structured Repayment. One of the prominent features of a personal loan with five-year term in Canada is the structured repayment plan. Borrowers commit to making fixed monthly payments over the agreed-upon term, allowing for better budgeting and financial planning.

  2. Flexible Use of Funds. Unlike specific-purpose loans like mortgages or car loans, a personal loan with a five-year term provides borrowers with the flexibility to use the funds for various purposes. Whether it's debt consolidation, home improvements, or unexpected expenses, borrowers have the freedom to allocate the funds as needed.

  3. Interest Rate Variability. The interest rates on personal loans can be either fixed or variable. Fixed interest rate remains constant throughout the loan term, providing predictability in monthly payments. Variable rate, on the other hand, may fluctuate based on market conditions, impacting monthly payments.

Pros and Cons


  1. Online Lender Options. The presence of online lenders offers convenience and accessibility, with streamlined application processes and potentially quicker approval times compared to traditional lending institutions.

  2. Debt Consolidation Benefits. One of the significant advantages is the ability to consolidate multiple debts into a single personal loan. This can simplify repayment, potentially lower personal loan interest rates, and make managing finances more straightforward.

  3. Prepayment Options. Some lenders allow borrowers to pay off the loan before the end of the term without incurring prepayment penalties, providing flexibility for those who want to accelerate their debt repayment.


  1. Higher Interest Costs. Unsecured personal loans, especially for individuals with lower credit scores, may come with higher interest rates compared to secured loans. This can result in higher overall interest costs over the life of the loan.

  2. Potential Fees. Borrowers may encounter origination fees, late payment fees, or other charges associated with personal loans. These additional costs can contribute to the overall expense of the loan.

  3. Financial Risk. Mismanagement of a personal loan can lead to debt accumulation, potentially damaging the borrower's credit score and overall financial health.

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

Apply for a Loan

  1. Assess Your Financial Needs. Determine the amount you need to borrow and how it aligns with your financial goals. Evaluate your budget to ensure you can comfortably make monthly payments over five years.

  2. Check Your Credit Score. Obtain a copy of your credit report to understand your creditworthiness. A higher credit score increases your chances of qualifying for lower interest rates.

  3. Research Lenders. Explore various lenders, including traditional banks and online lenders. Compare interest rates, fees, and loan terms offered by different institutions.

  4. Prequalification. Some lenders offer prequalification, which provides an estimate of the loan amount and interest rate you may qualify for without a hard credit inquiry. Use this stage to compare offers from multiple lenders.

  5. Gather Necessary Documents. Prepare essential documents such as government-issued ID, proof of income (pay stubs, tax assessments), and any other documents required by the lender.

  6. Apply for the Loan. Complete the loan application with the chosen lender. Provide accurate information and ensure all required documentation is submitted.

  7. Review and Negotiate Terms. Review the loan terms, including interest rates, repayment schedule, and any associated fees. Negotiate with the lender to secure favorable terms, especially if you have a strong credit profile.

  8. Receive Approval. Once your application is approved, carefully review the loan agreement. Understand the terms and conditions before accepting the loan.

  9. Receive Funds. Upon acceptance, the lender will disburse the loan funds. The time it takes to receive funds can vary; online lenders may provide faster processing.


  1. Canadian Citizenship or Permanent Residency. Borrowers typically need to be Canadian citizens or permanent residents.

  2. Age Criteria. Generally, borrowers must be over the age of 18 (or 19 in some provinces) to qualify.

  3. Steady Employment and Regular Income. Lenders often require proof of steady employment and a regular source of income to assess the borrower's ability to repay the loan.

  4. Low Debt-to-Income Ratio. Lenders may look for a debt-to-income ratio below a certain threshold (commonly under 40%) to ensure that the borrower can manage additional debt.

  5. Good Credit History. A positive credit history is crucial. Borrowers with higher credit scores are more likely to qualify for lower interest rates.


  1. Interest Rates. Lenders specify the interest rates for the loan, which can be fixed or variable. Rates vary based on factors like credit score and financial history.

  2. Loan Amounts. The maximum loan amount a borrower qualifies for depends on factors such as income, credit score, and the lender's policies.

  3. Repayment Terms. Lenders outline the repayment terms, including the duration of the loan (in this case, a five-year term) and the frequency of payments (e.g., monthly).

  4. Fees and Charges. Lenders disclose any origination fees, late payment fees, or other charges associated with the loan. Borrowers should be aware of all potential costs.

  5. Prepayment Options. Some lenders allow borrowers to repay the loan early without incurring prepayment penalties. Others may have restrictions or fees for early repayment.

  6. Credit Reporting. Lenders typically report the borrower's payment history to credit bureaus, impacting their credit score. Borrowers should confirm how on-time payments will be reported.

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

  1. SkyCap Financial, offering online personal loans with interest rates ranging from 19.99% to 39.99%, provides financial solutions in the range of $500 to $10,000 with repayment terms spanning from 9 to 60 months. The company is known for its excellent service, catering to individuals seeking personal loans through a convenient online platform.

  2. Spring Financial stands out for its fast online personal loans, featuring interest rates between 9.99% and 46.96%. With loan amounts ranging from $500 to $35,000 and flexible repayment terms spanning from 6 to 60 months, the company aims to meet the quick financial needs of borrowers with an efficient online application process.

  3. Fairstone specializes in both unsecured and secured personal loans, catering to non-prime borrowers. With interest rates ranging from 19.99% to 39.99%, Fairstone offers loan amounts between $500 and $50,000. The company provides extended repayment terms, ranging from 6 to 120 months, accommodating a diverse range of financial needs.

  4. Magical Credit distinguishes itself by offering online personal loans featuring flexible requirements. With interest rates ranging from 19.99% to 46.80%, Magical Credit provides loan amounts between $1,500 and $20,000, accommodating a variety of financial situations. The repayment terms extend from 12 to 60 months, providing borrowers with options that align with their individual needs.

Things to Pay Attention to

  1. Credit Score Impact. Understand how the loan application and subsequent payments may impact your credit score. Confirm whether the lender reports on-time payments to credit bureaus to potentially improve your credit history.

  2. Prepayment Options. Clarify the prepayment options available and whether there are penalties for paying off the loan before the end of the term.

  3. Loan Amounts. Determine the maximum loan amount you qualify for based on your financial profile. Ensure that the loan amount aligns with your specific financial needs.

  4. Credibility of the Lender. Research and verify the credibility of the lender, especially if considering online lenders. Read customer reviews and testimonials to gauge the experiences of other borrowers.

  5. Terms and Conditions in the Agreement. Thoroughly read and understand all terms and conditions outlined in the loan agreement. Seek clarification on any ambiguous language or clauses before accepting the loan.

  6. Customer Support. Evaluate the customer support services offered by the lender. Ensure that there are clear communication channels for inquiries or issues that may arise during the loan term.

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

  1. Understand Repayment Terms. Review the loan agreement to understand the specific repayment terms, including the monthly payment amount, interest rate, and the overall duration of the loan (five years).

  2. Set Up Automatic Payments. Consider setting up automatic payments with your bank or the lending institution. This ensures that your loan payments are made on time, reducing the risk of late fees and protecting your credit score.

  3. Consider Extra Payments. If your financial situation allows, consider making extra payments towards the loan principal. This can help reduce the overall interest paid and shorten the repayment period.

  4. Regularly Check Your Loan Statements. Regularly review your loan statements to ensure that payments are being correctly applied and to stay informed about your remaining balance.

  5. Explore Refinancing Options. As your financial situation improves, explore the possibility of refinancing the loan to secure a lower interest rate or better terms. This could potentially reduce the overall cost of the loan.

  6. Keep Communication Open. Maintain open communication with the lender. If you face financial challenges, inform the lender early and explore options such as temporary forbearance or modifications to the repayment plan.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. One of the primary reasons for rejection is a low credit score. Lenders use credit scores to assess the borrower's creditworthiness, and a lower score may indicate a higher risk of default.

  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 to cover the loan payments, the application may be rejected.

  3. High Debt-to-Income Ratio. A high debt-to-income ratio, where the borrower's existing debts are significant compared to their income, can be a red flag for lenders. It may suggest an increased risk of financial strain.

  4. Unstable Employment History. Frequent changes in employment or a history of unemployment may raise concerns for lenders. Employment stability is often seen as a positive factor in loan approval.

  5. Recent Late Payments or Defaults. Recent late payments, defaults on loans, or a history of financial delinquencies can negatively impact the creditworthiness of the borrower and result in a loan rejection.

  6. Applying for Multiple Loans Simultaneously. Making multiple loan applications within a short period (especially if several are denied) can negatively impact the credit score and raise concerns for lenders.


  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, enabling borrowers to borrow against their home equity up to a predetermined limit. The borrower can access funds as needed and only pays interest on the amount borrowed. HELOCs are versatile and commonly used for home improvements, debt consolidation, or other major expenses. The interest rates are often variable, and the repayment period may include both a draw period and a repayment period.

  2. A credit card is a payment card issued by a financial institution, allowing users to make purchases on credit. When a credit card is used, the cardholder borrows money from the issuer, up to a predefined credit limit, to complete a transaction. Credit cards offer a convenient and widely accepted means of payment, with the flexibility to pay the balance over time or in full by the due date. They often come with interest rates for balances not paid in full each month. Credit cards may also offer rewards, cashback, or other benefits based on usage.

  3. Credit union loans are financial products offered by credit unions, which are member-owned financial institutions. These loans encompass various types, including personal loans, auto loans, mortgages, and more. Credit unions, as nonprofit entities, typically aim to provide favorable terms to their members, offering competitive interest rates and fees. Members of a credit union often benefit from a sense of community and personalized service, and loan decisions may take into account the borrower's relationship with the credit union.

  4. Peer-to-peer (P2P) lending, also known as marketplace lending, is a form of online lending that connects individual borrowers with individual lenders. P2P platforms act as intermediaries, facilitating the borrowing and lending process without traditional financial institutions. Borrowers create loan listings, specifying the amount, purpose, and desired interest rate, while investors can fund portions of loans across multiple borrowers to diversify risk. P2P lending offers an alternative to traditional banking, often providing competitive interest rates for borrowers and potential returns for lenders.

Editorial Opinion

The viability of loans with 5-year term depends on individual financial circumstances and the specific goals of borrowers. For those seeking a structured and predictable repayment plan, such a loan can offer manageable monthly payments and a clear timeline for debt resolution. Additionally, the extended term may enable borrowers to access larger loan amounts while maintaining affordability. However, it's essential for individuals to carefully assess their financial capacity and consider the total interest costs associated with a longer-term commitment.


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.


How much is a $10,000 loan for 5 years?

Assuming a $10,000 loan with a 10% interest rate over 5 years, the monthly payment would be approximately $212.47. Over the entire loan term, the total repayment, including both principal and interest, would amount to approximately $12,748.23.

The total repayment reflects not only the borrowed principal amount but also the accrued interest over the 5-year duration. Borrowers should consider both the monthly payment and the overall repayment amount when evaluating the affordability and cost of the loan.

What is the disadvantage of a 5-year loan?

One notable disadvantage of a personal loan with a five-year term is the potential for higher overall interest costs compared to shorter-term loans. While a 5-year term allows for more manageable monthly payments, it also means that borrowers will be paying interest over an extended period, resulting in a higher total interest amount. Additionally, the longer commitment may limit financial flexibility, as borrowers are committed to the repayment plan for an extended duration. Another consideration is that circumstances can change over 5 years, and borrowers might face challenges or opportunities that a longer-term commitment could impact.

Which loans are for 5 years?

Various types of loans can have a term of 5 years, including personal loans, auto loans, and certain installment loans. Personal loans with a 5-year term are common for debt consolidation, home improvement, or other significant expenses. Auto loans for new or used cars often have 5-year terms, providing borrowers with a structured repayment plan. Additionally, some installment loans, both secured and unsecured, may have a 5-year duration.

Loan Terms