Loans for 21-Year-Olds for April 2024

Get a loan for 21-year-olds 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.
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Mr. Payday
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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
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.
Royal Bank of Canada
Great service and quick processing of my loan request.
Royal Bank of Canada
I found the process of getting a loan with RBC to be quite slow and confusing.
Royal Bank of Canada
RBC provided me with a loan at a very low interest rate, helping me save on loan payments.

Securing a personal loan at the age of 21 in Canada can present a unique set of challenges, primarily influenced by factors such as credit history and income stability. At this age, individuals might still be in the process of establishing a robust credit profile, which can impact their eligibility for traditional loans. Furthermore, income levels may vary, making it crucial to explore lenders willing to work with young borrowers. To enhance approval chances, consider seeking loans from institutions that offer options for individuals with limited credit history or exploring the possibility of having a cosigner, such as a family member or friend, to vouch for your creditworthiness.

When navigating the landscape of loans for 21-year-olds in Canada, it's essential to explore diverse options tailored to this age group. Online lenders may provide access to small unsecured personal loans, particularly for amounts under $5,000, with a focus on factors like steady employment and reasonable income.

Additionally, traditional banks may be more accommodating if you've maintained a longstanding relationship with them, especially if you possess savings and exhibit responsible financial habits. Exploring credit-builder loans, secured loans using valuable assets, and pay advance apps are also viable paths to consider for young individuals seeking financial support.


  1. Loan Amounts. Loans for 21-year-olds can be limited in amount due to the lack of credit history.

  2. Cosigner Options. Offering the possibility of having a cosigner can enhance approval chances and provide favorable terms for 21-year-olds who may not have an extensive credit history.

  3. Online Application. An easy and streamlined online application process enhances accessibility, allowing young borrowers to apply conveniently and efficiently.

  4. Financial Education Resources. Access to educational resources on responsible borrowing, budgeting, and credit management can empower 21-year-olds to make informed financial decisions.

Pros and Cons


Financial Access. Loans offer immediate access to funds, allowing 21-year-olds to address pressing financial needs, whether for education, personal expenses, or investments.

Credit Building. Responsible loan repayment contributes positively to credit history, establishing a foundation for future financial endeavors and access to larger loans.

Flexibility. Loans come with various options, such as different loan amounts and terms, providing flexibility to tailor borrowing to specific needs and financial capacities.


Limited Loan Amounts. Individuals with a limited credit history may qualify for smaller loan amounts, restricting their financial capabilities compared to those with established credit.

Potentially Higher Interest Rates. Without a strong credit history, 21-year-olds may face higher interest rates, resulting in increased overall borrowing costs.

Risk of Debt. Inexperienced borrowers may face challenges managing debt, especially if they encounter unexpected financial hardships or changes in employment.

How to Get a Loan as a 21-Year-Old

Apply for a Loan

  1. Check Your Credit Report. Obtain a copy of your credit report from a credit reference agency like Equifax and TransUnion. Review your credit history to understand how lenders may perceive your creditworthiness.

  2. Build a Positive Credit History. If your credit history is limited, consider activities to build positive credit, such as using a secured credit card responsibly.

  3. Evaluate Your Finances. Assess your financial situation, including income, expenses, and existing debts. Determine how much you need to borrow and ensure it aligns with your ability to repay.

  4. Gather Supporting Documents. Prepare necessary documents, including proof of income (pay stubs or employment letters), personal identification, and bank statements.

  5. Explore Cosigner Options. If your credit history is limited, consider asking a family member or friend with a strong credit history to cosign the loan, potentially improving your terms.

  6. Research Lenders. Explore lenders that specialize in loans for young individuals or those willing to work with borrowers with limited credit history. Compare interest rates, fees, and terms offered by different lenders.

  7. Understand Eligibility Criteria. Review eligibility requirements of potential lenders, considering factors like age, citizenship, and minimum income.

  8. Apply for Pre-Approval. Many lenders offer pre-approval processes that allow you to gauge your eligibility and potential terms without undergoing a hard credit check.

  9. Fill Out the Application Form. Complete the loan application form accurately, providing all required information. Double-check for accuracy to avoid potential issues during the approval process.

  10. Submit Relevant Documents. Submit supporting documents, including proof of income, identification, and any additional documentation requested by the lender.

  11. Review Loan Terms. Carefully review the terms and conditions of the loan before accepting. Understand interest rates, fees, and repayment terms to make an informed decision.

  12. Seek Clarification if Needed. If any part of the loan agreement is unclear, reach out to the lender for clarification or seek advice from a trusted source.

  13. Submit the Application. Click submit on your online application or submit it through the chosen application method.

  14. Monitor Communication. Stay responsive to any communication from the lender during the approval process. Respond promptly to requests for additional information if necessary.


  1. Age Eligibility. Borrowers typically need to be at least 18 or 19 years old, depending on the province or territory of residence.

  2. Citizenship or Permanent Residency. Borrowers must be Canadian citizens or permanent residents with a valid Canadian address.

  3. Bank Account. A valid and active bank account is usually a requirement for loan disbursement and repayment.

  4. Proof of Income. Borrowers need to demonstrate a stable income source through pay stubs, employment letters, or other relevant documents.

  5. Credit Score Requirements. Lenders may have minimum credit score requirements, often set at fair or good credit score, and borrowers with limited credit history may need to explore lenders specializing in loans for individuals building credit.

  6. Meeting Minimum Income Requirements. Some lenders specify minimum income thresholds that borrowers need to meet to qualify for a loan.


  1. Loan Amounts. Lenders specify the minimum and maximum loan amounts that borrowers can apply for based on their financial situation.

  2. Interest Rates. The interest rate charged on the loan, whether fixed or variable, is a crucial condition that affects the overall cost of borrowing.

  3. Loan Terms. Lenders offer specific loan terms, outlining the duration of the loan and the timeline for repayment, typically ranging from months to years.

  4. Repayment Options. Borrowers may have options for monthly repayments, and some lenders offer flexibility, allowing additional payments or early repayment without penalties.

  5. Fees. Lenders specify any fees associated with the loan, including establishment fees, monthly fees, and early repayment fees.

  6. Security Measures. Lenders implement security measures to protect the personal and financial information of borrowers during online transactions and data handling.

  7. Pre-Approval Process. Lenders may provide a pre-approval process, allowing borrowers to assess eligibility and potential terms without a hard credit check.

  8. Educational Resources. Some lenders offer educational resources to help borrowers make informed financial decisions and manage their loans responsibly.

  9. Loan Approval Timeframes. Lenders specify the expected timeframes for loan approval and disbursement, providing clarity to borrowers.

Best Places to Get a Loan as a 21-Year-Old

  1. Flex Money offers personal loans with a flexible range of $500 to $15,000, catering to diverse financial needs. With an Annual Percentage Rate (APR) ranging from 18.9% to 46.9% and fixed interest rates, borrowers can benefit from clear and predictable repayment terms. Flex Money sets a minimum credit score requirement at 500, providing opportunities for individuals with various credit backgrounds. The absence of application, origination, or prepayment fees adds transparency to the borrowing process, making it a potentially attractive option for 21-year-olds seeking financial flexibility.

  2. Specializing in online personal loans, Magical Credit stands out for its focus on assisting individuals with bad credit and low income. Operating since 2014, the company facilitates a quick loan application process, allowing borrowers to validate information through instant bank verification for fast decisions and fund disbursement within hours. A notable feature is Magical Credit's commitment to helping borrowers rebuild their credit by reporting on-time payments to credit bureaus, potentially contributing to credit score improvement for 21-year-olds looking to establish or enhance their credit history.

  3. As a prominent lender of personal loans in Canada, easyfinancial aims to provide financing options when traditional banks may not be accessible. Offering quick quotes with no commitment and no impact on credit scores during the application process, easyfinancial emphasizes ease of access. With the potential for customers to graduate to prime rates after making regular, on-time repayments, this lender presents an opportunity for 21-year-olds to not only address immediate financial needs but also improve their credit standing over time.

  4. With over 40 years of experience, Money Mart is a well-established alternative lender in Canada, offering installment loans and bad credit loans. One of its standout features is the speed of loan approval, allowing borrowers to obtain payday loans almost instantly and installment loans within as little as 2 hours. Money Mart's lenient requirements for payday loan options, accepting applicants with a chequing account and a regular source of income, provide accessibility to those who may face challenges with traditional lenders. The option to apply online or in-store adds flexibility to the borrowing process for 21-year-olds seeking quick and convenient financial solutions.

Things to Pay Attention to

  1. Repayment Flexibility. Check if the lender offers flexibility in repayments, such as the option for additional payments or early repayment without incurring extra charges.

  2. Credit Score Impact. Understand how the loan application and subsequent repayments may impact your credit score. Avoid excessive hard credit checks, and ensure timely repayments to build a positive credit history.

  3. Cosigner Consideration. If a cosigner is required or considered, assess the implications for both parties involved. Understand the responsibilities and potential effects on the cosigner's credit.

  4. Hidden Terms and Conditions. Thoroughly read the fine print of the loan agreement. Be aware of any hidden terms or conditions that may affect the total cost or your ability to manage the loan.

  5. Customer Reviews. Research customer reviews and testimonials for the lender. Positive reviews can provide insights into the lender's reputation and customer satisfaction.

  6. Loan Purpose. Clearly define the purpose of the loan and ensure that the loan product you choose aligns with your intended use, whether it's for education, personal expenses, or other needs.

  7. Financial Impact. Evaluate the overall financial impact of the loan on your budget. Ensure that the monthly repayments are manageable and won't strain your financial resources.

  8. Lender Reputation. Consider the reputation of the lender in the financial industry. Choose a reputable and trustworthy institution to avoid potential issues during and after the loan process.

How to Repay a Personal Loan

  1. Understand Loan Terms. Familiarize yourself with the terms of your personal loan. This includes the interest rate, loan amount, repayment period, and any fees associated with the loan.

  2. Create a Budget. Develop a comprehensive budget that includes your monthly income and all necessary expenses. This will help you allocate funds for loan repayments and avoid financial strain.

  3. Set Up Automatic Payments. Consider setting up automatic payments through your bank. This ensures that your monthly loan payments are made on time, reducing the risk of late fees or missed payments.

  4. Choose a Suitable Repayment Frequency. Check with the lender to see if they offer different repayment frequency options, such as monthly, bi-monthly, or weekly. Choose a frequency that aligns with your income schedule and budget.

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

  6. Communicate with the Lender. If you encounter financial difficulties, communicate with your lender as soon as possible. Some lenders may offer flexibility or hardship options to assist you during challenging times.

  7. Review Loan Statements. Regularly review your loan statements to verify that payments are being correctly applied and to catch any errors or discrepancies.

Reasons for Getting Rejected for a Personal Loan

  1. Poor Credit History. One of the primary factors lenders consider is your credit history. If you have a low credit score, a history of late payments, or defaults on previous loans, it can significantly impact your loan application.

  2. Insufficient Income. Lenders assess your income to determine your ability to repay the loan. If your income is deemed insufficient to cover the loan payments, your application may be rejected.

  3. High Debt-to-Income Ratio. A high level of existing debt in comparison to your income can signal financial strain. Lenders may view a high debt-to-income ratio as a risk factor and reject your loan application.

  4. Unstable Employment History. If you have a history of frequent job changes or gaps in employment, it may be viewed negatively by lenders. A stable employment history is often preferred to ensure a consistent income.

  5. Recent Bankruptcy. If you've filed for bankruptcy recently, it remains on your credit report and can be a significant red flag for lenders, making them hesitant to approve your loan application.

  6. Multiple Recent Loan Applications. Making numerous loan applications within a short period can negatively impact your credit score. Lenders may interpret this as financial distress and be less inclined to approve your application.

  7. Loan Amount Request. Requesting an excessively high loan amount in comparison to your income may result in rejection. Lenders assess your ability to handle the requested loan size.

  8. Purpose of the Loan. Certain lenders may have restrictions on the purpose of the loan. If your intended use doesn't align with their criteria, it could lead to rejection.


  1. A credit builder loan is a financial product designed to help individuals with limited or poor credit history improve their credit scores. Unlike traditional loans where funds are provided upfront, a credit builder loan works by holding the loan amount in a savings account or certificate of deposit. The borrower makes regular payments, and once the loan is fully repaid, they gain access to the saved funds along with a potentially improved credit score. This type of loan is beneficial for those looking to establish or rebuild their creditworthiness.Title loans

  2. Title loan is a short-term, secured loan where borrowers use the title of their vehicle as collateral. The amount of the loan is typically based on the appraised value of the vehicle. While title loans provide quick access to cash, they come with high-interest rates and the risk of losing the vehicle if the borrower fails to repay the loan. These loans are often criticized for their predatory nature and the potential to trap borrowers in cycles of debt.

  3. Credit unions are financial institutions that operate as member-owned cooperatives, providing financial services to their members. Unlike traditional banks, credit unions are nonprofit organizations, and members share a common bond, such as belonging to the same community or industry. Credit unions offer a range of financial products, including savings accounts, loans, and other banking services. Members typically have voting rights to elect the board of directors, fostering a sense of community and member involvement.

  4. Peer-to-peer (P2P) lending, also known as social lending or crowdlending, involves the direct borrowing and lending between individuals without the involvement of traditional financial institutions. Online platforms connect borrowers with potential lenders, allowing individuals to lend money to others or borrow money from peers. P2P lending can offer more flexible terms and interest rates, but it also comes with risks, including the absence of regulatory protections and the potential for default.

Editorial Opinion

Loans for young people can serve as valuable financial tools when approached with careful consideration and responsibility. At this age, individuals may be exploring opportunities for higher education, starting their careers, or facing unforeseen expenses. While loans can provide necessary financial support, it is essential for young borrowers to thoroughly understand the terms, interest rates, and repayment obligations associated with the loans they consider. Responsible borrowing, coupled with a clear understanding of one's financial capacity, can contribute to positive credit-building experiences and pave the way for informed financial decision-making in the future.


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 youngest you can get a loan in Canada?

The minimum age to apply for a loan in Canada varies by province or territory. In provinces like Alberta, Manitoba, Ontario, Prince Edward Island, Quebec, and Saskatchewan, where the age of majority is 18, individuals can typically start applying for loans at this age. However, in other provinces and territories, where the age of majority is 19, individuals may need to wait until reaching that age to be eligible for a loan without a cosigner.

Which bank in Canada is easiest to get a loan from if you are a young person?

Determining the "easiest" bank to get a loan from as a young person can depend on various factors, including credit history, income, and financial stability. Generally, some banks in Canada, such as the major national banks (for example RBC, TD, Scotiabank), offer a range of financial products for young individuals in need of a personal or student loan. However, eligibility and ease of approval may vary, and it's advisable for young borrowers to explore options based on their specific circumstances and financial goals.

How hard is it to get a loan as a 21-year-old?

Getting a loan as a 21-year-old in Canada can be a manageable process if certain criteria are met. Lenders typically consider factors such as credit history, income, and employment status. While some young individuals may have limited credit history, exploring lenders who specialize in loans for those building credit or considering a cosigner can enhance approval chances. It's essential for borrowers to understand their financial capacity, compare loan terms, and choose reputable lenders to ensure a responsible and informed experience with borrowing money.

Loan Terms