Low-Interest Loans for April 2024

Get a low-interest 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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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™
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 is a Low-Interest Loan?

A low-interest loan is a financial arrangement where borrowers can access funds at a favorable interest rate, resulting in lower overall borrowing costs. In Canada, the average interest rate for personal loans, as reported by the Bank of Canada, stands at 9.46%. The specific rate for an individual may vary based on factors such as credit score, debt-to-income ratio, and overall financial stability. Typically, a low interest rate for personal loans in Canada ranges from 9.75% to 11% for fixed interest rates, contingent on the borrower's creditworthiness and other personal considerations. The fluctuation in interest rates is often tied to the Bank of Canada's prime rate, reflecting the country's economic conditions and inflation control measures.

Secured personal loan options, involving collateral such as homes or investments, generally attract lower interest rates compared to unsecured loans. Home equity loans or lines of credit, utilizing property as collateral, also contribute to reduced interest rates. Cosigned personal loans, supported by a financially stable guarantor, may secure a better interest rate for borrowers with less-than-ideal credit scores.


  1. Loan Amount. Borrowers can access funds ranging from $3,000 to $50,000, with the possibility of higher amounts if collateral, such as a home, is involved.

  2. Repayment Terms. Repayment flexibility is offered, allowing borrowers to choose a duration between 3 to 60 months. Longer loan terms may be available for loans secured by collateral, such as a home.

  3. Eligibility Based on Finances. Approval for the loan amount is contingent on the borrower's financial situation, including factors like income, credit score, and debt-to-income ratio.

  4. Borrowing Limits. The approved loan amount is determined based on the borrower's financial profile, ensuring that the borrowing capacity aligns with their ability to repay.

  5. Shortest Loan Term Preferred. Borrowers are encouraged to opt for the shortest loan term possible, minimizing the overall interest paid over the life of the loan.

Pros and Cons


Cost Savings. The primary advantage of low interest loans is evident in the potential for significant cost savings. Borrowers can minimize the total amount paid over the life of the loan due to the reduced interest rates.

Affordability. Lower interest rates contribute to more manageable monthly payments, making it easier for borrowers to meet their financial obligations without straining their budgets.

Flexible Repayment Terms. Many low interest loans offer flexible repayment terms, allowing borrowers to choose a duration that aligns with their financial goals and capabilities.


Eligibility Criteria. Securing a low interest loan may require meeting stringent eligibility criteria, including a high credit score, stable employment, and a positive net worth. This can limit access for individuals with less-than-ideal financial profiles.

Collateral Requirement. Some low interest loans, particularly secured ones, necessitate collateral such as a home or investments. This poses a risk to borrowers, as failure to repay could result in the loss of valuable assets.

Potential Fees. While interest rates may be low, borrowers should be aware of additional fees such as application fees, documentation fees, or loan insurance charges. These fees can impact the overall cost of the loan.

How to Get a Low-Interest Loan

Apply for a Loan

  1. Check and Improve Your Credit Score. Obtain a copy of your credit report from major credit bureaus like Equifax or TransUnion. Aim for a credit score above 660, with higher scores increasing the likelihood of qualifying for lower interest rates. Address any discrepancies on your credit report and work on improving your credit score by paying down debts and ensuring timely bill payments.

  2. Stable Employment. Personal loan lenders prefer borrowers with a stable employment history, typically over the last three years. Salaried positions are viewed more favorably than short-term contract work. Employment with an established company is considered lower risk than with a newer company.

  3. Positive Net Worth. Showcase a positive net worth by having assets that outweigh your debts. Assets that can be easily converted to cash demonstrate financial stability and lower risk for lenders.

  4. Low Debt-to-Income Ratio (DTI). Maintain a DTI below 40%, indicating that a reasonable percentage of your monthly income goes towards debt payments. The lower your DTI, the better your chances of qualifying for a low interest loan.

  5. Consider Collateral. Explore secured loan options by offering collateral such as home equity, investments, or a cosigner. Collateral lowers the risk for lenders, potentially resulting in lower interest rates.

  6. Limit Hard Credit Checks. Minimize the number of hard credit checks within the last six months, as multiple checks can negatively impact your credit score. Check if lenders offer pre-approval options that don't affect your credit score.

  7. Documentation and Verification. Prepare necessary documentation, including proof of employment (pay stubs or a letter of employment), government-issued ID, and 90 days of bank statements. Ensure your address on your ID matches your current address or provide proof of address documents.

  8. Negotiate and Shop Around. Don't settle for the first offer. Negotiate terms and shop around for the best deal. Consider building a relationship with your current bank, as existing customers may receive preferential rates.

  9. Understand Fees and Terms. Be aware of any additional fees, such as application fees or loan insurance charges. Understand the terms of the loan, including repayment schedules and any penalties for early repayment.


  1. Age and Citizenship. Borrowers must be of the age of majority, which is 18 or 19 years old, depending on the province. Must be a Canadian citizen or a permanent resident.

  2. Credit Score. A good credit score is crucial. While a score of at least 680 is recommended for low interest rates, some lenders may consider scores as low as 620. Lenders assess not only the score but also the information on the credit report.

  3. Stable Source of Income. While employment is not always mandatory, lenders prefer borrowers to have a stable source of income. Lenders may look for around 3 months of steady income, and recent job changes might be considered.

  4. Minimum Monthly Income. Most personal loans require a minimum monthly income, typically ranging from $1,200 to $1,500. Falling below this threshold may result in automatic loan rejection.


  1. Interest Rates. Variable interest rates may be offered, subject to market fluctuations. Fixed interest rates provide stability, but the initial rate may be higher than variable rates.

  2. Loan Amount. Borrowers can access loans ranging from $3,000 to $50,000, and potentially more with collateral. The approved amount depends on the borrower's financial profile.

  3. Repayment Terms. Repayment periods vary from 3 to 60 months, with longer terms available for secured loans. Borrowers are encouraged to aim for the shortest term possible to minimize overall personal loan payments.

  4. Collateral Options. Secured personal loans may involve collateral such as homes or investments. Collateral lowers the risk for lenders, resulting in potentially lower interest rates.

  5. Cosigned Loans. Borrowers with less-than-ideal credit scores may opt for cosigned loans. A cosigner with strong finances can help secure a better interest rate.

  6. Fees. Application fees or documentation fees may apply, though not all lenders charge these. Borrowers should be aware of any origination fees, which can range from 0.5% to 5% of the loan amount.

  7. Late Fees and NSF Fees. Lenders may charge late fees of 3-5% for missed payments. Insufficient fund (NSF) fees may apply, typically between $25 and $50.

  8. Loan Protection Plan. Optional insurance to cover loan payments in case of job loss, illness, or death. Borrowers can choose whether to accept the insurance, and it may affect the interest rate offered.

Best Places to Get a Low-Interest Loan

  1. Spring Financial offers a versatile personal loan solution with amounts ranging from $500 to $35,000 at a competitive APR starting at 9.99%. What sets them apart is the absence of penalties for early loan repayment, providing borrowers with flexibility. Embracing modern convenience, Spring Financial allows the entire loan process to be conducted online, over the phone, or via text message. The quick approval process often results in same-day fund disbursement, catering to those with urgent financial needs in a manner distinct from traditional lenders.

  2. Positioning itself as an optimal choice for individuals seeking smaller unsecured personal loan options, Eastern Loans maintains a consistent APR of 23% and stands out for its transparent and flexible repayment structure with no prepayment penalties. Eastern Loans extends accessibility by not requiring a credit history, making it available to a broader spectrum of borrowers. The company's positive four-star TrustPilot rating reflects a customer-centric approach. Coupled with same-day funding, Eastern Loans provides a swift and relatively hassle-free borrowing experience, especially for those with urgent financial requirements.

  3. Vancity, currently featuring a special limited-time offer valid until February 29, 2024, presents an enticing proposition with interest rates at Vancity Prime + 2.5% (variable) or a fixed rate of 9.99%. This offer applies to personal loans ranging from $5,000 to $50,000, with flexible repayment terms spanning from 6 months to 7 years. To qualify for this offer, individuals are required to have a stable income, a credit score exceeding 680, and membership with Vancity. This unique offer combines competitive interest rates with a broad loan amount range, making it an appealing option for those meeting the specified eligibility criteria.

  4. Symple offers unsecured personal loans without the need for collateral, providing personalized loan rates starting as low as 6.99% based on individual credit history. With flexible payment terms extending up to 7 years and no penalties for early repayment, Symple Loans accommodates diverse financial needs, whether for emergencies, debt consolidation, or home updates. The quick approval process ensures funds are disbursed by the next business day, and prospective borrowers can obtain a personalized rate in just 2 minutes without impacting their credit score.

Things to Pay Attention to

  1. Interest Rates. Understand whether the interest rate is fixed or variable. Compare rates across different lenders to secure the most favorable terms. Be aware of potential rate increases for variable interest loans in the future.

  2. Loan Terms. Evaluate the repayment period and choose a term that aligns with your financial goals. Aim for the shortest loan term possible to minimize overall interest payments.

  3. Fees and Charges. Take note of any application fees, documentation fees, or origination fees. Be aware of late fees and NSF fees in case of missed payments.

  4. Collateral Requirements. Understand whether you have a secured or unsecured loan option. Be aware of the collateral required for secured loans and the potential risks involved.

  5. Loan Insurance. Evaluate the terms and costs associated with optional loan insurance. Consider whether existing insurance coverage, if any, makes additional loan insurance unnecessary.

  6. Additional Requirements. Understand the eligibility criteria, including minimum income requirements and employment stability expectations. Ensure you meet the lender's specific requirements for age, citizenship, and residency.

  7. Prepayment Penalties. Check for any penalties or fees associated with repaying the loan early. Some lenders may charge a prepayment penalty or have restrictions on early repayment.

  8. Customer Reviews and Reputation. Research customer reviews and the lender's reputation. Choose a reputable lender with positive feedback to ensure a transparent and trustworthy borrowing experience.

  9. Hidden Terms and Conditions. Read the loan agreement thoroughly and be aware of any hidden terms or conditions. Seek clarification on any unclear or ambiguous clauses.

How to Repay a Low-Interest Loan

  1. Understand the Loan Terms. Review the loan agreement thoroughly to understand the terms, including the interest rate, repayment schedule, and any additional fees. Clarify any questions or concerns with the lender before proceeding.

  2. Create a Budget. Develop a detailed budget that incorporates the monthly loan payments. Identify areas where you can cut expenses or increase income to ensure you can comfortably meet repayment obligations.

  3. Set Up Automatic Payments. Opt for automatic payments through your bank to ensure timely and consistent payments. This helps avoid missed payments and potential late fees.

  4. Early Repayment. If possible, consider making additional payments or repaying the loan early. Check with the lender to ensure there are no prepayment penalties or fees.

  5. Contact the Lender in Case of Financial Hardship. If facing financial difficulties, communicate proactively with the lender. Some lenders may offer temporary solutions, such as deferment or modification, to help borrowers during challenging times.

  6. Monitor Credit Score. Keep an eye on your credit score and report to ensure it reflects your responsible loan repayment behavior. A positive credit history can open doors to better financial opportunities in the future.

Reasons for Getting Rejected for a Low-Interest Loan

  1. Low Credit Score. One of the primary factors influencing loan approval is the credit score. A low credit score, typically below the lender's threshold, may result in rejection.

  2. Poor Credit History. A history of missed payments, defaults, or bankruptcies on the credit report can negatively impact the approval decision.

  3. High Debt-to-Income Ratio (DTI). Lenders evaluate the proportion of your monthly income dedicated to debt payments. A high DTI, indicating a significant portion of income allocated to debt, may lead to rejection.

  4. Unstable Employment. Lenders prefer borrowers with a stable employment history. Unpredictable employment, frequent job changes, or recent unemployment can be red flags.

  5. Insufficient Income. Failing to meet the lender's minimum income requirements may result in rejection. Lenders assess whether the borrower has the financial capacity to repay the loan.

  6. Limited Collateral or Assets. For secured loans, insufficient collateral or a lack of valuable assets to secure the loan may lead to rejection.

  7. Numerous Recent Credit Inquiries. Multiple recent credit inquiries suggest a higher risk to lenders. A flurry of credit checks may indicate financial instability or desperation for credit.

  8. Recent Bankruptcy or Foreclosure. Recent instances of bankruptcy, foreclosure, or other major financial setbacks can significantly impact the likelihood of loan approval.

  9. History of Missed Payments. A track record of missed payments on existing loans or credit obligations can signal financial distress and contribute to rejection.

  10. Loan Amount Exceeds Capacity. Applying for a loan amount that exceeds the borrower's financial capacity may result in rejection. Lenders assess the ability to repay the requested amount.


  1. A Home Equity Line of Credit (HELOC) is a financial product that allows homeowners to leverage the equity they have built in their homes. It operates as a revolving line of credit, where borrowers can draw funds up to a predetermined limit, using their home as collateral. The interest rates for HELOCs are often variable and tied to the prime rate. This type of credit provides flexibility, enabling homeowners to use funds for various purposes, such as home improvements or debt consolidation, while only paying interest on the amount borrowed.

  2. Peer-to-peer (P2P) lending is a financial model that connects individuals looking to borrow money with investors willing to lend funds. Online platforms facilitate this direct lending process, cutting out traditional financial institutions. Borrowers create profiles, and investors can choose to fund portions of their loans. Interest rates are often determined by the borrower's creditworthiness and the competitive nature of the platform. P2P lending offers an alternative to traditional banking, providing potentially lower interest rates for borrowers and attractive returns for investors.

  3. Credit union loans are financial products offered by member-owned financial cooperatives known as credit unions. These loans can include personal loans, auto loans, mortgages, and more. Credit unions typically operate as nonprofit organizations, and their primary goal is to serve their members' financial needs. Interest rates on credit union loans may be more favorable than those offered by traditional banks, and credit unions often prioritize personalized service and community involvement.

  4. Balance transfer credit cards allow individuals to transfer existing credit card balances from one or multiple cards to a new card with a lower or 0% introductory interest rate for a specified period. This can help individuals consolidate debt and potentially save on interest charges during the promotional period. It's essential to be aware of any balance transfer fees and the revert interest rate after the promotional period ends. This financial tool is often used as a short-term strategy to manage and reduce credit card debt more effectively.

Editorial Opinion

Low-interest loans play a significant role in the financial landscape, offering individuals the opportunity to access funds at more affordable rates. From a neutral standpoint, the availability of low-interest loans can positively impact borrowers by reducing the overall cost of borrowing and making credit more accessible. This can be particularly beneficial for those seeking to finance major expenses, such as home improvements or debt consolidation. It's crucial for borrowers to carefully consider the terms, understand the potential impact on their financial situation, and ensure they meet the eligibility criteria.


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.


Which bank takes the lowest interest for personal loans?

While specific interest rates for personal loans may vary based on factors such as creditworthiness, loan amount, and terms, National Bank is currently offering competitive rates ranging from 9.65% to 13.70%. Interest rates are subject to change and may depend on individual circumstances.

While other major banks like RBC, BMO, TD, CIBC, and Scotiabank do not always disclose their personal loan rates upfront, monitoring their websites for promotional offers can provide insight into potential competitive rates.

What are current personal loan rates in Canada?

As of now, personal loan rates in Canada typically range from 6.99% to 46.96%. The variation in rates is influenced by factors such as the borrower's credit profile, the loan amount, and the chosen repayment terms.

It's advisable for individuals seeking personal loans to explore offers from different financial institutions, including banks and credit unions, to secure the most favorable interest rates based on their unique financial circumstances.

Are there 0% interest rate loans?

While 0% interest rate loans are not common in the traditional lending market, there are instances where promotional offers or special financing options may provide borrowers with a temporary 0% interest rate. For example, some credit cards or retailers may offer limited-time 0% interest financing on purchases.

These promotions typically have specific terms and conditions, and borrowers should carefully review the terms to understand any potential fees or changes in interest rates after the promotional period ends.

Loan Terms