Secured Personal Loans for April 2024

Get a secured personal loan at one of the lenders verified by our specialists. On 24.04.2024 there are 1 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 1
Best Quick Loan Today 24.04.2024*
Mr. Payday
Need a Quick Loan Now?
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
Get Your FREE Quote Today!
Get Your FREE Quote Today!

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

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 Secured Personal Loan?

A secured personal loan in Canada involves the use of an asset, such as a car, home, or other valuable possessions, as collateral to secure the loan. This collateral serves as a guarantee to the lender that the borrower will repay the loan as agreed. In the event of payment default, the lender has the legal right to seize and sell the collateral to recover the outstanding debt. This aspect makes secured personal loans less risky for lenders, as they have a tangible means of recouping their funds.

Secured personal loans offer certain advantages to borrowers due to the reduced risk for lenders. With the backing of collateral, borrowers often enjoy lower personal loan rates, longer repayment terms, and higher borrowing limits compared to unsecured personal loans. The flexibility in terms makes secured personal loans an attractive option for individuals seeking to consolidate debts or those requiring substantial funds for significant expenses. Common types of secured personal loans include auto loans, where the vehicle serves as collateral, and home equity loans, which leverage the equity in a property to secure the loan.


  1. Lower Interest Rates. Secured loans typically come with lower interest rates compared to unsecured alternatives. The collateral provided mitigates the lender's risk, resulting in more favorable interest terms for the borrower.

  2. Extended Loan Terms. Borrowers opting for secured personal loans often benefit from longer repayment periods. This extended timeframe allows for more manageable monthly payments and provides greater flexibility in financial planning.

  3. Higher Borrowing Limits. Securing the loan with valuable assets allows borrowers to access higher loan amounts. This makes secured loans an ideal choice for individuals requiring substantial funds for significant expenses or debt consolidation.

  4. Variety of Collateral Options. Secured personal loans can be tailored to various assets, including automobiles, homes, or other valuable possessions. This flexibility enables borrowers to choose collateral based on their financial circumstances.

  5. Reduced Lender Risk. The presence of collateral decreases the risk for lenders, making them more willing to extend credit to individuals with varying credit histories. This increased security often translates to a higher likelihood of loan approval.

  6. Debt Consolidation Opportunities. Secured personal loans are frequently utilized for debt consolidation purposes. By leveraging collateral, borrowers can merge multiple debts into a single, more manageable loan with potentially lower overall interest rates.

Pros and Cons


Lower Interest Rates. Secured personal loans often come with lower interest rates compared to unsecured loan options. The collateral provided reduces the lender's risk, resulting in more favorable terms for the borrower.

Higher Borrowing Limits. The presence of collateral allows borrowers to access higher loan amounts, making secured loans suitable for substantial expenses or debt consolidation.

Extended Repayment Terms. Secured loans typically offer longer repayment periods, providing borrowers with flexibility in managing monthly payments and reducing financial strain.


Risk of Asset Loss. The primary drawback is the risk of losing the collateral if the borrower fails to make payments. This is a significant concern, especially if the asset used as collateral is valuable, such as a home or car.

Stringent Qualification Requirements. Lenders may have stringent eligibility criteria, including minimum credit scores and income thresholds. This can pose challenges for individuals who do not meet these requirements.

Long-Term Commitment. Longer repayment terms, while providing flexibility, also mean a more extended commitment to the loan. Borrowers should carefully consider their ability to meet their obligations over an extended period.

How to Get a Secured Personal Loan

Apply for a Loan

  1. Choose the Right Type of Secured Loan. Consider the type of collateral you can provide, such as a car, home, or other valuable assets. Choose a loan type that aligns with your needs, whether it's an auto loan or a home equity loan.

  2. Check Your Credit Score. While secured loans are more lenient towards lower credit scores, it's still beneficial to know your credit status. Some lenders may have minimum credit score requirements.

  3. Research Lenders. Explore various financial institutions, including banks, credit unions, and online lenders, to find those offering secured personal loans. Compare interest rates, terms, and borrowing limits to identify the most favorable options.

  4. Gather Necessary Documentation. Prepare the required documents, which commonly include proof of identity (government-issued ID), income documents (paystubs, tax returns), and information about the collateral.

  5. Check Collateral Value. If your collateral is a property, like a home, the lender may conduct an appraisal to determine its value. Ensure that the collateral's value is sufficient to cover the loan amount.

  6. Complete the Loan Application. Fill out the loan application form provided by the chosen lender. Be accurate and thorough in providing personal, financial, and collateral information.

  7. Await Approval. Once your application is submitted, the lender will review your information, conduct a credit check, and assess the value of the collateral. Approval timelines vary, but you may receive a decision within a few days to a few weeks.

  8. Review Loan Terms. If approved, carefully review the loan terms, including interest rates, repayment period, and any fees associated with the loan. Ensure that you understand all aspects before proceeding.

  9. Accept the Loan Offer. If satisfied with the terms, formally accept the loan offer. This may involve signing a loan agreement and providing any additional required information.

  10. Collateral Agreement. For certain secured loans, like home equity loans, a collateral agreement may be necessary. This outlines the terms related to the collateral, such as the lender's lien on the property.

  11. Receive Funds. Once all documentation is in order, the lender will disburse the loan funds. In many cases, funds are deposited directly into the borrower's bank account.


  1. Collateral. Borrowers need to provide valuable assets, such as a car, home, or other possessions, as collateral for the secured loan.

  2. Proof of Identity. Borrowers must present a valid government-issued ID, such as a driver's license or passport, to verify their identity and residency.

  3. Income Documents. Lenders typically require documentation to prove the borrower's income and employment status. This may include paystubs, bank statements, tax returns, or other relevant financial records.

  4. Credit History. Most lenders will check the borrower's credit score to assess creditworthiness. While secured loans may be more lenient towards lower credit scores, a positive credit history can still influence interest rates and loan terms.

  5. Banking Information. Borrowers need to provide their Canadian banking information, including account details, for the deposit of loan funds and to set up automatic payments.

  6. Social Insurance Number (SIN). Depending on the lender, borrowers may be required to provide their Social Insurance Number (SIN) as part of the application process.

  7. Loan Purpose. Some lenders may inquire about the specific purpose of the loan, particularly if it's for debt consolidation or a major purchase.

  8. Collateral Value Assessment. For certain assets like homes, lenders may conduct an appraisal to assess the value of the collateral.


  1. Interest Rates. Lenders will specify the interest rate for the secured loan. Secured loans often come with lower interest rates compared to unsecured loans due to the reduced risk for the lender.

  2. Loan Amount. The approved loan amount is determined based on the value of the collateral. Higher-value collateral often allows borrowers to access larger loan amounts.

  3. Repayment Terms. Lenders will outline the duration of the loan repayment, indicating the number of months or years within which the borrower is expected to repay the loan.

  4. Payment Schedule. The lender will specify the frequency of loan payments, whether monthly payment schedule, bi-monthly, or otherwise. Borrowers need to adhere to the agreed-upon payment schedule.

  5. Fees and Charges. Lenders may impose certain fees, such as application fees, appraisal fees, or late payment charges. Borrowers should carefully review and understand all associated fees.

  6. Loan Agreement. Borrowers are required to sign a loan agreement that outlines all terms and conditions of the loan, including the consequences of default and the process for collateral seizure.

  7. Credit Score Impact. Lenders may provide information on how timely loan payments will impact the borrower's credit score positively. Conversely, missed payments can have adverse effects.

  8. Conditions for Collateral Release. The lender will specify the conditions under which they will release the collateral, usually upon full repayment of the loan.

Best Places to get a Secured Personal Loan

  1. Fusion Credit Union distinguishes itself by offering a diverse range of loan amounts to cater to both individual and business needs across Canada. Their flexible loan terms, spanning from one to 25 years, provide borrowers with the freedom to choose a repayment period that aligns with their financial circumstances. While competitive starting APRs offer attractive deals, borrowers should be mindful of potential higher APRs, even though Fusion Credit Union's maximum APR of 10% compares favorably with some competitors. The credit union's commitment to personal service, coupled with modern features like online applications and a mobile app, ensures a convenient and personalized borrowing experience.

  2. Easyfinancial addresses the financing needs of borrowers with limited credit history, offering a lifeline for those facing challenges in obtaining loans. Featuring same-day funding for swift financial relief, easyfinancial balances its relatively higher APR range with perks such as autopay and loyalty discounts. The flexibility of loan terms, ranging from 9 to 120 months and the absence of prepayment penalties, empowers borrowers to manage their repayment at their own pace, making it a viable option for those seeking accessibility and flexibility in the borrowing process.

  3. Fairstone, Canada's foremost non-bank lender of personal loans, extends secured personal loans ranging from $5,000 to $50,000. These loans leverage borrowers' assets, typically homes, allowing access to lower interest rates, manageable payments, and increased borrowing capacity. Positioned as a trusted financial partner, Fairstone assists customers in obtaining up to $35,000, enabling them to consolidate debt into a single monthly payment or address unexpected expenses. With an extensive network of 235+ locations nationwide and over 1,000 knowledgeable Lending Specialists, Fairstone prioritizes customer needs, offering accessible and affordable borrowing solutions. The company also collaborates with Canadian businesses and auto dealerships to provide quality consumer financing options.

  4. LM Credit distinguishes itself with a unique proposition of same-day funding, positioning it as an ideal choice for borrowers facing immediate financial requirements. Notably, LM Credit sets itself apart by not specifying a minimum credit score, widening its accessibility to a diverse range of potential borrowers. The flexible APR range, coupled with additional perks and discounts, enhances the appeal for customers seeking personalized financing solutions. While operating in all provinces except Quebec, LM Credit demonstrates a commitment to adaptability and efficiency, aligning its services to meet the urgent needs of borrowers with a swift and accommodating approach.

Things to Pay Attention to

  1. Personal Loan Interest Rates. Understand the interest rates associated with the loan. Secured loans often offer lower rates, but it's important to know the specifics, whether it's a fixed or variable rate.

  2. Loan Terms. Review the duration of the loan. Longer terms may offer lower monthly payments but can result in higher overall interest paid over time.

  3. Total Loan Cost. Calculate the total cost of the loan, including interest and fees. This provides a clear picture of the financial commitment.

  4. Borrowing Limits. Know the maximum amount you can borrow based on the value of your collateral. Ensure it meets your financial needs.

  5. Collateral Value. Understand how the lender assesses the value of your collateral. This impacts the approved loan amount and the overall risk.

  6. Repayment Schedule. Review the repayment schedule, including the frequency of payments. Ensure it aligns with your budget and financial capabilities.

  7. Fees and Charges. Be aware of any application fees, appraisal fees, or other charges associated with the loan. Clarify if there are penalties for early repayment or late payments.

  8. Alternative Lender Options. Explore options from various lenders, including traditional banks, credit unions, and online lenders. Compare interest rates, terms, and conditions to find the most favorable offer.

  9. Customer Reviews and Reputation. Research the lender's reputation and read customer reviews. This provides insights into the lender's customer service, transparency, and overall satisfaction.

How to Repay a Secured Personal Loan

  1. Understand the Loan Agreement. Thoroughly review the loan agreement, including the repayment terms, interest rates, and any additional fees or charges. Ensure you have a clear understanding of the agreed-upon terms.

  2. Create a Repayment Plan. Develop a repayment plan based on the terms provided in the agreement. Consider factors such as your income, budget, and the payment frequency stipulated in the agreement.

  3. Set Up Automatic Payments. Many lenders offer the option to set up automatic payments from your bank account. This ensures that your payments are made on time, reducing the risk of late fees and missed payments.

  4. Record Payment Due Dates. Note the due dates for each payment and set reminders to avoid missing any deadlines. Consistently making on-time payments positively impacts your credit score.

  5. Communicate with the Lender. If you encounter financial difficulties or anticipate issues with making a payment, communicate with the lender as early as possible. Some lenders may offer temporary solutions or revised payment plans.

  6. Retain Documentation. Keep records of all loan-related documents, including payment receipts, statements, and communication with the lender. This documentation may be useful in case of disputes or discrepancies.

  7. Collateral Maintenance. If your collateral is an asset such as a car or property, ensure its proper maintenance. This not only preserves the value of the collateral but also helps prevent any issues in case of a collateral seizure.

Reasons for Getting Rejected for a Secured Personal Loan

  1. Inadequate Collateral Value. The lender may determine that the value of the collateral you are offering is insufficient to cover the loan amount requested. In such cases, they may reject the application.

  2. Poor Credit History. Despite being a secured loan, some lenders still consider your credit history. If you have a history of missed payments, defaults, or bankruptcies, it may negatively impact your application.

  3. Unstable Income. Lenders assess your ability to repay the loan, and an unstable income or insufficient proof of income may lead to rejection. They often prefer borrowers with a steady income.

  4. High Debt-to-Income Ratio. If your existing debts, when compared to your income, result in a high debt-to-income ratio, lenders may view you as a higher risk, leading to a rejection.

  5. Unsuitable Loan Purpose. Some lenders may reject applications if they believe the intended use of the loan funds is not suitable or aligns with their lending policies.

  6. Incomplete Documentation. Failing to provide all the required documentation or submitting incomplete information can result in the rejection of your application. Ensure you provide all necessary paperwork.

  7. Issues with Collateral. The collateral offered may have existing liens or legal complications, making it unsuitable for securing a loan. Clear title and legal ownership are crucial.

  8. Insufficient Credit Score. While secured loans are generally more lenient towards credit scores, some lenders may have minimum requirements. If your credit score falls below their threshold, it could lead to rejection.

  9. Recent Bankruptcy. If you have recently declared bankruptcy, lenders may be hesitant to extend credit, even with collateral. Some lenders may have specific waiting periods before considering applications from individuals with recent bankruptcies.


  1. Credit cards are a form of revolving credit that allows individuals to make purchases up to a predetermined credit limit. Users can pay off the balance in full by the due date to avoid interest charges or choose to carry a balance, incurring interest on the outstanding amount. Credit cards offer convenience, rewards, and the opportunity to build a credit history, but misuse can lead to high-interest debt because credit cards typically have higher interest rates than most personal loans.

  2. A line of credit is a flexible form of credit where a financial institution establishes a maximum borrowing limit, and the borrower can access funds as needed. It operates similarly to a credit card but doesn't require a physical card for transactions. Interest is only charged on the amount borrowed, and once repaid, the credit line is available again. Lines of credit are useful for managing fluctuating expenses and can be either secured or unsecured.

  3. A Home Equity Line of Credit, or HELOC, is a flexible financial product that allows homeowners to leverage the equity they have built in their property. Essentially, it is a line of credit secured by the borrower's home. With a HELOC, individuals can borrow against the equity in their home up to a predetermined limit. Unlike a traditional loan, HELOCs operate similarly to credit cards in that borrowers can draw funds as needed, make repayments, and then access the available credit again.

  4. A Home Equity Loan, also known as a second mortgage, is a fixed-term loan that allows homeowners to borrow a lump sum of money based on the equity they have in their property. Equity is the difference between the home's current market value and the outstanding mortgage balance. Home Equity Loans provide a predictable repayment structure, as borrowers receive a one-time payout and repay the loan in equal installments over a specified period, typically 5 to 15 years. The interest rates for these loans are generally fixed, offering stability over the life of the loan.

Editorial Opinion

Secured personal loans provide a financial avenue for individuals seeking access to credit, utilizing collateral such as homes, cars, or other assets. While these loans offer certain advantages, including lower interest rates and extended repayment terms due to reduced risk for lenders, borrowers should carefully consider the potential drawbacks. The risk of losing the collateral in case of payment default is a significant concern, and individuals must ensure their ability to meet the repayment obligations. Additionally, the application process for secured loans can be more intricate compared to unsecured personal loan options.


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.


Do secured loans affect credit score?

Yes, secured loans can have an impact on your credit score. When you apply for a secured loan, a hard inquiry is typically made on your credit report, which may result in a temporary dip in your credit score. However, once the loan is approved and you start making timely payments, it can have a positive effect on your credit. Responsible management of a secured loan, including making personal loan payments on time, demonstrates to credit bureaus that you can handle credit responsibly. On the flip side, defaulting on payments or facing issues with the loan can negatively impact your credit score, and in severe cases, may lead to the repossession of the collateral.

What is the eligibility for a personal loan in Canada?

Eligibility for a personal loan in Canada depends on various factors, including your credit score, income, employment stability, and debt-to-income ratio. Lenders typically require proof of identity, income documents (such as paystubs or tax returns), and may conduct a credit check. Having a good credit score, a stable income, and a reasonable debt-to-income ratio increases your chances to borrow money.

However, eligibility criteria can vary among lenders, and some alternative lenders may be more flexible with their requirements.

What credit score do you need for a secured personal loan?

The credit score needed for a secured personal loan can vary among lenders.

Generally, personal loans in Canada are more accessible for individuals with lower credit scores compared to unsecured loans. While some lenders may consider borrowers with scores below 600, having a higher credit score can lead to more favorable terms, including lower interest rates. Secured loans rely heavily on the value of the collateral provided, which makes lenders more lenient towards individuals with less-than-perfect credit.

However, it's essential to check with specific lenders, as their credit score requirements may differ.

Loan Terms