Are you searching for a loan that won’t cost you a fortune in interest? Whether you’re consolidating debt, planning a major purchase, or just need a financial boost, finding a low-interest personal loan in Canada can save you thousands over time.
In this 2025 guide, we explore the best low-interest loan options available in Canada right now — with fast approval and flexible terms.
🔍 What Counts as a Low-Interest Loan in Canada?
While interest rates vary depending on credit history and loan type, most low-interest personal loans in Canada fall in the 5.99% to 11.99% annual percentage rate (APR) range for qualified borrowers.
Factors that impact your rate:
- Credit score
- Income level
- Debt-to-income ratio
- Loan amount and term
- Secured vs. unsecured loan
Top Low-Interest Loan Providers in Canada (2025)
Here are the top picks based on current offers, transparency, and customer reviews.
1. RBC Royal Bank
APR: As low as 6.99%
Loan Amount: $5,000 – $50,000
Best For: Existing clients with strong credit
RBC offers some of the most competitive interest rates for its clients, especially those with a high credit score and stable income. Fixed and variable rate options are available.
2. Scotiabank Personal Loan
APR: Starting from 7.49%
Loan Amount: $5,000 – $50,000
Best For: Customized repayment plans
Scotiabank provides flexible repayment terms up to 5 years. You can choose weekly, biweekly, or monthly payments, with the ability to make lump sum prepayments anytime.
3. Fairstone
APR: From 19.99% (lower than most bad credit lenders)
Loan Amount: $500 – $50,000
Best For: Fair credit and in-person service
While not the lowest on this list, Fairstone is one of the most accessible for Canadians with average credit. A good alternative to high-cost payday lenders.
4. LoanConnect
APR: From 6.99% (varies by lender)
Loan Amount: $500 – $50,000
Best For: Comparing low-interest offers quickly
LoanConnect is an online loan search platform that shows multiple offers with a single application. It helps you compare and apply for the lowest interest rates available in real time.
5. goPeer (P2P Lending)
APR: Starting at 8.99%
Loan Amount: $1,000 – $25,000
Best For: Peer-to-peer lending with competitive rates
goPeer connects borrowers directly with individual investors. It’s a great choice for those with solid credit who want an alternative to traditional banks.
6. Mogo Personal Loan
APR: As low as 9.90%
Loan Amount: $500 – $35,000
Best For: Digital experience and rewards
Mogo offers quick online approval and carbon offset rewards for responsible borrowing. Interest rates are competitive for qualified borrowers.
💡 Tips to Qualify for Lower Interest Rates
- Check your credit score before applying.
- Choose a shorter loan term if possible.
- Avoid late payments and reduce existing debts.
- Consider secured loans to reduce lender risk.
- Shop around — don’t accept the first offer you receive.
⚠️ What to Avoid
Be cautious of:
- Payday loans with interest rates over 500% APR.
- “No credit check” loans with hidden fees.
- Lenders that pressure you to borrow more than you need.
Always read the fine print and understand the full cost of borrowing.
📌 Final Thoughts
Low-interest personal loans in Canada are within reach — even if your credit isn’t perfect. By comparing your options and applying strategically, you can get the funds you need without drowning in interest charges.
Whether you’re borrowing for debt consolidation, home improvement, or emergency expenses, the key is borrowing smart and repaying responsibly.
Need help comparing offers? Use trusted tools like LoanConnect or Borrowell to find the best match for your financial profile today.