Royal Bank of Canada (RBC): Overview
With its doors open for more than a century-and-a-half, the Royal Bank of Canada (RBC) is now one of the Big 6 banks in Canada. They offer numerous services from banking to lending. Those looking for a loan can find some of the most competitive rates with RBC.
While the borrowing requirements are generally tough, the benefits of borrowing with a bank like RBC are incomparable. So, if you’re looking for a trustworthy source for a car loan, business loan or any other type of financing, RBC might be the place for you.
What Do We Think About RBC?
| Who is RBC best for? | Best for consumers who: – Are looking for the most competitive rates on the market – Have good credit and strong finances – Prefer working with an established big bank with online and in-person accessibility |
| What we like about RBC | – Competitive Rates – Various Loan Options – Skip-A-Payment Option – Flexible Loan Terms – No Prepayment Penalties |
| What we don’t like about RBC | – Strict Credit Score Requirements – Longer Approval And Funding Times |
What Type Of Loans Does RBC Offer?
RBC offers several loan products, including the following:
RBC Car Financing
RBC auto loans are available for both new and used vehicles. They offer loans starting from $7,500. You can get RBC financing by directly applying with a RBC partnered car dealership or by getting pre-qualified with RBC first. Then you can shop with an RBC partnered dealership based on your pre-approval.
RBC also offers loans for powersport vehicles, such as a boat or RV.
Car Loan Features
- Pre-Qualification: Get pre-qualified for an RBC car loan without negatively affecting your credit score.
- Car Loan Calculator: Find out what your car payments may look like using RBC’s car loan calculator online.
- Dealer Financing: RBC partners with over 4,500 dealerships across Canada, making applying for RBC car financing quick and convenient.
- Wide Range Of Loan Terms: RBC’s car loan terms range from 1 to 8 years, with fixed or variable interest rates available.
- Used Car Financing Available: Finance a used car that’s up to 10 years old.
- No Prepayment Penalties: Pay off your auto loan early with no early payment penalties.
- Flexible Repayments: Choose monthly, semi-monthly, bi-weekly, or weekly payments.
Eligibility
- Credit Score: A good credit score (at least 660) is typically required for an RBC car loan.
- Income And Employment: You’ll need to provide proof of sufficient income and stable employment to show that you’re able to make on-time loan payments.
- Vehicle Age: If you’re buying used, the vehicle cannot be older than 10 years.
- Loan Amount: Minimum loan amount for an RBC car loan is $7,500.
How To Apply For RBC Car Financing
Follow these steps to apply for a RBC car loan:
Step 1: Get Pre-Qualified
Use RBC’s online pre-qualification tool and affordability calculator to assess loan qualifications without affecting your credit score.
Step 2: Start Shopping
RBC is partnered with over 4,500 car dealerships across Canada. Simply choose a dealership and start shopping for your car. If you’ve been pre-qualified for a loan, you can shop based on your borrowing limit.
That said, you don’t have to get pre-qualified before shopping. You can directly visit an RBC partnered dealership and start shopping based on your budget.
Step 3: Apply
Once you’ve found the car you like, simply request RBC financing from the dealership when purchasing a vehicle. Then, complete the loan application and finalize the vehicle purchase.
Documents You May Need
You may need to supply the dealership with the following documents:
- Proof of income
- Proof of employment
- Photo ID
- Vehicle information
Step 4: Review Loan Terms
Read over the loan contract to make sure you understand all costs and terms.
Business Loans
Whether you’re a start-up or have been in business for a while, RBC offers business loans for various purposes and phases of your entrepreneurial journey.
Business Loan Features
- Loan Calculator: Estimate how much your monthly payments will be for your RBC business loan.
- Various Business Loan Options: Choose from a variety of loan options, including:
- Term Loans starting at $5,000
- Canada Small-Business Financing (CSBF) Loan up to $1 million
- Canadian Agricultural Loans Act (CALA) Loan for up to 90% financing
- Lines of credit for more flexible spending
- Fixed And Variable Rate Options: Choose between a fixed-rate loan to keep payments consistent, or variable rate loans to take advantage of potentially lower future rates.
- Various Loan Purposes: Use your business loan funds for both new and expanding businesses.
Eligibility
Eligibility requirements vary by loan product, length of time in business, and industry.
Speak with an RBC Business Specialist who will go over your situation and needs and can point you to the most suitable financing option. In some cases, you may also need an RBC business account to apply for an RBC business loan.
How To Apply
To apply for an RBC business loan, follow these steps:
Step 1: Choose Your Loan Type
Decide which type of RBC business loan you want to apply for, such as government-backed financing or term loans.
Step 2: Speak With An RBC Business Loan Specialist
A loan specialist from RBC can help you determine which loan option is best suited for you and can guide you through the application and approval process.
Step 3: Apply
Online or In-Person – You can apply for a business loan by visiting a local branch, or get the process started by completing an online application.
Documents You May Need
You’ll need to provide RBC with certain documents depending on the type of loan and business needs. You’ll generally need to provide a business plan and various business financial documents, such as a balance sheet.
Step 4: Finalize The Terms
RBC will review your loan application and provide you with a contract for you to review and sign. Then, your funds will be made available to you to cover your intended purposes.
Other RBC Loan Products
RBC offers a handful of other loan products, including the following:
Personal Loans
RBC personal loans offer lump sum funds that can be repaid over various repayment schedules and loan terms. Rates can either be fixed or variable, with flexible loan terms from 1 to 5 years, and monthly, bi-weekly, or weekly payments.
There are no prepayment penalties, so you’re free to repay your loan whenever you like. During times of financial pressure, you can take advantage of RBC’s Skip-a-Payment option once a year (interest continues to accrue).
Mortgages
RBC offers a variety of mortgage products, including fixed- and variable-rate mortgages, home equity loans, and an RBC Homeline Plan that combines a mortgage with a home equity credit line for more flexible borrowing.
Whether you’re buying your first home or second home, renewing your mortgage, refinancing, renovating your home, or investing, RBC has several options to choose from to suit your needs.
Lines Of Credit (Royal Credit Line)
RBC’s Royal Credit Line provides a flexible borrowing solution that allows borrowers to access funds of any amount up to a specific credit limit. Borrowed funds are charged a variable interest rate that fluctuates based on the RBC Prime Rate and are only charged on the portion withdrawn.
Once you pay back what you borrowed, the funds are available to you again without the need to re-apply. The line of credit is available in secured and unsecured options, allowing customers to choose based on their financial needs
What We Like About RBC
RBC offers several advantages to borrowers, including the following:
- Competitive Rates For Good Credit: RBC offers low interest rates on loans for those with strong credit scores.
- Various Loan Options: RBC offers several loan options, including auto loans, business loans, mortgages, and personal loans.
- Skip-A-Payment Option: If eligible, you may be able to skip one monthly payment per year during times when you need a financial breather, though interest will continue to accrue.
- Flexible Loan Terms: Loan term lengths vary extensively, allowing you to choose between shorter terms or longer terms based on your financial situation.
- No Prepayment Penalties: RBC allows borrowers to repay their loans before the term end date without early repayment penalty fees.
What We Think You Should Watch Out For
Despite the plethora of perks that RBC offers, there are a handful of potential drawbacks to consider:
- Strict Credit Score Requirements: You’ll need a good to excellent credit score to qualify for loans from RBC.
- Higher Interest Rates For Bad Credit Borrowers: If you’re able to get approved for a loan with a sub-par credit score, you’ll likely face higher rates and lower loan amounts.
- Longer Approval And Funding Times: Compared to alternative or online lenders, RBC takes longer to provide approval and funding.
Is RBC Safe?
Yes, RBC is considered a secure bank. With a history dating back to 1864, RBC is well-established and has a long track record in the banking industry.
To keep client information and finances safe, RBC boasts robust fraud protection and cybersecurity measures. The bank also uses 2-step verification and encryption to protect client accounts. RBC is also regulated by Canadian banking authorities, making it a very safe financial institution to borrow from.
What Do Consumers Think Of RBC?
Find out what others have to say about RBC:
| Better Business Bureau (BBB) | –Not BBB accredited -F Rating |
| Consumer Affairs Rating | –1.3/5 stars |
| Trustpilot Rating | –1.2/5 stars |
| Social Media Presence | Instagram: 107K Facebook: 612K LinkedIn: 827K X: 108.8K |
| Physical Location | Nearly 1,300 branches across Canada |
How Does RBC Compare To CIBC?
RBC is one of Canada’s “Big Five” banks. So, how does it compare to other big banks in Canada, like CIBC?
| RBC | CIBC | |
| Loan Products | -Car loans -Business loans -Lines of credit -Personal loans -Credit cards -Home improvement loans -Mortgages | -Car loans -Business loans -Lines of credit -Personal loans -Credit cards -Home improvement loans -Mortgages |
| Market Capitalization (as of June 2025) | $246.25 billion | $87.22 billion |
| Number of Bank Branches | 1,100+ | 991 |
| Number of ATMs | 4,000+ | 3,018 |
Final Thoughts
As Canada’s largest bank and with more than a century and a half in the banking industry, RBC is a popular choice among Canadians for their loan and personal finance needs. If you have decent credit, RBC makes a great choice to keep loan costs low while accessing large loan amounts. To get started, consider pre-qualifying online to find out more about your eligibility and to estimate what your loan will cost you.
