When you have too many expenses to cover, you might find it beneficial to take out a personal loan to help spread the costs. This should give you some extra money that you can pay back over an extended term which, depending on the size and conditions of your loan, could last anywhere from a few weeks to several months or even longer.
For instance, can you get a 3-year loan in Canada? Read this to find out.
Can You Get A 3-Year Personal Loan?
If you meet the lender’s requirements, you can qualify for a 3-year personal loan. Generally, you’ll need to show your lender that you’re able to afford the loan by showing you have a high and stable enough income to cover the payments for 3 years.
A 3-year personal loan can usually be paid in installments of 36 monthly payments, 24 bi-monthly payments, 26 bi-weekly payments or 52 weekly payments. Moreover, most lenders charge fixed interest rates on 3-year loans, which results in the same payment every month.
If you’re unable to afford the loan, longer terms of around 5 to 10 years are also possible. However, if you want to save money on interest, you might want to get a shorter term or pay your personal loan ahead of time (as long as there are no prepayment penalties).
Spring Financial is an online consumer lending company that offers innovative financial and credit-building solutions designed to give Canadians the opportunity to build credit, save money and borrow responsibly.With many Canadians struggling with high-interest debt and limited financing options, Spring Financial strives to provide Canadians with affordable and accessible financial products that can help them achieve greater financial freedom. Among their growing suite of smart money solutions, Spring Financial offers $1,500 cash advances, personal loans up to $35,000, and a credit-building program that helps you build credit and save money.
If you’re looking for an open-ended line of credit with credit limits up to $15,000, Fora is the best choice. Fora’s line of credit lets you withdraw funds from your available credit, and repay and redraw as needed. This makes it an excellent option for those seeking flexibility and quick access to cash as needed.Moreover, interest rates start as low as 19.9% and are only charged on the amount you withdraw.
Fairstone is a great choice for consumers looking for loans with affordable payments that meet their needs and budget. As Canada’s leading non-bank lender of personal loans, consumers can get unsecured loans up to $25,000. Homeowners can choose a secured loan (backed by the value of their house) to borrow more money and access lower payments compared to an unsecured loan. Whether you’re looking to consolidate debt into one simple monthly payment, cover unexpected expenses or something else altogether, Fairstone is a great option.
SkyCap Financial has been helping Canadian consumers take control of their financial futures since 2013. Their main goal is to provide alternative financing to all Canadians, regardless of their financial past or credit history. They provide fast and easy short-term loans ranging from $500 to $10,000 and approve applicants in as little as 24 hours. Consumers can take advantage of SkyCap Financial’s quick application and a team of experienced individuals who strive to make your experience as smooth as possible. SkyCap Financial bases all their lending decisions on three main factors, current income, credibility, and stability, so they can approve more Canadians, especially those who have been rejected in the past based on credit issues.
Cash Money has been helping Canadians access easy and quick loans for more than 30 years. They offer payday loans, personal loans, and line of credit loans from $1,500 to $10,000. User will enjoy their simple online application, personalized options, and same-day funding. Whether you need to cover an emergency expense or simply need to make it to your next payday, Cash Money can a variety of options to meet your needs.
Money Mart is a Canadian financial services provider that specializes in offering short-term financial products, including payday loans, cheque cashing, wire transfers, and installment loans. They're available both in person and online, providing borrowers with different options to apply for loans and access their borrowed funds. Their Payday Boost products are available for up to $1,500, and installment loans are available for up to $18,000. They're known for their easy-to-use services and same-day cash options, making Money Mart a great option for those who have little time to wait for much-needed funding.
LendDirect is an online lender that provides personal lines of credit for Canadians looking for a more flexible financial solution. Unlike traditional loans, LendDirect offers revolving credit, allowing borrowers to access up to $15,000 on an as-needed basis. The approval process is quick, with funds available within 15 minutes via Interac e-Transfer.
GoPeer is a peer-to-peer lending platform that connects borrowers with individual investors who fund loans. Through GoPeer, you can get a personal loan for up to $35,000, with flexible repayment terms and competitive interest rates. Interest rates start at 8.99%, depending on your credit profile. GoPeer's unique peer-to-peer model allows consumers to benefit from a more personalized borrowing approach. The online application process is quick and easy, and funds can be deposited into your account in as little as 7 days.
Cash4You is a financial services company that offers payday loans and installment loans. Payday loans are available for up to $1,500, and installment loans are available for up to $15,000. Cash4You provides an easy and efficient application process, which can be done either online or in-store. Loan applications can be approved very quickly and funding provided shortly after. Cash4You caters to consumers with varying credit scores, so bad credit borrowers may apply.
Magical Credit is an online lender that offers two types of loan products; Magical Cash Loans and Magical Installment Loans. Borrowers can access up to $1,500 with the Magical Cash Loan and up to $20,000 with the Magical Installment Loan. Magical Credit specializes in bad credit loans, so qualifying with them may be easier compared to traditional banks. Moreover, they accept various government subsidies as income for their Magical Cash Loan, providing greater accessibility to those in need.
The MogoMini line of credit offers Canadian consumers a great personal loan alternative. Borrowers can access up to $5,000, spend what they need when they need it, make the automatic minimum payments, and finally control their own principal payments. This Mogo product is flexible and users can test drive their line of credit for 100 days to see if it’s the right fit. Access their easy online application via your MogoMoney dashboard and get pre-approved in 3 minutes with no impact on your credit.
Cashco Financial is a Canadian financial services company that offers short- and long-term loan options. Payday loans for up to $1,500 are available with no credit checks and instant approvals. Flex loans are available for up to $7,000 with loan terms of up to 60 months and flexible repayment options. Cashco is known for providing same-day funding, ensuring you have access to the money you need quickly.
Loan Away is a Canadian online lender that provides unsecured personal loans and home equity loans. Unsecured personal loans are available for up to $5,000, with funds available in as little as 24 hours or less. Home equity loans are available for up to $50,000 to homeowners with sufficient equity, with interest rates starting as low as 19.9%. Loan Away’s online application process is straightforward and takes only a few minutes to complete.
What Do You Need to Qualify For A 3-Year Personal Loan?
Before you apply for a 3-year personal loan in Canada, make sure to find out your potential lender’s eligibility criteria. Generally, requirements include:
Being a citizen or permanent resident of Canada
Being at least the age of majority in your province or territory (18 or 19+)
Meeting the lender’s minimum income, debt and credit score requirements
Providing the right documents (government ID, bank statements, pay stubs, etc.)
Common Documents Required For A 3-Year Personal Loan
Name, date of birth, contact information
1 or 2 government-issued IDs (1 photo)
Social Insurance Number (SIN)
Proof of employment (income, employer name, job title)
Loan purpose
3 months’ worth of bank statements
Bank account details (for direct deposit and withdrawal of payments)
Types Of 3-Year Personal Loans
A personal loan is a lump sum of money that you can borrow from a lender and repay in installments. There are several types of 3-year personal loans you can acquire, including:
Secured or Unsecured Personal Loans – If you leverage an asset against your personal loan, you may qualify for more money and a lower interest rate. Then again, the lender can take your asset if you fall too far behind on your payments. An unsecured loan doesn’t have that risk but may come with a higher interest rate.
Fixed or Variable Rate Personal Loans – Some lenders offer both of these rates with their loans. Fixed rates can be higher than variable rates but are easier to calculate because they don’t change during your payment term. On the other hand, variable rates may start low and fluctuate with the market rates.
Can You Get A 3-Year Personal Loan With No Credit Check?
In Canada, many alternative lenders offer personal loans without credit checks to those who have bad credit or no credit history. Lenders will base their approval process on your income or ability to provide collateral instead. Unfortunately, this usually isn’t an option with banks and credit unions, since their approval standards are far more strict.
If you plan on applying for a no-credit-check loan, keep in mind that you’ll probably have to pay a higher interest rate for it. Plus, the more money you need to take out and the longer you want your term to be, the tougher the lender’s requirements could become.
Borrow Up To $50,000
Can You Get a 3-Year Personal Loan With No Bank Verification?
Once you apply for a personal loan, most lenders will verify your banking information to see your income and debt levels, then eventually deposit your funds and withdraw your payments. As such, you may need an active chequing account with direct deposit and at least 90-days of recent banking statements to get approved for a personal loan.
If you don’t have or don’t wish to give a lender access to a chequing account, there are a few other financial products that don’t involve bank verification. However, these options have much shorter terms and higher costs.
Credit Card Cash Advances – You can withdraw cash up to a certain limit from your credit card account using a bank or ATM. However, credit card cash advances have no grace period, a high-interest rate and a fee of 2% – 8% of the withdrawal amount.
Payday Loans – Some payday lenders don’t require any bank verification, you simply need to show proof of income. With this option, you could get a small loan of about $100 – $1,500 with an average payment term of 2 weeks.
Calculate The Monthly Cost Of A 3-Year Personal Loan
Prior to applying, it’s also important to calculate the costs of your personal loan and understand how much you can afford. For example, here’s what you could pay per month for a 3-year personal loan in Canada:
Loan Amount
4.99% APR
15.99% APR
26.96% APR
$2,000
$59.93
$70.30
$81.61
$5,000
$149.83
$175.76
$204.02
$10,000
$299.66
$351.52
$408.04
$15,000
$449.50
$527.28
$612.06
$20,000
$599.33
$703.04
$816.08
How To Choose A 3-Year Personal Loan
When searching for a 3-year personal loan, don’t forget to shop around and compare options to find a deal that suits your finances. Here are some major factors to consider:
Eligibility Criteria – Approval requirements vary from lender to lender but most will inspect your income, credit, employment history and debt levels when you apply. The better these elements are, the easier it is to qualify for a good loan.
Interest Rates – An interest rate can add hundreds or thousands of dollars to the cost of a loan, particularly with terms that last multiple years. Secured loans have lower rates than unsecured loans and weaker finances will lead to higher rates.
Upfront & Continuing Fees – After the loan is deposited, the lender may charge you several one-time and recurring fees. Those fees can include origination and documentation fees (one-time), followed by payment processing fees (recurring).
Penalty Fees – If you make a late payment or miss a payment on your 3-year loan, the lender may charge you a penalty too. Although it’s less common, some lenders also charge prepayment fees for making early or lump-sum payments.
Pros And Cons Of A 3-Year Personal Loan
Here are some benefits and drawbacks of a 3-year personal loan in Canada:
Pros Of A 3-Year Personal Loan
Almost every type of lender can offer you a 3-year personal loan
Shorter payment terms typically cause you to pay less interest overall
Many lenders charge competitive interest rates on their products
Cons Of A 3-Year Personal Loan
If you don’t have a steady income and chequing account, you might not qualify
Monthly payments and interest rates are higher for large loans with shorter terms
Some lenders charge prepayment fees for early or lump sum payments
Can you get a 3-year personal loan with no refusal?
Similar to a no-credit-check loan, a no-refusal loan is when a lender grants you a personal loan without inspecting your credit beforehand. So, a bad credit score doesn’t matter, provided you pass their other criteria. Once again, no-refusal loans may have high rates and fees due to the extra risk the lender could be taking by approving you.
Can you get a 3-year personal loan with bad credit?
Yes, there are plenty of Canadian lenders who will approve you for a personal loan with a bad credit score (roughly 300 – 600). Although these institutions may require a credit check when you apply, they’ll base their approval decision on more than just your credit. However, do note, that bad credit personal loans often feature high rates and fees too.
What fees do 3-year personal loans have?
As mentioned, 3-year personal loans can come with several upfront and ongoing fees for things like origination, documentation, payment processing and penalties. Your lender may also charge you a non-sufficient funds (NSF) fee if you don’t have enough money in your bank account when they go to withdraw your monthly payment.
How much can I get with a 3-year personal loan?
3-year personal loan amounts can range from a few hundred to a few thousand. The exact amount will depend on your financial profile. If you have the criteria to pass your lender’s approval process, you should be able to acquire a 3-year personal loan in Canada. Basically, you have to prove that your income and creditworthiness are enough to pay your full loan on time (plus interest and fees).
How much would my payments be for a 3-year $10,000 personal loan?
If you borrowed a $10,000 personal loan with a 3-year term, your monthly payments will vary according to your interest rate and the lender’s fees. For example, if you qualify for an interest rate of 18.99% your 3-year loan payments would equal $366.51 a month.
Trying To Get Approved For A 3-Year Personal loan In Canada?
When applying for a loan, including a 3-year loan, remember to do a lot of research, review your financials and compare interest rates from several lending sources. After all, a 3-year personal loan isn’t worth it if you can’t afford your payments and wind up with a ton of unmanageable debt to deal with.
Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.
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