Can You Get A 3-Year Personal Loan In Canada?

Can You Get A 3-Year Personal Loan In Canada?

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated September 12, 2022

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). 

Where Can You Get A 3-Year Personal Loan? 

Loan AmountInterest RateTermProvince Availability
Loans Canada LogoUp to $50,0002.00% - 46.96%3 - 60 monthsBC, AB, SK, MB, ON, QC, NB, NS, PEI, NLLearn More
Loanz$1,000 - $15,00029.9% - 46.9%12 - 60 monthsBC, AB, SK, MB, ON, QC, NB, NS, PEI, NLLearn More
Mogo$300 - $35,0009.9% - 47.72%24 - 60 monthsBC, AB, ON, NB, NS, PEI, NLLearn More
Spring-FinancialUp to $15,00029.99% - 46.96%9 - 60 monthsBC, AB, SK, MB, ON, NB, NS, PEI, NLLearn More
FairstoneUp to $25,00026.99% - 39.99%6 - 60 monthsBC, AB, SK, MB, ON, QC, NB, NS, PEI, NLLearn More
$1,000 - $35,0005.99% - 29.19%36 - 60 monthsBC, AB, MB, ON, NB, NS, PEI, NLLearn More
easy financial$500 - $20,00029.99% - 46.96%9 - 84 monthsBC, AB, SK, MB, ON, QC, NB, NS, PEI, NLLearn More
Lend DirectUp to $15,000Started at 19.99%Open-endBC, AB, SK, ON, NS, PEI, NLLearn More
Loan AwayUp to $5,00019.9% - 45.9%6 - 36 monthsBC, AB, ON, NLLearn More
Consumer Capital Canada$500 - $12,50019.99% - 34.99%12 to 60 monthsBC, AB, SK, MB, ON, NB, NS, PEI, NLLearn More
SkyCap Financial$500 - $10,00012.99% - 39.99%9 - 36 monthsBC, AB, SK, MB, ON, NB, PEI, NLLearn More

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

Personal LoanName, date of birth, contact information
1 or 2 government-issued ID (1 photo)
Social Insurance Number (SIN)
Proof of employment (income, employers 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. 

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% APR15.99% APR26.96% APR46.96% APR
$2,000$59.93$70.30$81.61$104.51
$5,000$149.83$175.76$204.02$261.27
$10,000 $299.66$351.52$408.04$552.54
$15,000 $449.50$527.28$612.06$783.81
$20,000$599.33$703.04$816.08$1,045.08

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.   

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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

3-Year Personal Loan FAQs

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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