Can You Get A No-Fee Personal Loan? 

Can You Get A No-Fee Personal Loan? 

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated August 24, 2022

When you take out a personal loan, you’ll need to pay interest on top of the principal loan amount. But in addition to interest, loans also tend to come with other miscellaneous fees that can make your loan a lot more expensive. 

Fortunately, there are “no-fee” personal loans available that can keep your loan costs to a minimum. Let’s take a closer look at these types of personal loans and what to look out for.  

Can You Get A No-Fee Personal Loan? 

Yes, there are some lenders that offer personal loans with zero fees, however, if you miss a payment or don’t have enough funds in the account that your payments are withdrawn from, you could still be charged a late fee or non-sufficient funds (NSF) fee, respectively. This fee is not only charged by your lender but often by your bank as well. While these may be considered fees, you won’t have to pay any other traditional fees if you make your payments on time. 

It should be noted, however, that personal loans could still be more expensive than loans that come with typical fees if you’re paying a high APR. Your APR will tell you how much your loan will cost you over the loan term. It’s possible to pay more overall for a no-fee personal loan than a loan that comes with typical fees if your APR is on the higher end. 

As such, it’s always a good idea to compare loan products and their respective APRs to get a true sense of where the most affordable loans are.  

Best Personal Loans In Canada


Loans Canada

Up to $50,000
2.00% to 46.96%
3-60 months


$1,000 - $15,000
29.9% - 46.9% APR
12 - 60 months

Symple Loans

$5,000 - $50,000
6.99% - 22.99%
Up to 84 Months

Spring Financial

Up to $15,000
14.99% to 46.96%
6 - 12 Months


$1,000 - $25,000
7.5% - 31.5%
36 - 60 months

Cash Money

$1,500 – $10,000
Varies by province
Varies by product (up to 60 months)


$5,000 - $35,000
Starting at 9.99%
6 - 60 Months

Loan Away

Up to $5,000
19.9% to 45.9%
6 - 36 Months


$500 - $1000+
28 to 32%
3 Months

Consumer Capital Canada

$500 - $12,500
19.99% to 34.99%
No minimum term

Mogo Finance

$300 – $35,000
9.9% - 47.72%
3 - 60 Months

Fairstone Financial

Up to $50,000
19.99% - 39.99%
6 - 120 Months

Types Of No-Fee Personal Loan Lenders

Depending on your credit profile and financial situation, you may be able to get a no-fee personal loan from a bank, credit union or private lender. However, each lender has its own loan application process, and while some may not charge any fees, others may charge some. 

Types Of LendersDefinitionApproximate  Interest RatesLender Examples
BanksMajor financial institutions like Canada’s Big Five banks offer personal loans. They generally offer the best rates but have strict requirements. 0.5% - 15%- TD
- Scotiabank 
- Laurentian Bank of Canada
Credit UnionsCredit unions are non-profit organizations that are owned by their members. They offer smaller loans than banks but rates are still affordable. Requirements are also more flexible than banks, but you must be a member (of the credit union) to get a loan. 3% or more - Fusion Credit Union
- First West Credit Union
- PACE Credit Union
- DUCA Credit Union
- Meridian Credit Union
- Vancity Credit Union
- Ganaraska Financial Credit Union
Private LendersPrivate lenders are easier to qualify for than banks due to their flexible lending standards. Even those with poor credit may qualify, however, they often charge much higher rates than banks, making them a more expensive option. 8% - 46%- Loanz
- Spring Financial
- LendDirect
- LoanMeNow 
- Consumer Capital Canada
- Mogo

What Are No-Fee Personal Loans?

No-fee personal loans are just as they sound: namely, they’re loans that don’t come with any additional fees, such as loan origination fees, application fees, or early repayment penalty fees.

With the lack of fees, these types of loans are less expensive. Keep in mind, however, that you still have to pay interest on your loan. The rate you’re charged will depend on a few factors, including the lender, the loan amount, your income and debts, and your credit profile. 

How Do Personal Loan Fees Affect Your Loan? 

Lenders usually deduct the fees from the loan amount before forwarding your borrowed funds, which means you won’t get the full loan amount. Similarly, they may also add the loan fees to your total loan amount, making your payments more expensive. 

How To Apply For A No-Fee Personal Loan

The loan application process may vary slightly from one lender to another, but it will typically include the following steps:

1. Compare Loan Options

Use an online loan aggregator to quickly pull up a list of lenders and the loan options they offer based on a few basic pieces of information you provide. From there, compare the interest rates and terms of the loans listed to narrow down the most affordable options. 

2. Find Out If You’re Eligible

Each lender may have its own loan criteria that you’ll have to meet in order to get approved for a personal loan. Find out what these requirements are before applying to avoid disappointment. 

3. Get All Required Documents Together

Loan applications typically require supporting documentation, such as a letter of employment or bank statements. Having these documents ready when you apply will make the application process go much smoother and quicker.  

4. Apply For The Loan

Visit the lender’s website and apply for the loan on their application page. You may also need to upload your documents along with the submission of your application. 

5. Wait For An Answer From The Lender

Once you’ve submitted your application, the lender will be in touch shortly after. Online lenders don’t usually take any more than 24 to 48 hours to deliver a verdict on whether or not your application is approved. If your loan application is approved, you should receive your funds within another day or two deposited directly into your bank account.

No-Fee Personal Loan vs Personal Loan With Fees

No-Fee Personal LoanPersonal Loan With Fees
Loan Amount Request$1,000$1,000
Interest Rate12%12%
Loan Fees$0$100 (deducted from loan)
Total Amount Borrowed$1,000$900
Term Lenght12 months12 months
Monthly Payment$ 88.85$88.85
Total Paid$1,066.19$1,066.19

Common Types Of Personal Loan Fees To Watch Out For

Unless the loan you’re applying for is specifically advertised as a “no-fee” loan, it will likely come with a handful of fees. It’s important to understand what these fees are and how much they’ll cost you. 

The following are among the more common types of fees you’ll generally see on personal loans:

Underwriting Fees

These are closing costs paid by the borrower directly to lenders to cover overhead and administrative costs, as well as to help lenders make money from loans.

Credit Insurance Fees

This type of insurance is a policy that borrowers purchase that pays off the existing debt in the event that the borrower is no longer able to repay the loan either due to death, disability, or unemployment. This policy is not a requirement, and as such, no legitimate lender should mandate it. 

Nonsufficient Funds (NSF) Fees

If the bank account that loan payments are withdrawn from does not have sufficient funds to cover the payment, the lender may charge an NSF fee

Brokerage Fees

Borrowers who work with a broker to connect them with a lender may pay a brokerage fee for the services provided. However, borrowers don’t usually see these fees; instead, lenders usually pay brokers a fee directly. 

Late Payment Fees

Loan payments that are made past the due date are often charged a late fee.

Early Repayment Fees

Lenders make money on the interest charged on loans. If loans are repaid in full long before the term expires, lenders may charge a penalty fee to make up for any missed profits.

No-Fee Personal Loan FAQs

Can a personal loan hurt your credit? 

If you fail to make your payments on time, your personal loan could hurt your credit. However, if you make timely payments, having a personal loan can help you build strong credit. 

Can I get a lower rate with a secured personal loan?

Generally speaking, secured loans come with lower rates because they’re backed by an asset of value, which lowers the risk for lenders. However, some lenders may offer competitive rates even for unsecured loans, especially if you have strong credit. 

Can I repay my loan early? 

You may be able to pay your loan off early, but your lender may charge an early repayment fee if you do. You’ll need to check the terms and conditions of your loan contract to find out if these fees apply when paying off your loan early. 

Final Thoughts

No-fee personal loans are available from certain lenders, though you may need a strong financial and credit profile to get approved. No matter what type of personal loan you apply for, it’s always important to find out exactly what fees are involved, if any, to get a true sense of how much your loan will cost you.

Rating of 5/5 based on 1 vote.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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