Canada is an expensive place to live and when financial emergencies occur, there are a number of alternatives you can look into, such as personal loans. However, taking out a loan is also pricey. It may be safer if you start by borrowing a more manageable amount. For example, here’s how you can get a $1,000 loan in Canada.
Where Can You Get A $1,000 Loan In Canada?
Depending on where you live and what your financial profile looks like, like your credit score, you may have a couple of options for finding a $1,000 loan in your region. Be sure to compare lenders and choose a legitimate company with good customer reviews, interest rates, and fees.
$1,000 Personal Loan Lenders
Almost every bank, credit union, and private lender offers some sort of installment loan, also known as a personal loan. Depending on the lender you can get loans as low as $500 up to $35,000 or more. A personal loan can be a good option for a $1,000 loan as it comes with features like:
- Bad credit may be accepted – Some lenders approve borrowers with bad credit, as long as they meet their other requirements such as income level, debt level and employment stability. They may also approve those with bad credit if they offer additional security such as cosigner or collateral.
- Zero prepayment penalties – If you want to pay off your $1,000 personal loan early to save on interest, some lenders won’t charge any prepayment penalty fees.
- Set payment plans – Personal loan lenders offer fixed payments so you’ll know exactly how much your $1,000 loan costs beforehand. You may be able to adjust your payment frequency too (monthly, weekly, etc.).
- Flexible terms – Personal loan lenders may also offer longer repayment terms, often ranging from 6 months to 5 years. This will allow you to spread your $1,000 loan into affordable payments. That said, a shorter term means less interest overall.
- Adjustable interest rates – Lenders calculate interest rates based on factors like income and credit but personal loan rates usually vary between 8% and 47%.
$1,000 Payday Loan Lenders
You can also get a $1,000 loan from a payday lender in Canada. However, payday loans generally have a higher cost of borrowing than a personal loan. Here’s what you can expect if you get a $1,000 payday loan:
- High-interest rates – Payday lenders can charge rates of $15 to $60 per $100 borrowed (about 180% to 1,400% APR), depending on the province or territory.
- Extremely short terms – Generally, payday loans are meant to be paid off within 2 – 4 weeks of funding (i.e. by your next payday), which makes repayment difficult.
- Credit may not be checked – Payday lenders usually don’t require a credit check, as such applicants with bad or no credit can still qualify so long as they meet the income requirements.
- Fast approval – Certain lenders will deposit payday loans on the same day you apply, which can make them a risky but viable solution for financial emergencies.
- Rollovers – Due to the payday rules and regulations in Canada, rollovers are prohibited in most provinces. But some lenders allow you to take out another payday loan before your first is paid, which can lead to a cycle of debt.
Find Out If You Qualify
Cost Of A $1,000 Loan In Canada
Before you apply for any type of loan, remember that the amount you borrow isn’t the only cost you also have to consider the interest, fees and term length, all of which affect the total cost of the loan. So, to get a better idea of what you’ll pay for a $1,000 in Canada, make sure to compare sources, as you’ll see in the tables below.
Cost Of A $1,000 Payday Loan
|Province/Territory||Max Cost Per $100 Borrowed||14 Day Term||Total Paid||Total Cost|
|British Columbia||$15||391.07% APR||$150||$1,150|
|New Brunswick||$15||391.07% APR||$150||$1,150|
|Prince Edward Island||$15||391.07% APR||$150||$1,150|
|Nova Scotia||$17||495.36% APR||$190||$1,170|
|Newfoundland & Labrador||$14||547.50% APR||$210||$1,140|
|Quebec||35% AIR||35% AIR (1 month term)||$29.17||1,029.17|
|Northwest Territories, Nunavut & Yukon||$60||1,303.57% APR||$500||$1,500|
Cost Of A $1,000 Personal Loan
|6 Month Loan||1 Year Loan|
|Interest Rate||10% APR||8% APR|
|Total Interest Paid||$29.37||$43.86|
How To Qualify For A $1,000 Loan In Canada
The approval requirements for a $1,000 loan in Canada can vary from lender to lender. Luckily, a $1,000 loan is a fairly small sum for most lenders, so getting approved for it is generally easier than applying for a $10,000 loan.
There are a few personal and financial details that all lenders must confirm before they can legally let you borrow money from them, including but not restricted to:
- Age – You have to be at least the age of majority in your province or territory (18 or 19+) in order to take out a loan.
- Employment Status – For the most part, it’s easier to qualify for a loan if you’ve held a full-time job at the same location for at least three to six months, but it may be possible to find a lender who does not check for proof of employment.
- Income – A steady paycheck is best but some lenders accept other incomes from government benefits, part-time work or self-employment (a minimum may apply).
Documents Lenders Might Request
To complete the loan application process for your $1,000 loan, your lender will generally require copies of the following documents:
- Identification – To confirm your age, identity and residency status, a piece of government photo ID may be necessary, like your passport or driver’s license.
- Personal Information – You’ll probably have to provide your other personal details such as your phone number, email and Social Insurance Number (SIN).
- Banking Details – Lenders may also request your bank statements (from the last 90 days) and online banking info (for funding purposes).
- Financial Details – Most lenders will ask for your latest paystubs to verify your income, as well as details about your assets and existing debts.
Once you’ve provided all the necessary documentation, your lender will assess your application. If all goes well, the lender will deposit the loan funds directly into your bank account within 1 or 2 business days.
Best $1000 Loans In Canada
|Loan Amount||Interest Rate||Term||Province Availability|
|Up to $50,000||Prime to 46.96%||3 - 60 months||Across Canada||Learn More|
|$1,000 - $15,000||29.9% - 46.9%||12 - 60 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|$300 - $35,000||9.9% - 47.42%||24 - 60 months||BC, AB, ON, NB, NS, PEI, NL||Learn More|
|$500 - $35,00||9.99% - 46.99%||9 - 60 months||BC, AB, SK, MB, ON, NB, NS, PEI, NL||Learn More|
|$500 - $25,000||26.99% - 39.99%†||6 - 60 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|$500 - $20,000||29.99% - 46.96%||9 - 84 months||BC, AB, SK, MB, ON, QC, NB, NS, PEI, NL||Learn More|
|Up to $15,000||Started at 19.99%||Open-end||BC, AB, SK, ON, NS, PEI, NL||Learn More|
|Up to $5,000||19.9% - 45.9%||6 - 36 months||BC, AB, ON, NL||Learn More|
|Up to $1,000||Max 32%||Max 90 days||All of Canada||Learn More|
|Up to $10,000||12.99% - 39.99%||9 - 60 months||BC, AB, SK, MB, ON, NB, PEI, NL||Learn More|
|$500 - $12,500||19.99% - 34.99%||12 - 60 months||BC, AB, SK, MB, ON, NB, NS, PEI, NL||Learn More|
|Up to $1,500||Varies by province*||Max 62 days||BC, AB, MB, ON, NB, NS, PEI||Learn More|
|$120 - $1,500||Varies by province*||Max 62 days||BC, AB, SK, MB, ON, NS||Learn More|
|Up to $1,500||Varies by province*||Max 62 days||BC, AB, SK, MB, ON, NB, NS, PEI||Learn More|
|Up to $1,500||Varies by province*||Max 40 days||BC, SK, MB, ON, NS, NL,||Learn More|
|Up to $1,500||Varies by province*||Max 31 days||BC, ON, NS||Learn More|
†Interest rates are subject to change. Actual Annual Percentage Rage (APR) vary based on province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC, 31.99% in MB and 34.99% in QC.
Should You Get A $1,000 Loan From A Payday Lender Or A Personal Loan Lender?
Before you take out a loan, it’s essential to understand the responsibility involved. Not only could you end up in serious debt by missing payments, but your credit may also be harmed in the process if you miss any payments. So, don’t forget to weigh the pros and cons of each lender you consider.
When Should You Choose A $1,000 Payday Loan?
Remember, payday loans are a risky option because of the debt and financial harm they can cause, so ask yourself these important questions prior to applying:
- If you can pay it back on your next payday. You will have to pay back the $1,000, plus interest and fees (which are more costly than with personal loans)
- If it’s an emergency? Payday lenders often provide same-day funding if you apply at specific times. Some also offer e-Transfers, which can have faster funding times of 15 minutes to an hour under the right circumstances.
- If it won’t cause other financial issues? If you’re unable to pay off your first payday loan without causing other financial issues, then it’s in your best interest to avoid payday loans altogether.
When Should You Choose A $1,000 Personal Loan?
While personal loans can be safer than payday loans in various ways, you should still consider these kinds of factors before you give away any personal or financial details:
- When your finances are strong enough to get approved. Personal loan lenders often have stricter requirements than payday lenders. You may need a higher income, good credit and collateral to qualify for reasonable interest rates and loan conditions.
- When you need more time to pay off the loan. Personal loans come with installment payments which means you’ll have more time to pay back the loan.
- If you have a large planned expense. If you have a large planned purchase to make a personal loan is a better option. You’ll have the time to compare options and research the right lender.
Do $1,000 No Refusal Loans Exist In Canada?
If you have bad credit, you may be looking for a no refusal loan to avoid any credit checks. With no credit check, you have a higher chance of getting approved for a $1,000 loan with bad credit. Lenders who offer no refusal loans will put more emphasis on your overall financial health which may include your income level, debt level, and employment stability.
It’s important to note that while no refusal loans may be easy to qualify for, it often comes with short terms and higher interest rates.
When it comes to applying for a $1,000 personal loan, it’s important to understand that this type of loan can be expensive. Always choose a reputable lender, read the fine print, and have a full understanding of the total cost of the loan.