An extra $5,000 can come in handy during a financial emergency. No matter what you need the money for, a $5000 loan can help cover it when your bank account is a little short.
If that happens, there are loan options to consider. That said, your credit and financial situation will determine where you can get approved for a $5,000 loan, as well as the cost.
Let’s go over a few of these options and what you need to do to apply and get approved.
How To Get A $5,000 Loan In Canada
To apply for a personal loan, follow these steps:
Step 1. Comparison Shop
Before applying with any one lender, be sure to compare lenders. More specifically, compare the loan amounts, terms, and rates to find the best loan type and lender for you. If researching multiple lenders is too confusing, consider using a loan comparison platform like Loans Canada.
Step 2. Know The Minimum Requirements
Before applying for a loan, you should find out what the requirements are for loan approval. You’ll want to make sure you meet these criteria before applying so you can maximize your chances of loan approval. Moreover, you can avoid any unnecessary credit checks which may negatively impact your credit scores.
Step 3. Get Pre-Approved
Getting a pre-approval will let you know how much you qualify for and what the terms will likely be. Pre-approvals also don’t require credit checks, so you can find out if you qualify before completely applying.
Step 4. Complete And Submit A Loan Application
Once you’ve decided on a lender, complete the loan application online. Be sure to upload all the relevant documents as required. You will be asked for information such as proof of income and employment, bank statements, and photo ID. Before submitting your application make sure that it’s 100% complete and free of inaccuracies.
Step 5. Wait For Funding
If you’ve been approved, you can expect the funds to be deposited into your account within 24 hours.
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Cost Of A $5,000 Personal Loan
When calculating the cost of a $5000 personal loan, you’ll need to consider multiple factors. Each one can impact the total cost of your loan. This includes your interest rate, loan term and fees.
Interest rate. The rate you’re charged on your loan will have a direct effect on how much you’ll pay over the loan term. The lower the rate the better. More specifically, the “APR” or annual percentage rate refers to the rate and fees to finance the personal loan and is expressed as an annual cost.
Loan Term. The term length will determine how much you’ll pay with each installment payment, as well as how much interest you’ll pay overall. Shorter terms mean bigger installment payments, but you’ll pay less towards interest. Longer terms, on the other hand, mean smaller payments, but you’ll be paying more in interest over the loan term.
Fees. There are other costs besides interest that you should look at, such as the following:
NSF fee – If there are not enough funds in your account on payment day, you’ll be charged a fee for insufficient funds, which usually range between $30 and $50.
Penalty Fees – Depending on the lender, some will charge a penalty for early loan payments. Similarly, if you make a payment late, you will be charged a late payment fee.
Loan Insurance – If you have bad credit, your lender might try to sell you loan insurance in the event that you default on your $5,000 loan due to job loss, illness or death. This is optional and unnecessary, so you may want to avoid any lenders that pressure you to buy it.
The following chart outlines a handful of scenarios to help you compare loan costs on a $5,000 personal loan with different rates and term lengths:
Scenario 1
Scenario 2
Scenario 3
Loan Amount
$5,000
$5,000
$5,000
Interest rate
5%
10%
20%
Total Cost For 3-year term
$5,394.76
$5,808.09
$6,689.45
Total Cost for 5-year Term
$5,661.37
$6,374.11
$7,948.17
Types Of $5,000 Loans In Canada
You’ve got a few options when it comes to accessing a $5,000 loan:
$5000 No Credit Check Loans
Conventional personal loans require a credit check on applicants to verify their creditworthiness and ability to get approved for a $5000 loan. But if you’ve got bad credit, your chances to qualify for a loan will be lower.
In this situation, a no credit check loan may be an option. With this loan type, the lender will not perform a credit check. Instead, the lender will look at other factors, such as your income, assets, and proof of employment to approve the $5,000 loan.
$5,000 Instant Approval Loans
If you need cash urgently, an instant approval personal loan may be an option. With this type of loan, you’ll be pre-approved right after you apply and the funds will be transferred into your account within a few hours or the next business day. These loans are only available from alternative lenders, and interest rates tend to be much higher compared to more traditional personal loans from conventional lenders.
$5,000 No Bank Verification Loans
When you apply for a $5,000 personal loan, most lenders will require certain bank documents and an active bank account as part of their approval process. This can make it difficult for Canadians without bank accounts to access a loan. Thankfully, there are alternative lenders who offer $5,000 loans with no bank verification. Instead, these no bank verification lenders will require solid proof of income and employment stability.
Do note, that these lenders generally charge much higher interest rates and fees due to the additional risk they take.
$5,0000 No Refusal Loans
If you’re afraid you’ll be rejected due to bad credit, you may want to look into a no refusal loan. A no refusal loan requires no credit checks, so you’ll qualify so long as you meet the lender’s other requirements such as income level, debt level and employment stability. You can find no refusal loans through payday lenders and alternative personal loan lenders. It’s important to note, that these lenders are expensive as they usually charge higher interest rates and fees.
$5,000 Secured Loans
If you need help qualifying for a $5000 loan or you want to qualify for better rates and terms, you should consider getting a secured personal loan. These loans are secured with an asset of value, such as a house or vehicle. Since the loan has collateral, there’s less risk for the lender, and in turn, these loans typically come with lower interest rates and better terms. Moreover, you’ll have a higher chance of qualifying for the $5,000 loan.
You can apply for a $5,000 personal loan with a few different types of lenders:
Can You Get A $5,000 Bank Loan?
Your main financial institution is the most obvious option when it comes to taking out a personal loan. If you’re already a client with a specific bank, you may be able to get a $5,000 loan from them.
Just keep in mind that loans from banks typically require very good credit in order to get approved, and their application process usually takes longer. But if you have good credit, you’ll likely get a competitive interest rate, making your loan more affordable.
Can You Get A $5,000 Loan From A Credit Union?
Local credit unions are another source for personal loans, and they often offer competitive interest rates as well. That said, you’ll need to be a member of a credit union before you can apply for a $5,000 personal loan.
If you’re not already a member, applying for membership could take a while. So if you’re looking for a quick loan, this may not be the best option.
Can You Get A $5,000 Loan From An Alternative Lender?
There’s a growing number of alternative lenders available online if you need a $5,000 personal loan. Online lenders process applications and fund accounts much faster than banks and credit unions. You won’t need to provide as much information, and credit checks are not always required.
Applications can be completed in just a few minutes, and approvals are provided shortly after. Plus, you can access your funds within hours after loan approval.
If you’re in need of quick cash and don’t have the credentials to get approved with a traditional lender, then an alternative online lender may be your best option. Just keep in mind that you’ll probably be paying much higher rates.
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.
Can You Take Out Multiple Payday Loans Instead Of A Single $5,000 Personal Loan?
You cannot take out more than one payday loan at the same time in most provinces in Canada, whether with the same lender or a different one. You’ll need to pay off the full loan balance of your payday loan before you can apply for another.
Provincial laws prevent multiple payday loans from being taken out at the same time to protect Canadians against predatory lenders.
An extra $5,000 can come in really handy when you’re tight on cash. If you find yourself in this predicament, there are a few loan options available to you, and the one you choose will depend on your financial and credit profile.
$5,000 Loan FAQs
Where can I get a $5,000 loan with bad credit?
If you have bad credit, you’ll have better luck with an alternative lender. Just keep in mind that you will most likely be charged a higher interest rate when you take out a bad credit loan.
What credit score do I need to get a $5,000 loan from a bank?
Banks generally require a minimum credit score of at least 660 or more.
Can I get a $5,000 loan with no credit check?
Yes, you can get a loan without having a credit check conducted. Instead, you’ll need a steady income and show proof of assets through your personal bank statements.
Can I get multiple personal loans instead of a single $5,000 personal loan?
You may be able to get approved for more than one personal loan (not a payday loan). However, each loan you take out will add to your debt pile. The more loans you have, the more difficult it may be to get approved for subsequent loans.
Can I get a bad credit personal loan with guaranteed approval for $5,000?
No credible lender will guarantee loan approval without first assessing your credentials. If you find yourself working with a lender that offers such a guarantee, you may want to steer clear of them. That said, there are credible lenders that will offer quick loans without credit checks, and can fund your bank account within hours if you are in urgent need of cash.
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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