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Loans After A Consumer Proposal In Canada: What You Need To Know

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Updated On: February 27, 2026

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Loans after a consumer proposal in Canada are possible, and many people can rebuild their financial lives this way. While lenders will review your proposal history, they also pay close attention to your current income, repayment habits, and credit rebuilding efforts. With the right strategy, borrowers can access new credit again.

Key Points

Loans are possible after a consumer proposal, but approval is harder and is usually only possible from private lenders.
A consumer proposal has a negative impact on your credit score and stays on your report for up to 6 years from filing or 3 years after completion, which limits access to traditional bank loans.
Secured options are easiest to get (car loans, secured credit cards, secured lines of credit), while unsecured loans and mortgages typically come with higher rates and stricter conditions.

Can You Get A Loan After A Consumer Proposal?

Yes, you can get a loan after completing a consumer proposal, but your chances of qualifying for one will be low due to the impact it has on your credit. As a result, you’ll likely only be able to get a loan from private lenders who often charge high interest and fees.

Note: A consumer proposal lowers your credit score because it appears as an R7 rating, showing you didn’t repay debts as originally agreed. It stays on your credit report for up to 6 years from filing or 3 years after completion, and during that time lenders may see you as higher risk and limit access to new credit.

Where Can You Get A Personal Loan?

Here are a few lenders you can generally get a personal loan with bad credit.

Lenders compared by loan amount, rate and term
Lender	Amount	Rate	Term	Apply	Details
Spring Financial - Personal Loan	$500 – $35,000	9.99% – 34.95%	6 – 84 months	APPLY NOW Compare Spring Financial - Personal Loan	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. Show More
Mogo - Line of Credit	Up to $5,000	34.37%	Not listed	APPLY NOW Compare Mogo - Line of Credit	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. Show More
easyfinancial - Personal Loan (Unsecured)	$500 – $20,000	29.99% – 34.95%	9 – 84 months	APPLY NOW Compare easyfinancial - Personal Loan (Unsecured)	easyfinancial offers a variety of loan products, including secured and unsecured personal loans. easyfinancial offers unsecured personal loans from $500 to $20,000 and secured loans between $15,000 to $150,000. Qualifying with easyfinancial is relatively easy compared to many banks and credit unions in the country. Moreover, online applications only take a few minutes to fill out and are normally accepted 24/7. Show More
Cash Money - Line of Credit	Up to $10,000	34.99%	6 - 60 months	APPLY NOW Compare Cash Money - Line of Credit	Cash Money has been helping Canadians access easy and quick loans for more than 30 years. Users will enjoy their simple online application, personalized options, and quick funding. Whether you need to cover an emergency expense or simply need to make it to your next payday, Cash Money has a variety of options to meet your needs. Show More
Cashco - Personal Loan - Flex Loan	Up to $9,000	35%	6 – 60 months	APPLY NOW Compare Cashco - Personal Loan - Flex Loan	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. Show More
iCash - Payday Loan	Up to $1,500	$14 per $100	Up to 62 days	APPLY NOW Compare iCash - Payday Loan	Available in seven provinces, iCash is an online source of fast, small loans that can be used for any emergency. Approved applications are processed within the same day and no documentation is required before the transfer of your funds. You can borrow up to $1,500 with iCash. Every time you pay the loan back following the agreed-upon deadline, you become a more reputable borrower. The increased trust allows you to borrow more each time. iCash uses a Trust Rating System, an algorithmic function that determines your merit as a borrower. Show More
Nyble - Line Of Credit	$30 – $250	0%	Not listed	APPLY NOW Compare Nyble - Line Of Credit	Nyble helps users quickly access a line of credit of up to $250 without credit score requirements. This is a good option for anyone who wants to avoid overdrafts or needs a small amount of cash quickly. Approval is instant and funding takes up to 3 days. But if you upgrade to a paid membership for $11.99 a month, you can receive your money within 30 minutes. Nyble reports your payment history to the credit bureau monthly and approves you for large amounts as you build trust with the platform. You can also track your credit score, earn reward points for improving your score, and access other features such as credit monitoring and digital identity theft protection. Show More
Bree - Cash Advance	Up to $750	0%	Up to 90 days	APPLY NOW Compare Bree - Cash Advance	If you’re short on cash, Bree offers cash advances of up to $750 with zero interest. Bree is an online financial platform that provides interest-free cash advances to help consumers avoid overdrafts and NSF fees. Their mission is to be a dependable and accessible financial source that consumers can trust when they need financial support. Moreover, you can access the money you need with Bree without having to worry about credit checks, interest charges or late fees. Show More
SkyCap Financial - Personal Loan	$500 – $100,000	8.99% – 35%	9 – 60 months	APPLY NOW Compare SkyCap Financial - Personal Loan	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 $100,000 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. Show More
Magical Credit - Magical Installment Loans	$1,500 – $20,000	19.99% – 35%	12 – 60 months	APPLY NOW Compare Magical Credit - Magical Installment Loans	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. Show More
Green Loans - Personal Loan	Up to $1,000	Up to 35%	Not listed	APPLY NOW Compare Green Loans - Personal Loan	Green Loans makes it easy for Canadians to access fast, reliable cash when they need it most. Borrow up to $1,000 with no credit check, and get your funds deposited directly into your bank account—often within 24 hours. Whether you’re handling an unexpected expense or just need a bit of breathing room before payday, a short-term loan from Green Loans can help you stay on track. With a quick, straightforward approval process, getting the support you need has never been simpler. Show More
AimFinance - Personal Loan	$100 – $1,000	29% – 35%	9 – 24 months	APPLY NOW Compare AimFinance - Personal Loan	AimFinance is a financial service that provides small personal loans up to $1,000 to borrowers in Ontario. The online application process is quick and easy, and funding is provided in as little as 24 hours. Loan terms range from 9 to 24 months, with interest rates ranging from 29% to 35%. AimFinance focuses on helping bad credit borrowers access credit and accepts imperfect credit. So, if you have bad credit, you're still eligible to apply. Show More

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Types Of Loans You Can Access After A Consumer Proposal

Here are a few different types of loans you may qualify for after completing your consumer proposal.

Personal Loans

It is possible to get a personal loan after a consumer proposal, but it will usually come from private lenders, not banks. You can also expect higher interest rates, higher fees, and shorter loan terms due to the increased risk to lenders.

Small 0% Interest Loans

Instead of a regular personal loan, you can opt for a small 0% interest loan if you only need a small amount of cash quickly.

Bree	Bree is a cash advance app that provides small, short-term advances of up to $750 with no interest and no mandatory fees.
Nyble	Nyble is a credit‑building app that offers small, fast credit lines of up to $250 and tools to help improve your financial profile.
MoneyUp	MoneyUp’s FastForward is a program that provides early access to up to $1,000, letting users get part of their paycheque before payday.

Payday Loans

You can still get a payday loan after a consumer proposal since lenders focus mainly on your income and often don’t require a credit check. However, they’re generally not recommended because they come with very high fees and interest, making them one of the most expensive borrowing options in Canada.

Note: Relying on payday loans right after a consumer proposal can undo the financial progress you’ve just made and push you back into debt.

What Do You Need To Get A Loan After A Consumer Proposal?

If you’re thinking of applying for a loan after a consumer proposal, you’ll need the following:

Income – Your income must be consistent and sufficient to comfortably cover the new loan payments.
Debt-to-Income Ratio (DTI) – Since you’ve completed your consumer proposal, your debts should be minimal, which can give you a lower DTI and improve your approval chances.
Security – Because you’ve recently finished a proposal, some lenders may require security, such as an asset or a co-signer, to reduce their risk.
Employment – Lenders will want to see stable employment to confirm you can reliably repay the loan.

How To Apply For A Loan After A Consumer Proposal

To apply for a loan after a consumer proposal, follow these steps:

Step 1: Research Lenders

Before applying with any lenders, it’s important to compare a few lenders to see who can provide you with the best loan offer and if you’re eligible for the loan. You can do so by checking the minimum requirements of each lender and by completing an online loan quote.

Pro Tip: Use a loan comparison platform like Loans Canada’s CompareHub, where you fill out a single application to get multiple loan quotes from different lenders you can choose from.

Step 2: Complete The Application

To complete the loan application with the lender of your choosing, you’ll need to provide certain information and documents. This includes a government-issued photo ID, pay stubs, bank statements, and some banking details.

As a person who filed for a consumer proposal, you’ll also need to show proof of your consumer proposal payments to ensure you’ve properly completed it.

Step 3: Get Funded

Once you submit your application, you’ll be notified if you’ve been approved or rejected. If approved, you should be funded within a few hours to 24 hours, depending on the lender.

Can You Get A Mortgage After A Consumer Proposal?

It is possible to get a mortgage after a consumer proposal, though you’ll likely have better chances with private mortgage lenders, who may accept bad credit but typically charge higher interest rates. It may also be wise to wait until the consumer proposal falls off your credit report, as this can improve your options and help you secure better rates. Working with a mortgage broker can help you identify and compare lenders, making it easier to find the best option for your situation.

Can You Get A Car Loan After A Consumer Proposal?

Auto loans may be one of the more accessible loans you can get after a consumer proposal due to the security it provides. Car loans are secured by the car you are buying. That means if you miss any payments, the lender can seize the car from you and resell it to recoup payment.

You can increase your chances of securing a car loan if you make a larger down payment, as there’s less risk of you owing more than what the car is worth.

Tips to Improve Your Credit Score

1. Consider a Secured Credit Card
If qualifying for a regular credit card is difficult, a secured credit card can help. These cards work like regular credit cards but require a security deposit, which also sets your credit limit. They usually have low qualifying requirements and report your payments to the credit bureaus, helping you rebuild credit.

2. Pay Off Your Consumer Proposal Early
Some lenders offer specialized loans that let you pay off your consumer proposal early. Doing so can remove the R7 rating from your credit report sooner, which may improve your credit score.

Note: Only consider this if your financial situation can handle the loan payments—otherwise, it could increase your debt instead of reducing it.

Additional Reading

Loans and Programs to Help You Get Out of Debt

Bankruptcy Loans

Bottom Line

If you do get a loan through a private lender, make sure you make your payments regularly and don’t fall back into old habits. The goal is to rebuild your credit, not wind up right back where you started. Regardless of whether you apply for a loan, now is a good time to set up a budget and cut back on some of your expenses so you can pay off your consumer proposal faster and get a head start on your financial future.

Consumer Proposal Loan FAQs

Can I get a mortgage after completing my consumer proposal?

Yes, you can, but it can be quite difficult to qualify for one if you just completed your consumer proposal. That’s because your credit score will have been greatly impacted by your consumer proposal and it will take time and effort before it’s improved. However, there are many subprime lenders who accept bad credit, but they charge higher interest rates and fees as a result.

How long will it take to get a good credit score after a consumer proposal?

The time it takes to build a good credit score after a consumer proposal depends on several factors, including time passed, payment history, credit utilization, credit age, credit mix, and credit inquiries. These are all major factors that affect your credit score. Moreover, you’ll have to wait 3 years after completing your consumer proposal to have the negative remark removed.

Can I get a loan from a bank after a consumer proposal?

After a consumer proposal, getting a loan through a bank is difficult, if not impossible. Banks are super risk-averse, so a consumer proposal is seen as a red flag.

Can I get a loan while still in a consumer proposal?

If you’re still completing a consumer proposal, banks won’t consider lending you money because you’re still under the proposal. Often, they will make you wait for a considerable amount of time, usually two years, after being discharged before they will even consider you for a loan. However, there are some subprime lenders who offer loans to those who are in consumer proposals, but it is usually to help them pay off the proposal early.

MDG

Caitlin Wood

Caitlin Wood [BA Concordia] is the lead content specialist at Loans Canada and has over 10 years of experience in digital publishing and personal finance content. She oversees the creation of accurate, clear, and practical resources that help Canadians make informed decisions about loans, credit, debt, and personal finance. Specializing in simplifying complex financial topics, Caitlin ensures that all content reflects responsible lending practices and high editorial standards. Her work supports Loan Canada’s mission to provide trustworthy guidance and empower Canadians to navigate their financial options with confidence.

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