An installment loan lets you cover a big expense now and pay it back in predictable, equal payments over time, instead of all at once. That makes it one of the most flexible and popular ways to borrow in Canada, whether you have great credit or you are still rebuilding.
This guide walks you through how installment loans work, where to get the best installment loans in Canada, what you need to qualify, and how to keep the cost down.
Key Points
1. An installment loan gives you a lump sum that you repay in fixed, equal payments over a set term.
2. Amounts usually range from $500 to $35,000, with terms from a few months to several years.
3. Online and alternative lenders offer installment loans for bad credit, some with instant approval and same-day funding.
4. Loans can be unsecured or secured. Secured loans are often easier to get and cheaper.
What Is An Installment Loan?
An installment loan is a type of personal loan where you get a set amount of cash from a lender and pay it back in equal installments, plus interest, over a fixed term. Each payment is the same, so you always know what you owe and when the loan will be paid off.
Most personal loans in Canada are installment loans, and so are many other everyday products, including car loans and mortgages. What sets them apart from revolving credit, like a credit card or line of credit, is that you borrow a fixed amount once and pay it down on a schedule rather than borrowing over and over up to a limit.
Features Of An Installment Loan
- Loan Amounts – Depending on the lender and your financial profile, you can get installment loans from $500 up to $35,000 or more.
- Interest Rates – According to the Criminal Code of Canada, the maximum annualized percentage rate (APR) lenders are allowed to charge is 35% and anything above that is deemed illegal. However, most installment loan rates vary between 3% to 35% (APR).
- Term Lengths – Every lender also offers different installment loan terms to match their loan amounts and client profiles. Smaller loans often come with short terms of 6 – 12 months, while larger loans may be repayable over 5 or more years.
- Repayment Plans – Lenders may offer several payment options when it comes to your loan installments, like monthly, bi-weekly and semi-monthly payment plans.
Best Installment Loans In Canada
The right lender depends on your credit, your income, and how fast you need the money. Since an installment loan is a form of personal loan, many of the best personal loans in Canada are installment loans. Compare lenders across the country below.
Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 6 – 84 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- Up to $10,000
- Rate
- Up to 34.99%
- Term
- Up to 60 months
What Can You Use An Installment Loan For?
One of the biggest perks of an installment loan is flexibility. Lenders rarely limit what you can do with the money, so you can use it for almost any purpose, such as:
- Consolidating higher-interest debt into one payment
- Covering an emergency, like a car repair or medical bill
- Home renovations or a large purchase
- Moving costs
- Covering a gap between paycheques
Secured Vs. Unsecured Installment Loans
Installment loans come in two forms, and the difference affects how easy the loan is to get and how much it costs. Most are unsecured loans that require no collateral, but some are secured against an asset.
| Unsecured Installment Loan | Secured Installment Loan | |
|---|---|---|
| Collateral | None required | Backed by an asset, like a car, home, or savings |
| Approval | Based on your income and credit | Easier to get, since the asset lowers the lender’s risk |
| Interest rate | Higher | Usually lower |
| Main risk | Credit damage if you default | The lender can seize the asset if you default |
| Examples | Personal loans, bad credit loans | Auto loans, home equity loans, car title loans |
If you have an asset to offer, secured installment loans can help you qualify for a bigger loan at a better rate. Just be sure you can afford the payments, since defaulting means losing the asset.
Requirements To Get An Installment Loan
Every lender is different, but most will ask for the following:
What You Will Typically Need
- Proof of a steady, reliable income
- An active Canadian bank account
- Government-issued photo ID
- To be the age of majority in your province (18 or 19+)
- Proof of address and residency in Canada
Your income is often the most important factor, especially with lenders that do not focus on credit. In fact, how you get paid matters more than how much. According to a Loans Canada study, having your income arrive via direct deposit can help increase your odds of being funded. In fact, it showed that applicants paid via direct deposit were more likely to be funded than those paid any other way.
How To Apply For An Installment Loan
Applying for an installment loan is usually quick, especially online. Here is the process from start to finish.
Online Vs. In-Person Installment Loans
You can apply for an installment loan online or at a physical branch, and each has trade-offs.
| Online | In Person | |
|---|---|---|
| Speed | Fast, often same-day funding | Slower, but you can get cash on the spot at some lenders |
| Convenience | Apply anytime from home, 24/7 | Visit a branch during business hours |
| Verification | IBV or uploaded documents | Bring your documents to the branch |
| Best for | Quick funding and comparing lenders | Face-to-face help and cash payouts |
For most borrowers, online installment loans with instant approval in Canada are the faster route. If you prefer to speak with someone or want cash in hand, storefront lenders like Money Mart, Cash Money, and easyfinancial have branches across the country.
Where Can I Get An Installment Loan In Ontario?
Installment loans in Ontario are widely available both online and in person. Online and alternative lenders serve the entire province, so you can apply from anywhere from Toronto to Thunder Bay and get funded the same day. Ontario also regulates high-cost credit, so licensed lenders must disclose the full cost of your loan up front, which makes it easier to compare offers.
If you prefer to apply in person, several lenders run storefronts across Ontario. easyfinancial and Fairstone focus on larger installment and personal loans, while Money Mart and Cash Money handle smaller, short-term amounts.
| Lender | Example Ontario Branches | Find A Branch |
|---|---|---|
| easyfinancial | Toronto: 700 Lawrence Ave W Mississauga: 2500 Hurontario St Ottawa: 2194 Carling Ave | easyfinancial.com |
| Fairstone | Toronto: 3250 Bloor St W Toronto: 2471 St. Clair Ave W Hamilton: 1317 Barton St E | fairstone.ca |
| Money Mart | Toronto: 617 Yonge St Toronto: 45 Overlea Blvd Toronto: 2650 Lawrence Ave E | moneymart.ca |
| Cash Money | Toronto: 644 Yonge St Toronto: 883 St. Clair Ave W | cashmoney.ca |
Can You Get Installment Loans For Bad Credit?
Yes. Bad credit does not shut you out of an installment loan, it just changes which lenders will work with you. Instead of banks, you would apply with online, alternative, or private lenders that weigh your income and overall financial health more heavily than your credit score.
Some lenders even offer installment loans with no credit check, relying on instant bank verification to confirm your income instead. If your credit is the main hurdle, you can also look at the best no credit check loans. Smaller amounts are the easiest to get approved for, so an installment loan for bad credit of $2,500 in Canada is often more realistic than a larger sum while you rebuild. Just expect higher rates to offset the lender’s risk.
Are There No Refusal Installment Loans In Canada With Instant Approval?
You will see lenders advertise “no refusal installment loans” in Canada, sometimes alongside “instant approval.” It helps to know what these terms really mean.
No legitimate lender approves everyone. “No refusal” usually means the lender will not turn you down based on your credit score alone, but you will still need to meet other criteria, mainly proof of enough steady income to cover the payments. The same idea applies to no refusal payday loans, where the label refers to your credit rather than a blanket guarantee. Similarly, “instant approval” refers to an automated decision within minutes, not a guarantee. If a lender promises guaranteed approval or asks for an upfront fee before funding, treat it as a red flag.
The good news is that many online lenders genuinely do offer fast, automated decisions and same-day funding, so you can get an installment loan quickly without a lender that focuses on your credit score.
How To Calculate Your Installment Loan Costs
Before you sign, it is worth knowing the full cost. Your monthly payment depends on the loan amount, the interest rate, and the term. Here is how three example loans compare.
| Loan Amount | Interest Rate (APR) | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $2,500 | 25% | 12 months | $237.61 | $351.32 |
| $5,000 | 20% | 24 months | $254.53 | $1,108.72 |
| $10,000 | 15% | 36 months | $346.65 | $2,479.40 |
Notice how a longer term lowers the monthly payment but raises the total interest. To run your own numbers, use a loan calculator before you apply. You can also compare the best personal loan interest rates in Canada to see how your offer stacks up.
Pros And Cons Of Installment Loans
Pros
- Predictable payments. Equal, scheduled payments make budgeting simple.
- Larger amounts. You can borrow more than with a payday loan, often up to $35,000.
- Flexible use. Spend the money on almost anything.
- Builds credit. On-time payments can improve your credit score over time.
Cons
- Interest adds up. Longer terms mean paying more interest overall.
- Higher rates for bad credit. Weaker credit means a higher rate and cost.
- Fees. Some lenders charge origination or prepayment fees.
- Debt risk. Borrowing more than you can repay can hurt your finances and credit.
Installment Loans Alternatives
Not sure if an installment loan is right for your situation? Don’t worry, there are many other effective alternatives for paying your daily expenses in Canada, such as:
- Using Your Home Equity – If your home has at least 20 – 25% value, you may be able to borrow against it using a home equity loan or line of credit (HELOC). This may qualify as a “second mortgage” and result in two sets of payments.
- Getting a Secured Loan – Secured installment loans are risky but can help you access more cash than unsecured loans offer, especially with bad credit or a low income. Viable assets include vehicles and real estate properties in your name.
- Credit Cards – For smaller purchases, a credit card can be a good alternative option. Be wary of high interest rates and not paying off your balance in full each month.
- Peer-to-Peer Lending – P2P lending platforms connect borrowers directly with individual investors. These individuals are not traditional lenders. This is a good option for anyone who cannot get approved by a bank or personal loan lender.
Auto Loans Are Installment Loans Too
It is easy to forget, but a car loan is simply a secured installment loan. You borrow a set amount to buy a vehicle and repay it in equal monthly payments over a fixed term, usually 36 to 84 months, with the car itself serving as collateral.
Because the loan is secured by the vehicle, auto loans tend to be easier to qualify for and carry lower rates than an unsecured personal loan, even for borrowers with weaker credit. The trade-off is the same as any secured loan: miss enough payments and the lender can repossess the car. If you are budgeting for a vehicle, the same installment math applies, so the loan calculator above works just as well for a car loan.
Bottom Line
Installment loans are one of the most flexible ways to borrow in Canada, with predictable payments and amounts to suit almost any need. Whether you have strong credit or you are rebuilding, there is likely a lender that will work with you. Just compare your options, understand the full cost with a loan calculator, and borrow only what you can comfortably repay.
Installment Loan FAQs
Yes. Many lenders in Canada offer installment loans entirely online, often with instant approval and same-day funding. You apply, verify your income (frequently through instant bank verification), and receive your funds by direct deposit.
Not always. Banks and prime lenders check your credit, but many online and alternative lenders offer installment loans with no credit check, relying on your income and bank statements instead. Expect higher rates with no-credit-check options.
Yes, in both directions. Making your payments on time can help build your credit score, while missing payments can lower it. Applying can also cause a small, temporary dip from the credit inquiry.
You may be charged a late fee, and the missed payment can be reported to the credit bureaus, which hurts your score. If you have a secured loan, repeated missed payments could eventually put your collateral at risk, so contact your lender as soon as you know you might miss one.
Installment loans typically range from $500 to $50,000. The amount you qualify for depends on your income, credit, and the lender. Bad credit borrowers usually qualify for smaller amounts, such as $2,500, until they build a stronger profile.
References
- Loans Canada. (2026). Who Really Gets Approved For A Loan? Insights From Half A Million Applications. https://loanscanada.ca/stats/study-who-really-gets-approved-for-a-loan-insights-from-half-a-million-applications/
- Financial Consumer Agency of Canada. (2026). Personal loans. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/loans/personal-loans.html
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the 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.
†On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.
In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
