Your Guide To Personal Loans Prince Edward Island
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
- $500 – $10,000
- Rate
- Up to 34.99%
- Term
- Up to 60 months
Looking to cover unexpected expenses or fund a big purchase? If so, a personal loan can offer a quick and flexible way to access the cash you need. This guide will provide you with everything you need to know about getting a personal loan in PEI.
What Is A Personal Loan?
A personal loan is a type of installment loan that provides a lump sum of money that you repay in installments with interest over a set term.
Can I Use A Personal Loan For Any Expense?
As long as the funds are being used for legal purposes, there are no restrictions on what you can use a personal loan for. Examples include the following:
- Utility Bills: A personal loan can help you stay on top of essential expenses like your electricity, gas, and mobile phone bills. That way, you’re not at risk of service interruptions.
- Vehicle Repairs: Keeping your car in good shape is key to safe driving, and making necessary repairs is essential when the need arises. A personal loan can provide the funds needed to cover these potential high costs.
- Home Upgrades: Depending on the scope of the updates you’d like to make to your home, you may be able to cover the cost with the funds you receive from a personal loan.
- Education Costs: If you’re attending college or university in PEI but can’t afford the tuition or are unable to qualify for government student loans, a personal loan can step in to cover tuition fees, textbooks, and other school-related expenses.
Learn more: Personal Loans
Can I Get A Personal Loan With A Bad Credit Score?
Securing a personal loan from a bank can be challenging with poor credit. Thankfully, many private lenders specialize in offering loans to borrowers with low or no credit history.
Unlike traditional financial institutions, these lenders assess applicants based on other financial factors besides credit score, such as income level, employment stability, and overall debt.
However, it should be noted that while these loans may be easier to get approved for with bad credit, they come with higher interest rates, making them more expensive.
Learn more: How To Get A Loan With Bad Credit In PEI
Where Can I Get A Personal Loan In PEI?
Personal loans in PEI are available through banks, credit unions, and alternative lenders. Each type of lender offers their own perks, depending on your financial and credit profile.
- Banks: Traditional banks provide personal loans with lower interest rates and flexible repayment terms compared to other types of lenders. However, approval typically requires strong credit and income, and the process can be slower due to stricter loan requirements.
- Credit Unions: Credit unions often offer more personalized service, competitive rates, and flexible terms for all types of borrowers. However, you’ll need to be a member first before taking out a loan with a credit union.
- Alternative Lenders: Alternative lenders cater to a wider range of borrowers, including those with poor credit. These types of lenders are ideal for fast access to funds — sometimes within hours — but usually charge higher interest rates than banks or credit unions.
Are Online Personal Loans Available In PEI?
Getting a personal loan is most convenient thanks to online lenders. With an online loan, you can apply, submit documents, and get funded without having to visit a physical storefront.
Online personal loans are available from several lenders in PEI, including the following:
| Fairstone | Personal loans are available online and in person. | Learn More |
| easyfinancial | Personal loans are available online and in person. | Learn More |
| Spring Financial | Personal loans are available online only. No Physical branches are available. | Learn More |
| LoanMeNow | Personal loans are available online only. No Physical branches are available. | Learn More |
Why Is Applying For A Loan Online Better Than Applying In Person?
While some borrowers may prefer to apply for a loan in person, others may find applying online more beneficial for them for the following reasons:
- Faster Approval And Funding: Online lenders typically use automated systems that can approve applications very quickly and provide funding within 24 hours.
- Minimal Paperwork: Online loan applications often require fewer documents thanks to tools like Instant Bank Verification (IBV), saving you time and hassle.
- Convenience: You can apply for an online loan anytime, from anywhere without the need to visit a branch or schedule an appointment.
- Easy Comparison Shopping: Online platforms let you compare multiple lenders, rates, and terms side-by-side, helping you find the best loan deal available.
How To Apply For A Personal Loan
Step 1: Get Pre-Approved
Before applying for a personal loan, get pre-approved with multiple lenders first. This will allow you to compare various loan offers based on your financial situation. Moreover, the pre-qualification process is often instant and only requires a “soft” credit check, so it won’t negatively impact your credit scores.Step 2: Choose A Lender
Compare your loan offers and choose one that comes with affordable rates and favourable terms. Be sure to also compare funding times if you need the cash urgently.Step 3: Gather All Required Documents And Apply
You’ll need to provide your lender with specific documents to verify your creditworthiness and identity. You can upload these documents and submit them electronically with your application. This may include a government-issued photo ID, bank statements, pay stubs and other related documents. Be sure to read over the application to make sure all the information is accurate.Step 4: Wait For Approval
Once you’ve submitted the application you should receive a response shortly after. If approved, the funds will be deposited into your account within 24 to 48 hours (via direct deposit or e-Transfer), depending on the lender.| What Is Instant Bank Verification? Many lenders in PEI — especially online lenders — use instant bank verification (IBV) to streamline the approval process. Instead of submitting physical documents, you log into your bank account through a secure third-party portal, which gives the lender read-only access to your banking activity to confirm your identity and income. This speeds up the loan process to ensure you get the funds you need quickly. |
Learn more: How To Apply For A Loan
Personal Loan Rules You Should Know To Protect Yourself
Currently, only 5 provinces have specific legislation pertaining to high-cost credit products, and PEI is not one of them. However, lenders within the high-cost credit space are still required to follow certain rules when it comes to how they conduct business.
Maximum Interest Rate
PEI doesn’t have regulations on the maximum interest a lender can charge, but federal regulations exist. More specifically, lenders must comply with the criminal interest rate set by the federal government, which is 35% APR.
| Description | Criminal Interest Rate | |
| Annual Percentage Rate (APR) | APR factors in all the fees and interest costs. | 35% |
Licensing Requirements
Lenders who operate under the payday loan sphere are required to be licensed under the Payday Loans Act. However, lenders who don’t provide payday loans are not required to be licensed under the Act.
Where Can You Find Consumer Protection Offices In PEI?
Businesses operating in PEI must follow the law when it comes to how they deal with customers. The Consumer Protection Act in PEI governs business practices to ensure that consumers are treated fairly when dealing with businesses in the province.
If you believe that you’re the subject of unfair practices, you can speak with a representative of the Department of Justice and Public Safety by contacting them in one of the following ways:
- By telephone: 1-902-368-4550
- By email: DeptJPS@gov.pe.ca
- In person: 4th Floor South, Shaw Building, 95 Rochford Street, Charlottetown, PEI, C1A 7N8
How To Increase Your Chances Of Getting A Personal Loan In PEI
Every lender’s loan application process will be slightly different. So, when you find yourself a legitimate lender, ask them to clarify their own procedures.
Generally speaking, however, there are a few measures you can take to make yourself look better to your lender (raising your creditworthiness), such as:
- Pay down all your other, more pressing debts.
- Try not to take on any more unnecessary debt.
- Have a stable source of employment/income.
- Arrange all your personal and financial information for inspection.
- Find a co-signer (if your credit is poor) to reduce the lender’s risk.
- Get an idea of what your assets are worth (if you’re applying for a secured loan).
- Boost your credit score.
| Not sure what your credit score is?You can check your score for free using Loans Canada’s CompareHub tool. |
Need Help Finding Stable Employment?
Having a steady income is one of the most, if not the most important, factors lenders consider when approving a borrower. If you’re struggling to get a job, consider working with an employment agency. By working with these companies, you can take advantage of experienced recruiters who know where the right job openings are for the right candidates.
Here are a few top-rated staffing agencies in PEI:
| Next Level Group | Next Level Group has been in the employment recruiting industry since 2011. Their team of recruiters are certified and focused on finding staffing solutions for those looking for work in PEI. They’ll take the time to understand the needs of each job seeker and match them to the right job opening and employer. |
| Halliwell Consulting | Halliwell Consulting specializes in connecting local businesses and would-be employees in PEI. The company employs a seasoned team of recruiters who implement effective recruiting methods to ensure the perfect match. They provide all types of work placements, including permanent, temporary, and contract positions in various industries. |
| Humble Consultancy and Recruitment Services | Humble Consultancy and Recruitment Services assists jobseekers in Atlantic Canada. The company carefully reviews each candidate, including their skills and experience, to ensure they’re matched with the right employer and job opening. |
How To Calculate My Personal Loan Cost
The cost of a personal loan is influenced directly by the following factors:
- Loan Amount: While the amount you qualify for depends on your lender and your financial health, you can generally find personal loans between $500 to 35,000.
- Loan Term: Personal loans usually come with terms between 6 months to 5 years.
- Interest Rate: Interest rates on personal loans can vary widely, though it can be as high as 35% (the legal limit).
To help you quickly determine what your personal loan will cost you, use Loans Canada’s online loan calculator.
When Is A Personal Loan A Smart Choice?
A personal loan can be a great solution in several situations:
- You Want Flexibility: Unlike mortgages or auto loans, personal loans can be used for just about any purpose, from home upgrades to car repairs to consolidating debt.
- You Can Qualify For A Low Interest Rate: Compared to most credit cards, personal loans often offer more affordable interest rates, helping you save money over time.
- You Want Customizable Repayment Options: Many lenders offer a range of payment schedules, including monthly, bi-weekly, and weekly options. Plus, loan terms span anywhere from 3 months to 5 years or more.
When Is A Personal Loan The Wrong Choice?
There are times when taking out a personal loan may not be the best move:
- You Have Unstable Income: If your income fluctuates or is unpredictable, committing to a loan could lead to missed payments, penalty fees, and damage to your credit score.
- You Have A Minor Expense: While personal loans can be used to cover small purchases, borrowing money for non-urgent expenses means more unnecessary debt and potential long-term financial strain.
Alternatives To Personal Loans In PEI
A personal loan may be a good option if you need a temporary financial fix. But it’s not the only option available. There are alternative solutions to personal loans in PEI to consider, including the following:
| Financial Resource | Link |
| PEI Social Assistance Program | Learn More |
| PEI Seniors Independence Initiative | Learn More |
| PEI Children’s Wellness Tax Credit | Learn More |
| PEI AccessAbility Supports | Learn More |
| Seniors Hearing Aid Rebate Program | Learn More |
Other Financial Assistance Programs In PEI
Whether you need help covering the cost of groceries, paying your rent, paying your utility bills, or you have some other need, various programs are available to help.
Many of these programs and services can be found by looking at www.211.ca, a website that connects Canadians with local services as needed. Here are a few that you’ll find on 211.ca:
Emergency Shelters
If you need a temporary place to stay, whether it’s because you’ve been unable to afford housing or because you’re escaping a dangerous situation, there are emergency shelters available to take you in. Some do not advertise their addresses, so you’ll need to contact them directly. Here are a few in PEI:
- Bedford MacDonald House – Overnight Shelter: 184 Weymouth Street, Charlottetown, PE, C1A 4Z3, Canada
- Park Street Emergency Shelter: 15 Park Street, Charlottetown, PE, C1A 5G7, Canada
- Chief Mary Bernard Memorial Women’s Shelter: Confidential Location, Lennox Island, PE
Free Clothing
To make sure you always have something to wear, particularly during the colder months of the year, there are a handful of outlets that provide free donated clothing items to residents in need:
- Life’s Necessities: 10 Maple Hills Ave, Charlottetown, PE, C1C 1N2, Canada
- Gender-Affirming Gear Recycle Program: 81 Prince St, Charlottetown, PE, C1A 4R3, Canada
- Free Store: 109 Water St, Summerside, PE, C1N 1A8, Canada
Affordable Housing
Hope for Homes provides two programs to help low-income Indigenous people living off-reserve:
- Seniors Housing Program: Low-income people aged 55 years and older may qualify to live in self-contained units at a low market rent rate.
- Affordable Rental Program: Low-income persons or families can apply to live in self-contained apartments at a low market rent rate.
Affordable Rental Program
The Family Housing Program allows residents of PEI to apply for affordable rental housing in Family Housing units located in 9 communities throughout the province. Alternatively, residents may apply for a rent supplement benefit to help cover the cost of private housing. In most cases, rent is based on 25% of total household pre-tax income.
Home Heating Assistance Program
The Salvation Army – Maritime Division offers a Home Heating Assistance Program to low-income PEI households. Eligible applicants may receive financial assistance of up to $1,200 toward their heating costs. This program only pays for heating arranged by the Salvation Army.
