Instalment Loan Types in Canada

Compare instalment loan types available to Canadian borrowers, from personal loans to secured home equity products. Every page explains typical amounts, terms, and costs.

Canadian borrowing is covered by federal law plus provincial consumer protection rules. The federal criminal rate of interest is 35% APR as of 1 January 2025, and payday lending is capped at $14 per $100 borrowed with a maximum loan of $1,500 and a term of 62 days or less.

Bad Credit Loans

Bad credit loans are loans for borrowers whose credit history makes them ineligible for standard bank lending. They often carry higher rates and may be secured or guaranteed.

$500 – $35,000 · 6 months to 5 years

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Business Loans

A business loan provides capital to a company, repaid with interest over a set term. Canadian lenders typically assess time in business, revenue, and cash flow.

$5,000 – $500,000 · 1 to 10 years

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Car Loans

A car loan is a secured instalment loan used to buy a vehicle, with the vehicle pledged as collateral. Rates depend on the vehicle, term, down payment, and credit profile.

$5,000 – $100,000 · 1 to 8 years

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Debt Consolidation Loans

A debt consolidation loan combines multiple high-interest debts into one loan with a single monthly payment, ideally at a lower overall interest rate.

$5,000 – $100,000 · 2 to 10 years

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Debt Relief

Debt relief options in Canada include debt management programs, consumer proposals, and bankruptcy. Each has different costs, credit impacts, and eligibility rules.

$5,000 – $250,000 · varies by program

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Emergency Loans

An emergency loan is short-term financing for an unexpected expense. Because urgency pushes borrowers toward high-cost credit, compare all options first.

$300 – $15,000 · 1 month to 3 years

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Home Equity Loans

A home equity loan lets you borrow against the equity in your home, usually at a lower rate than unsecured credit because the property secures the debt.

$10,000 – $500,000 · 5 to 25 years

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Instalment Loans

An instalment loan is repaid in a set number of equal payments over a fixed term. Unlike a payday loan, the principal is paid down gradually rather than in a single lump sum.

$500 – $50,000 · 6 months to 5 years

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Lines of Credit

A line of credit is a flexible revolving facility you can draw on, repay, and reuse up to a limit. Interest is charged only on the amount you use.

$5,000 – $250,000 · revolving

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Mortgage Refinancing

Refinancing replaces your existing mortgage with a new one, often to change the rate, term, or payment schedule, or to access home equity.

$50,000 – $2,000,000 · 5 to 30 years amortization

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No Credit Check Loans

So-called no credit check loans still involve a credit decision. Lenders may use a soft check, alternative data, or collateral instead of a hard inquiry on your credit report.

$100 – $15,000 · 2 weeks to 3 years

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Payday Loans

A payday loan is a short-term, high-cost loan of up to $1,500 for a term of 62 days or less. In Canada the cost of borrowing is capped at $14 per $100 borrowed.

$100 – $1,500 · up to 62 days

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Personal Loans

A personal loan is an unsecured or secured lump-sum loan repaid in fixed instalments over an agreed term. In Canada, personal loans are offered by banks, credit unions, and licensed alternative lenders.

$1,000 – $50,000 · 1 to 5 years

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Student Loans

Student loans help cover tuition and living costs while studying. Canadian students may use government student aid, private student loans, or a combination.

$1,000 – $50,000 · repayment over 5 to 15 years

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How to Choose a Loan Type

Start with the purpose and the timeline. A one-off expense that you can repay within a year usually suits an unsecured personal or instalment loan. A vehicle purchase suits a secured car loan. A debt problem suits consolidation, credit counselling, or a consumer proposal rather than new high-cost credit.

Match the term to the life of what you are financing, and never let the monthly payment be the only number you compare.

Use the same amount and term when you compare two offers so the numbers are genuinely comparable. The cheapest headline rate is not always the cheapest loan once fees are included.

The APR, not just the advertised rate.
The total cost of borrowing in dollars.
Administration, broker, insurance, and prepayment fees.
Whether the loan is secured against an asset you could lose.
Whether the payments are fixed or variable.
What a missed payment costs and how it is reported.

Ask for the disclosure document before you sign, and keep it alongside the agreement for your records.

Canadian Lending Rules at a Glance

Payday loans are the most expensive form of short-term credit in Canada, and the rules are specific:

The cost of borrowing is capped at $14 per $100 borrowed.
The maximum payday loan is $1,500, with a term of 62 days or less.
A dishonoured-payment fee cannot exceed $20.
Nine provinces operate a payday lending regime; Quebec effectively bans payday loans.
The federal criminal rate of interest is 35% APR as of 1 January 2025.

The Financial Consumer Agency of Canada illustrates the difference in cost for borrowing $300 over 14 days: a payday loan costs roughly $42 to $63, a credit-card cash advance about $4 to $8, overdraft protection about $2.40 to $7, and a line of credit about $1.15 to $5.81. The gap is the reason payday credit should be a last resort.

You are entitled to a written disclosure of the cost of borrowing before you sign.
Consumer lenders must be licensed in the province where they operate; you can check with the provincial regulator.
Your credit report may be checked, and your payment history is reported to the credit bureaus.
You can ask about prepayment terms, late fees, and whether the agreement can be cancelled.

The Financial Consumer Agency of Canada publishes plain-language guidance on loans, credit, and debt, and is the best starting point for Canadian borrowers.

Compare by Province and Territory

Rules and available lenders differ by province. Browse instalment loans by province and territory to see local information.

Sources

Sources are provided for verification. Instalment.ca is not affiliated with these organisations.

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Last updated: September 16, 2026 · Reviewed by the Instalment.ca Editorial Team

We research Canadian lending rules and update this page when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.

Important: This is general information, not financial, legal, or tax advice. Rates and terms vary by lender, creditworthiness, and province, and are not guaranteed. Any figures shown are examples only. Always read the lender's disclosure before you sign.