Looking for the best bank loans in Canada? If your credit is solid and you can wait a few business days for a decision, a traditional bank personal loan is usually the cheapest way to borrow — annual percentage rates (APR) from major Canadian banks are consistently lower than what online or alternative lenders can offer. Below we compare the personal loan rates and terms currently listed for Canada's biggest banks on this site.
Big bank personal loan rates compared
| Bank | Loan amount | APR from |
|---|---|---|
| TD Bank | $2,000 – $50,000 | 6.99% |
| LoanConnect (bank-rate marketplace) | $500 – $50,000 | 6.99% |
| Scotiabank | $1,000 – $50,000 | 7.49% |
| Manulife Bank | $5,000 – $100,000 | 7.35% |
| RBC Royal Bank | $1,000 – $50,000 | 7.99% |
| BMO Bank of Montreal | $1,500 – $35,000 | 8.49% |
| CIBC | $3,000 – $200,000 | 8.99% |
| National Bank of Canada | $1,000 – $50,000 | 9.45% |
| Tangerine | $1,000 – $35,000 | 9.49% |
| EQ Bank | $5,000 – $100,000 | 9.99% |
Rates shown are the lowest advertised APR for each lender; the rate you're actually offered depends on your credit score, income and the loan term, and can be significantly higher than the "from" rate.
Bank loan vs. online lender: what's the real difference?
Banks generally offer the lowest APR because they only approve borrowers who meet stricter credit and income requirements, and because they can cross-sell other products (chequing account, credit card) to offset the risk. In exchange for the lower rate, expect:
- Slower approval — a few business days rather than minutes, especially if you're not already a client.
- Stricter credit requirements — most of the banks above expect a good to excellent credit score (generally 660+).
- More documentation — proof of income, employment verification, and sometimes an in-branch visit.
If you don't meet a bank's requirements, online lenders and alternative finance companies in our personal loans comparison approve faster and with more flexible criteria, but at a higher APR to offset the added risk.
What are bank personal loans typically used for?
Bank personal loans in Canada are most commonly used for debt consolidation, home renovations, large purchases (appliances, vehicles bought privately), and unexpected expenses that are too large for a credit card. Because the APR is lower than a credit card's typical 19-21%, consolidating high-interest credit card debt into a single fixed-rate bank loan is one of the most effective uses — see our debt consolidation category for lenders specializing in this.
Most bank personal loans come with terms from 12 to 60 months, and some lenders like CIBC offer terms up to 84 months on larger amounts. A longer term lowers your monthly payment but increases the total interest paid, so it's worth running the numbers both ways before choosing a term.
Fixed vs. variable rate bank loans
Most of the bank loans compared above are offered at a fixed rate, meaning your monthly payment stays the same for the entire term — useful for budgeting. A small number of banks also offer variable-rate personal loans tied to prime, which can start lower but fluctuate with the Bank of Canada's rate decisions. If you expect rates to fall, a variable rate can save you money; if you prefer certainty, a fixed rate is the safer choice.
How to get the best bank loan rate
- Check your credit score first — see our guide to credit score ranges in Canada to know where you stand before applying.
- Start with the bank where you already hold an account; existing relationship banking can improve your approval odds and sometimes the rate.
- Get pre-qualified with more than one bank where possible — a rate check usually doesn't hurt your credit score, while a full application can trigger a hard inquiry.
- Compare the APR, not just the posted interest rate — the APR includes most fees and is the real cost of borrowing.
Frequently asked questions
Which bank has the lowest personal loan interest rate in Canada?
Based on the lowest advertised APR among the lenders on this page, TD Bank and LoanConnect currently show the lowest starting rate at 6.99%. See our dedicated guide on which bank has the lowest personal loan interest rate in Canada for a fuller breakdown, since the rate you actually qualify for depends on your credit profile.
Is a bank loan always cheaper than an online loan?
Usually for borrowers with good to excellent credit, yes. But if a bank rejects your application or only offers a high rate because of your credit history, a well-chosen online or alternative lender can sometimes work out cheaper than a bank's "subprime" personal loan rate — compare the actual APR offered, not just the lender's reputation.
Can I get a bank loan with bad credit?
It's harder, but not always impossible — some banks offer secured loan options (backed by savings or an asset) for borrowers with weaker credit. If you're turned down, our bad credit loans category lists lenders that specialize in approving borrowers banks typically decline.