Fruvenzo is an independent financial comparison platform. We may earn a commission when you click through.
Best Personal Loans for First-Time Borrowers: August Picks
Explore personal loans tailored for first-time borrowers with clear terms, starting APRs, and the highest loan amounts available.
Quick Picks for First-Time Borrowers
Best overall: CIBC Personal Loan.
Lowest APR: Scotiabank Personal Loan.
Best for Quebec Residents: Desjardins Personal Loan.
Top Picks for Low APRs
Finding a personal loan with a low APR can significantly reduce your borrowing costs over time, especially crucial for first-time borrowers who might not have established credit histories. These lenders offer some of the best starting rates available.
Scotiabank Personal Loan
Scotiabank offers a starting APR of 6%, which is notably competitive among major Canadian banks. This makes it an appealing choice for first-time borrowers with excellent credit who want to minimize interest payments.
Scotiabank Personal Loan
Desjardins Personal Loan
Desjardins is ideal for Quebec residents who appreciate the cooperative model. As a credit union, profits are returned to members, often resulting in better rates — a smart choice for those looking to keep costs low.
goPeer Personal Loan
The peer-to-peer model of goPeer can be attractive for borrowers who wish to bypass traditional banking. Rates are competitive, but be prepared for a different lending experience.
goPeer Personal Loan
While low APRs are attractive, some borrowers might prioritize maximum loan amounts or specific regional benefits. The following options cater to those needs.
Loans with High Maximum Amounts
For borrowers who need access to significant funds, these lenders offer the highest loan amounts available, which is crucial for large expenses like home renovations or education.
CIBC Unsecured Personal Loan Options
CIBC stands out with a maximum loan amount of $200,000, making it the top choice for those needing substantial funds. The narrow rate band of 9-10% provides predictability, though approval requires strong credit.
CIBC Unsecured Personal Loan Options
National Bank Personal Loan
National Bank is a solid choice for Quebec residents who prefer in-person service. Its extensive branch network ensures accessible support, though loan amounts are slightly lower than CIBC.
National Bank Personal Loan
RBC Royal Bank Personal Loan
For those already banking with RBC, leveraging an existing relationship can facilitate the loan process. They offer competitive rates for well-qualified borrowers.
Although high loan amounts can accommodate big projects, not everyone needs or qualifies for them. The next set of options is suitable for those seeking more moderate borrowing solutions.
Mid-Market Options for Moderate Borrowing
These lenders provide a balanced approach, with reasonable loan sizes and competitive terms for borrowers not needing the highest limits or lowest APRs.
Fig Financial Personal Loan
Fig Financial is a good middle-ground option, offering competitive rates compared to typical online lenders. It's especially beneficial for those with fair to good credit who don't meet big bank criteria.
Fairstone Personal Loans
Fairstone caters to those with challenged credit, offering unsecured loans through a wide branch network. The high starting rate of 29.99% makes it a last resort for those rejected elsewhere.
Fora Credit Line of Credit
Fora Credit offers a line of credit with flexible access for borrowers who can't qualify at banks. It's a stepping stone with high rates, suitable for short-term gaps.
Rates and terms shown are representative. Your actual rate depends on your credit profile and circumstances. This is not financial advice — always read the lender's terms before applying.
Choosing the right personal loan depends on balancing your need for funds with the cost of borrowing. First-time borrowers should prioritize clear terms and reputable lenders. For a deeper dive into loan options, especially if you're weighing different offers, check out our detailed comparison in Choosing the Right Personal Loan: LendDirect vs Meridian.