Personal Loans for Your Credit Needs Personal loans, also known as unsecured and signature loans, are granted upon review of the borrower’s credit rating. This type of loan carries less risk and comes with lower interest rates than other types, but it is more difficult to obtain. Persons with poor or no credit history may have to first work on their credit score, applying for other types of financing. All major banks in Canada, Bank of Montreal, Toronto Dominion, Royal Bank of Canada, Canadian Imperial Bank of Commerce, and Scotia Bank offer to their clients both, unsecured and secured loans. Customers of the Bank of Montreal can apply for a personal loan with bi-weekly, weekly, semi-monthly and monthly fixed payments, choosing between fixed and variable interest rate. Depending on the borrowing purpose, the repayment term ranges between 1 and 5 years or longer. Borrowers can defer one monthly payment twice per year and make payments without incurring penalty. Other borrowing options offered by the Bank of Montreal are personal, homeowner's, and student lines of credit. The personal line of credit comes with a variable interest rate, 2 percent minimum monthly payment, itemized monthly statements, payment in full without penalty, and easy access to cash. The customers of Toronto Dominion Bank enjoy a wide range of repayment terms, fixed monthly payments, and fixed and variable interest rates. Fixed rates protect customers against increases in interest rates while with variable interest rate loans, borrowers may benefit from paying less in periods when the interest rate is low. As an alternative option, the customers of Toronto Dominion may consider applying for a line of credit, helping them finance daily expenses such as groceries, gas, clothing, and even electronics and larger items. The bank's line of credit gives access to $50 000 and more if the customer guarantees the loan with collateral. The Royal Bank of Canada offers the opportunity of taking a fixed rate personal loan and switching to variable rate if the interest rates fall. At the same time, customers may switch from variable to fixed rate loan in case that the rates go up. Borrowers can choose to pay their loan semi-monthly, monthly, bi-weekly, or weekly. The payment is deducted automatically from their checking accounts. No penalty is incurred for paying off larger amounts or full repayment of the loan. The bank’s secured line of credit is tailored to the financial needs of customers who own a home and seek financing for their home improvement project. The home equity line of credit comes with interest rate as low as 5.5 percent, which is lower than the rate on most other financial products. Canadian Imperial Bank of Commerce offers personal loans to customers who seek to borrow a minimum of $3000. Borrowers can pay their dues on a monthly, semi-monthly, weekly, and bi-weekly basis, choosing between variable and fixed interest rate. Secured loans come with lower interest rates and give borrowers access to larger amounts of money. Customers determine the term over which they will repay the loan as well as the borrowing purpose and frequency of payments. The customers of Bank of Nova Scotia can borrow unsecured loans in the amount of up to $50 000 and secured loans of up to $150 000. The loan terms range from one to five years while amortizations are up to 25 years. With the fixed rate personal loan, payments don’t change with fluctuations of the interest rate. The personal line of credit comes with a credit limit of up to $1.5 million for secured and between $5000 and $50 000 for unsecured credit lines. Customers get free checks, itemized monthly statements, and low interest rates equal to the prime rate of Scotia Bank + 1 percent.