Small Loans in Canada ($300 to $1,500): Lenders, Costs, Comparing

Updated September 27, 2026. Every figure below is dated and linked to its source.

In Canada, small loans of $300 to $1,500 come from payday lenders, instalment lenders, credit unions and loan-matching services. Payday loans cost up to $14 per $100 borrowed. Every other loan is capped at 35% APR, fees included. At that cap, $1,000 over six months costs about $104.53 in interest.

Key facts, September 2026

The criminal interest rate is 35% APR for loans made on or after January 1, 2025, and all fees count toward it (SOR/2024-114).
A payday loan is $1,500 or less, lasts up to 62 days, and costs at most $14 per $100 in provinces that license payday lenders (FCAC).
For a $300 loan over 14 days, the FCAC puts the cost at $42 as a payday loan, but only $5.92 on a line of credit.
44% of Canadians faced an emergency expense in the past year, and 32% have no emergency fund (RBC poll, July 16, 2026).
Prices rose 3.0% in the year to August 2026, with gasoline up 22.8% (Statistics Canada, September 14, 2026).

Who offers small loans of $300 to $1,500 in Canada?

Five kinds of lenders offer small loans in Canada, and they differ a lot in price. Payday lenders give one-payment loans of up to $1,500. Instalment lenders give loans you repay over a few months. Credit unions sometimes offer low-rate small loans to members. Banks mostly lend through credit cards, overdrafts and lines of credit. Loan-matching services, like Loan Boys, send one application to several lenders at once. The FCAC says most personal loans range from $100 to $50,000, with terms of 6 to 60 months. So a small loan is normal, not a special product. What changes is who will say yes, how fast, and at what price. Your credit history often decides which of these doors is open to you.

Here is how the main options line up for someone who needs cash this week:

Payday lenders: fast, and they care most about your income. But the full amount plus fees is due on your next payday.
Online instalment lenders: they spread the cost over several months. They are capped at 35% APR, all fees included.
Credit unions: often the cheapest if you qualify. For example, Vancity's Fair & Fast Loan lends $100 to $2,500 at a 19% fixed rate, but only to BC residents aged 19 or older who become members.
Your bank: a credit card cash advance, overdraft or line of credit can be cheap for short periods, if you already have one.
Loan-matching services: one short form reaches several lenders, so you can compare real offers.

If your credit is weak, some of these doors close quickly. Our guide to bad credit loans in Canada explains which lenders look past a low score and why.

What does a small loan cost in Canada in 2026?

A small loan in Canada costs either up to $14 per $100 (payday loans) or up to 35% a year (everything else). Both limits come from the federal Criminal Interest Rate Regulations. They took effect on January 1, 2025. The 35% cap includes every fee, charge and insurance add-on, not just interest. The FCAC says it plainly: lenders "may not charge more than 35% interest annually," including all fees and costs. Payday loans follow a separate rule. They must be $1,500 or less and last 62 days or less. The total cost is then capped at 14% of the amount advanced. A dishonoured-payment fee of $20 or less sits outside that $14 cap.

The trouble is that $14 per $100 sounds small. It is charged for about two weeks, not a year. Borrowing $500 for 14 days costs $70. As a yearly rate, that is about 365% APR. A $500 instalment loan at the 35% legal maximum costs $29.45 in interest over three months. That is less than half the payday fee, and you get six times longer to repay. We break the numbers down further in how much a payday loan costs in Canada. The short version: for the same amount, a payday loan is almost always the most expensive legal choice.

Rates elsewhere in the economy matter less than you might think. The Bank of Canada held its policy rate at 2.25% on September 2, 2026. Small-loan lenders price mostly for risk, though, not for the policy rate. That is why the 35% cap, not the Bank of Canada, sets the ceiling on what you pay.

How much will $300, $500, $1,000 or $1,500 cost you?

The cost depends on the amount, the loan type and how long you take to repay. The table below compares a two-week payday loan with an instalment loan at the 35% APR legal maximum. The instalment figures use a standard monthly payment formula. Your offer may be lower than 35%, never higher. Look at the monthly payment as well as the total. A cheaper loan that you cannot afford each month is not cheaper in real life. It leads to missed payments, bounced-payment fees and new loans to cover old ones.

Amount	Payday loan (2 weeks, $14 per $100)	3 months at 35% APR	6 months at 35% APR
$300	$42 fee, $342 due at once	$105.89 a month, $17.67 interest	$55.23 a month, $31.36 interest
$500	$70 fee, $570 due at once	$176.48 a month, $29.45 interest	$92.04 a month, $52.26 interest
$750	$105 fee, $855 due at once	$264.72 a month, $44.17 interest	$138.07 a month, $78.40 interest
$1,000	$140 fee, $1,140 due at once	$352.96 a month, $58.89 interest	$184.09 a month, $104.53 interest
$1,500	$210 fee, $1,710 due at once	$529.45 a month, $88.34 interest	$276.13 a month, $156.79 interest

Two things stand out. First, the payday fee for two weeks is higher than six months of interest at 35%, for every amount in the table. Second, the payday loan asks for everything back at once. That single large payment is why many people borrow again. The FCAC found that half of payday loan users took loans more than once, and 7% used a new payday loan to repay an old one.

Who gets approved for a small loan, and what do lenders check?

Most small-loan lenders approve people with steady income, a Canadian bank account and a manageable debt load. Your credit score matters less than it does at a bank. Lenders usually check four things. They check your age and residency, usually 18 or 19 and older depending on the province. They check your income, which can be a job, a pension or some government benefits. They check your bank account, since that is where money is sent and payments are taken. And they check how much of your pay is already committed to other debts.

Provinces also limit how much a payday lender can lend you. Ontario and BC cap a payday loan at 50% of your net pay. Manitoba and New Brunswick cap it at 30%. Saskatchewan caps it at 50% of take-home pay. These limits protect you, but they also mean a $1,500 payday loan needs at least $3,000 of take-home pay in that pay period in Ontario. Instalment lenders have no fixed rule like this. They still look at whether the monthly payment fits your budget.

Many Canadians are stretched right now. Equifax Canada reported $712.2 billion in non-mortgage debt in Q2 2026, up 4.8% in a year. A quarter of people surveyed expected to make only minimum payments in the coming months. Lenders see that too. The more lenders you can reach at once, the better your odds of finding one whose rules fit your situation.

How to compare small loan offers in 7 steps

You can compare small loan offers in about ten minutes if you follow the same steps each time. Canadian lenders must show you the loan amount, the interest rate, the term, the payment amount and every fee before you sign. Use that disclosure. Do not rely on the ad or the sales call.

Decide the smallest amount that solves the problem. Every $100 you do not borrow saves you up to $14 on a payday loan, or interest at up to 35% a year on an instalment loan.
Check your province. Payday lenders must be licensed where you live. Rules on cancelling, rollovers and how much you can borrow differ by province.
Apply in one place first. With Loan Boys you can start your application online in a few minutes. One application reaches several lenders, with no hard credit pull.
Read the cost of borrowing. Find the total dollar cost, not only the rate. Add every fee, including set-up fees and optional insurance.
Check the APR is 35% or lower. Any non-payday loan above 35% APR, fees included, breaks federal law. Walk away.
Test the payment against your budget. Write down your rent, food, transport and bills. If the payment does not fit with $50 to spare, borrow less or pick a longer term.
Ask about early repayment. Many lenders let you pay early with no penalty, which cuts your interest. Get the answer in writing.

High approval rates at a loan-matching service come from reach, not from lower standards. Your one application is seen by several lenders. Each one has its own rules on income, credit and province. The more lenders see it, the better the chance that one fits you. There is no hard credit pull at the application stage, so shopping around does not hurt your score.

What a small loan really costs: a worked example at 35% APR

A $1,000 instalment loan at the 35% APR legal maximum costs $104.53 in interest over six months. Here is the math, so you can check any offer yourself. The monthly rate is 35% divided by 12, or about 2.917%. The payment formula is P × r ÷ (1 − (1 + r)⁻ⁿ). P is the amount borrowed, r is the monthly rate, and n is the number of months. For $1,000 over six months, that gives $184.09 a month. Six payments add up to $1,104.53. The extra $104.53 is the full cost of borrowing, if the lender charges the legal maximum and no separate fees.

Now compare the same $1,000 as a payday loan. The fee is $140, and the whole $1,140 is due on your next payday, usually in about two weeks. If you cannot pay and take a new loan to cover it, you pay another $140. Two rounds cost $280. That is more than two and a half times the six-month instalment cost. Rolling over or taking a loan to repay a loan is banned in several provinces for exactly this reason.

A shorter term is cheaper in total but harder each month. The same $1,000 over three months costs $58.89 in interest, but the payment rises to $352.96. Over 12 months, the payment falls to $99.96, but interest climbs to $199.56. Pick the shortest term whose payment you can make every time. A credit union loan like Vancity's, at 19%, would cost about $105.88 over a full year on $1,000. That is why it is worth checking a credit union first if you qualify.

Your rights, and the mistakes that make small loans expensive

Provincial law gives you real protections on payday loans, and knowing them can save you money. In Ontario, you have two business days to cancel with no penalty. A bounced-payment fee is capped at $20. Default interest is capped at 2.5% a month. If you take three payday loans in 63 days, the lender must offer an extended payment plan. In BC, you get two business days to cancel, and rollovers are banned. Manitoba gives you 48 hours to cancel. Alberta requires at least 42 days and two instalments to repay. Saskatchewan lets you cancel by the end of the next business day. New Brunswick allows one payday loan at a time.

The most common mistakes are easy to avoid once you know them:

Paying an upfront fee. A lender that asks for money before you get the loan is a scam sign. Licensed lenders take their fees from the loan or from repayments.
Borrowing more than you need. Every extra $100 costs you more, and it raises the payment.
Stacking loans. Two small loans at once can double your payments on the same payday.
Ignoring the due date. A missed payment brings fees and default interest, and it can end up with a collection agency.
Using an unlicensed lender. Check your province's regulator before you sign.

Emergency costs are the usual reason people borrow. The FCAC's 2016 survey found 45% of payday borrowers used the loan for an unexpected necessary expense, such as a car repair. If that is your situation, our guide to car repair loans with bad credit covers what repairs cost and how to pay for them.

What to do next

Start with the cheapest option you can actually get, and borrow only what you need. If you have a credit card or line of credit with room left, check its rate first. For a $300 loan over 14 days, the FCAC puts a credit card cash advance at $7.65 and a line of credit at $5.92. If you live in BC and qualify, a credit union small loan may be cheaper still. If neither works, an instalment loan at 35% APR or less is usually cheaper and easier to manage than a payday loan.

Loan Boys is a loan-matching service, not a lender. We work with lenders serving Ontario, Alberta, BC, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, and Newfoundland and Labrador. You must be 18 or older, live in Canada and have a regular income. The online form takes a few minutes, and there is no hard credit pull. Decisions usually come within minutes during business hours. If approved, funds arrive by e-Transfer, and you repay over three to six months.

After the loan is repaid, try to set aside a small amount each payday. The RBC poll found 32% of Canadians have no emergency fund. Even $300 saved can stop the next surprise bill from becoming the next loan.

FAQ

What is a small loan in Canada?

A small loan in Canada is usually $300 to $1,500, repaid in one payment or over a few months. Payday loans must be $1,500 or less and last 62 days or less. Instalment loans in this range are often repaid over three to 12 months. Both are legal, but payday loans cost up to $14 per $100, while other loans are capped at 35% APR.

How much does a $1,000 small loan cost?

At the 35% APR legal maximum, a $1,000 loan costs $184.09 a month over six months, or $104.53 in total interest. Over three months, it costs $352.96 a month and $58.89 in interest. The same $1,000 as a two-week payday loan costs $140 in fees, with the whole $1,140 due on your next payday.

What is the maximum interest rate on a small loan in Canada?

For loans made on or after January 1, 2025, the maximum is 35% APR under the Criminal Code, and all fees count toward it. Payday loans of $1,500 or less for up to 62 days follow a separate cap of $14 per $100 borrowed. A lender charging more than these limits is breaking federal law.

Who offers small loans with bad credit?

Payday lenders, online instalment lenders and some credit unions offer small loans with bad credit. They focus on steady income and a bank account more than your score. Big banks usually lend small amounts only through credit cards, overdrafts or lines of credit you already have. Instalment lenders must stay at or below 35% APR, fees included.

Is a payday loan or an instalment loan cheaper?

An instalment loan is usually cheaper. A $500 payday loan costs $70 for two weeks. A $500 instalment loan at the 35% APR maximum costs $29.45 in interest over three months, or $52.26 over six months. The instalment loan also splits repayment into smaller monthly payments instead of one large payment on payday.

Can I get a small loan without a hard credit check?

Yes. Many small-loan lenders and loan-matching services do not run a hard credit pull when you apply, so checking offers does not lower your score. They look at your income, bank account and existing debts instead. Whatever the credit check, the loan must still respect the 35% APR cap, or $14 per $100 for payday loans.

How fast can I get a small loan in Canada?

Many online lenders decide within minutes during business hours and send money by e-Transfer the same day you sign. Speed does not change the price limits: payday loans cost up to $14 per $100, and other loans up to 35% APR. Have your ID, bank details and proof of income ready to avoid delays.

How much can I borrow as a payday loan in my province?

Payday loans are capped at $1,500 everywhere, but provinces also limit them to a share of your net pay. Ontario and BC allow up to 50% of net pay, Saskatchewan 50% of take-home pay, and Manitoba and New Brunswick 30%. The cost is capped at $14 per $100 in every province that licenses payday lenders.