Get Approved for up to $35,000 in 3 minutes
Apply Now
Blog Categories
Loan Calculator

Online Short Term Loan Options for Canadians

Written by Jessica Steer
Life moves very fast. And sometimes we lose our financial footing in the daily shuffle to cover all the bases. Whether it’s an unforeseen vehicle repair bill, your kid’s upcoming school trip, or a paycheque that was much less than you expected, once in awhile you need a monetary boost to get over a short-term hump. And that’s where a short term loan can help...
Table of Contents

    Ranging from two weeks to two years, short-term loans are a way to pay for unforeseen and unplanned expenses. 

    When you need a short-term loan in Canada, your options are generally: 

    • Banks
    • Online installment lenders
    • Payday lenders

    Let’s explore what these options are to help you decide what the best short-term loan for you is…

    Do banks offer short-term loans? 

    Nearly all financial institutions in Canada offer short-term personal loans to be paid back in installments. However, not all banks offer online applications. Some banks require you to come to their branch office and sit down with a potentially judgmental bank manager to initiate an application. That can be intimidating if your credit rating has hit some rough patches and your chances of being declined are high. 

    That means, if you have bad credit or need money quickly, banks are usually a no-go.

    So what about alternative online lenders?

    Online lenders: payday loans vs. installment loans

    Online short-term loans are faster to obtain and don’t require you to make appointments. When you apply for a short-term loan online, the approval process is usually much quicker than other loan products. Once you are approved, the funds can be deposited directly into your bank account.

    There are two main types of online short-term loans: 

    • Installment loan
    • Payday loan

    A short-term installment loan is a specific amount of money you can borrow from reputable lenders with a set plan for monthly repayment. The repayment timeframe for a short-term installment loan can be under a year to a couple of years depending on what suits the borrower.

    Short-term personal installment loans are quick to process, and you don’t need to deal with overly bureaucratic banks or predatory payday loan shops. 

    Payday loans are another form of short-term loan. They can be obtained in a short amount of time but need to be repaid in a quicker timeframe than most other types of loans. 

    Like installment loans, payday loans do not require borrowers to have a sterling credit rating. Payday loans are probably the least stringent of all lenders, and some even offer no credit check loans but they also charge punishing interest rates and fees. 

    Remember: No credit check loans always come at an unreasonable price because of the risk that the lender is taking on. Even if you have bad credit, there are always better options out there.

    The main difference between short-term installment loans and payday loans is that payday loans are extremely short-term. In fact, you will probably have little more than two weeks to pay it back before their massive interest starts accumulating on you. 

    Payday loans are designed to get you to the next paycheque and not much else.

    On the other hand, short-term installment loans can fill the gap between paydays or can be for something bigger like a wedding plan, home renovation, or vehicle repair. Plus, you have much more time to pay it back and the borrowing rates will be far more favourable to you than a payday loan.

    Enjoy better rates with short-term installment loans

    Payday loans prey on desperate situations. You need money in short order, and they’re in the business of capitalizing on the situation, which is why they have such high borrowing costs (up to 600% interest!). 

    The province of Quebec has outright banned payday loans, which tells you a lot about how governments view their business practices. Other provinces have recently tightened regulations on payday lenders, including Ontario, Alberta, BC and New Brunswick.


    Max. cost of borrowing $100 (14 days)

    Annual Percentage Rate (APR)

    Max. penalty for a pre-authorized debit or returned cheque





    British Columbia








    New Brunswick




    Nova Scotia








    Prince Edward Island








    Here’s some quick math to give you an example of payday loan rates. Borrow $1,000 from a payday lender in BC or Ontario, with a 14-day term, and on your next paycheque, you are going to owe $1,150. If you don’t pay it back on time, expect exorbitant late fees and sky-high APR (see table above.) 

    For many borrowers, two weeks is hardly enough time to get your finances back in order. Short-term installment loans, on the other hand, do not need to be paid back in two weeks. You can take months or even a year or more to pay it back in installments. This will give you some much-needed breathing room during your repayment phase. 

    There’s another advantage to short-term installment loans that you can’t get with payday loans. With a longer duration to pay back the loan, you are actually getting a chance to improve your credit score. The longer you diligently pay back a loan, the better it looks on your credit report. It shows future lenders that you are responsible and can be trusted with a loan.

    Need a short-term loan with bad credit?

    Bad credit shouldn’t prevent you from achieving your goals, which is why trusted online lenders are starting to emerge to provide loans for people facing all kinds of credit situations. Bad credit is no longer such a big obstacle when it comes to getting a loan. 

    When banks take too long and often decline your application because of bad credit, trusted online installment lenders (like Spring Financial) can get you a fast short-term loan at a price that makes sense. What’s more, one of our loans can actually help you rebuild credit!

    The benefits of a short-term online installment loan

    To summarise, there are numerous reasons why an online installment loan is the right option for you: 

    Repayment period: Short-term installment loans can be paid back in weeks, months, and even years depending on the applicant’s tailored repayment plan. This differs greatly from payday loans, which generally require repayment within two weeks.

    Borrowing fees: Short-term installment lenders offer lower APR rates than payday lenders. When deciding on a loan provider, make sure you always compare interest rates and get the best deal possible.

    Easy application process & fast approval: You don’t need to visit a bank branch and sit down with a loan officer. With a trusted online installment lender, you can easily apply online and all communication can be over phone, email, or text, whichever works for you. This means you don’t need to take time off work and spend an afternoon waiting at a bank. 

    Helps your credit rating: As opposed to payday loans, a short-term installment loan means you are paying back the debt in installments and improving your credit score in the process, proving you are responsible to potential lenders.

    Good credit not required: Online lenders work with all credit situations, as opposed to banks that are quick to say no to those with a less-than-positive credit rating.

    Where to start if you need a short-term loan?

    If you’re in need of a short-term internet loan to get through an emergency situation, unexpected life event or any other situation, consider Spring Financial to help you reduce your financial stress. We offer personal short term loans in Canada for up to $35,000. All you have to do is select how much you want to get started and let us take care of the rest. And you can do it all online from the comfort of your home! Get started today!

    Online Loans from 9.99%*

    Skip the branch visits, apply online in minutes and get the financing you want today.

    Get a Loan Quote

    Subscribe to receive special offers and financial tips

    Subscribe To Our

    Receive Special Offers, and Learn Tips and Tricks to Improve your Finances.