Top Banks Offering Pre-Approved Personal Loans in Canada

What are Pre-Approved Personal Loans?

A pre-approved personal loan is an offer you receive from a lender after they’ve done a preliminary review of your credit or income. Unlike a standard loan application (which involves filling out forms and a hard credit inquiry), pre-approval typically uses a soft credit check – a quick look at your credit profile that does not appear on your credit report or affect your scoreconsolidatedcreditcanada.ca. Soft checks let you see if you qualify, without committing. Pre-approval isn’t a guarantee; it simply means you meet initial criteria. You’ll still need to formally apply (triggering a hard credit check that may ding your score slightly) and provide income documents. Pre-approval offers give you a loan amount and rate range in advance so you can plan ahead.

How it differs from a regular loan application: A full loan application involves a hard pull on your credit (which shows up on your credit report) and a detailed evaluation. In contrast, pre-approval (or prequalification) is an initial “no-obligation” check. It lets you check what loan size and rate you might get without any hard inquiryconsolidatedcreditcanada.ca. Once you accept a pre-approved offer or formally apply, the lender will do a hard check and finalize the loan.

Soft vs. hard credit checks: Soft inquiries can be done without hurting your credit score. They give you “pre-approved” or “pre-qualified” rates. Hard inquiries (done when you apply for the loan) can cause a small, temporary dip in your scoreconsolidatedcreditcanada.ca. For example, many lenders (including major banks) let you “check your rate” online with a soft pull; you see your rate options, and only if you proceed to apply will they do the hard checktd.comconsolidatedcreditcanada.ca.

Major Canadian Banks with Pre-Approved Personal Loans

Here’s a look at how each big Canadian bank handles personal loans and pre-qualification:

• RBC (Royal Bank of Canada)

  Loan amounts: RBC doesn’t publicly cap personal loans, but they typically start around $5,000 (varies by branch and credit profile). (Some reports note RBC personal loans allow large amounts for well-qualified borrowersloanscanada.ca.)
  APR: About 9%–13% for unsecured loansratehub.ca (fixed rate; actual rate depends on your credit).
  Term: 1–5 yearsloanscanada.ca.
  Pre-approval criteria: RBC generally wants a good credit score and steady income. Existing RBC customers often get pre-approved offers by mail or in online banking. You can pre-qualify for a loan online or with an advisor; RBC’s pre-qualification (as with its auto loans) is done via a soft inquiry that won’t affect your creditloanscanada.ca.
  Soft vs Hard check: Checking your eligibility via RBC’s online or branch pre-qual tools uses a soft pull. Once you formally apply, RBC will do a hard credit check.
  Apply: You can apply online (for existing customers) or visit a branch. Many RBC customers are invited to apply through online banking (EasyWeb) or the RBC mobile app.

• TD Bank (TD Canada Trust)

  Loan amounts: Up to $50,000 for most borrowerstd.com (depends on income and credit).
  APR: Approximately 8.99%–23.99%ratehub.ca, fixed rate.
  Term: 1–7 yearsratehub.ca.
  Pre-approval criteria: TD typically requires a fair-to-good credit score (around 600+). They use an online “check my rate” tool. Like many lenders, TD lets you see your personalized loan rate with no credit impact via a soft inquirytd.com. Approval depends on your income, credit history, and any pre-existing TD relationship (e.g. how long you’ve banked with TD).
  Soft vs Hard check: The online rate check is a soft pull (no score hit)td.com. If you accept an offer and apply, TD will do a hard credit check.
  Apply: Existing TD customers can apply online through EasyWeb or the TD mobile app. New applicants may need to book an appointment and apply in-branch or by phonetd.com.

• Scotiabank

  Loan amounts: From $5,000 up to about $75,000ratehub.ca. (Exact max depends on your credit and income.)
  APR: Roughly 6%–10%ratehub.ca for secured or qualified borrowers (fixed rate).
  Term: Up to 5 yearsratehub.ca.
  Pre-approval criteria: Scotiabank requires good credit and proof of income. They do not prominently advertise a self-serve pre-qual tool for personal loans. Usually you’d apply by booking an appointment with a Scotiabank advisor (often online or by phone) and giving your consent for a credit check. Scotiabank may send pre-approved loan offers to existing customers who meet their criteria, but these still require formal application.
  Soft vs Hard check: Because Scotiabank doesn’t have a public rate-checker, pre-approval generally means an internal soft check (for an offer) or just going straight to the application. In practice, expect that a formal loan application will involve a hard inquiry on your credit.
  Apply: Apply via a branch meeting, online appointment booking, or phone. Scotiabank’s Scotia Plan personal loan can be initiated by booking an appointment or visiting a branch (there’s no fully online sign-up for new customers).

• BMO (Bank of Montreal)

  Loan amounts: $2,000 – $35,000 for unsecured personal loansratehub.ca. (Higher amounts may require collateral or a line of credit.)
  APR: About 8.99%–22.99%ratehub.ca, fixed.
  Term: 1–5 yearsratehub.ca.
  Pre-approval criteria: BMO requires that you have a personal BMO account (chequing or savings) open for at least six monthsbmo.com. You must also have a fair credit history and meet income requirements. BMO’s online site confirms the 6-month account rule: “You must have a BMO personal deposit account that has been open for at least six months to be eligible for our Unsecured Personal Loans”bmo.com.
  Soft vs Hard check: BMO does not offer a public soft “check my rate” tool for personal loans; thus pre-approval typically involves their underwriting. In practice, any formal loan application will involve a hard credit pull. (However, you can discuss loan options with a BMO advisor or use tools like their online calculator without an immediate credit pull.)
  Apply: Apply online if you’re an existing BMO customer with enough relationship time, or visit a branch. You can also call BMO to discuss and arrange a loan.

• CIBC (Canadian Imperial Bank of Commerce)

  Loan amounts: $3,000 – $200,000ratehub.ca. (Standard personal loans start at $3,000cibc.com. Higher amounts or terms may require collateral.)
  APR: Around 9%–10%ratehub.ca (fixed; actual rate depends on loan term and credit).
  Term: 1–5 yearsratehub.ca.
  Pre-approval criteria: CIBC requires that you meet minimum lending criteria (good credit and sufficient income). Their site notes a $3,000 minimum loancibc.com. You can begin the process by applying online or in-branch. CIBC will run your credit during application.
  Soft vs Hard check: CIBC offers an online application (“Apply online for a CIBC Personal Loan”)cibc.com. If you use the online pre-application, CIBC may do a preliminary soft check, but final approval involves a hard inquiry (as with any full loan application).
  Apply: Eligible customers can apply online for a faster approval; otherwise, go to a branch or phone CIBC. Payment reminders in their FAQ remind applicants that a credit check will be done during processing (see Online checklisttd.com).

Credit Unions & Fintech Lenders

Aside from big banks, many credit unions and online lenders also offer personal loans with quick pre-approval processes:

• Prospera Credit Union (BC): Prospera’s personal loans run 1–5 years with fixed or variable rates. It explicitly offers pre-approval on loansprospera.ca, meaning you can see your rate and amount without a hard pull. Their rates start around 9.18% for a 5-year fixed loanprospera.ca. You can apply online or book an appointment. Prospera is known for competitive rates and member rewards.

• Innovation Federal Credit Union (Ontario): Innovation’s loans are for personal use only, with minimum $5,000innovationcu.ca and terms up to 10 yearsinnovationcu.ca. They tout fast approvals and low rates, though exact APRs depend on qualification. You can apply online or via branch (they also let established members apply via the mobile banking appinnovationcu.ca).

• Fig Financial: Fig (backed by Fairstone Bank) is a popular online lender. It offers loans from $2,000 up to $35,000ratehub.ca (terms 24–84 months) with rates starting about 8.99%fig.ca. Importantly, Fig lets you “check your rate” for free without impacting your score, then does a soft credit check for pre-qualificationfig.ca. Only when you accept the offer do they do a hard pull. This transparent pre-qual process means you get a guaranteed offer (approved amount and rate) before applying.

• Other fintechs: Online lenders like Spring Financial, LendDirect, and easyfinancial also let you do fast online pre-qualification (soft pulls) and promise quick funding. Rates vary widely (often higher than banks, e.g. up to 30–40% for unsecured personal loans at SpringDirect). Always compare carefully.

Comparison Table: Key Features

APR = annual percentage rate (fixed). “Soft” pre-qualification means you see an offer without a hard credit pull.

Tips to Improve Your Chances of Pre-Approval

To boost the odds of getting pre-approved (and at a better rate), consider these steps:

• Maintain good credit: Lenders generally want a credit score in the fair-to-good range (around 600 or higher)ratehub.ca. Check your credit report and correct any errors.

• Lower existing debt: A lower debt-to-income ratio reassures lenders. Pay down high balances (especially credit cards) before applying.

• Stable income/employment: Steady job history and consistent income show you can repay. Some lenders may ask for proof of income (pay stubs, tax returns).

• Banking relationship: Having an existing relationship helps. For example, BMO requires 6+ months as a customerbmo.com. Existing customers often qualify more easily or get special offers.

• Realistic loan amount: Apply for an amount that fits your income level. Over-asking can trigger a denial. Pre-approval gives a range, so use it as a guide.

By following these, you can often get pre-qualified at a lower rate and with less hassle.

Beware of Red Flags and Misconceptions

• “Guaranteed approval” offers: Be very wary of loans advertised as “guaranteed approval”. No legitimate lender can guarantee approval without checking your credentials. Scammers use this language to lure borrowers. In fact, “no lender can guarantee you a loan”loanscanada.ca. Any offer that skips credit or income checks is likely a scamloanscanada.ca.

• Free or upfront fees: Legitimate banks or unions never demand an upfront payment or “processing fee” before you get the money. If a lender asks you to pay in advance, it’s a red flagloanscanada.ca.

• Pre-approval is conditional: Remember, pre-approval is not the same as a contract. You still must formally apply and meet all conditions. For example, pre-approval terms (amount/rate) can change if your credit score has changed or if your income documentation differs.

• Soft vs. hard pulls: Don’t assume every “pre-approval” is soft. Reputable institutions will make it clear: checking your rate uses a soft inquiry (no credit impact), but the actual application will involve a hard pullconsolidatedcreditcanada.caconsolidatedcreditcanada.ca.

Frequently Asked Questions

• Is pre-approval guaranteed? No. Pre-approval or pre-qualification is simply an estimate based on preliminary info. It doesn’t bind the lender. You’ll still need to submit a full application with documentation. Even a “pre-approved” offer can be withdrawn if you don’t pass the final checksloanscanada.ca.

• Does pre-approval hurt my credit? No if it’s truly a soft inquiry. Checking your rate (soft pull) does not affect your scoreconsolidatedcreditcanada.ca. Only when you decide to apply and the lender does a hard credit check will it impact your score (often by a few points)consolidatedcreditcanada.ca.

• Can I apply again if denied? Yes. If your application is denied, ask why (e.g. credit score, debt load). Work on those issues (pay down debt, improve credit history) and you may reapply later. Sometimes simply applying for a slightly smaller amount can help. There’s no rule barring you from reapplying; just be mindful that multiple hard inquiries in a short time can lower your score.

• Does having pre-approval help me negotiate a better deal? Sort of. It lets you know you’re likely to qualify and at what rate, so you don’t waste time. However, once you apply, the final rate depends on your full credit check. Pre-approval itself doesn’t always secure a lower rate (that’s based on creditworthiness).

• What if I’m not a bank customer? Some banks restrict online applications to existing customers. For example, TD and BMO may require you to open an account or visit a branch if you’re new. It’s often easier to get a pre-approved offer if you already bank with the institution.

By understanding how pre-approved loans work and comparing the major options, you can find the best loan for your needs. Always read the fine print, ask questions, and make sure you only proceed with reputable lenders. Keeping your finances in good shape will make any pre-approval process smoother and less stressful!

Meta Description: Best banks for pre-approved personal loans in Canada in 2025: RBC, TD, Scotiabank, BMO, CIBC & more. Compare loan limits, rates & tips.