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Installment loans in Ontario for bad credit
Borrow $300 to $3,000 and repay it over a few months, in payments timed to your paydays, even if your credit isn't great.
By the Urgent Money team. Reviewed November 5, 2026. Legal limits are from the Financial Consumer Agency of Canada and the Government of Ontario (see sources). Figures are examples for illustration only.
The short answer
Yes, you can get an installment loan in Ontario with bad credit. With Urgent Money you fill out one application, and we match it with lenders in our network that typically offer $300 to $3,000 over 90 to 120 days at 22% to 32% APR. Lenders look at your income and recent banking through an online bank verification, so a low credit score alone doesn't rule you out. Canada's Criminal Code caps the annual cost of most loans at 35% including fees. An Ontario payday loan, by contrast, can cost up to $14 per $100 for roughly two weeks: $70 on $500, due in one payment on your next payday.
How it works
- Apply online. One short application from your phone or computer, anywhere in Ontario.
- Get matched. We send your application to partner lenders. A lender that can help contacts you and asks you to complete Instant Banking Verification (IBV), a read-only view of your recent transactions. There's no ID or paperwork to upload.
- Review and sign. The lender shows you the rate, every fee and the total you'll repay before you sign. Funds are deposited once you sign, often the same day.
Urgent Money is not a lender. Each lender sets its own rate, fees and payment schedule.
What an installment loan costs in Ontario
These are the terms most lenders in our network offer:
| Loan amount | $300 to $3,000 |
|---|---|
| Annual percentage rate (APR) | 22% to 32% |
| Repayment period | 90 to 120 days |
| Payments | Weekly, every 2 weeks, twice a month or monthly |
| Membership fees | May apply, and are included in the total your lender shows you |
Borrowing $500: payday loan vs installment loan
| Ontario payday loan | Installment loan at 32% APR | |
|---|---|---|
| How you repay | One payment, about 2 weeks later | 7 payments every 2 weeks over 98 days |
| Each payment | $570.00 | About $74.98 |
| Cost of borrowing | $70.00 | About $24.86 |
| Total repaid | $570.00 | About $524.86 |
Example for illustration only. Payday loan at Ontario's maximum of $14 per $100. Installment loan calculated at 32% APR, the top of the typical range, before any membership fees. Your lender's figures may differ.
Your rights as a borrower in Ontario
- Since January 1, 2025, the Criminal Code limits most consumer loans to a 35% annual percentage rate, and that limit includes fees.
- Your lender's disclosure and contract must set out the rate, every fee and the total you'll repay. Don't sign until you understand them.
- You don't have to buy loan insurance or other optional add-ons to get a personal loan.
- Ask whether you can repay early, and whether there's a charge for it.
- If you have a problem with a lender, raise it with the lender first. If that doesn't fix it, contact the regulator for that type of lender. For lenders that aren't federally regulated, that's Ontario's consumer protection ministry.
Payday loans have separate rules in Ontario, including a two-business-day cancellation right and no rollovers. See Ontario's payday loan rules.
Who can apply
- 18 or older
- A full-time job or steady self-employed income
- Not in bankruptcy
- A Canadian citizen
- An online bank account you can verify
Applying doesn't commit you to anything. You only agree to a loan when you sign a lender's contract.
Where in Ontario?
Anywhere in the province. Everything happens online, whether you live in Toronto, Ottawa, Mississauga, Brampton, Hamilton, London, Windsor, Kitchener, Sudbury or Thunder Bay. Lenders reach you by phone or email and deposit funds straight to your bank account.
Before you borrow
An installment loan costs less than a payday loan but more than a bank loan. If you can, try the cheaper options first: more time on a bill, a pay advance, or a line of credit from your bank or credit union. Our payday loan alternatives guide compares them. If you're borrowing to keep up with other debts, a non-profit credit counsellor can help; find one through Credit Counselling Canada.
Sources
- Financial Consumer Agency of Canada, Personal loans: the 35% annual limit including fees, optional loan insurance, provincial regulators.
- Criminal Code, section 347: the 35% annual percentage rate limit.
- Government of Ontario, Payday loan: your rights: the $14 per $100 maximum.
General information, not financial or legal advice. Lenders set their own terms; check your contract and the sources above.