Scotiabank Personal Loan Review 2024: A Potential Fit For Those With Great Credit

Scotiabank personal loans are best for individuals with a strong financial history and a good credit score. As a prime lender, Scotiabank is not a good fit for anyone with a poor credit score. Those with excellent credit scores will be offered the best rates compared to those whose credit score is in the very good range.

Borrowers who need larger amounts of money are a better fit for Scotiabank since their minimum loan amount is $5,000. Scotiabank may also be a good fit for you if you are a pre-existing Scotiabank client. Many banks are more flexible and/or offer more deals to individuals who have multiple financial products with them.

Loan Amounts & Terms

• Loan Amounts: $5,000 to $75,000
• Loan Terms. Maximum five years

Loan Costs

• APR: Undisclosed
• Origination Fees: Undisclosed
• Late Fees: Scotiabank offers one deferred payment per year with no fees.
• Prepayment Penalty Fees: Scotiabank does not charge any prepayment fees on their personal loans.

Perks & Features

Scotiabank offers the following perks and features to borrowers:

• No prepayment fees: Scotiabank doesn’t charge prepayment fees, meaning you can pay off your loan faster without being penalized.
• A choice between fixed and variable rates: Borrowers can choose between fixed or variable interest rates.
• Defer one payment per year without penalty: Scotiabank allows borrowers to defer one payment per year with no penalty fees.

Scotiabank is one of Canada’s big banks and is therefore considered to be a prime lender. As such, they are more strict with their applicants, so you need to be in good financial health to be considered for a loan. Additionally, applying for a Scotiabank personal loan needs to be done in person at a Scotiabank ranch, but you can manage your loan and make payments online.

Credit Score Requirements

In order to qualify for a personal loan with Scotiabank, applicants should have a credit score that is considered ‘good’ or higher. According to Equifax, one of Canada’s two credit bureaus , a good credit card score starts at 670. So if you have a credit score of 670 or higher, you can apply for a Scotiabank personal loan.

Income Requirements

Scotiabank does not list any minimum income requirements online. However, to apply for the loan you will need to provide proof of employment.

Co-signers and Co-applicants

According to Scotiabank customer service representatives specializing in personal loans, Scotiabank does allow co-signers on personal loans, but not co-borrowers. They recommend verifying the eligibility of a co-signer with the loan applicant in person at a nearby Scotiabank branch.

Related: 5 Personal Loan Requirements To Know Before Applying

• Step 1: Make an appointment at your closest Scotiabank branch. Appointments can be made online, in person or over the phone.
• Step 2: Gather the required documents and paperwork you will need for your appointment. This includes government-issued ID and proof of employment. You’ll also need to know how much you intend to borrow.
• Step 3: Apply in person at a local branch. The Scotiabank representative will go over everything with you and, if you are approved, offer you the loan.

Time to Receive Funds

Scotiabank does not publicly disclose how long it takes to get approved for a personal loan, since every Canadian’s credit situation is unique. However, personal loans in general can take as little as one day to as much as seven to 10 business days to get approved. Anything outside of that is unusual and applicants should follow-up if they are still unsure about the status of their loan application outside of that window.

Scotiabank itself has a low rating of 1.3 stars and over 900 reviews on Trustpilot. The main complaints are regarding customer service, especially when it comes to the phone automation system. Other concerns included a lack of flexible hours for those who work nine-to-five jobs and high interest rates. Keep in mind, many of these reviews are generalized and it would be worth it to check out the Google reviews of the branches near you before applying for a loan.

Here’s how Scotiabank stacks up against other popular lenders providing the best personal loans in Canada:

Scotiabank vs. easyfinancial

easyfinancial’s motto is “:yes when the banks say no” offering borrowers options, even when they don’t have a credit history. So if you are someone with a low credit score or are just starting to build credit, easyfinancial is more likely to approve you.That being said, easyfinancial only offers personal loans up to $20,000 and have interest rates that can be over 45%. However, if you need more funds and have a good credit score, you are better to apply through Scotiabank.

Scotiabank vs. Fairstone

Fairstone offers Canadians both secured and unsecured loans for as little as $500 up to $25,000. The money can be deposited into your account very quickly; some borrowers can receive the money on the same day they applied, and there are no prepayment fees. Fairstone also has sky high interest rates that can range up to 39.99%. However, if you need money fast and don’t qualify with Scotiabank, Fairstone Financial could be an option, especially if you’re looking for a smaller amount of money.

Scotiabank vs. goPeer

goPeer offers peer-to-peer lending rather than traditional lending from a bank or other financial institution. As such they are a little more flexible; those with credit scores as low as 600 can apply to be funded by individual lenders. The application can be done quickly online, which is an added bonus over Scotiabank. Plus, loan amounts are smaller, starting at $1,000 and going up to $25,000. This could be a good option for those who need smaller loans and have lower credit scores, but again, be wary of very high interest rates, which can be up to 34.99%.

Related: Best Personal Loans In Canada

We reviewed 76 popular lenders based on 17 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders and reviewed them based on the weighting assigned to each category:

• Loan details: 20%
• Loan cost: 35%
• Eligibility and accessibility: 20%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.