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Loan Approval Requirements

What you need to qualify for a personal loan in Canada.

Reviewed by the 365loan Editorial Team · Last updated July 7, 2026

While specific requirements vary by lender, most personal loan approvals in Canada come down to a consistent set of core criteria. Understanding these upfront can help you gauge your odds before applying.

Basic Eligibility

Every lender in our network starts from the same baseline requirements.

  • 18 years or older (19 in BC, NB, NL, NS, NT, NU, and YT)
  • Canadian citizen or permanent resident
  • Valid Social Insurance Number (SIN)
  • Active bank account in your name
  • A regular source of income

Income and Employment

Lenders want confidence you can repay — this usually means proof of regular income, whether from employment, self-employment, or benefits like a pension. Longer, more stable income history generally strengthens an application.

Credit Profile

Your credit score influences your rate and which lenders will consider you, but it's rarely the sole factor — income and existing debt load matter alongside it.

Debt-to-Income Ratio

Lenders also look at how much of your income is already committed to other debts — a lower ratio generally improves your approval odds and rate.

Loan Approval Requirements FAQ

What's the single most important factor in loan approval?

There isn't one universal factor — income stability, credit profile, and existing debt load are all weighed together, and a strength in one area can offset a weakness in another.

Can I check if I qualify before formally applying?

Many lenders offer prequalification using only self-reported information and a soft credit check, giving you a rough sense of your odds with no impact to your score.

Will applying affect my credit score?

Checking your rate uses a soft credit inquiry, which does not affect your credit score. A hard inquiry only occurs if you accept an offer and proceed with a lender.

How fast can I get funded?

Most applicants get a decision within minutes. Once you accept an offer, funds are typically deposited within 24 hours, and some lenders offer same-day funding.

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