RBC Personal Loan Review 2024: The Traditional Opaque Option

With no online preapproval, no chat option and very little information listed online, RBC is best for customers who don’t mind going to a brick-and-mortar bank or speaking to a representative over the phone.

Since traditional banks tend to have more strict qualification criteria for personal loans, customers with good or excellent credit scores might have more success getting approved for an RBC personal loan.

RBC personal loans are generally flexible and allow you to use the money for a variety of purposes. However, you will need to explain how you intend to use the money. Are you planning a home renovation or wedding? Or do you want to consolidate your debt?

Keep in mind that while using a personal loan for a down payment for a house may not be a “prohibited use” per se, you should check with your mortgage lender if they have any restrictions on sources for a down payment. For example, insured mortgages, such as those from CMHC or Sagen, only allow “traditional sources” of a down payment, such as savings or a non-repayable gift from a relative, not a personal loan.

Loan Amounts & Terms

• Loan Amounts. Not disclosed
• Loan Terms. Terms generally range from one to five years, and you can choose between a fixed or a variable-rate loan.

Loan Costs

• APR. Fixed and variable rates available
• Origination Fees. Not disclosed
• Late Fees. No, but interest continues to accrue and late payments will go towards the premium if the loan is protected by loan insurance, which means less of your payment will go towards the principal.
• Prepayment Penalty Fees. No

Perks & Features

RBC offers the following perks and features to borrowers:

• Skip-a-payment option. Skip one loan payment, the equivalent of one monthly payment each year if your loan is in good standing. Interest will continue to accrue.
• Insurance option. Insure your loan with LoanProtector life and disability or critical illness insurance.
• Pay online. Using RBC Online Banking, you can change your payment account, amount, frequency and your payment due date.

To qualify for a RBC personal loan, you need to:

• Be a Canadian citizen or permanent resident
• Be at least 18 years, or the age of majority in your province or territory
• Meet eligibility criteria, including credit score and income

Credit Score Requirements

RBC does not disclose its credit score requirements. You will need to call or visit an RBC location to speak with a representative directly. While credit score requirements vary between lenders, RBC typically requires a good credit score, defined by Equifax as a score above 660. However, your credit score is only one variable that helps the lender decide if they will extend you a loan.

Income Requirements

Lenders often assign income requirements to confirm you have enough money to repay your loan. Minimum income requirements can vary between lenders based on a variety of factors, including the loan amount. To confirm your income, lenders will typically ask you to provide bank statements or your most recent tax return. If you’re self-employed or have variable income, you’ll need to provide your two most recent tax returns.

Co-signers and Co-applicants

Adding a co-signer or co-applicant can help to strengthen your personal loan application. In some cases, such as if your credit score is below RBC’s required threshold, you might require a co-signer or co-applicant to get approved for a personal loan.

While a co-signer agrees to pay for your loan if you are unable to do so, they do not have access to the loan money. A co-applicant has joint access and joint responsibility for the payments. You will need to contact RBC directly to see if they allow a co-signer or co-applicant on your loan application.

Related: Best Personal Loans With A Co-signer

• Determine how much you want to borrow. Estimate how much money you’ll need to complete your home renovation, pay off debt or whatever you plan to do with the loan.
• Choose loan type. RBC offers personal loans with fixed or variable rates. It’s possible to switch between a fixed or variable rate at any time without penalty.
• Prepare your documents. To help streamline the application process, prepare your personal and financial documents beforehand. Lenders usually want to see proof of identification, income and your address.
• Speak to an RBC representative. When you’re ready to complete a loan application, you’ll need to speak to an RBC representative over the phone or in person.

Time to Receive Funds

In general, the time it takes to apply for a loan and receive funds can range from a few hours to a few business days, or more.

The time it takes to receive your funds can vary based on factors such as whether or not you already have an account with RBC. For instance, if you have a bank account with RBC and your paycheques are automatically deposited into this account, this may help to speed up the approval process. On the other hand, if you don’t have an account with RBC it can take longer to review your documents and get approved.

RBC scores 1.2 stars out of 5 on Trustpilot. Customers are generally unhappy with RBC’s customer service. Many customers report staying on long holds or finding it difficult to speak to a human. Those that gave five-star reviews, appreciated the service they received from individual advisors at RBC.

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

RBC vs. easyfinancial

easyfinancial lays out its loan details online, including loan amount, terms and rates. With easyfinancial you can prequalify online, which is not available through RBC. If you add a co-applicant on your loan you can get a 2% reduction. If you’re a student or new to Canada, you can get approved for an easyfinancial loan without a credit history. If you don’t have a long credit history, you might prefer easyfinancial.

RBC vs. Fairstone

Fairstone makes it easy to prequalify for and get approved for a personal loan online. Unlike RBC, most personal loan details are easy to find online. With Fairstone, you can expect to pay late payment fees and prepayment penalties on secured loans. The maximum APR for a secured loan is 24.49% and 39.99% for an unsecured loan. Borrowers with a poor credit score might find it easier to qualify with Fairstone over RBC. If you want to avoid late fees and prepayment penalties, RBC is a better option.

RBC vs. Magical Credit

You can get a personal loan with Magical Credit even if you don’t have a credit history.

There are no late payment fees and no prepayment penalties, and Magical Credit scores 4.3 stars on Trustpilot. However, Magical Credit’s maximum APR is high at 46.8%, so you might want to compare multiple loan providers on rates. Customers who value a positive customer service experience and a simple loan process might consider Magical Credit over RBC.

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 11 best lenders 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.