How installment loans work
A plain-language guide for borrowers in Ontario and British Columbia
An installment loan lets you borrow a set amount and pay it back in equal monthly payments over a fixed term. With Simple Financial, you can borrow $100 to $1,500 over 3 to 24 months.
How the cost is calculated
The cost of a loan is shown as an annual percentage rate (APR). APR includes interest and any mandatory fees, so you can compare loans fairly. Our APR ranges from 19.99% to 29.99%.
Example: borrow $1,000 over 6 months at 29.99% APR. You pay $181.54 a month, $1,089.27 in total, so the cost of borrowing is $89.27.
Shorter term or longer term?
A shorter term means higher monthly payments but a lower total cost. A longer term lowers each payment but you pay more interest overall. Use our payment calculator to compare.
Installment loans vs. payday loans
A payday loan is usually repaid in one lump sum on your next payday. An installment loan spreads repayment over several months, which can make it easier to fit into your budget. We do not offer loans that must be repaid in full in 60 days or less.
Tips before you borrow
- Borrow only what you need and can comfortably repay.
- Check the APR, the total cost and the payment schedule before you sign.
- Ask whether you can pay early without a penalty. With us, you can.
- Contact your lender right away if you think you may miss a payment.
What you need to apply
- Proof that you live in Ontario or British Columbia
- Age of majority (18 in Ontario, 19 in BC)
- A Canadian bank account
- A regular source of income, such as employment, EI or pension