If you’re considering a personal loan, the RBC Personal Loan stands out for its wide range of flexible terms and custom payment options. Borrowers can choose a fixed or variable interest rate, and the length of the loan is usually between one and five years. Importantly, there are no penalties for paying the loan off early—a rare feature in Canada’s personal loan market.

You’re able to borrow a lump sum amount and make consistent payments over a predetermined timeframe. Loan amounts can typically reach up to $50,000. Whether you prefer the predictability of a fixed rate or the potential savings of a variable rate, RBC allows easy switching between options based on changes to the prime rate — offering robust adaptability.

Step-by-Step: How to Apply

1. Choose the loan amount and select fixed or variable interest rate.
2. Review eligibility requirements, such as credit score and employment status.
3. Apply online via RBC’s secure site or book an in-person appointment at a branch.
4. Submit necessary documents, including proof of income and identification.
5. After approval, select your payment frequency and finalize the loan agreement.

Key Pros of the RBC Personal Loan

One major advantage is the ability to pay off the loan early without penalty, offering excellent flexibility should your financial situation improve. The option to skip a payment once per year (with accrued interest) can also be a lifesaver in case of emergencies.

Borrowers appreciate the choice between fixed and variable rates, letting them align their choice with their budget and risk tolerance. You can even adjust payment schedules directly through RBC Online Banking, making management simple and convenient.

A Few Limitations to Consider

While flexibility is high, eligibility is reserved for those who meet RBC’s credit criteria, potentially leaving out applicants with weaker credit scores. Additionally, although you may skip a payment annually, interest does continue to accrue, resulting in higher overall interest paid if you use this feature regularly.

Variable rate loans can result in longer repayment terms if prime rates rise. There’s also limited information provided about exact starting interest rates, which may require you to contact an advisor for precise details.

Our Verdict

For Canadians looking for a personal loan with maximum repayment flexibility and options to switch between rate types, the RBC Personal Loan offers a compelling package. The major selling points are its no-penalty early repayment and robust self-service tools via online banking. However, those with less stable credit may want to explore additional options before applying. Overall, it’s a solid choice for most borrowers with steady income and decent credit histories.