You are on: Features and Benefits
Features and Benefits of an RBC Royal Bank Personal Loan
- Flexible Terms. Choose how long you'd like to take to pay off your personal loan—terms generally range from 1 to 5 years.
- Fixed and Variable Rates. Choose a fixed rate loan or a variable rate loan (up to a 5–year term). Switch from a fixed rate to a variable rate at any time if rates go down. See which option is right for you.
- Easy Payment Options. Make your loan payment monthly, semi–monthly, bi-weekly or weekly. You can have it deducted automatically from your chequing account with RBC Royal Bank or another bank.
- No Early Payment Penalties. Pay more than your fixed payment at any time, or even pay off your loan in full, without penalty.
- Skip-a-Payment Option. Skip up to the equivalent of 1 monthly payment each year(1), without penalty.
- Optional LoanProtector® Insurance. Designed to provide financial backup during difficult times, LoanProtector Life and Disability Insurance provides low-cost, valuable protection for you and your family.
You are on: Choosing a Fixed or Variable Rate Personal Loan
Fixed or Variable Rate—What's Right for You?
When you apply for an RBC Royal Bank personal loan, you can choose either a fixed or variable rate loan.
With a fixed rate loan:
- Your interest rate is locked in for terms up to 5 years. However, your amortization term (how long it takes to pay off your loan) can go up to 8 years.
- You will know exactly how much interest you'll pay over the loan term (if your term is 5 years or less).
- Your payment amount and term will not be affected by changes in interest rates.
- You can switch to a variable rate at any time if rates fall.
With a variable rate loan:
- You can choose up to a 7-year amortization term.
- You could save money if interest rates are already low or fall further.
- If interest rates rise, your payments will likely stay the same, but your amortization term will increase.
- If interest rates fall, your payments will stay the same and your amortization term will decrease, meaning you could pay off your loan sooner.
- You can switch to a fixed rate at any time if rates go up.
If you are not sure what's right for you, an RBC Royal Bank credit specialist can help you choose.