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Personal Loans & Lines of Credit

What is the difference between a Personal LoanDisclaimer 1 and Line of Credit?

The main difference between a personal loan and a line of credit is that a personal loan allows you to borrow a lump sum and make payments in even installments over a fixed term, typically between one and five years. A personal line of credit helps you to manage your credit based on your borrowing needs at any given time, and to pay it back at your own pace. Also, once you pay down the balance on your personal line of credit, those funds are available to you again – there is no need to re-apply.

How Can a Personal Loan or Line of Credit Help You?

Personal
Loan

A personal loan is an ideal solution for a large, one-time purchase.

  • Borrow one lump sum with a set repayment schedule
  • Loan limitsDisclaimer 1 begin at $5,000.00
  • Variable and fixed rates available
  • Terms range between 1 and 5 years
  • Repay your loan on your schedule – weekly, bi-weekly, monthly or semi-monthly
  • No early payment penalties
Personal Loans (link opens in new window)
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Line of
Credit

A line of credit provides easy access to money as you need it.

  • Only borrow what you need and pay interest on the amount you borrow
  • As you borrow, you can repay the funds up to your approved credit limit and then borrow again. No need to reapply
  • Unsecured lines of credit begin at $5,000.00
  • Interest-only payments and flexible repayment schedules available
  • No fee to withdraw funds and we do not charge over limit fees on Royal Credit Line accounts.
Line of Credit (link opens in new window)

Royal Credit Line for StudentsDisclaimer 2

A simple way to borrow money for post-secondary school, including undergraduate and graduate programs, college or trade school.

  • Credit limitsDisclaimer 2 range from $5,000 to $350,000 - depending on the program of study
  • Flexible repayment timelines that consider student needs and lifestylesDisclaimer 3
  • Only borrow what you need – you can re-use funds as you repay your balance
Royal Credit Line for Students (link opens in new window)

How can a personal loan or line of credit help you?

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Personal
Loan

A personal loan is an ideal solution for a large, one-time purchase.

  • Borrow one lump sum with a set repayment schedule
  • Loan limitsDisclaimer 1 begin at $5,000.00
  • Variable and fixed rates available
  • Terms range between 1 and 5 years
  • Repay your loan on your schedule – weekly, bi-weekly, monthly or semi-monthly
  • No early payment penalties
Personal Loans (link opens in new window)
MOST POPULAR

Line of
Credit

A line of credit provides easy access to money as you need it.

  • Only borrow what you need and pay interest on the amount you borrow
  • As you borrow, you can repay the funds up to your approved credit limit and then borrow again. No need to reapply
  • Unsecured lines of credit begin at $5,000.00
  • Interest-only payments and flexible repayment schedules available
  • No fee to withdraw funds and we do not charge over limit fees on Royal Credit Line accounts.
Line of Credit (link opens in new window)

Royal Credit Line
for StudentsDisclaimer 2

A simple way to borrow money for post-secondary school, including undergraduate and graduate programs, college or trade school.

  • Credit limitsDisclaimer 2 range from $5,000 to $350,000 - depending on the program of study
  • Flexible repayment timelines that consider student needs and lifestylesDisclaimer 3
  • Only borrow what you need – you can re-use funds as you repay your balance
Royal Credit Line for Students (link opens in new window)

Use Our ToolsDisclaimer 4 and Plan for Your Borrowing Needs

Loan and Line of Credit Calculator

Loan and Line of Credit Calculator

Get Results

Debt Consolidation Calculator

Find out what your new monthly payments would be and how soon you could be debt free.

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Monthly Cash Flow Calculator

Determine how much debt you can take on to achieve your goals.

Find Out How with Monthly Cash Flow Calculator (link opens in new window)

Student Budget Calculator

Figure out how much money you'll need to get through the school year.

With the Student Budget Calculator (link opens in new window)

Explore Financing Solutions That Match Your Needs

For all your specific needs or goals, RBC has you covered with a wide range of financing solutions. Discover our competitive interest rates, flexible payment options and more.

Home Improvement LoansDisclaimer 1

Whether you're planning a major home renovation or a small project, we offer financing options to meet all your home improvement needs.

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Car LoansDisclaimer 5

Take advantage of convenient and flexible ways to finance new or used cars, as well as boats and RVs.

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RRSP LoansDisclaimer 1

Borrowing for your RRSP could help you build a secure retirement.

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PayPlan by RBCDisclaimer 6

PayPlan by RBC lets you spread the cost of larger purchases over time. After a quick application process, select a plan that works for you and you’ll know upfront how much, and when you’ll pay.

View PayPlan by RBC (link opens in new window)
Compare All Lines of Credit & Loans (link opens in new window)

Your Top Questions on Personal Loans in Canada Answered

A personal loan allows you to borrow a lump sum of money and make payments in even installments over a fixed term, typically one to five years. A personal loan can come with a fixed or a variable interest rate.
Personal loans in Canada are typically available with either a fixed or variable interest rate. A fixed interest rate is usually locked in for the duration of your term. A variable rate will typically rise and fall with changes in the Bank of Canada’s Overnight Rate (external site opens in a new window).
Qualifying for a personal line of credit or personal loan depends on several factors, which can include your income, employment, and credit score.
The main difference between a personal loan and a line of credit is that a personal loan allows you to borrow a lump sum of money that you typically repay in equal installments over a fixed term, usually between one and five years. A personal line of credit, meanwhile, allows you to borrow up to an approved a credit limit. Once you pay down your outstanding balance, funds become available to you again without re-applying. You get access to cash when you need it, paying interest only on what you borrow.

Apply for a Royal Credit Line or Loan

Talk to our credit specialists to help you select the credit solution that is right for you.

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Contact an RBC Credit Advisor

1-800-769-2511

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Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Personal lending products and residential mortgages are offered by Royal Bank of Canada and are subject to its standard lending criteria.