Mogo: A Smart Solution for Fast Personal Loans
Fast and flexible personal loans designed to help you manage or rebuild your credit.
Mogo is a trusted option for Canadians seeking a fast and straightforward way to secure personal loans. With a fully digital application process and same-day approval, it eliminates the delays and paperwork often required by traditional lenders.
For example, traditional banks like Scotiabank offer personal loans with interest rates starting at 6.99%, but their approval process can take several days and often requires in-person visits. Mogo, on the other hand, allows borrowers to apply and receive funds entirely online, making it a more convenient solution for those who need quick access to cash.
Pros and cons of using Mogo
Mogo stands out for its flexibility and digital tools, but like any financial product, it has both advantages and limitations. Below is a summary to help you evaluate if it’s the right option for your needs:
Pros
- 100% online application: The entire process can be completed digitally, eliminating the need for in-person visits or mailing documents.
- Fast access to funds: Approved applications are typically funded on the same day, making it ideal for urgent situations.
- Free credit tools: Borrowers can monitor their credit score and receive spending alerts through the Mogo app.
- Flexible loan amounts: Borrow between $500 and $35,000 CAD, suitable for a wide range of financial needs.
- No prepayment penalties: Borrowers can repay their loans early without incurring additional fees.
Cons
- Higher interest rates for some profiles: Depending on the borrower’s creditworthiness, APRs can reach up to 46.96%, which is higher than traditional bank loans.
- Not available in Quebec: Residents of Quebec cannot access Mogo loans, as the lender does not operate in that province.
- Income verification required: Applicants must prove a stable annual income of at least $13,000 CAD, which could exclude some individuals.
Compared to traditional banks like RBC, Mogo offers a much faster approval process and greater flexibility in terms of digital tools. However, RBC’s lower interest rates, starting at 7.99%, may be more appealing to borrowers with excellent credit who can afford to wait for a longer approval timeline.
Payday lenders like Fairstone, on the other hand, may provide faster approvals, but their interest rates are significantly higher, often exceeding 39.99%. This makes Mogo a more balanced option, combining speed with reasonable costs for borrowers who need quick access to funds without overpaying in interest.
Taxes and fees
The Mogo personal loan is designed to be transparent and easy to understand. Before applying, it’s important to review the associated costs and conditions:
- APR (Annual Percentage Rate): Ranges from 5.9% to 46.96%, depending on the loan amount and term.
- Loan amount: From $500 to $35,000 CAD.
- Repayment terms: 6 to 60 months.
- Additional fees: No hidden fees, origination fees, or penalties for early repayment.
- Credit requirements: Available for Canadians with all credit profiles, but rates depend on creditworthiness.
Compare top lenders for fast personal loans
Below is a detailed comparison between Mogo and other major personal loan providers in Canada. While Mogo excels in speed and digital tools, traditional banks may offer lower interest rates and higher loan amounts, but with stricter eligibility criteria and slower approval processes.
| Feature | Mogo | Scotiabank Personal Loan | RBC Personal Loan | CIBC Personal Loan | National Bank Personal Loan | BMO Personal Loan |
|---|---|---|---|---|---|---|
| Interest Rate (APR) | 5.9% to 46.96% | Starting at 6.99% | Starting at 7.99% | Starting at 8.99% | Starting at 9.99% | Starting at 7.99% |
| Maximum Amount | Up to $35,000 CAD | Up to $75,000 CAD | Up to $50,000 CAD | Up to $200,000 CAD | Up to $50,000 CAD | Up to $35,000 CAD |
| Repayment Term | 6 to 60 months | 1 to 5 years | 1 to 5 years | 1 to 7 years | 1 to 5 years | 1 to 5 years |
| Approval Time | Same day | 2 to 5 business days | 1 to 3 business days | 1 to 3 business days | 2 to 5 business days | 1 to 3 business days |
| Application Process | 100% online | Online or in-branch | Online or in-branch | Online or in-branch | Online or in-branch | Online or in-branch |
For borrowers who prioritize fast access to funds and a fully digital experience, Mogo is the best choice. While traditional banks like Scotiabank and RBC offer lower interest rates, their slower approval times and stricter requirements may not suit those with urgent financial needs.
Loan payment simulator (estimates only)
Use the table below to estimate your monthly payments based on sample loan sizes, term lengths, and representative APRs:
| Loan Amount | Term | APR | Estimated Monthly Payment |
|---|---|---|---|
| $5,000 | 24 months | 19% | $253.59 |
| $10,000 | 36 months | 24% | $395.65 |
| $15,000 | 48 months | 29% | $440.41 |
For instance, borrowing $7,500 from Mogo at an APR of 19% over 24 months would result in monthly payments of approximately $380.39. While other lenders like Scotiabank may offer lower APRs starting at 6.99%, Mogo’s faster approval process and digital tools make it a better choice for borrowers who prioritize convenience and speed.
Eligibility requirements
To qualify for a Mogo personal loan, you must meet the following criteria:
- Be a resident of Canada (excluding Quebec);
- Be at least 18 years old (or the age of majority in your province);
- Have a minimum annual income of $13,000 CAD;
- Provide proof of income and banking information;
- Undergo a credit check as part of the application process.
How to apply
The application process is simple and 100% online:
- Visit the official Mogo website (mogo.ca);
- Complete the secure online application form with your personal and financial details;
- Submit the required documents, such as proof of income and banking information;
- Receive a decision within minutes. If approved, review and sign your loan agreement digitally;
- Funds are deposited directly into your bank account, often on the same day.
Frequently asked questions
- Can I repay my loan early? Yes, Mogo allows early repayment without penalties.
- Are there any hidden fees? No, all fees are clearly disclosed upfront.
- What credit score do I need? Mogo considers all credit profiles, but rates depend on your creditworthiness.
- How fast can I receive my money? Most approved borrowers receive funds on the same day.
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