Scotiabank, one of North America’s largest banks by assets, introduced Scotia Plan Loans in 1958 as one of Canada’s early consumer lending programs, giving borrowers an established option when they want to apply for a personal loan.
What you need to know about this loan
- Loan Amounts Offered: Not specified.
- Loan Terms (months): Up to 5 years, or up to 60 months.
- Payment Methods: Weekly, bi-weekly, or monthly payments. Borrowers can change how much they pay, how often they pay, or the days payments are made.
- Interest Rate: Fixed or variable. With the fixed option, the interest rate stays the same for the loan term. With the variable option, the total interest rate fluctuates with changes in the Scotiabank Prime Rate.
Pros
- Flexible repayment schedule: Choose weekly, bi-weekly, or monthly payments.
- No prepayment penalty: Pay off the loan at any time without a prepayment penalty.
- Fixed or variable rates: Select the interest rate structure that suits your preferences.
- Payment postponement: Postpone one payment each year that you have the loan, subject to the applicable terms.
- Online management: View your outstanding balance, payment amount, and remaining term online and make extra payments when needed.
Cons
- Variable-rate risk: With a variable-rate loan, your interest rate may rise during the loan term.
- Less flexible than revolving credit: The loan uses structured payments and may not suit borrowers who need ongoing access to reusable credit.
Why choose Scotiabank for your loan?
Unlike TD Personal Loan, which offers repayment terms of up to seven years, Scotia lets you adjust payment amounts, frequency, and payment days while managing your consolidation loans.
Compared with an RBC personal loan, Scotia Plan Loan adds the option to postpone one payment each year, giving borrowers extra breathing room when they get a loan.
Like CIBC’s structured personal lending, Scotia offers fixed and variable rates, but Scotia also highlights online extra payments when managing a debt consolidation loan.
National Bank also offers fixed and variable personal loans, while Scotia combines those choices with weekly, bi-weekly, or monthly payments when you apply for a loan.
BMO also provides fixed and variable loan options, while Scotia specifically allows one postponed payment per year and penalty-free early repayment when you get a personal loan.
How to apply for your Scotia Plan Loan
Ready to apply for a personal loan for a large purchase or debt consolidation? Book an appointment with a Scotia advisor to discuss the Scotia Plan Loan and the repayment structure available to you.