When people picture a personal loan they tend to picture thousands of dollars. The applications tell a different story. Smarter Loans receives personal loan applications from every province, and most of them ask for less than the price of a used laptop. This report looks at that small-dollar majority for the year ending July 2026: how big it is, who it is, and what the money is for.
Seven in ten applications are small
Across Smarter Loans personal loan applications from August 2025 to July 2026:
- 71 percent asked for $1,500 or less.
- Within that range the average request was $552.
The $1,500 line is not arbitrary: it is the legal ceiling for a payday loan in Canada, which makes this the exact territory where payday lending and cheaper instalment lending compete for the same borrower.
Who asks for small amounts
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| Full Time | $640 |
| Part Time | $502 |
| Self Employed | $572 |
| Unemployed | $434 |
| Retired | $661 |
| Disability Income | $461 |
| Social Assistance | $368 |
| Other | $472 |
Source: Smarter Loans personal loan applications, August 2025 to July 2026.
The striking thing is how little the income source changes the number.
Across Smarter Loans personal loan applications, August 2025 to July 2026, by income type:
- Retired: $661. Asked for the most.
- Social assistance: $368. Asked for the least.
- A spread of under $300 across eight income types.
Small borrowing is not a low-income phenomenon; it is what a short-term gap looks like at almost any income.
Where small borrowing is most common
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| Saskatchewan | 76% |
| Manitoba | 75% |
| Nova Scotia | 74% |
| New Brunswick | 73% |
| Newfoundland and Labrador | 72% |
| British Columbia | 72% |
| Quebec | 70% |
| Ontario | 69% |
| Prince Edward Island | 69% |
| Alberta | 69% |
Source: Smarter Loans personal loan applications, August 2025 to July 2026.
Across Smarter Loans personal loan applications, August 2025 to July 2026:
- Saskatchewan: 76 percent of applications at $1,500 or less. Leads.
- Alberta and Ontario: 69 percent. Sit lowest.
Every province lands between those two, so the small-dollar majority holds coast to coast. Territories not shown, fewer than 100 applications.
What the money is for
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| Pay Off Bills | $582 |
| Other | $477 |
| Medical Expenses | $491 |
| Debt Consolidation | $766 |
| Moving | $550 |
| Improve Credit | $565 |
| Education | $591 |
| Home Improvement | $618 |
Source: Smarter Loans personal loan applications, August 2025 to July 2026.
Paying off bills is the most common reason by a wide margin, averaging $582 across more than 20,000 applications. Medical costs and moving expenses follow. The one outlier is debt consolidation: even inside the small-dollar range it carries the highest average at $766, because it bundles several balances into one request. Source: Smarter Loans personal loan applications, August 2025 to July 2026.
What this means for borrowers
At $552, the typical small request, across Smarter Loans personal loan applications from August 2025 to July 2026:
- On a payday loan at the federal cap of $14 per $100: about $77 in fees.
- On a three-month instalment loan, even at the 35 percent legal maximum: roughly $33 in interest.
The gap between those two numbers is the whole reason we publish this data: the majority of Canadian borrowing happens at exactly the size where the choice of product matters most.
Frequently asked questions
How much do Canadians actually borrow with a personal loan?
Across more than 79,000 Smarter Loans applications from August 2025 to July 2026, 71 percent asked for $1,500 or less, and the average request in that range was $552.
Why does $1,500 matter as a threshold?
It is the legal ceiling for a payday loan in Canada, so it is the exact range where payday lending and cheaper instalment lending compete for the same borrower.
Does income change how much people ask for?
Barely. Across Smarter Loans applications from August 2025 to July 2026, retired applicants asked for the most at $661 and applicants on social assistance the least at $368, with the other six income types falling between them.
Where is small-dollar borrowing most common?
Saskatchewan, where 76 percent of Smarter Loans personal loan applications from August 2025 to July 2026 were for $1,500 or less, against 69 percent in Ontario and Alberta.
About this data
Figures are drawn from Smarter Loans personal loan applications between August 1, 2025 and July 31, 2026. Amounts are requested at application, not funded. Averages are used throughout. Income type is self-reported at application. Provincial figures with fewer than 100 applications are not shown; that is a sample limit, not zero. Smarter Loans has connected more than 2 million Canadians with financing since 2016.
For what this means when you are the one borrowing, see how payday loans work in Canada and payday loan alternatives. Our other reports from the same application data are collected at Smarter Loans Research.
Written by:
The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
