Pros and Cons of Using Post Office Loans

If you are a Canadian citizen and you are looking for the best personal loan options, you might consider the Post Office. This method of financing is exclusive and does come with a number of advantages to other personal loans.

However, a post office loan may not be suited for everyone, as it is limited to up to $25,000 and a short repay period.

Take a look at the pros and cons of using this service and find out whether it is for you!

What is the Post Office Money Loan?

Post Office Money is a service that operates in Canada, that provides an array of financial services, including mortgages and personal loans. 

The main thing that you should keep in mind when it comes to this lending option is that your APR will not be determined based on an APR.

The fact that the Canadian loan is unsecured means that your chances of getting it is solely determined by your creditworthiness. Also, the APR depends on your income and expenditure. 

When it comes to the different loans that are available you can apply for:

  • $1,000 to $3,000 with a repayment process between 1 and 3 years
  • $3,001 to $15,000 with a term of 1 to 5 years
  • $15,001 to $25,000 with a term of 1 to 7 years

Among the coolest things about the Post Office loan is that as long as you apply online, you will get an instant decision. It is truly a great service for someone who is in an immediate need of money

Features of Post Office Loan

As we have mentioned above, you are looking at an unsecured personal loan with a fixed rate. There are several different features that make it a good choice, including the ability to overpay without a penalty, as well as the fact that there is no product fee.

When it comes to the repayment method, it is done via Direct Debit as the most viable solution. The terms are anywhere between 1 and 7 years, depending on the loan that you have requested.

Who Would Benefit From It and Why

When it comes to who is this loan option best suited for, we would say for people that are looking to get almost immediate loans, with friendly APRs (competitive) and flexible repayment. 


The main advantages related to Post Office loans are:

  • You will get to enjoy cheaper loan rates as Post Office does its best to stay competitive 
  • The eligibility checker will give you an instant idea on whether you can expect to get accepted for the loan or not
  • If you apply online, chances are the response will be immediate
  • In most cases, you will have funds available the next day
  • There are no penalties for overpaying, you can ask for a decrease in monthly payments


However, much like with any product or service, we do have a couple of concerns related to the Post Office loan.

  • You will need a good credit score
  • No holiday repayment option
  • Tracking your loan is not that easy

Who is Eligible

First and foremost, you will need to be a Canadian citizen, and not older than 70, at the time that the requested loan would end. 

Additionally, you will need to have a good annual income (determined by the bank) that will show your ability to repay the personal loan. In case you are self-employed, it needs to be for at least 2 years. 

Last but certainly not least, you need to have an open bank account that will allow you to make direct repayments.

How to Apply

Before you apply for the personal loan, we suggest that you use the available eligibility checker and find out more about your chances to get accepted.

The application is done online and should include your living address for the past 3 years, as well as your annual income and monthly ongoing. Not to forget, the account number as well as the sort code of the bank for Direct Debit. 


It is a fact that the Post Office loan may not be for everyone. However, if you have a good credit score and you are looking for a loan of up to $25,000, then it is just the right solution given its friendly repayment program and competitive APR!

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