The Scotia Plan Loan is a traditional instalment loan from one of the Big Five banks. You receive the full amount at once and repay it with structured payments over a fixed term, which works well for consolidating higher-interest balances or covering a large, one-time expense.
Why we recommend the Scotia Plan Loan
Flexibility continues after signing. Payments can be weekly, bi-weekly or monthly, and you can change the amount, the frequency or the payment day as your budget evolves. Lump-sum payments or full repayment are allowed at any time with no penalty, and one payment can be postponed each year you hold the loan.
The rate choice is real. A fixed rate never changes over the term and protects you if the Bank of Canada raises rates, while a variable rate, usually lower at the start, follows Scotiabank Prime and may save interest if rates fall over a longer loan.
The Scotia app shows the balance, next payment and remaining term, and optional life and disability protection is available. You can apply online, by phone or in a branch, and a payment calculator helps you test amounts and terms before committing.
Author’s opinion
If your Equifax or TransUnion score is in good shape and you can document your income, a bank loan like this is usually one of the cheapest ways to borrow a fixed sum in Canada, short of a secured line of credit. The rate offered will typically sit well below what non-prime lenders charge.
Scotiabank does not publish its rate, because it depends on your credit file, income, the amount and the term, so you will only know it after the assessment. Weaker files may be declined or priced higher, proof of employment or income is required, and interest keeps accumulating during a deferred payment.
Make the most of the prepayment freedom: rounding up each payment or putting a tax refund toward the principal shortens the term and reduces the interest you pay.
I want to learn more about the Scotia Plan Loan!
Who qualifies, which documents Scotiabank asks for and the link to the official page are on the next page. Tap the button below.
Photo: Dillan Payne · CC BY-SA 2.0 · Wikimedia Commons
