Simply put, The lender or creditor you’re working with chooses your interest rate. But the answer to this question varies depending on the type of loan product you choose. The interest rate for a personal loan from a private or online lender is chosen by the lender and may differ depending on the borrower. If you’re applying for a loan from a bank, the interest rate they can offer you is based on their prime rate, which is directly affected by the Bank of Canada’s overnight rate.