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Compare 2-month payday loans
If you're facing unexpected costs and need extra cash, you might be considering a 2-month payday loan. Compare rates, costs and other options.
It can be hard to predict what costs are around the corner. If you’ve been hit with an unexpected cost – for example a big car repair bill – taking out a 2-month loan is one way to bridge the gap. Find out about the high costs of this type of loan, and types of alternative options you can consider.
Can I a get 2-month loan?
Yes, plenty of payday loan providers offer loans you can repay over 2 months. Because payday loans are regulated at the provincial or federal level in Canada, the maximum payday loan term available is 62 days. Normally you’ll have to pay back the full amount of your loan by your next paycheque – whether that’s 1 week or 2 months away. You may have the option to pay back your loan in one or multiple payments depending on your lender and the regulations in your province or territory.
A 2-month payday loan is a fast but very expensive way to borrow, with interest rates higher than most other forms of credit. If you do opt for a 2-month payday loan, online applications are simple and quick, and if your application is accepted, many providers can even e-transfer the funds to you within an hour.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider alternatives instead of a payday loan:
- Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
Compare 2-month payday loans
Maximum borrowing costs per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island||$15 per $100 borrowed|
|Manitoba & Saskatchewan||$17 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Is high-cost, short-term borrowing a good idea?
Payday or short-term loans are very expensive and not a good idea for borrowing over longer periods. They may not solve your money problems.
Before applying for a payday loan you should always consider other options. Is the expenditure that you’re planning absolutely essential? If it’s possible to defer your purchases until you can pay with cash, you’ll save money in the long run. If you need the money to pay a bill, it could be worth speaking to your provider to see if you can negotiate a payment plan or defer your payment. Read more about alternatives to taking out a payday loan in our full guide here.
What you need to know about 2-month payday loans
A 2-month payday loan is a high-interest form of borrowing, designed to be a temporary helping hand when you’re facing an unforeseen shortfall in cash. A 2-month payday loan is generally paid from your next paycheque, however, depending on the lender and the regulations where you live, you may be able to make instalment payments. Before taking out your loan you should make sure you’re confident you’ll be able to afford the repayments. Missing a payment will damage your credit score and make it harder to secure credit in the future.
Key features of 2-month payday loans
- High interest rates. The interest rates charged on 2-month loans are very high. The maximum fee lenders can charge typically ranges from $15 to $17 per $100 borrowed, but it can get as high as $25 and $60 depending on the regulations in the province or territory where you live. Read our full guide on payday loan regulations in Canada to learn more.
- Repayment. Normally you’ll have to pay back the full amount of your payday loan when your next paycheque comes in, which has to be within 62 days. Keep in mind that depending on the lender you go with and the regulations in your province or territory, you could have the option to pay back your loan in either one payment or over multiple payments.
- Early repayment. Although when you sign up to a 2-month payday loan you will agree set repayment dates with your lender, it is usually possible to pay all or part of your loan back early. This is generally a great idea, if you can manage it, since that could cut down on the amount of interest you pay. Make sure you check the early-repayment terms set by the lender before taking out your loan.
- Other fees. Although lenders generally don’t charge administrative fees, expect to be charged up to a late repayment fee if you miss one of you payments (this will also damage your credit rating, and your ability to secure affordable credit in the future).
Benefits and drawbacks of 2-month payday loans
- Quick turnaround time.
Over the years lenders have made great efforts towards reducing the time it takes to get your loan money. Many can give quick decisions on your application and if accepted can transfer your loan in just a few hours or even minutes. It’s important that you don’t let these quick turn around times make you rush your decision.
- Easier approval.
While you must meet certain requirements to secure a 2-month payday loan, many lenders are willing to provide financing to those with bad credit. Many payday lenders now base their decisions primarily on affordability without even checking your credit history, meaning that you could secure a loan despite having a bad credit score.
- High interest rates.
If you take out a 2-month payday loan you should expect to significantly higher interest rates than you would with most other forms of credit. Most lenders will price their loans at or just below the provincially-mandated cap. At such high rates it’s crucial that you pay back your loan as soon as you can.
- Not a long-term solution.
Payday loans are just designed to cover an unexpected shortfall. Don’t expect them to cover or solve longer-term financial difficulties. For help and advice on getting out of a payday loan cycle of debt, read our helpful guide here.
- Disreputable lenders.
Before taking out a 2-month payday loan make sure you have done your research on the lender. There are many unauthorized providers online that look to take advantage of those looking for quick cash. You should never borrow from a lender that does not follow all government regulations. See our list of legit payday loan lenders for more information.
Requirements will vary by lender, but expect to be required to meet the following criteria:
- Be aged the age of the majority in your province or territory (either 18 or 19 years old)
- Be a Canadian citizen
- Hold a bank account
- Have an email address and phone number
- Have some form of regular income
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