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3-month payday loans in Canada: What you should know

Payday loans in Canada are regulated to have a maximum term of 62 days. Compare payday loans below with terms up to 62 days and see your other options for short-term financing.

Name Product Max. Loan Amount Serviced Provinces Turnaround Time Loan Term Interest Rate
Cash Money Payday Loan
$1,500
British Columbia
Nova Scotia
Ontario
Saskatchewan
In as little as 15 minutes with INTERAC e-Transfer® if approved
12-14 days (varies by province)
Varies by province
Apply for your first $300 payday loan at a $20 borrowing cost (excludes Saskatchewan applicants). Residents of Manitoba and New Brunswick cannot apply for a loan online (must apply in-store).
iCASH Payday Loan
$1,500
Alberta
British Columbia
Manitoba
New Brunswick
Nova Scotia
Ontario
PEI
In as little as 2 minutes with INTERAC e-Transfer if approved.
14 - 62 days (varies by province)
Varies by province
Get up to 20% in cash back once your iCASH Payday Loan is fully repaid. Conditions apply.
GoDay Payday Loan
$1,500
Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, PEI, Saskatchewan
In as little as 2 minutes with INTERAC e-Transfer if approved.
Up to 62 days
Varies by Province
To apply for a GoDay payday loan, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.
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We compare the following cash lenders

Three-month payday loans in Canada do not exist because the maximum loan term for payday loans is 62 days across all provinces and territories. You’ll need to turn to a different type of financing if you need 3 months to pay it back.

Payday loans are regulated

When you’re grappling with a financial emergency and you don’t have a rainy-day fund, payday loans can offer Canadians quick access to a small sum of cash of up to $1,500. Payday loans are regulated at the provincial level in the provinces and at the federal level in the three territories. Each province has unique rules about how much can be charged per $100 borrowed, how many loans you can take out at one time and how long you can borrow for. No matter where you are in Canada, payday loans are only meant to last until your next payday, which means the typical loan term will be one to four weeks. Compare payday loans with terms up to 62 days.

Compare alternative types of financing

If you need short-term financing, below are some alternatives to 3-month payday loans.

Name Product Interest Rate Loan Amount Loan Term Fees Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 9.90%-46.96%
$500 - $50,000
3 - 120 months
No application or origination fees
Min. credit score: 300
Go to site
More Info
An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
No application or origination fees
Min. credit score: 300
Go to site
More Info
An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
LendDirect Line of Credit
19.99% - 46.93%
$100 - $15,000
No end dates
None
Min. credit score: 560
Go to site
More Info
Borrow up to $15,000, based on your income and credit history, with a line of credit from LendDirect.
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1. Installment/personal loans

With installment loans, which are a type of personal loan, borrowers make payments in installments over a period of time, usually between three months to a couple of years. The terms for your loan are typically negotiated with or set by your lender, who will tell you how much you need to pay every month, with interest factored in. When you agree on the terms of a loan, you’ll get a lump sum of cash, and then you’ll be legally responsible for paying that amount back in the required time frame.

Technically, many types of loans such as mortgages and car loans are installment loans since you also repay those over a period of time, but in this case, installment loans refer to personal loans with a smaller loan amount and shorter loan term than the average personal loan.

2. Personal line of credit

If you need a three-month loan, it may be wise to consider opening a personal line of credit. It works almost like a credit card, giving you a specified credit limit to use how you like and stays open as long as you keep up with payments. The funds are there for you whenever you need them, and interest is only charged on what you withdraw so you can keep the account in your back pocket without making any payments or incurring any charges. Learn more about lines of credit.

3. Credit card

If you have available credit (and enough of it), you could potentially use your credit card to cover your expenses. Credit cards typically come with interest-free grace periods of at least 21 days – which means, at minimum, you won’t have to pay any interest until 21 days later. Credit cards usually come with APRs of approximately 19.99% – which means you’ll want to pay off your balance as quickly as possible. You could avoid high interest rates by applying for and using a low interest credit card.

You may even be able to open a new credit card with a 0% interest promotional period of about 3 to 6 months, which would cover your needs. Just make sure you have the funds to repay your credit card balance so you won’t have to deal with the interest rate that kicks in after. Learn more about credit cards.

4. Friends or family

You could potentially turn to friends or family to borrow some extra cash for three months. There are plenty of apps and websites that allow you to draw up a contract, which can ensure you make timely repayments and can help keep your relationship intact.

Features to consider with 3-month loans

Before you apply for a 3-month loan, take the time to compare different lenders and loan options. Here are some factors that you should take into consideration:

  • Know the fees involved. APRs for personal loans can range from as low as 4.5% to well over 36%. The APR that you’re offered will depend on multiple factors including your credit score, the amount you’re looking to borrow, your repayment period and the lender that you’re applying with. You’ll also want to watch out for any additional fees, including origination fees and late payment and prepayment charges. Paying off your loan early may be a key priority, so make sure your lender doesn’t charge you any penalties for early repayments.
  • What kind of repayment flexibility is there? While it depends on the lender, you’ll typically have a loan term anywhere from three months to several years. Decide on terms that fit your budget. You don’t want to overcommit too much of your monthly income towards debt repayments, but you also don’t want to extend the life of your loan for longer than you need to.
  • What is the processing time? Applying for a payday loan is generally a quick process – especially if you do it online. With in-person applications, you could receive your loan within a few days, while applying with an online lender could see you with loan funds within just a few short hours.

The bottom line

Three-month payday loans in Canada may not exist, but you can turn to other short-term financing options to cover your expenses. These options include using an installment loan or a credit card, or borrowing money from friends or family members. Always compare your options before you apply for a loan. Do your research and compare lenders, loans, fees and repayment terms. If you think you’ll be able to pay off your loan in less than 3 months, look for a lender that charges no prepayment fees.

Frequently asked questions about 3-month loans

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