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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. See which payday loans have terms up to 62 days, plus your alternatives to 3-month payday loans.
Three-month payday loans in Canada do not exist because payday loans can only have a loan term of up to 62 days. You’ll need to turn to a different type of financing if you need 3 months to pay it back.
⚠️ 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 payday loans
The payday loans below have terms up to 62 days.
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|
|Nova Scotia||$19 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)|
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 3 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 1 to 4 weeks.
Compare alternatives to 3-month payday loans
If you need short-term financing, below are some alternatives to 3-month payday loans.
1. Installment loans
Installment loans are a specific type of personal loan with smaller loan amounts, shorter terms and higher interest rates than standard personal loans. They also have more lenient requirements. With this loan, borrowers make repayments in installments over a period of time, usually between 6 months to a couple of years, but there are some lenders that can offer 3 months.
Some installment loans are available to borrowers with poor credit. Check the lender’s requirements before you apply.
2. Personal line of credit
If you need a 3-month loan, you may wish 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.
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 3 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 3 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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