If you’re looking for loans for people on disability, you have options. Payday loans tend to have the most lenient eligibility criteria, so there are lenders in this space that accept disability assistance as income and don’t even do credit checks. However, payday loans are extremely expensive and are only suitable as a last resort.
This guide covers different loans you can apply for if you’re receiving disability income and key factors to consider before applying.
You can get a small, instant loan from one of the providers below. They can consider your application as long as your disability benefits are being paid into your bank account.
Loan provider
Interest rate
Loan amount
Loan term
Key features
Early Pay
No interest or fees to access cash advance, fee for express funding (varies based on advance)
$20–$250
Next pay cycle (61 days max.)
24/7 approval and funding, instant transfers with a fee, no credit check
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. 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). You may also want to consider payday loan alternatives.
Compare payday loans that accept disability assistance
Payday loans have flexible eligibility requirements, which is why people on disability income have more options for this loan than other types of loans. But given payday loans’ super high rates, only consider them when you’ve exhausted all other options.
Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Province
Max. cost of borrowing a $100 payday loan
Cooling off period to cancel loan
Max. penalty for returned cheque or pre-authorized debit
Alberta
$15
2 business days
$25
British Columbia
$15
2 business days
$20
Manitoba
$17
48 hours excluding Sundays and holidays
$20
New Brunswick
$15
48 hours excluding Sundays and holidays
$20
Newfoundland and Labrador
$14
2 business days
$20
Nova Scotia
$15
Next business day (2 days for online loans)
$40 (default penalty)
Ontario
$15
2 business days
$25
Prince Edward Island
$15
2 business days
N/A
Quebec
Limit of 35% AIR
N/A
N/A
Saskatchewan
$17
Next business day
$25
Can I get disability loans with no credit check in Canada?
Yes. Some lenders in Canada, such as payday lenders and pay advance apps, do not do credit checks for their loans and focus on your income instead. You’ll need to show them that you have a recurring disability income by providing access to your bank statements.
Make sure to apply to a legitimate lender in Canada, and watch out for payday loan scams.
Can I get e-Transfer loans while on disability assistance?
Yes, you can borrow money using your disability assistance as income and have the loan funds sent to you via Interac e-Transfer. Many lenders online use this funding method. You will need to be registered for Interac e-Transfer first, which you can do so by signing in to your bank account and entering your personal details.
1. Payday loans that accept disability assistance in Canada
Features
Quick. You can complete the entire process in as little as 30 minutes.
Expensive. It’ll cost you between $14 to $17 for every $100 borrowed, depending on your province or territory.
Small loan amounts. Borrow between $100 and $1,500.
Short loan terms. Payday loans need to be repaid by your next payday. However, if you’re in Alberta, you have a minimum loan term of 42 days.
Bad credit is okay. If your credit score is below 560, you are still eligible.
Eligibility requirements
Exact requirements for online payday loans vary among lenders, but generally you need to:
Be the age of majority in your province or territory (18 or 19 years old)
Be a Canadian citizen or permanent resident
Have a steady source of disability income
Have an active bank account
How to compare payday loans for disability income
Funding options offered. You can get your payday loan via e-Transfer, direct deposit or cash in-store, but not all lenders offer all these options.
Speed and availability. If you need an emergency loan, choose a payday lender that can give instant approval and e-Transfer funding within minutes after approval. If you’re applying outside of regular business hours and you need your disability payday loan fast, you may want to choose a lender that offers e-Transfer payday loans 24/7.
Reputation. Read reviews from people who have taken out a payday loan from the lender. Watch out for a pattern of complaints.
Accepts disability income. Check first that the lender accepts disability income, because not all lenders accept it. Some payday lenders may not accept government disability benefits but accept private disability income, while others may not accept any kind of disability income.
To save you some time, below is a list of lenders that do not accept disability:
Mr. Payday does not accept government disability income, but it accepts private disability income.
Before you take out a payday loan using your disability benefits
Know how much it costs. Payday loans are one of the most expensive ways to borrow money, with annual percentage rates (APRs) in the triple digits.
Know your rights as a borrower. Each province has its own rules about payday loans, such as maximum borrowing fees, fees for missed payments, cancellation period and loan extensions. Choose a licensed payday lender that follows them.
Ensure you’ll have enough income left. Before taking out a payday loan, check first that you’ll have enough disability income left over to pay for other debts and expenses once you repay your loan.
How to apply online
Fill out the application online. Provide details like your name, address, phone number, email, housing situation and employment situation.
Get a decision. The lender’s automated system will review your application and provide a decision.
Sign your contract. If you’re approved you’ll be given a contract to sign and submit.
Get funded. Receive your funds via e-Transfer within minutes of submitting your contract.
2. Installment loans that accept disability
Features
Interest rates. Rates are typically between 18% and 47%. How much you’ll be offered will depend on personal factors like your credit score, income and debts.
Pay in installments. You’ll make equal payments to your lender over a period of time.
Loan amounts. The range is usually $500 to $10,000.
Loan terms. Term lengths last between 3 - 60 months.
No prepayment penalties. You can usually pay off your installment loan early without facing any fees.
Bad credit is considered. If your credit score is below 560, you could still be eligible for an installment loan.
Disability income is okay. Not all lenders accept disability income, so check the lender’s requirements before you apply.
An installment loan is a different product from a payday loan, but they are sometimes offered by the same lender.
Installment loans vs payday loans for disability: Which is better?
Installment loans are cheaper than payday loans. Installment loans have a maximum rate of 47% APR. Payday loans, on other hand, have over 300% APR. Installment loans also let you break up your payments, which could help with your monthly budget.
One drawback is that installment loans have stricter eligibility criteria. Unfortunately, lenders of this loan are less likely to accept disability income.
3. Lines of credit for people with disability income
Features
Loan amount. Borrow as much or as little as you need up to a limit.
Open term. Make the interest payments and pay off the loan partially or in full any time without penalty.
Potentially cheaper than a payday loan. For example, Mogo claims its MogoMini line of credit is up to 88% cheaper than a payday loan.
High interest rates. Even though online lines of credit are potentially cheaper than payday loans, they still have a high interest rate, and if you wait too long to pay off the balance, you can end up paying more than a payday loan.
Bad credit is considered. Check the lender’s minimum credit score before you apply.
Disability income is okay. Not all lenders accept disability income, so be sure to check the requirements before applying.
Lines of credit vs payday loans for disability: Which one to pick?
Like installment loans, lines of credit have lower APRs than payday loans, but they are also harder to get approved for. Borrowers with disability income may have more luck with a product like Nyble, which has features similar to a traditional line of credit but it doesn’t do credit checks and has much lower loan amounts than payday loans.
4. Pay advance apps for disability
Features
Loan amount. $20 – $250.
Varying loan terms. You’ll usually need to pay off your loan by your next paycheque, though some providers may be open to extending the deadline.
No interest or fee. These loans usually do not have interest or late fees, but you may need to pay a fee to get instant funding.
No credit check. You won’t need to go through a credit check, so it’s possible to get approved with bad credit.
Disability income is okay. Because these are very small loans that cap at $250, lenders are more open to many types of income, such as disability.
Pay advance apps are limited in Canada
Pay advance apps are still in their early stages here, so there aren’t many options for Canadians. The two main apps are currently Bree and Nyble, but we’re keeping an eye out for fintech companies entering this space in 2024, such as Woveo.
You may see these apps change their product features as they innovate and evolve.
Can I get a loan with bad credit and on disability?
Yes, you can still get a loan if you have bad credit and are currently on disability. Be prepared to pay high rates though; lenders that accept riskier applications charge more interest precisely because they are taking on more risk.
How to increase your chances of approval if you have bad credit and disability income
To boost your chances, you’ll need to have the following in the last 90 days:
Have zero NSF transactions in your bank account.
Have more income coming in than money coming out to pay for debts.
Have no active payday loan debts.
Questions to ask before you get a loan using your disability benefits
Before you apply or sign on the dotted line, ask these questions:
Can I afford it? Are you aware of the total loan cost, and how it’ll fit into your budget? If you get a payday loan, will you have enough income left after you repay the loan?
Is the lender legitimate? Make sure you apply to a licensed lender that’s transparent about how much the loan will cost you. Read reviews from people who’ve taken out a loan from the lender.
Is the lender pressuring me? If the lender is putting pressure on you to sign a contract with them, you may want to try another lender.
Do I know the payday loan regulations of my province? This is to protect yourself as a borrower from illegal practices.
Will I be charged higher rates because I have a disability?
Lenders aren’t legally allowed to discriminate against you for having a disability. The rate you’re charged will be based on all facets of your loan application, including the total income you make (which could include other sources you have besides disability payments), your credit history and other factors.
If your income is low and you have fair or below average credit, you’ll be considered higher risk to lenders and will likely be charged a higher rate to make up this.
Alternatives for people on disability income
You aren’t limited to borrowing when you’re on disability and need extra funds. Grants and benefits are other options to consider — and the best part is you don’t have to repay them.
For example, if you need money to buy assistive devices or make your car or home more accessible, you may qualify for government funding or grants from private companies (for example, some car manufacturers offer special offers for those who need to modify their vehicles for accessibility purposes).
Here are a few resources to get you started:
Canada Grant Watch.Search for disability grants by category and eligibility type, plus find resources to learn more about how they work and ways to increase your chances of approval.
211.ca.Get connected to information and services based on your needs.
Canadian Pension Plan (CPP) Disability Benefits. If you’re under 65 years old and you were able to work and pay into your CPP for a time but are no longer able to work due to a disability, you may be eligible for this benefit from the federal government.
Online payday loans that accept disability assistance are readily available in Canada, and some lenders don’t conduct credit checks. However, these loans have very steep interest rates. Before signing on the dotted line, check for a payday loan licence, know the cost of the loan and make sure you have the money to pay it back.
Frequently asked questions
Yes. Payday loans have flexible eligibility requirements. As long as you have a steady source of income – and this includes disability income – payday lenders can consider you. Other loans you can apply for are installment loans, pay advance apps and lines of credit.
A few things you could do is to check for a business licence, check that the lender abides by the provincial regulations, read reviews and find its contact information. Look for transparency. The lender should not only be upfront about fees, but it should also be upfront about the product it's selling. It should be clear that it's a payday loan with APRs in the triple digits.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
Borrowing $100 can be a quick and easy process. This guide covers how you can get a small loan in Canada, including benefits, drawbacks and eligibility requirements.
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