If you’re looking for easy approval loans in Canada, payday loans and installment loans are both options that you can apply for online. Payday loans might be the easiest loan to get approved for, but they are also the most expensive and should only be a last resort.
Our handy guide will help you determine which loan is right for you.
⚠️ 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 easy approval 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||$15 per $100 borrowed|
|Manitoba & Saskatchewan||$17 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Prince Edward Island||$25 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Features of payday loans
- Fast approval and funding. Getting a payday loan is an easy process. Lenders can give you a decision within minutes after submitting one simple application, and you get can your funds within minutes after approval.
- Available across Canada. Payday loans are legal across Canada, but the province or territory you reside in will have its own regulations.
- Flexible eligibility requirements. Payday loans have easier requirements than other loans. Borrowers with poor credit or low income are considered. You can also get a payday loan if you only have non-employment income.
- Loan amount. Loan amounts are typically between $100 and $1,500, but there are some provinces, such as Ontario and BC, that limit the amount to a percentage of your income.
- Loan term. Loan terms are extremely short. Payday loans must be repaid by your next payday, which is usually within 1 to 4 weeks.
- Borrowing fee. The provinces have maximum borrowing fees. Provinces like Alberta, BC and Ontario have a limit of $15 for every $100 borrowed.
What to watch out for with easy approval payday loans
- Extremely expensive. Make sure you can repay this loan by your next payday, or you may find yourself in a cycle of debt.
- Short loan term. A short repayment period doesn’t give a borrower’s finances much time to recover, which is why it’s important to be certain that you can repay your loan.
- Predatory lenders. The payday loan space is known to be predatory. If you’re certain you want a payday loan, choose a lender who abides by provincial regulations and properly evaluates your ability to repay a loan.
Compare easy approval installment loans
Features of installment loans
- Interest rates. Interest rates range between 8% and 47% based on your personal factors.
- Predictable repayment schedules. You’ll work with your lender to decide on your repayment terms so you’ll know when payments are due and for how much. With these fixed terms, you can plan and budget accordingly.
- Loan amounts. You can typically borrow between $500 and $10,000.
- Loan terms. Terms are often between 6 months and 5 years.
- No prepayment penalties. Depending on the lender, you can pay off the loan early without facing any fees.
- Good and bad credit are generally accepted. It is possible to get an installment loan whether you have good credit (over 660) or fair/bad credit (below 660).
What to watch out for with easy approval installment loans
- Potential for high interest rates. You could face high interest rates if you have a poor credit score. Your rate will depend on your personal factors.
- Credit check. The lender may require a credit check.
- Fees. See if the loan has any extra charges like late payment fees or admin fees.
How to apply for easy approval loans online
There are some basic eligibility criteria that you’ll need to meet in order to take out a payday or installment loan:
- Be at least 18 years of age, or the age of majority in your province or territory.
- Be a Canadian citizen or a permanent resident with a valid Canadian address.
- Have proof of a regular income. Some lenders may require employment income.
- If applying online, you will likely need a working bank account.
- Meet the minimum credit score (for installment loans).
Steps to making sure you’ll be approved
In order to streamline your loan application process, take the following steps:
- Compare. Compare a range of lenders and loans to find one that best meets your financial needs. Compare interest rates, loan terms, additional fees and eligibility requirements.
- Prepare. Gather the necessary information, including your personal and financial details. Lenders usually want to make sure that you have a working bank account and a steady source of income in order to make your repayments, but you’ll also need to include basic contact information in order to confirm your identity.
- Apply. Complete your application, providing as much information as possible when requested. The more information you provide, the more your lender has to work with when determining whether or not you’ll be approved.
How to compare easy approval loans online
The term “easy approval loan” covers a wide range of different lenders and loan types, but it’s important to realize the differences between them and know what factors matter when comparing your options. Below, we’ve listed some factors that you should consider when deciding which lender to approach and which loan type might be right for you.
- What is the cost of the loan? Easy approval loans usually have higher interest rates than standard loans due to the higher borrowing risk involved. When determining the cost of a loan, look at the annual percentage rate (APR). APR is a combination of your interest rate and financing fees expressed as a percentage.
- What is the loan term? You want to get a loan term that is as short as possible so you pay less interest overall, but at the same time, you don’t want a term that is so short that you can no longer afford the repayments.
- What are the eligibility requirements? Check whether you meet the lender’s requirements, such as minimum income and minimum credit score.
- Are there extra fees or charges? Examples include origination fees (fee to process your loan), prepayment penalties and late payment fees.
- What is the actual approval period? With an easy approval payday loan or installment loan, you can apply online and know if you’ve been approved within minutes, but you may not receive your funds until a few hours later or the next business day. Storefront payday lenders will generally take a bit longer to process your application, but you’ll have the option of receiving your loan as cash or a cheque before you leave the store.
Things to avoid with loans
- Avoid missing a payment. Paying late will likely incur charges that will cause your loan to cost more than you originally anticipated. Also, a lender may choose to report you to one of the two credit bureaus. You’ll end up paying extra for the loan and damaging your credit score at the same time.
- Avoid just skimming over your loan offer. All loans are required to come with terms and conditions that outline how much you’ll be paying. Not reading the fine print on an easy approval loan could expose you to unexpected costs.
- Avoid taking on more debt than you can handle. Exercise caution throughout the loan process. There are plenty of risks associated with easy approval loans, and you should always confirm that the lender you choose is reputable before working with them. Also, only take out the loan amount that you need.
Payday and installment loans are both easy approval loans in Canada that borrowers with bad credit or low income can apply for, but they are expensive. Before applying for a payday or installment loan, make sure you can afford the repayments and understand the true cost of the loan. Compare lenders so you can find the right financing for your situation. Compare payday loans and installment loans.
Frequently asked questions
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