Payday and installment loans for people on EI

If you’re looking for loans on Employment Insurance online, you have options. There are lenders in Canada that offer online payday loans for EI. These tend to have the quickest approval and funding, but since they also come with extremely high interest rates, they should be a last resort. An alternative to payday loans that can also accept EI is installment loans.

Can you get a payday loan with EI?

You can take out a loan while you’re on Employment Insurance and it won’t impact your benefits. But your first step to getting financing is to find a lender that accepts EI as a valid source of income. In Canada, there are some installment and payday loan lenders that allow you to qualify with EI income.

Your Employment Insurance can be especially helpful if you don’t have any other sources of income coming in. It can show a lender that you have the means to pay back a loan even though you’re between jobs.

Option 1: Payday loans for EI recipients

Sort by:

Name	Product	Loan Amount	Loan Term	Interest Rate	Turnaround Time	Serviced Provinces	Offer	Table description
Cash Money Payday Loan Cash Money Payday Loan		$100 - $1,500	5 - 40 days	Varies by province	As little as 15 minutes with INTERAC e-Transfer	BC, NL, NS, ON, SK	Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).	Instant decision and e-Transfer funding. Income of at least $1,000/month required.	Go to site View details	Compare	loading Fetching your data...
iCASH Payday Loan iCASH Payday Loan		$100 - $1,500	7 - 62 days	Varies by province	As little as 2 minutes with INTERAC e-Transfer	AB, BC, MB, NB, NS, ON, PEI	Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.	24/7 instant approval and e-Transfer funding. Income of at least $800/month required.	Go to site View details	Compare	loading Fetching your data...

loading

CompareClear

Which payday loan lenders do not accept EI?

Not all lenders are willing to accept Employment Insurance, and instead prefer other more steady sources of income. Here is a list of some popular payday loan providers in Canada who do not accept EI:

• Cash4You
• Loan Express
• 310 Loan

Features of payday loans for EI recipients

• Borrow between $100 and $1,500. Some EI payday lenders limit first-time borrowers to $300 to $500. Also, some provinces limit the borrower to a percentage of their income (50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick).
• Loan term. You usually need to repay your EI payday loan by your next payday. Payday loans in Alberta, however, have a minimum loan term of 42 days, and repayments must be made in at least 2 installments.
• Borrowing fee. Depending on your province or territory, you’ll pay between $14 to $25 for every $100 borrowed.
• Fast and convenient. Payday loans for EI are easy to get because lenders automate the process as much as possible and have lenient requirements. You can get a payday loan while on EI in as little as 1 hour.
• Funding options. If you apply online, you can get your money via e-transfer or direct deposit. If you visit a store, you can get your loan as cash or via e-transfer.
• Eligibility requirements. To get an payday loan on EI, you’ll need to be at least 18 or 19 years old, have recurring EI income and have an active bank account.

Before you apply for payday loans while on EI

EI payday loans come with drawbacks, so before you apply, consider taking the following steps:

• Check your budget. Make sure you can repay your loan in time, because missing a payment will result in NSF and late fees. Also check that you’ll have enough income left to pay for other debts and expenses once you repay your EI payday loan.
• Know the cost of payday loans. They’re one of the most expensive ways to borrow money, with annual percentage rates (APRs) in the triple digits.
• Look for a licence. Check that the payday lender is licensed, has a good reputation and follows the payday loan regulations of your province.

Where can I get payday loans for EI?

There are a number of lenders across Canada that offer payday loans of up to $1,500 to people receiving EI. Many of those lenders also offer convenient online applications and e-transfer, so you can receive your approved loan funds within minutes. Some popular lenders offering payday loans for EI include iCASH, Cash Money, My Canada Payday and Speedy Cash.

Can I get payday loans on EI with no credit check?

Yes, some lenders in Canada offer payday loans for EI with no credit check, however, it’s common for lenders in Canada to check your credit before approving your application. An example of a lender that offers payday loans while on EI with no credit check is Money Mart. Keep in mind that even if a payday loan lender checks your credit, they’ll generally be more concerned about your ability to repay the loan, which you can often prove using income like EI.

How much do payday loans for EI cost?

Payday loans for EI can cost anywhere from $14 to $25 for every $100 borrowed, depending on the province or territory where you live. Here’s a breakdown of the costs for a few sample payday loans for EI.

Option 2: Installment loans for EI

You can apply using your EI as income with the lenders below.

Sort by:

Name	Product	Interest Rate	Loan Amount	Loan Term	Requirements
Loans Canada Installment Loan Loans Canada Installment Loan		8.00% - 46.96%	$500 - $50,000	4 - 60 months	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...
LoanConnect Installment Loan LoanConnect Installment Loan		32.00%	$500 - $2,500	3 - 6 months	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...

loading

CompareClear

Features of installment loans for EI in Canada

• Borrow larger amounts than payday loans on EI. Installment loan amounts are typically between $$500 and $10,000. But if your only income is EI, you may be approved for smaller amounts.
• Loan term. Loan terms are typically between 6 - 60 months, but for EI installment loans, your loan term may be on the shorter end.
• APR. Rates for EI installment loans range between 18% and 46.96%.
• Turnaround time. You can get an installment loan in 1 to 2 business days.
• Funding options. You can get your EI installment loan via direct deposit or e-transfer.
• Eligibility requirements. Installment loan lenders have stricter requirements than payday lenders. You’ll need to have a certain credit score and income amount to get approved, and not many installment loan lenders accept EI as a valid source of income. Compare EI installment loans you can apply for.

Before you apply for EI installment loans

EI installment loans also come with risks, so consider taking the following steps before you apply:

• Check your budget. Make sure you can afford the monthly payments of your EI loan, and see whether your EI payments will be enough to cover the loan term.
• Know the cost. Know how much interest and fees you’ll pay overall. Watch out for any extra charges that could drive up the cost of your EI loan, such as prepayment penalties (not common), NSF fees (common), late fees (common) and loan insurance (optional add-on).
• Check the lender’s reputation. Apply to legitimate lenders only, and avoid those who pressure or rush you into signing.

How to compare EI loans online

If you’re on EI, your options may be more limited, but you do have options for EI loans. So how do you choose which one is the best fit for you? Consider the following features:

• APR. Keep an eye on the APR when searching for EI loans. This shows you the annual cost of a loan and helps you compare different types of credit. Payday loans for EI are much more expensive than installment loans, credit cards and credit card cash advances.
• Loan terms. Payday loans have extremely short loan terms, while installment loans allow for longer loan terms.
• Turnaround times. If you speed is important to you, payday loans on EI are faster to get than installment loans.
• Legitimate lender. Be careful when applying for EI loans online, since it’s easier to fall prey to a fraudulent lender when you’re not dealing with them face to face. Make sure the company you want to work with is legitimate and has a good working relationship with its customers. You can also check out common personal loan scams and payday loan scams to find out how to protect yourself when searching for EI loans.

Should I get a installment loan or payday loan using my EI?

When comparing these 2 types of loans on Employment Insurance, installment loans are generally better than payday loans for EI. Both are expensive options, but installment loans’ longer loan terms allow you to spread out your payments and give your finances time to recover.

How to apply for EI loans online

1. Check your credit score. The first thing you could do is check your credit score. If your credit score is below 660, be prepared to encounter higher interest rates.
2. Compare lenders. Compare at least 3 to 4 lenders to find the most competitive rates and terms for EI loans. You’ll typically have to choose between installment loans or payday loans on EI.
3. Find out if you’re eligible. Check the eligibility criteria before applying. Do you need to have a certain credit score? Are there any minimum income requirements? Is EI even an acceptable form of income? Only apply for loans you know you can qualify for – and if you’re not sure, contact a lender and ask.
4. Fill out your application. Once you find the right EI loan for you, fill in an application to get the ball rolling. You can also click the green “Go to site” button in the table above to be redirected to a lender’s application page.
5. Get a decision. Lenders that offer EI loans usually give an instant decision.
6. Get verified. If you wish to proceed, your lender may ask for documents to verify your income and identity, such as bank statements and government-issued ID.
7. Review and sign your contract. Become familiar with your repayment schedule, the total cost of your loan and any extra charges you may encounter.

Alternatives to online installment loans and payday loans for EI

Since both installment and payday loans on EI are relatively expensive, it’s worth considering other options before locking yourself into a costly loan contract.

• Car title loan. With a car title loan, you put up a car you own as collateral. You can continue to use your car in your daily life, but if you fail to make the loan repayments, the lender can repossess your car.
• Personal line of credit. Some online lenders, such as Mogo and Cash Money, accept non-employment income to approve a line of credit. With a line of credit, you can pay off the loan anytime, but this perk comes with risks.
• Credit counselling. Credit Counselling Canada is a nationwide organization that partners with not-for-profit credit counselling services to offer Canadians a range of free financial services, including debt management and general financial education.
• Debt relief services. If you’re facing legitimate financial hardship, debt relief services are an option. Debt relief companies like Debt.ca offer different types of services, such as debt management, debt settlement, debt consolidation and credit counselling.

What is the Employment Insurance program?

Canada’s Employment Insurance program is run by the federal government. It was put in place to support Canadians who get laid off from their jobs due to a shortage of work or the closure of a business.

So how does it work? You’ve probably noticed that your employer takes an EI premium off every paycheque (which they also match on their end). This money sits in a fund that gets paid out to you if you lose your job.

How to qualify for Employment Insurance benefits

The most important factor to qualify is that you get laid off from your job and aren’t fired for good reason. From there, you’ll need to have worked a required number of hours (at least 420) in the last calendar year. You’ll also need to have made contributions to EI through your paycheques. If you meet these criteria, you should be eligible to receive around 55% of your previous income through the program.

Bottom line

If you find a lender that considers Employment Insurance (EI) as an acceptable form of income and you meet their other eligibility criteria, you could potentially be approved for an EI loan. That typically narrows down your options to lenders who offer installment or payday loans for EI recipients. Before applying, contact the lender to confirm that they offer loans on Employment Insurance and compare different lenders to find the best rates and terms available to you.

Frequently asked questions about EI loans

• Can I get a loan on EI?

  Yes, you can get a loan on EI, and you are not limited to just payday loans. Other loans you can apply for as an EI recipient are installment loans and car title loans.

• Is it hard to get approved for a payday loan on EI?

  Approval boils down to your personal circumstances, but generally, payday loans for EI are easier to get approved for than other types of loans. Borrowers with a poor credit score can get a payday loan. If you meet a lender's income requirements and have a decent credit history (not score), then you have a higher chance of approval.

• How do I know a payday lender is legitimate?

  There are several ways to judge the legitimacy of a payday lender. You can check for a business licence, see how transparent they are with fees, check third-party reviews, look for BBB accreditation and see if they abide by provincial regulations.

• Can I get a line of credit on EI?

  Yes, you can get a line of credit on EI, but it depends on the lender. Some lenders accept EI as a valid source of income, while others do not.