Online payday loans that accept disability income
Find payday loans for disability income in Canada, plus see other loans available to you.
If you’re looking for loans for people on disability, you have options. Payday loans are by far the most common, and there are payday loans that accept disability income in Canada, even some no credit check options. But they are extremely expensive and should be a last resort.
Browse your options for disability loans and learn about key factors to consider before applying.
Compare loans for people on disability
Whether you’re looking for payday loans that accept disability or other types of loans for people on disability, explore options below.
⚠️ Warning: Be cautious with payday loansHigh-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. 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.
|Loan provider||Interest rate||Loan amount||Loan term||Key features|
|Varies by province||$100 – $1,500||7 - 62 days||24/7 approval and e-Transfer, accepts bad credit|
|8.00% - 46.96%||$500–$50,000||4 - 60 months||Loan broker, largest lender network|
|32.00%||$500–$2,500||3 - 6 months||Loan broker, pre-approval in 5 minutes|
Line of Credit
|19.90% - 46.90%||$1,000–$10,000||Open||Apply online, same business day funding available|
Line of Credit
|19.99% - 46.96%||$500–$50,000||Open||Loan broker, pre-approval in 5 minutes|
Line of Credit
|9.90% - 21.50%||$5,000–$35,000||Open||Loan broker, largest lender network|
Line of Credit
|47.42%||$1,000–$3,500||No end dates||Quotes in 3 minutes, flexible eligibility requirements|
|Varies by province||$100 – $1,500||5 - 40 days||Instant approval, e-Transfer in as little as 15 mins, accepts bad credit|
|Varies by province||$100 – $1,500||Up to 62 days||Approval within 30 mins. during business hours, e-transfer within 30 mins. after approval|
Maximum borrowing costs of payday loans 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 & Nova Scotia||$17 per $100 borrowed|
|Newfoundland and Labrador||$14 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Features of online payday loans that accept disability in Canada
- Quick. You can apply for a payday loan using your disability income in less than 10 minutes, get instant approval and get e-transfer funding within minutes after approval.
- 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.
Can you get disability loans with no credit check in Canada?
Yes. Some payday lenders in Canada do not do credit checks for disability loans and hone in on your income instead. You’ll usually need to show them that you have recurring disability income by providing access to your bank statements. If you prefer to get a disability loan with no credit check, make sure you go with a legitimate payday lender in Canada, and watch out for payday loan scams.
Can I get approved for payday loans with e-transfer on disability?
Yes, there are payday loans with e-transfer and disability that are possible to get approved for. E-transfer is the most common funding method for online payday lenders, with turnaround times as quickly as 5 minutes. However, disability income is not as widely accepted as other forms of non-employment income (such as the child tax credit and EI), so make sure the lender you choose accepts disability before you apply.
Eligibility requirements for online payday loans that accept disability
Exact requirements 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 disability payday loans
- Funding options offered. You can get your disability payday loan via e-transfer, direct deposit, prepaid debit card or cash in-store, but not all lenders offer all these options.
- Speed and availability. If speed is crucial, or 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.
Before you take out a disability payday loan
- 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.
Other loans for people on disability
Payday loans are not your only option for disability loans in Canada. Some lenders of installment loans and lines of credit can accept disability benefits as a form of income.
- Installment loans. These are a type of personal loan offered by online lenders that have smaller loan amounts, higher interest rates and more flexible requirements than traditional personal loans. Jump to installment loans.
- Lines of credit. With a line of credit, you can borrow up to a limit. You get an open term where you can pay off all or part of the loan whenever you like. Jump to lines of credit.
Features of installment loans for disability income
- 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 $5,000.
- Loan terms. Term lengths last between 6 and 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.
Important: An installment loan is a different product from a payday loan, but they are often offered by the same lender. When browsing your options, watch out for lenders that are promoting payday loans as an installment loan.
Features of lines of credit that accept disability
- 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.
Can I get a loan with bad credit and on disability?
Yes, it is possible to get a loan with bad credit while receiving disability. One of the easiest bad credit loan options for people on disability is a payday loan. However, since payday loans are some of the most expensive in Canada, consider other options first like installment loans or line of credits. Some lenders for these types of loans tend to have more lenient eligibility requirements compared to personal loan providers.
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 how much the loan will cost you, and how it’ll fit into your budget?
- 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 high 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.
- Have I considered alternatives? Before you apply, consider alternatives to payday loan.
Will getting a loan affect my disability payments?
No, loans aren’t considered income and usually don’t count against your disability payments. However, there are two situations which could affect your payments:
- You receive money as a gift. If you’re given money you don’t have to repay, the government considers it a gift and counts it as an asset. This could put you over the resource limit for individuals and make you ineligible for benefits that month.
- You don’t spend your loan money right away. If you take out a loan, you usually need to spend it within the month you receive the funds. Anything left over may count toward your resource limit, which means you may become ineligible for benefits.
In these cases, make sure you aren’t going over your individual resource limit. Only borrow as much as you need to avoid taking on too much debt or having too much in the bank when your resources are counted for the month.
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 minimal 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.
More alternatives for people on disability benefits
You have many choices in online payday loans that accept disability income. Payday loan lenders tend to accept bad credit borrowers, and some even offer disability loans with no credit check in Canada. Less expensive loans for people on disability include installment loans and lines of credit.
Before signing on the dotted line, research the lender, understand the cost of the loan and make sure you have the money to pay it back.
Frequently asked questions about disability loans in Canada
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