Payday loans for low income

Payday loans are one of the most expensive ways to borrow money, but can help you if you’re facing a financial emergency. There are payday loans for low income, but the amount you’ll get approved for will depend on how much income you have. Here’s where you can apply and how they work.

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Name	Product	Loan Amount	Loan Term	Interest Rate	Turnaround Time	Serviced Provinces	Offer
Money Mart Payday Loan Money Mart Payday Loan		$120 - $1,500	1 - 62 days	Varies by province	As little as 1 hour after getting approved	AB, BC, MB, NS, ON, SK		To be eligible, you’ll need to be at least 18 years of age with a steady source of income and a chequing account. No credit check required.	Go to site View details	Compare	loading Fetching your data...
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).	Have your banking details ready to get a loan in 2 hours. You'll need to be 18 years of age or older and have a net income of at least $1,000/month. Residents of MB and NB must apply in-store for a loan.	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.	To be eligible, you'll need to be at least 19 years of age and have a net income of at least $800/month deposited into your bank account.	Go to site View details	Compare	loading Fetching your data...
GoDay Payday Loan GoDay Payday Loan		$100 - $1,500	Up to 62 days	Varies by province	As little as 2 minutes with INTERAC e-Transfer	AB, BC, MB, NB, NS, ON, PEI, SK		To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.	Go to site View details	Compare	loading Fetching your data...

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What are the features of payday loans for low income?

Payday loans are fast and convenient, yet they come with some notoriety as one of the most expensive ways to borrow money. Overall, they come with these key features:

Loan amounts that cap out at $1,500

How much you can borrow may depend on the province or territory you’re in, but you can usually borrow $100 up to a maximum of $1,500. Some provinces also insist that you can only borrow up to 50% of your income, while some lenders have a limit on how much first-time borrowers can qualify for too.

Short repayment terms

Payday loans get their name because you’re typically required to pay back your loan by your next payday. In Ontario, for example, you can expect to repay your loan within 2 weeks to a maximum of 62 days.

Incredibly expensive

Payday loans are some of the most expensive ways to borrow money, with annual percentage rates (APRs) that are as high as 400% or more. Payday loans are regulated by each province, and range from $15 to $25 for every $100 borrowed. Don’t forget about the extra fees you may be dinged with for late payments, bounced cheques and other charges. They’ll drive up the true cost of your loan.

Quick access to cash

Compared to other types of credit, payday loans are one of the fastest ways to access cash. Online applications can be completed within minutes, and once you clear identity and income verification, you can receive your funds within minutes via Interac e-Transfer or in cold-hard cash if you’re applying in person.

Bad credit doesn’t matter

Payday lenders shift the emphasis from your credit score to your ability to repay your loan. As long as you can prove you have a stable income to repay your loan, you should be in the clear.

Regulated by each province

In Canada, payday loans are regulated under individual laws and restrictions in each province – but not all provinces have the same legislation. The territories are regulated at the federal level. Each jurisdiction carves out its own rules on features like how much consumers can borrow, how much lenders can charge, how short or lengthy repayment terms can be, and whether borrowers can take out more than 1 payday loan at a time. Learn more about payday loan regulations.

Can you get e-Transfer payday loans 24/7 with a low income in Canada?

Yes, you can. If you have a low income, payday loans are still fair game. Here’s why:

• Payday loans have lenient eligibility criteria. Payday loans are far easier to qualify for compared to other types of credit. Some payday lenders don’t even have a minimum income requirement, and will accept various types of income, including pension, Employment Insurance (EI) and other types of government benefits.
• Payday lenders operate 24/7. Some lenders, such as Speedy Cash, Money Mart, Cash Money and iCASH, either have storefronts or online automated loan applications that operate 24/7. This means you can apply, get approved and receive your funding at all hours of the day.
• E-Transfer is the most common funding option. Because of its speed compared to direct deposit, e-Transfer is the most popular route borrowers choose to receive their funds. Once you’re approved, payday lenders can send your funds within minutes.

E-Transfer payday loans in Canada

Steps to get an e-Transfer payday loan 24/7 with a low income in Canada

The path to getting a payday loan for low income borrowers is nearly the same as applying with a regular income. Overall, the application process varies from lender to lender, but these are the typical steps you’ll encounter:

• 1. Make sure your bank account is registered to accept e-Transfers.

  Because you’re aiming for an e-Transfer payout, you’ll need to double check that your account is set up for this. It could be a matter of providing your email address and turning on automatic acceptance of e-Transfers with your online banking.

• 2. Compare online lenders that approve and fund payday loans 24/7 via e-Transfer.

  Narrow your scope to only online lenders that can approve your loan 24/7, especially if you’re applying outside of business hours or on the weekend. You’ll also need to make sure that these lenders provide e-Transfers. Most will clearly state how quickly they can transfer your funds once you’re approved – it’s usually within a few minutes.

• 3. Check the eligibility requirements, especially the minimum income threshold.

  If you have a low income, take the extra step of checking that your income meets or exceeds the minimum income requirement listed by the lender you’d like to apply to. Keep in mind, most lenders may not have an income requirement at all. If you’re applying without employment income, check that your lender accepts pension, EI or other government benefits.

• 4. Apply and wait for a decision.

  Most online applications can be filled out within 10 minutes. You’ll need to provide your contact information, mailing address, and employment and income details. Once you’ve applied, your lender will provide you with a decision on your loan request. You may need to provide identity and income verification during this stage.

• 5. Review your contract.

  Once you’ve received a decision, it’s up to you to decide if you’d like to proceed with your loan offer. Pay attention to how much your lender is offering you, the interest rate, the repayment terms, and any extra fees and charges you may incur. If you’re happy with the offer, go ahead and sign off on the loan contract.

• 6. Get your money via e-Transfer and deposit it into your bank account.

  Once you’re approved and you’ve signed off on your loan, your lender will send you your funds via e-Transfer.

Are there payday loans for low income and bad credit?

Yes, you can get a payday loan with bad credit and a low income, but it isn’t a sure bet. Payday loans are one of the easiest loans to get, but legitimate lenders must evaluate your financial situation before approving you. They’ll take stock of your income and credit score to ensure you have the funds to repay your loan.

If you’re in a bad credit situation, steer clear of any lenders that are offering “guaranteed” payday loans. Guaranteed payday loans may sound like an easy way to borrow money, but there is no such thing as a guaranteed payday loan, and borrowers should proceed with caution with lenders that advertise these loan products.

Are payday loans really that bad?

They can be. Payday loans can trigger a cycle of debt and are not suitable for long-term use.

High APRs

For starters, with APRs that are at 400% or more, payday loans are incredibly expensive. Borrowers must repay these loans – with their steep interest and fees – by their next payday without incurring more debt to stay afloat. There isn’t much wiggle room to save up the cash to repay your loan. Essentially, your next paycheque must be dedicated to repaying your loan and you’ll have less income for your other debts and living expenses. You may even resort to taking out another payday loan to make ends meet.

Late fees

If you’re late or miss your payment, expect even more charges and penalties, further driving up the cost of your loan. Unless you have a clear cut plan to pay off this loan by your next payday without worsening your financial situation, payday loans can be a catalyst for a snowball of debt. This could have a negative effect on your credit rating too.

Bottom line

Payday loans for low income are readily available, and you can get the funds you need within minutes after approval via e-Transfer. But on the whole, they should be used as a last resort option when you’re dealing with a financial emergency. Keep in mind, low income borrowers can also apply for bad credit loans, personal loans, lines of credit and other lending options. If you’ve weighed the alternatives and believe a payday loan is right for you, you can compare payday loans to find the best option available to you.

You might also be interested in...

• Payday loans that accept government benefits
• Best payday loans in Canada
• Payday loans that accept disability income
• Loans that accept Canada child benefit

Frequently asked questions

• What can I use instead of a payday loan?

  If you’re not sure you want to take out a payday loan, you have other options. They include installment loans, lines of credit, bad credit loans and debt consolidation plans. You can look at your payday loan alternatives here.

• What are other ways to get a payday loan besides e-Transfer?

  While e-Transfer is the most popular way payday lenders issue funding, you can also choose from:

  • Cash. If you’re applying in person, you can receive your payday loan funding in cash immediately upon approval.
  • Bank transfer. If you prefer, your lender can direct deposit your funds via bank transfer. Traditionally, this takes longer than e-Transfer, though.
  • Loaded onto a prepaid card. A few payday lenders transfer funds directly onto a prepaid card tied to your payday loan account, handing the card to you in person or mailing it to your home so you can spend as needed.

• What documents will I need to provide to get a payday loan with a low income?

  Some lenders don’t need documents because they do online bank verification. If the review is manual, you’ll need to provide the following documents for identity and income verification:

  • Government-issued ID to confirm your age and identity
  • Proof of residency via utility bills or other documents with your mailing address
  • Proof of income, such as bank statements, pay stubs or a letter of employment
  • Bank account information (chequing account, routing and institution numbers)