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Payday loans in Newfoundland and Labrador

Learn the ins and outs of getting payday loans in NL.

If you find yourself in need of some fast cash, you might consider getting a payday loan. According to the Financial Consumer Agency of Canada, most people use payday loans to cover unexpected expenses or bill payments that come due before payday. But while these loans can be quick and convenient, they’re expensive and risky forms of debt.

We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in Newfoundland and Labrador, so you can make an informed decision before borrowing money.

⚠️ Warning: Be cautious with payday loans
Payday 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 payday loan alternatives:
  • 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.

Popular payday loans in Newfoundland and Labrador

Payday loanCan you apply online?Turnaround time
cash money

Cash Money Payday Loan

check markAs little as 15 minutes with INTERAC e-TransferApply now
Mr. Payday Logo

Mr. Payday Loan

check mark30 minutes to get approved during business hours, and another 30 minutes to get an e-mail transfer once approvedRead review
310 loan logo

310-loan Payday Loan

check mark30 minutes once approvedRead review

Can I get a payday loan in Newfoundland and Labrador?

Yes, payday loans are legal in Newfoundland and Labrador. Each province has its own rules that govern costs and lending restrictions. People who take out payday loans in NL are protected by the Consumer Protection and Business Practices Act.

Rules for payday loans in Newfoundland and Labrador

  • You can’t be charged more than $21 in fees for every $100 borrowed.
  • A lender can charge additional fees if you don’t pay your loan by the due date.
  • The maximum amount you can borrow is $1,500.
  • You can’t borrow more than 50% of your net income.
  • Loans usually must be paid off within 1 – 2 weeks.
  • The maximum term for this type of loan is 62 days.
  • You can’t get a new loan until you pay off your first one.
  • Lenders cannot ask you to sign a form that transfers your wages directly to them.
  • Roll-over loans are not allowed. This means you can’t roll over what you owe into a second payday loan.
  • Should you change your mind and want to cancel your payday loan, you have 48 hours to do so without a fee – known as the “cooling-off period.” You also don’t have to provide a reason for cancelling.
  • Lenders cannot offer or sell you any products or services in connection with the payday loan.

Pros and cons of getting payday loans in NL

Pros

  • The opportunity of flexible repayments. Flexible repayment options let you line up your repayments with your paycheques. By making extra repayments, you can repay the loan ahead of time.
  • Online presence simplifies the process. If a lender is online, the entire process can be streamlined. You will usually be given multiple options during the application process to submit documents, information and track your application’s progress.
  • Bad credit is OK. People living in Newfoundland and Labrador with bad credit credit scores can still qualify for payday loans.

Cons

  • Higher fees. Payday loans attract higher fees due to the risk the lenders are taking on. It’s important to consider whether you can afford the loan before you apply.
  • Short loan terms and repayment schedules. Most cash advance and payday loans require that you repay the entire amount in a few weeks or months, resulting in high repayments.
  • Predatory lenders. Some lenders prey on people who urgently need cash, so it’s important to do your research and apply for a loan with a reputable lender.

How can I apply for payday loans in Newfoundland and Labrador?

If you’re interested in applying for a payday loan in NL, you’ll need to meet the following eligibility criteria:

  • Be at least 19 years old
  • Provide proof of 3 months of continuous employment
  • Show proof of address (e.g., they can ask to see a utility bill)
  • Have an active chequing account

To complete your application successfully, prepare to submit some basic information:

  • Personal details, such as your name, date of birth, Social Insurance Number and a valid form of ID
  • Contact details, such as your residential address, email address and phone number
  • Details about your employment and income

What fees will I have to pay on payday loans in NL?

Although Newfoundland and Labrador has laws in place to protect consumers from predatory lending, you’ll still need to pay a maximum of $21 for every $100 that you borrow. Payday lenders can’t give you a loan for more than 50% of your paycheque and the loan agreement must list all of the charges, terms and conditions of the loan.

Example: Let’s say your previous paycheque is $1,000, the most you can borrow is $500. If you take out a 14 day payday loan, the chart below shows you the maximum you can be charged.

PaychequeMax loanMax chargeCost of interestRepayment AmountAPR (%)
$1,000$500$21 per $100$105$605547.50%

How can I tell if a payday loan lender in Newfoundland and Labrador is legit?

Payday loan lenders in the Newfoundland and Labrador have very new legally-mandated obligations to protect customers, which means that it may be easier for them take advantage of people going through a rough patch. Look for the following signs where possible to make sure you’re working with a reputable company.

  • It follows fee regulations. Stay away from lenders who charge more than $21 in fees per $100 borrowed.
  • It doesn’t allow roll-overs or multiple loans. Newfoundland and Labrador regulations don’t allow payday lenders to give out multiple loans. In addition, you cannot roll-over your loan, meaning you can’t add what you owe on one payday loan onto a second payday loan.
  • They provide same-language contracts. Payday loan contracts should be written in a language you understand and should clearly spell out your contractual obligations – including charges, terms and conditions of the loan.
  • The lender doesn’t request access to your bank account. The lender shouldn’t request excessive personal or banking details like your direct deposit information.
  • Identity theft. Some predatory lenders have been known to work with third-party companies to steal customer’s personal and banking information. Do proper research and find a legit payday loan lender in NL before handing over any personal information.

How to file a complaint against a payday loan lender in NL

If you feel that the payday loan lender you’ve signed on with is doing something illegal or unethical, then you can file a complaint with Service NL at 1-709-729-4834. You may have a case against your lender, particularly if they’re charging more than $21 in fees per $100 borrowed.

Payday loan alternatives in Newfoundland and Labrador

If you’re not sure you want to take out a high-interest payday loan, you have other options. A credit card cash advance can generally be much cheaper than payday loans in NL. They usually come with a fee of around 23%, which is much cheaper than the triple digit APR typical of payday loans. Keep in mind that interest on a cash advance starts to accumulate immediately, so the sooner you can pay it off the better.

A personal line of credit is another good option for those looking for payday loan alternatives in Newfoundland and Labrador. Interest rate on lines of credit in Canada can start around 3% for a secured personal line of credit and 6% for an unsecured personal line of credit.

The table below shows the fees you will pay for a payday loan versus a credit card and a line of credit.

Loan Amount (over 2 weeks)Payday loan feeCredit card fee (23%)Line of Credit (7% + $5 fee)
$300$63$6.15$5.81
$600$126$12.29$11.62
$900$189$18.44$17.43
$1,200$252$24.59$23.24
$1,500$315$30.74$29.05

Here are some programs and lenders you might want to check out.

Newfoundland and Labrador assistance programs

Newfoundland and Labrador has a number of programs that can provide some much-needed relief for residents and newcomers who are struggling to make ends meet.

  • Income assistance provides financial assistance to low-income individuals and families who need help with covering the costs of basic necessities like food, shelter and heating.
  • Child benefit provides a monthly cash benefit to help low‑ and modest‑income families with the costs of raising children under 18 years of age.
  • Health related services provide financial support for low-income individuals to receive vision care, prescription drugs, medical transportation, dental services and other incidentals.

Local financial institutions

Some credit unions and local banks offer less expensive small-dollar financing with longer repayment terms. You might also want to look into credit builder loans, which come in small amounts and can help you improve your credit score by reporting every on-time repayment you make to credit bureaus. You also typically have more time to pay it off and will face much lower interest rates when compared to payday loans.

Credit counselling

If you’re struggling with your personal finances, you might consider enrolling in a credit counselling program. These can help you make a budget to manage or consolidate your debts.

Before you get a payday loan, consider alternatives available to you

Bottom line

Before signing on for a payday loan, look for other more affordable forms of financing. If you’re set on taking out a payday loan, familiarize yourself with the laws of Newfoundland and Labrador to ensure you don’t pay more than $21 in fees per $100 borrowed. Be wary of unlicensed lenders and make sure you’re in the position to pay off the payday loan in full on the due date to avoid paying interest.

Be sure to explore all your payday loan alternatives including installment loans, balance transfer credit cards, or turning to family and friend for help.

Frequently asked questions about payday loans in NL

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