Learn how to get a short-term loan in Nova Scotia.
If you need some fast cash to hold you over between paychecks, you might like to consider a payday loan. It isn’t the most affordable way to get your hands on emergency money, but it can do the trick if you need a quick and easy solution to make ends meet.
We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in Nova Scotia, so that you have as much information as possible before you sign on the dotted line.
Can I get a payday loan in Nova Scotia?
Yes. Short-term loans are legal in Nova Scotia. The Consumer Protection Act and Payday Lenders Regulations help protect people who take out payday loans.
Each province has its own rules that govern pricing. The most money you can borrow in a payday loan in Nova Scotia is $1,500 and the maximum term for a payday loan is 62 days, although lenders can re-negotiate terms with borrowers to extend loans in some cases.
Cash Money Payday Loan
- Minimum loan amount: $50
- Maximum loan amount: $1,500
- Loan term: 12-14 days. Vary by province
- Turnaround time: Within 2 hours with INTERAC e-Transfer® if approved
- Key requirements: Be 18+ years old, provide proof of recurring income
Four quick facts about payday loans in Nova Scotia
- Maximum loan amount: $1,500
- Minimum loan term: 1 – 2 weeks
- Maximum loan term: 62 days
- Maximum interest: $22 for every $100 that you borrow
Compare payday loans in Nova Scotia
Check the websites of any providers you’re interested in to confirm they operate in your province.
What fees will I have to pay?
Nova Scotia allows lenders to charge up to $22 for every $100 borrowed, which is higher than the national average for Canada (with most provinces charging between $15 – $17).
If you don’t repay your loan on time, you’ll be charged interest on the amount you still owe. The interest rate will be the amount specified in your loan agreement for default, up to a maximum of 60%. In addition, you may be charged a default penalty of up to $40.
The comparison below shows the fees you will pay for a payday loan versus a credit card.
|Loan Amount (over 2 weeks)||Payday loan fee||Credit card fee (23%)|
Can I get a no credit check loan in Nova Scotia?
No credit checks are available with some lenders, but they’re not always the the best option. Loans that don’t require a credit check often come with higher rates and fees. A better solution is to find a lender willing to do a soft credit check. These lenders typically charge less for issuing the loan, and will often make accommodations for bad- or poor-credit rating.
What should I keep in mind before applying?
Make sure to shop around for the payday loan lender that offers the best terms for your loan. Borrow only as much as you’ll be able to repay and use a licensed lender to ensure the transaction is above board.
If you don’t think you can meet your repayment terms, you might like to think about short-term loan alternatives. For example, many credit unions have created short-term loans with low interest rates to help customers who need a little pick me up between paychecks.
How can I tell if a lender in Nova Scotia is legit?
The best way to make sure a lender is legit is to check their credentials with Service Nova Scotia. Look for the following signs to make sure you’re working with a reputable business.
- The lender displays a Nova Scotia licence number. A licence is required to be displayed in-shop by the lender and you can contact Service Nova Scotia at 1-800-670-4357 to check if a lender is licensed.
- The lender displays fees. Payday loan lenders must have posters showing the rates they charge. Signs must be posted in both official languages and must be visible to borrowers.
- It doesn’t allow rollovers or multiple loans. Nova Scotia law doesn’t allow payday lenders to give out multiple loans.
- It provides contracts in the language you use to speak with your lender. Your lender can’t provide a contract in a language you don’t speak or aren’t comfortable conversing in.
- It follows rate and fee regulations. Stay away from lenders who charge more than $22 per $100 loan.
Watch out for unlicensed lenders
Online lenders can be a fast and convenient option to deal with short-term financial difficulties. Just be aware that they come along with their own share of risk, since they’re often not regulated by the province of Nova Scotia.
- Illegally high interest rates or fees. Some lenders will offer rates above $22 per $100 of your loan, which means you’ll pay out the nose to get your hands on some fast cash.
- Identity theft. Online lenders might misuse your personal information, putting you at risk of identity theft or a hacked bank account.
- Funds taken from your bank account without your permission. Unlicensed lenders have been known to illegally withdraw money from customer’s bank accounts to help cover the cost of loan repayment.
Online lenders often operate outside of the province or even the country, making it difficult to track their movements or prosecute them if they do something illegal. That’s why it’s so important to make sure your lender is licensed to operate in Nova Scotia before you borrow.
How to file a complaint against a lender
You can contact Service Nova Scotia at 1-800-670-4357 to discuss your options for filing a complaint. They will typically conduct an investigation if they believe that a payday loans company has breached Nova Scotia’s consumer protection laws.
Short-term loan alternatives in Nova Scotia
Payday loans are short-term, high interest rate loans which are often the most expensive way to get your hands on emergency money. Consider your options carefully before borrowing from a payday lender.
Nova Scotia assistance programs
Nova Scotia 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 program helps people in financial need with basic needs such as food, rent, utilities like heat and electricity, and clothing.
- Affordable Housing program provides subsidized rental housing to low-income families, seniors and individuals who cannot afford other housing options.
- Employment Support Services (ESS) offers career counselling advice and assistance to people who are struggling to find or maintain employment.
- Disability Support Program (DSP) gives support to individuals with intellectual/physical disabilities or long term mental illness.
Local financial institutions
Many credit unions and local banks have developed low-interest short-term loan programs with more flexible repayment options for those who need a bit of financial help in a pinch. Some institutions even offer credit builder programs which provide smaller loans that can help build your credit score.
If you have an overwhelming amount of debt and aren’t sure how to reign in your finances, you might like to register for Service Nova Scotia’s Debt Assistance Program or another credit counseling program. These can help you with budgeting and consolidating your debts.
How can I apply for short-term loan?
If you’re interested in applying for a short-term loan in Nova Scotia, you’ll need to meet the following eligibility criteria:
- Be at least 19 years old
- Prove 3 months of continuous employment
- Give proof of address (e.g., they can ask to see a utility bill)
- Have a 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
If you need some fast cash in the short-term, consider your alternatives before taking out a payday loan. If you don’t have another viable option, make sure to shop around for the payday loan with the best terms. Be wary of unlicensed lenders and pay back your loan on time to avoid paying additional fees or interest.