Payday loans in Saskatchewan
You'll pay a maximum of $17 in fees for every $100 you borrow.
Payday loans are small, high-interest loans designed to cover unforeseen emergency expenses between paycheques. These loans are offered through businesses rather than banks, and can be a quick and easy solution to make ends meet – so long as you can pay them off by the due date. But while they’re convenient and easy to get, they’re expensive and risky.
We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in Saskatchewan, so that you have as much information as possible to make an informed decision before you sign on the dotted line.
Can I get a payday loan in Saskatchewan?
Yes, payday loans are legal in Saskatchewan. Each province has its own rules that govern payday loans. In Saskatchewan, the Payday Loans Act helps protect those who take out payday loans.
Here are the rules surrounding payday loans in Saskatchewan:
- You can’t be charged more than $17 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 must be paid off within 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 until the next business day to do so without facing a penalty. You also don’t have to provide a reason for cancelling.
⚠️ Warning: be cautious with short-term loans
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call Credit Counselling Canada on 1800 007 007. It's open from 8:00am to 5pm, Monday to Friday. When comparing short-term loans, ensure you take into consideration all fees, charges and interest to understand how much your loan might cost in total.
Alternatives to short-term loans
Consider these alternatives before applying for a payday loan:
- Use online Government resources. The Financial Consumer Agency of Canada website demonstrates how small amount loans work – and suggests alternative options that may help you.
- Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
- Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
- Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.
Cash Money Payday Loan
- Minimum loan amount:
- Maximum loan amount: $1,500
- Interest Rate: Varies by Province
- Fees: Up to $17 per $100 borrowed (rounded to nearest dollar)
- Loan term: 12-14 days. Varies by Province
- Turnaround time: Within 2 hours with INTERAC e-Transfer® if approved
- Key requirements: Be 18+ years old, provide proof of recurring income
Fast facts about payday loans in Saskatchewan
- Maximum loan amount: $1,500
- Minimum loan term: 1 – 2 weeks
- Maximum loan term: 62 days
- Maximum interest: $17 for every $100 that you borrow
Compare payday loans in Saskatchewan
Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.
What fees will I have to pay?
Lenders in Saskatchewan can charge up to $17 in fees for every $100 borrowed. Payday lenders aren’t allowed to give borrowers more than 50% of their net paycheque.
Example: If your previous paycheque is determined to be $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.
|Net Pay||Max loan||Max charge||Cost of interest||Repayment Amount||APR (%)|
|$1,000||$500||$17 per $100||$85||$585||517%|
The table below shows the fees on a payday loan compared to the typical costs of credit card and line of credit fees.
|Loan Amount (over 2 weeks)||Payday loan fee||Credit card fee (23%)||Line of Credit (7% + $5 fee)|
Can I get a no credit check loan in Saskatchewan?
Most lenders won’t do a credit check when issuing a payday loan. Instead, they’ll be more interested in you having:
- An active chequing account
- A permanent address (and proof of it)
- Three months of continuous employment (and proof of it)
This lenient criteria can be easy to meet – with the added bonus of not having to prove you’re a responsible borrower. However, some lenders who don’t do credit checks might be more likely to be predatory and illegitimate. This is why it’s important to do your research and use a reputable lender – whether they do a credit check or not.
What should I keep in mind before applying?
Payday loans are an expensive form of debt that should be avoided whenever possible. The only time you should take out a payday loan is when you know you can repay the amount in full by the required date – if you don’t think you can, there are other short-term loan options that are much cheaper.
If you do decide to take out a payday loan, it’s important to borrow only as much as you’ll be able to repay and to budget your repayments accordingly. If you default on your loan or the loan goes into collections, you’ll receive a negative mark on your credit report that can stay there for up to six years. Make sure to budget for the amount of money you plan to take out, and use a licensed lender.
How can I tell if a lender in Saskatchewan is legit?
On top of restrictions on fees and how much you can borrow, Saskatchewan also regulates how payday lenders should act in certain situations. Look for the following signs to make sure you’re working with a legit lender.
- The lender displays a Saskatchewan licence number. Lenders in Saskatchewan are required by law to be licensed by the Financial and Consumer Affairs Authority. They should also display their license number online and at all physical locations.
- The lender displays fees. Lenders must display signs on the premises outlining the rates and fees they charge.
- No roll-over loans. Lenders are unable to “roll-over”, refinance or extend your loan. This means you cannot pay off your first payday loan with a second payday loan.
- It provides same-language contracts. This means that if you and your lender communicate in English, your contract must be in English. If it’s French, your contract must also be in French.
- It follows consumer protection laws. Stay away from lenders who charge more than $17 in fees per $100 borrowed.
Watch out for unlicensed lenders
The Internet is a haven for unlicensed lenders, and can be a risky way to take out a payday loan. If you’re thinking about taking out a payday loan online, make sure that you’re dealing with a licensed business and be aware of potential risks.
- Illegally high interest rates or fees. It’s common for online lenders to find loopholes to get around maximum interest rates set by the province. Make sure to read the fine print and avoid any company that is charging over $17 per $100 borrowed.
- Identity theft. Online lenders have been known to sell clients’ personal and banking information to third-parties, putting them at risk of identity theft or a hacked bank account. Find a lender that has a good reputation and don’t give away details like your direct deposit information.
- Funds taken from your bank account without your permission. Some online or unlicensed lenders resort to illegal ways to seek repayment from borrowers, including withdrawing money from their bank accounts or garnishing their wages. Try to pay back your loan on time to avoid unethical collection methods.
Before you agree to a payday loan contract in-person or online, make sure that your lender is fully licensed to operate in Saskatchewan. Be careful to read your contract in full and and watch out for red flags to avoid running into further financial difficulties along the way.
How to file a complaint against a lender
You can file a complaint directly with Saskatchewan’s Financial and Consumer Affairs Authority by filling out an online form or by calling them at 306-787-5645. The organization will typically conduct an investigation if they believe that a payday loan company has breached Saskatchewan’s consumer protection laws. If there is evidence of malpractice, they can take legal action against the business. This includes revoking its license, slapping it with a penalty and even filing a civil action to get a settlement for customers if the lender is facing numerous complaints.
Payday loan alternatives in Saskatchewan
There are alternatives to using payday loans that may cost you less. These include social assistance programs, borrowing from credit unions or accessing credit counselling. Find out more about the services on offer in Saskatchewan below.
Saskatchewan assistance programs
Saskatchewan has a number of programs that can provide some much-needed relief for residents and newcomers who are struggling to make ends meet.
- The Saskatchewan Assistance Program (SAP) provides income assistance to families and individuals who, for various reasons – including disability, illness, low income or unemployment – cannot meet their basic living costs.
- Discounted bus pass program allows people with lower-incomes access to quality public transportation, in order to work and attend community activities.
- Family Health Benefits offers support for health costs like eye exams, dental work, prescription drugs and other incidentals to those living below a certain income threshold.
- Transitional Employment Allowance (TEA) provides a general living allowance to people looking for work to cover the costs of food, clothing, shelter and transportation.
- Saskatchewan Assured Income for Disability (SAID) is an income support program for people with significant and enduring disabilities.
Local financial institutions
Some credit unions and local banks may offer less expensive small-dollar financing with longer repayment terms. You might want to look into credit builder loans too, 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.
If you feel like you’re drowning in debt and you’re not making any headway on paying your bills down, it might be time to look into a credit counselling program. The Credit Counselling Society of Saskatchewan is a good place to start if you need help with budgeting and consolidating your debts.
How can I apply for a payday loan?
If you’re interested in applying for a payday loan in Saskatchewan, you’ll need to meet the following eligibility criteria:
- Be at least 19 years old
- Provide proof of 3 months of continuous employment
- Give 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
If you need access to emergency cash in the short-term, consider the risks and know your rights before heading to your nearest payday lender. Payday loans are notoriously expensive and often throw borrowers into a continuous cycle of debt – so take time to find the best deal or look into cheaper short-term financing alternatives. Be wary of unlicensed lenders and pay back your loan on time to avoid paying additional fees or interest.