Learn how to get a short-term loan in Saskatchewan.
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.
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 before you sign on the dotted line.
Can I get a payday loan in Saskatchewan?
Yes. Short-term loans are legal in Saskatchewan. The Payday Loans Act helps protect people who take out payday loans.
Each province has its own rules that govern pricing. Saskatchewan limits the maximum allowable cost a payday lender can charge on a loan to $17 per $100. The most money you can borrow in a payday loan in Saskatchewan is $1,500 and the maximum term for this type of loan is 62 days.
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 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 providers you’re interested in to confirm they operate in your province.
What fees will I have to pay?
Lenders in Saskatchewan can charge up to $17 for every $100 borrowed, which is the second lowest rate in Canada. Payday lenders aren’t allowed to give borrowers more than 50% of their net paycheque.
Example: If your previous net pay 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 some other types of loans for the same amount.
|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?
You can with some lenders — but you might not want to. No credit check loans can come with extremely high rates and are typically offered by predatory lenders. It makes better sense to find a payday lender willing to do a soft credit check takes. It takes less than a minute and won’t affect your credit rating. These lenders are often willing to work with bad- or poor-credit customers, so you’re still likely to qualify for a loan.
What should I keep in mind before applying?
Payday loans are an expensive form of debt that should be avoided where 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. You should also be sure that your lender is licensed in the province. If you don’t think you can meet repayment terms, it makes sense to consider less expensive short-term alternatives.
How can I tell if a lender in Saskatchewan is legit?
On top of restrictions on interest rates, 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 additional fees. You cannot be charged any other fees, penalties or costs by a payday lender for defaulting. Lenders are also unable to “rollover”, refinance or extend your 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 per $100 loan.
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 on your loan.
- 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 loans 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.
Short-term loan alternatives in Saskatchewan
There are alternatives to using payday lenders 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.
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 offer less expensive small-dollar financing longer repayment terms. You might 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.
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 short-term loan?
If you’re interested in applying for a short-term loan in Saskatchewan, 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 a stash of emergency cash in the short-term, consider the risks and know your rights before heading to your nearest payday lender. Be aware that these lenders often charge exorbitant interest rates and fees, so take time to find the best deal or to look into cheaper short-term alternatives. Be wary of unlicensed lenders and pay back your loan on time to avoid paying additional fees or interest.