Payday loans with government benefits

If you receive government benefits as your main source of income, you may find your options are limited if you need a loan. But some payday lenders accept government benefits as income, including Employment Insurance, Child Tax Benefits, Disability Tax Credit, Canada Pension Plan, Old Age Security and more.

Use this guide to find out where you can apply for payday loans with government benefits.

Payday loans with government benefits in Canada

Payday lender	Accepted government benefits	Serviced provinces online	Turnaround time
	Many types, such as employment insurance, child tax, ODSP, AISH, provincial disability, CPP, OAS and social assistance	AB, BC, MB, NB, NS, ON, PEI	E-transfer in as little as 2 minutes	Go to siteLearn more
	Many types, such as CPP, child tax credit, unemployment, disability. It does not accept social assistance in Manitoba.	BC, MB, NL, NS, ON, SK	E-transfer in 15 minutes	Learn more
	Money Mart is flexible with income and only asks for proof of steady income, such as pay stubs or direct deposits of government benefits.	AB, BC, MB, NS, NT, ON, SK, YT	E-transfer within 60 minutes	Learn more
	CPP, EI, WCB, non-government disability benefits. It does not accept disability income from the government.	AB, BC, ON	E-transfer within a few minutes	Learn more
	EI, CPP, private pension, child tax credit.	All provinces except Quebec and PEI	E-transfer in 60 minutes	Learn more
	Accepts CCB, disability, pensions.	AB, BC, MB, NS, ON, SK	Funds will be sent in as little as 15 minutes via Interac e-Transfer	Learn more
	Many types, including pension, disability, child tax credit, most other government benefits paid regularly. It does not accept EI or CERB.	AB, BC, MB, NB, NL, NS, ON, SK, YK, NT, NWT	E-transfer within 5 minutes	Learn more

Learn more about payday loans with government benefits

To help you decide which provider is right for you, we’ve broken down the details for a number of Canadian lenders here.

1. iCash

Customers who apply through iCash for payday loans with government benefits will have access to a fully online application and automated approval process, plus the chance to earn cashback. It is a member of the Canadian Consumer Finance Association (CCFA) and has provided loans online to more than 500,000 customers across Canada since 2014.

How to apply: Create an account online. Provide your personal and financial details, then verify your income and identity via instant bank verification. The iCash payday loan application process is paperless, so you won’t need to send any documents. This lender will do a credit check.

2. Cash Money

Since its founding in 1992, Cash Money has serviced close to 1.2 million Canadians by providing short term lending. Customers can apply online or in store for a Cash Money payday loan. Cash Money also offers lines of credit and installment loans.

How to apply: Provide your personal details, including an ID and ID number, then verify your income and identity via instant bank verification. You may also need to email a copy of your bank statements and submit to a credit check.

3. Money Mart

Money Mart offers both in-person and online payday loans. Since it began offering financial services to Canadians in 1982, Money Mart has expanded to operate over 500 locations across the country. Beyond payday loans, Money Mart provides various other services like money transfers, installment loans, business loans and prepaid credit cards.

How to apply: Provide your personal information and choose between Express (instant bank verification) and Standard review. The Express option is faster since you won’t need to email or upload any documents, while the Standard option requires that you send documents to Money Mart. This lender does not do credit checks.

4. Mr. Payday

Since 2002, Mr. Payday has been providing payday loans online in AB, BC, ON with store locations open in Vancouver.

How to apply: Provide your personal information with two references and agree to instant bank verification. Mr. Payday does not do credit checks.

5. Speedy Cash

Speedy Cash was founded in 1998 and operates across Canada in: All provinces except Quebec and PEI. In addition to providing payday loans, Speedy Cash provides installment loans and cheque cashing.

How to apply: Provide your personal details and agree to instant bank verification. You can also apply in-store if you prefer. Speedy Cash does not do credit checks.

6. My Canada Payday

My Canada Payday was founded in 2008, is fully-licensed and is a member of the Canadian Consumer Finance Association. The lender operates either online or via storefront and offers 24/7 payday loans.

How to apply: Provide your personal details and agree to instant bank verification. My Canada Payday does not do credit checks.

7. Loan Express

Loan Express accepts payday loan applications 24/7, so you can apply whenever you need funds. It offers instant approval and funding within a few minutes via Interac e-Transfer. Loan Express has been in operation in Canada since 2005.

How to apply: Create an online Loan Express account. Provide your personal information, including your SIN, reference and banking details. Loan Express uses bank account verification to validate your income and identity. This lender does not do credit checks.

How to get approved for payday loans with your government benefits

1. Compare lenders. Payday lenders differ in what government benefits they accept. Some, for example, don’t accept social assistance, while others do (learn more about loans for social assistance). Before you apply to a lender, check that your government benefit qualifies as income.
2. Apply online. Include personal details, such as your name, email address, phone number, address, housing situation, income and payment frequency.
3. Get a decision. Find out if you’re approved within minutes.
4. Sign your contract. Review your contract carefully, taking into account the interest rate, repayment amount and payment schedule, and sign when you’re comfortable.
5. Get funded. Get your money within minutes via e-transfer. If you choose direct deposit, get your money the next day.

Pros and cons of payday loans with government benefits

Pros

While borrowers receiving government benefits need to tread carefully with payday loans, here’s a rundown of their benefits:

• Quick. Apply in less than 10 minutes, get an instant decision and get your money immediately after via e-transfer.
• Convenient. Some payday lenders can give 24/7 approval and funding with their e-transfer payday loans.
• Flexible requirements. Payday loans are one of the easiest loans to get. You can use your governments to qualify for a loan, and you can get approved if you have bad credit or no credit.
• Use the money for any purpose. Once you’re approved for a payday loan using your government benefits, you have the freedom to use the money as you’d like.
• Funding flexibility. Depending on the payday lender, you can receive your money in cash, via Interac e-Transfer, direct deposit or loaded onto a prepaid card.
• Unsecured. Payday loans are unsecured so you don’t need to put up any collateral.

Drawbacks

Here are the drawbacks every consumer needs to take stock of before applying for payday loans with government benefits:

• Very expensive. Payday loans should only be a last resort because you’ll pay $14 to $17 for every $100 borrowed.
• Short repayment terms. You’ll typically repay in full by your next payday, up to 62 days. Before you apply, check that you can repay the loan on time and you’ll have enough money left for other debts and expenses.
• Small amount. Payday loans cap at $1,500, so if you need more, this isn’t your best option. Consumers in some provinces also can’t borrow more than 30-50% of their net income.
• Disreputable lenders. Check to make sure the payday lender is licensed. Always choose a reputable company that has positive feedback from real customers. Learn more about payday loan scams.

What do I need to get a payday loan with government benefits?

Eligibility requirements

While requirements vary between lenders, you’ll generally need to meet the following:

• Age. You must be 18 years of age, or the age of majority in your province or territory.
• Residency. You’ll need to be a Canadian citizen or permanent resident.
• Income. You’ll need to show proof of your government benefit.
• Bank account. Most lenders will require you to have an active bank account.

Required documents

Some lenders may not require you to send them any documents. Others may ask for the following:

• Valid government-issued ID
• Proof of your income (benefits letter, bank statements showing direct deposits of government benefits, copies of government benefits cheques)

How do I choose which payday loan to apply for?

When you’re looking to apply for payday loans with government benefits in Canada, keep the following factors in mind:

• Eligibility criteria

  First and foremost, ensure you meet the lender’s eligibility requirements, especially when it comes to income. Double check that the payday lender accepts the specific government benefits you receive as forms of income. Otherwise, you may end up getting rejected on your loan application.

• Minimum and maximum borrowing amounts

  How much do you need to borrow? All payday loans max out at $1,500, but lenders can differ in how much they’ll lend to you.

• Funding speed

  How quickly do you need your cash? Some lenders aim to give you instant access to your payday loan, while others may take longer. If you’re facing a financial emergency, this may be the make-or-break factor in your decision making.

• In-person or online customer care

  Some payday lenders are solely online while others take a hybrid approach with physical storefronts and an online presence. If you prefer face-to-face customer service when applying for payday loans with government benefits, you may have to stick to a select number of payday lenders, such as Cash Money, Money Mart, Pay2Day and Cash 4 You.

• Reputation

  Steer clear of lenders that have a pattern of complaints from borrowers, have little to no online presence, have no office address or phone number, and no payday licence to operate in your province.

Can I get payday loans with government benefits and no credit check?

While you can find some payday loan providers who accept government benefits and don’t do credit checks, other payday lenders do check your credit.

If a payday loan lender checks your credit, it’s not the only factor they consider when assessing your application. They’ll generally be more concerned about your ability to repay the loan, which you can often prove using income from government benefits.

Sample of payday loans that accept government benefits with no credit check

• Money Mart
• Mr. Payday
• Loan Express
• Focus Cash Loans

Are there payday loans that accept CERB?

Canada Emergency Response Benefit (CERB) was government financial support given to Canadians who were directly impacted by COVID-19. CERB ended in 2020. Some payday lenders did accept CERB as valid income, while others did not.

If you’re on EI or unemployment benefits, learn more about EI loans.

Cost example: Payday loans with government benefits in Ontario

To give you an idea of how much you’d pay for a payday loan in Ontario using your government benefits, we use the following example of using the Ontario government’s disability benefit to get a loan:

Alternatives to getting payday loans with government benefits

Because payday loans come with such high interest and short repayment terms, it’s important to consider alternatives first.

A credit card cash advance, for example, can be much cheaper than payday loans. It usually comes with a fee of around 23% + 5% of the amount borrowed, which is much cheaper than the triple digit APR typical of payday loans. Keep in mind that interest on a cash advance accrues as soon as you withdraw, so the sooner you can pay it off, the less it will cost.

An installment loan is another valid option if you’re looking for alternatives to payday loans with government benefits. With an installment loan, you borrow money that you pay off in equal payments over at least three months. Interest rates on installment loans in Canada can start at around 18% up to 47%. Installment loans are offered by alternative online lenders, and often come with less strict eligibility requirements than personal loans offered by banks and credit unions.

You can learn about many other payday loan alternatives in our full guide to the topic here.

Bottom line

There are many payday lenders in Canada that accept government benefits income from EI, CPP, OAS, Child Tax Benefits, Disability Tax Credit and more. Each payday lender decides which types of income it accepts, so check out our list of lenders that accept government benefits above to help narrow down your search. Make sure you have proof that you’re receiving benefits income regularly in order to qualify.

Since payday loans are so expensive, it’s worth considering payday loan alternatives that also accept government benefits, which come with better terms and more manageable payment options.

Frequently asked questions

• Do payday loans accept government benefits?

  Some payday lenders do accept government benefits as income, including EI, CPP, OAS, Child Tax Benefit, Disability Tax Credit, AISH, ODSP, Canada Recovery Benefit (CRB) and Workers' Compensation Board benefits (WCB). However, payday lenders differ in which incomes they accept.

• How much can I borrow with payday loans using government benefits?

  It depends on your financial situation. Payday loans cap at $1,500, but some provinces do not let you borrow more than 30-50% of your net monthly income. A lender may also approve you for smaller amounts if you're a first-time borrower or if your government benefit amount is low.

• I already have a payday loan. Can I get another one using my government benefits?

  If you already have a payday loan with a lender, you cannot get another one from them. You should first pay off your current payday loan and then re-apply for a new loan.

• Can I get payday loans that accept social assistance in Canada?

  Yes, there are many options for payday loans that accept social assistance in Canada. Payday lenders tend to have more lenient eligibility requirements, including around the types of income they accept. If you need to get your money quickly, check out our full guide to e-transfer loans on social assistance here.