If you’re a recipient of AISH and you’re looking for a payday loan, there are some lenders that accept this benefit as your sole source of income to help you qualify. But keep in mind that while AISH payday loans are convenient and easy to access, they should be used as a last resort option because of their sky-high fees and quick repayment terms.
Quick facts about AISH payday loans in Alberta
Maximum loan amount: $1,500
Minimum loan term: 42 days
Maximum loan term: 62 days
Maximum interest: $15 for every $100 borrowed
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. 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). You may also want to consider payday loan alternatives.
Compare AISH payday loans
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Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Province
Max. cost of borrowing a $100 payday loan
Cooling off period to cancel loan
Max. penalty for returned cheque or pre-authorized debit
Alberta
$15
2 business days
$25
British Columbia
$15
2 business days
$20
Manitoba
$17
48 hours excluding Sundays and holidays
$20
New Brunswick
$15
48 hours excluding Sundays and holidays
$20
Newfoundland and Labrador
$14
2 business days
$20
Nova Scotia
$15
Next business day (2 days for online loans)
$40 (default penalty)
Ontario
$15
2 business days
$25
Prince Edward Island
$15
2 business days
N/A
Quebec
Limit of 35% AIR
N/A
N/A
Saskatchewan
$17
Next business day
$25
Can I get a payday loan on AISH?
Yes, you can, but you’ll need to find a lender that accepts it as your source of qualifying income. Disability income from the government is one of the least accepted forms of income among payday lenders. You may also only be approved for smaller loan amounts.
Before you apply for a payday loan, check first that the lender accepts AISH and that your AISH income meets the lender’s minimum income requirements.
Quick summary of AISH payday loans
AISH payday loans are identical to regular payday loans in Alberta. Their only difference is borrowers qualify for a payday loan using AISH as their income instead of employment income. Overall, AISH payday loans come with these key features:
An easy application process. You can apply for a payday loan in different ways – online, in-person or over the phone. Payday lenders have also made the process short and sweet. The whole process can be done in 10 minutes. Some payday lenders even have physical storefronts or automatic approval systems so you can get a payday loan 24/7.
Quick turnaround time. Not only are payday loans easy to apply for, but you can gain access to your funding within minutes after approval.
Government benefits accepted as income. If you’re searching for an AISH payday loan, you’ll narrow your focus on lenders that accept government benefits as income instead of employment income. There are plenty of government benefits, such as a pension, EI and child tax benefit, that may qualify as income, depending on the lender you choose.
Bad credit is OK. Payday loan providers will accept applications from people with poor credit scores because they will prioritize your income and ability to repay your loan on time over your credit.
Use the funds for any purpose. Once you’re approved for a payday loan, you have the freedom to use the money as you’d like from paying bills to covering a financial emergency.
Unsecured. Payday loans are unsecured, so you don’t need to put up any collateral.
What to watch out for with payday loans
Payday loans come with their fair share of notoriety. Every Albertan considering a payday loan must be aware of these red flags:
Incredibly steep interest rates. In Alberta, payday lenders are allowed to charge $15 for every $100 borrowed. That’s an APR of 130% for a 42-day loan term, making payday loans one of the costliest ways to borrow money.
Short repayment terms. There is no wiggle room with payday loans; in Alberta, they must be repaid in 42 to 62 days. You’ll need to make sure you can allocate your next paycheque from AISH to repay your loan without any issues. Otherwise, you’ll risk falling into a cycle of debt.
Caps on how much you can borrow. Alberta caps payday loans at $1,500, so if you need more cash, this may not be your best option.
Disreputable lenders. The payday lending space is rife with predatory lenders that may not follow provincial laws and regulations. Check to make sure the payday lender you’d like to work with is licensed in Alberta and isn’t a scam. Always choose a reputable company that has positive feedback from real customers.
How do I repay my AISH payday loan?
According to the province’s Consumer Protection Act, you’re required to repay the loan in installments instead of a lump sum. Because AISH is paid out monthly, you can anticipate repaying your loan in at least 2 installments. On the flipside, you can also repay the full amount early without any penalties.
There are a handful of ways you can repay your loan, including the following:
Direct debit repayments. This is the most common way to make repayments, and it involves setting up an automatic withdrawal from your bank account on your due dates. Before you authorize this, make sure you know what your due dates are so that you have sufficient funds in your account ahead of time.
Post-dated cheque. This option is also offered by some lenders, usually by those who have physical stores. This method involves you giving the lender a cheque that it can cash on the day your repayment is due. Remember to make note of the payment date since you will need to have the cash in your bank account.
What else should I know about payday loan regulations in Alberta?
You can protect yourself as a borrower by getting familiar with your rights when taking out a payday loan in Alberta. Here are some more key rules you should know:
You have up to 2 days to change your mind and cancel your payday loan. This is called a “cooling off” period. You don’t have to provide a reason for cancelling.
Rollover loans are not allowed. This means your lender can’t extend or renew a payday loan with additional fees or provide a new payday loan to pay out the existing one.
Your lender may charge a maximum NSF fee of $25 if there isn’t enough money in your bank account when your payment is due. Your financial institution may also charge you an NSF fee.
Your lender is allowed to contact you between 7am and 10pm Alberta time. Your lender is also permitted to contact your spouse, neighbour, friend, employer or acquaintance to confirm your home address, phone number and work phone number.
Your lender has the right to sue you for the amount owed plus interest and any related court fees.
Your lender may also turn your account over to a collection agency that will try to recoup the costs. This could be included on your credit report. The agency can apply to take money directly from your paycheque (also known as garnishing your wages).
If a lender attempts to withdraw funds from your bank account once and is unsuccessful because of insufficient funds, it can make a second attempt within 30 days. This second attempt must be for the same amount as the first (plus an NSF fee). The lender can’t make further withdrawals without express written consent from you.
Loan alternatives to AISH payday loans
Treat payday loans as a last resort tool if you’re in a financial pinch. If you’re thinking of other options, consider these:
Credit card cash advance. A credit card cash advance is cash borrowed from the credit limit of your card. They have high APRs, but if you’re in urgent need of funds, the fees and terms may be better than those of a payday loan. You can also pay off this debt over a longer term.
Bank overdraft. When money is withdrawn from a bank account and the account balance dips below zero, this is known as an overdraft. It’s essentially a short-term loan from the bank to cover the cost of the purchase.
Installment loan. Online lenders provide installment loans, which are like personal loans. You’ll receive a lump sum of cash that you’re responsible for paying for within a few months to a few years. Installment loans typically have smaller loan amounts than personal loans.
Credit builder loan.Credit builder loans can help you improve your credit score and put money aside for the future. All you need to do is make timely payments on your loan, which your lender will report to the credit bureaus. But be aware: you won’t be able to access your funds until you’ve paid your credit builder loan off in full.
Cost comparison: Alberta payday loan vs credit card cash advance
If you’re on the fence between payday loans and credit card cash advances, here’s a closer look at the cost breakdown for both for a $500 loan:
$500 payday loan
$500 credit card cash advance
Loan term
42 days
42 days
Interest rate
$15 for every $100 borrowed (130% APR)
23% APR + 5% fee
Total loan cost
$575 ($75 interest)
$538 ($38 interest)
Bottom line
If your only source of income is AISH, it’s possible to apply to a payday lender that accepts AISH as income. Make sure that you have proof this is a steady source of income you can use towards repaying your payday loan, and consider alternatives before getting a payday loan.
Assured Income for the Severely Handicapped (AISH) is a benefit paid out from the provincial government to Albertans with some sort of permanent medical condition, which prevents them from working. AISH is designed to help handicapped people with financial support for both healthcare and general life expenses.
Yes, you can. You'll just need to zero in on payday lenders that accept AISH as income and check that you meet their minimum income requirements.
Yes, many online payday loan providers in Canada, including ones that accept AISH income, offer instant e-transfers. These lenders typically have quick, web-based applications and instant approval decisions. After you're approved, the funds will be e-transferred to your account within minutes. Compare AISH payday lenders offering instant e-transfers here.
Yes, you can. But just like disability income, you'll need to find a lender that accepts Income Support as your source of qualifying income. Keep in mind that government disability income and welfare are 2 of the least accepted forms of qualifying income among payday lenders, though.
If you're struggling with your finances, you can take control of the situation with professional help. Your options include the following:
Credit counselling. You can call Credit Counselling Canada from 8:00am to 5:00pm Monday to Friday at +1 866-398-5999 for free financial counselling.
Local charities. Government agencies, nonprofits and local charities in your province or territory may offer free financial services and help with food, utilities and rent for those in need.
Debt relief companies.Debt relief companies can help you find a solution to reduce your debt payments and work toward becoming debt-free.
Carmen Chai is a freelance writer at Finder, specializing in financial products. She is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. She has reported on personal finance, mortgages, and banking products for nearly a decade.
Read our guide to payday loan regulations in your province or territory.
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