If you receive income from the Ontario Disability Support Program (ODSP), you can apply for a payday loan, installment loan or early pay advance. Find out how to get fast funding from lenders that provide ODSP payday loans online or other ODSP loans.
Compare ODSP loans in Canada
Compare online payday loans and other loans for ODSP recipients.
⚠️ 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.
Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Max. cost of borrowing a $100 payday loan
Cooling off period to cancel loan
Max. penalty for returned cheque or pre-authorized debit
2 business days
2 business days
48 hours excluding Sundays and holidays
48 hours excluding Sundays and holidays
Newfoundland and Labrador
2 business days
Next business day (2 days for online loans)
$40 (default penalty)
2 business days
Prince Edward Island
2 business days
Limit of 35% AIR
Next business day
ODSP payday loans
There are several payday loans for ODSP online. Payday loans in Ontario have a maximum loan amount of $1,500, but you can’t borrow more than half your monthly income. You can get ODSP payday loans online the same day you apply, but watch out for steep interest rates.
Features of ODSP payday loans online
ODSP is a valid source of income. You will need to show proof of your Ontario disability income to qualify. Not all lenders offer payday loans for ODSP.
Quick. Applying, approval and funding are quick. You can get ODSP payday loans the same day in as little as 30 minutes.
Loan amount. The maximum you can borrow in Ontario is $1,500, but it also depends on your income. By law, payday lenders can’t lend you more than 50% of your income.
Borrowing fee. The fee is $15 for every $100 borrowed. The annual cost of the loan (expressed as the annual percentage rate, or APR) can be around 400%.
Loan term. You must repay the loan the next time you get your ODSP income (at the end of the month).
No need for a good credit score. People with bad credit scores are still eligible for ODSP payday loans.
Cooling period. By law, you have a 2-day cooling period. You can cancel your loan within that time period for any reason without penalty.
Direct deposit or e-Transfer. If you apply for ODSP payday loans online, you can get money via direct deposit or Interac e-Transfer, which is faster.
Learn about payday loan regulations. Make sure the lender you’re working with follows all regulations for payday loans in Ontario.
Check you’ll have enough income left. When you repay an ODSP payday loan, you’ll have less ODSP income for other expenses. If you can’t cover the cost of living, you might take out another loan to cover the shortfall. This is called a cycle of debt. In Ontario, if a borrower takes out 3 payday loans within a 63-day period, lenders must let pay their third loan (and subsequent loans) in installments.
Can you get e-Transfer for ODSP payday loans 24/7?
Yes, e-Transfer is the most common funding method for online payday lenders. To get e-Transfer payday loans for ODSP in Canada, make sure your bank account is registered for Interac e-Transfer. E-Transfers can be sent and received any time, so it’s possible to get an e-Transfer ODSP payday loan late at night or on a weekend.
Licensed lenders that offer e-Transfer payday loans in Canada 24/7 and accept ODSP income include:
E-Transfer is subject to bank processing limitations
It’s possible to get your ODSP payday loan e-Transferred within minutes after submitting your contract. But no matter which payday lender you choose, getting funds this fast isn’t guaranteed, because e-Transfer is subject to your bank’s processing limitations.
Can I get ODSP payday loans online the same day I apply?
Yes, there are many lenders who offer ODSP payday loans online within the same day of applying. Some of the fastest payday lenders can fund you in as little as 2 minutes after approval via e-Transfer. Here is a list of lenders you can visit if you’re looking for quick ODSP payday loans online on the same day:
Can I get no refusal payday loans in Canada with ODSP?
Be wary of Canadian lenders offering no refusal payday loans using your ODSP income. Legitimate lenders won’t approve your application without reviewing your finances. Be wary of lenders offering “no refusal” or “guaranteed approval” ODSP payday loans because it may be a scam or predatory.
That said, payday loans are very easy to qualify for, so it might still be worth applying even if your finances are not in the best shape.
Am I eligible for ODSP payday loans?
Eligibility requirements for ODSP payday loans vary by lender, but generally, you’ll need to:
Be at least 18 years old.
Be a Canadian citizen or resident.
Have recurring ODSP income.
Have an active bank account.
Which payday loan lenders do not accept ODSP?
Not all lenders accept government disability income. Here’s a list of some popular payday loan providers in Canada who don’t offer ODSP payday loans. Some of these providers might accept private disability income but not government disability.
Yes, some lenders offer ODSP loans with no credit check, but you still need to show that you can afford to repay their loan. Not all lenders offer ODSP loans with no credit check. Those who do include Nyble, Bree, LoansLoans, Loan Express and My Canada Payday.
ODSP installment loans
There are some ODSP installment loans online. Installment loan providers might offer larger amounts and longer terms than payday loans, but not many accept Ontario disability income.
What are ODSP installment loans?
With an ODSP installment loan, you use Ontario disability benefits as income to get approved for funding. Offered by online lenders, installment loans are personal loans with smaller amounts, higher rates and more flexible requirements than regular personal loans.
ODSP installment loans are unsecured, so you don’t need collateral like your car or home equity.
Features of ODSP installment loans
ODSP is a valid source of income. Installment loans have stricter income requirements than payday loans, so check that a lender accepts Ontario disability income before you apply.
Interest rates. Interest rates for ODSP installment loans typically range between 18% - 47%. These are higher than bank or credit union personal loans.
Loan amounts. ODSP installment loans are usually issued in the $500 to $5,000 range.
Loan terms. Term lengths can last between 3 - 60 months.
No prepayment penalties. Many installment loan lenders don’t charge penalties for paying off loans early.
Bad credit considered. It’s possible to get an ODSP installment loan with fair or bad credit under 660.
Before you apply for ODSP installment loans
Know the cost. These loans have high rates, so find out how much you’ll pay in interest if you get the ODSP loan.
Check for fees.See if the loan has any extra charges like NSF fees, late payment fees or brokerage fees.
Watch out for loan insurance. If you’re applying for an ODSP installment loan, you may be offered insurance to cover missed payments for reasons like unemployment. This is completely optional, and remember, it adds to the overall cost of your loan.
There are limited providers of early pay advances that accept ODSP. Early pay advances are smaller than payday and installment loans but might be easier to get approved for.
What are early pay advances?
Eary pay advances are small loans, usually up to $250, that are designed to pay for emergency bills or avoid overdrafts. Early pay advance providers are open to many types of income, sometimes including ODSP. To increase your chances of approval, make sure your bank account has no NSF transactions in the last 90 days.
Features of early pay advances
No interest or late fees. Don’t worry about interest or late payment fees. But you might pay a monthly subscription fee or express funding charges.
Smaller loan amounts. You can’t get as much money compared to payday and installment loans. But your limit could increase if you consistently repay your loans on time.
Some repayment flexibility. Depending on the provider, you’ll repay the loan on your next payday, or you can roll it over to the following months.
Fast. Like payday loans, it’s possible to get instant approval and funding.
Limited availability. Early pay advances are fairly new in Canada, so there aren’t many providers to compare.
When comparing options, how do you know which is the right ODSP loan for you? Here are some factors to consider:
APRs. The APR is one of the most important factors to look at, because it gives you a truer view of the cost of the loan than the interest rate alone.
Loan term. ODSP payday loans need to be repaid in full the next time your receive ODSP. If you need more flexibility, consider an installment loan or Nyble's early pay.
Loan amount. If you need to borrow less than $500, you may have difficulty finding an ODSP installment loan.
Fees. Does the lender have any fees like late payment fees, admin fees, broker fees or prepayment penalties? If you’re unsure, ask your lender for a full break down.
Reputation of the lender. When browsing ODSP loans, research lenders. Be wary of lenders that guarantee loan approval. Legitimate lenders will assess your financial circumstances and ability to manage payments before approving.
Speed. Payday loans are faster to get than ODSP installment loans, and some payday lenders can give instant approval and funding 24/7. You can usually receive your ODSP payday loan within a few hours of applying if you opt for e-Transfer.
What are the eligibility requirements for ODSP loans?
The requirements for ODSP loans and ODSP payday loans are similar. You must be at least 18 years old, a resident of Ontario, have steady ODSP income and have an active bank account.
How to apply for ODSP loans
Check your credit score. Before applying for ODSP loans, check your credit score since it’s considered by ODSP payday loan and installment loan lenders. You can get a free annual credit report from Equifax and TransUnion.
Compare lenders. Find out which lenders offer ODSP loans from the lists of reputable lenders above, and compare rates to find the best option for your needs.
Find out if you’re eligible. Check the loan eligibility requirements. Lenders want applicants who meet minimum income, credit score and debt-to-income ratio requirements.
Submit your application. Once you choose a lender, fill out an application. Click the green Go to site button above to be redirected to the lender’s application page.
Prepare your documentation. You’ll be asked to verify your identity and income, including your Ontario disability benefits.
Once approved, receive your funds. Depending on the lender, you could get funds by direct deposit or Interac e-Transfer. Many online lenders transfer funds within minutes or 24 hours.
Tips for getting ODSP loans
Do not rush. Don’t sign without understanding the terms of your loan, including the rate, loan term, costs and repayment schedule. Avoid lenders that pressure you into signing.
Check your credit score. Avoid wasting time. Apply with a lender that works with borrowers who have your financial profile.
Avoid lenders that ask for payment upfront. Legitimate lenders won’t ask for this.
Steer clear of lenders that require insurance for ODSP payday loans. Lenders cannot offer or require insurance when you take out a payday loan in Ontario. For ODSP installment loans, it should be optional.
Have your documents ready. Lenders will likely need to see your personal ID and proof of income such as bank statements or recent tax Notices of Assessment (NOA). Having this ready before applying will help you avoid delays and receive your ODSP loan faster.
Make sure you can manage the repayment. Missed payments can result in expensive late payment fees and NSF fees.
What is the Ontario Disability Support Program?
The Ontario Disability Support Program (or ODSP) covers the costs of basic needs (like food, clothing, shelter and prescriptions) for Ontario residents who have physical or mental impairments that affect their day-to-day functioning.
To qualify, you’ll need to be assessed by a medical doctor then assigned a caseworker who will manage your file. They’ll determine how much money you’re eligible for each month.
The repeated use of payday loans in Canada
According to the Finder: Consumer Sentiment Survey Q2 (2023), 44% of respondents used a payday loan in the first three months of 2023. While 15% of respondents only used a payday loan once during this time, more than 1 in 5 (21%) used two payday loans at the start of 2023. Another 7% used three payday loans, while 2% relied on four or more payday loans at the start of 2023.
Frequently asked questions about ODSP loans
Alternative online lenders have more lenient requirements than traditional lenders and are more likely to accept ODSP as a source of income for loan applications. ODSP loans can come from providers that offer payday loans, installment loans and early pay advances.
There are several ways to check the legitimacy of a lender:
Check for a business license.
Read third-party reviews from real customers.
Check for BBB accreditation (not required, but helpful).
See how transparent the lender is with fees and interest rates.
Avoid lenders that ask for money upfront.
It depends on the lender. Some lenders accept disability as a valid source of income, while others don't. Before applying for loans, check lenders' eligibility requirements, which are often listed on their websites.
Yes, there are e-transfer payday loans for ODSP. You'll need access to online banking with e-Transfer enabled to get your ODSP payday loan.
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.
Find out how you can use your BC disability assistance to qualify for a loan. Compare lenders and apply online today.
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