Loans that accept EI: Payday loans, installment loans & more

If you’re currently receiving employment insurance and need a loan, you have options. While some lenders accept employment income only, there are others who are more lenient and are fine with applicants who are receiving EI. Explore your options in this guide.

Jump to:

• Payday loans (easier to get)
• Cash advance apps (easier to get)
• Personal loans (harder to get)

Can you get a loan while on EI?

You can take out a loan while you’re on employment insurance, and it won’t impact your benefits. Your first step to getting financing is to find a lender that accepts EI as a valid source of income, because not all lenders do.

Your employment insurance can be especially helpful if you don’t have any other sources of income coming in. It can show a lender that you have the means to pay back a loan even though you’re between jobs.

Compare payday loans that accept EI

Compare cash advance apps for EI

Cash advance apps are designed for emergency use when you need a small loan fast, and they’re a legitimate alternative to payday loans. You pay no interest on these cash loans, but you may pay a monthly fee.

Finder Score for cash advance apps

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ cash advance apps are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

Compare EI installment loans

Installment loans are another option for EI recipients looking for a loan. They’re generally harder to get than payday loans and cash advances.

Finder Score for personal loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 40+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

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Summary of key features of EI loans

Loan type	Cost	Funding speed	Credit check
Payday loans	$14 for every $100 borrowed	Instant	Sometimes
Cash advance apps	0% + potential monthly fee	Instant	No
Installment loans	18% - 35% + potential broker fee	Same or next day	Sometimes

Which loan should you get while on EI?

Which loan you should get while on EI depends on your personal financial situation. But overall, payday loans are best left as a last resort. Below are some well-known options in Canada for each loan type.

• iCash. iCash is a payday lender that accepts many types of income, including EI. It offers 24/7 instant approval and funding.
• KOHO. KOHO offers cash advances and is a strong option if you’re on EI because it doesn’t have any job or income requirements.
• Loans Canada. When it comes to personal loans, it might be better to apply to a loan search platform like Loans Canada instead of a direct lender. This is because lenders in this category are stricter, and many do not accept EI.

Features of payday loans that accept EI

• Borrow between $100 and $1,500. Some EI payday lenders limit first-time borrowers to $300 to $500. Also, some provinces limit the borrower to a percentage of their income (50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick).
• Loan term. You usually need to repay your EI payday loan by your next payday. Payday loans in Alberta, however, have a minimum loan term of 42 days, and repayments must be made in at least two installments.
• Borrowing fee. You’ll pay $14 for every $100 borrowed.
• Fast and convenient. Payday loans are easy to get because lenders automate the process as much as possible and have lenient requirements. You can get an EI payday loan in as little as 30 minutes.

Can you get EI payday loans with no credit check?

Yes, some lenders in Canada do offer EI payday loans with no credit check. Rather than checking your credit score, they’ll focus on your overall ability to repay the loan. Payday lenders such as Cashco and Money Mart accept EI and do not do credit checks.

Related: No credit check loans in Canada

How to qualify for EI payday loans

EI payday lenders have lenient eligibility criteria. If your employment insurance is being paid directly into your bank account, and your bank account doesn’t show recent NSF transactions or too many expenses and debt payments, there’s a realistic chance to get approved.

Before you apply

EI payday loans come with significant drawbacks, so before you apply, consider taking the following steps:

• Check your budget. Make sure you can repay your loan in time, because missing a payment could result in NSF and late fees. Also check that you’ll have enough income left to pay for other debts and expenses once you repay your loan. If you don’t have enough, you may find yourself needing another loan.
• Know the cost of payday loans. They’re one of the most expensive ways to borrow money, with annual percentage rates (APRs) in the triple digits.
• Look for a licence. Check that the payday lender is licensed and follows the payday loan regulations of your province.

Cash advance apps are a legit alternative to payday loans

They’re fairly new in Canada, but you might have heard of them already since they’re becoming more popular. Here’s what to expect with cash advance apps.

• No interest. Unlike payday loans, cash advance apps do not charge interest. Instead, you may pay a monthly subscription fee.
• No credit check. There’s no need to worry about lenders dissecting your credit score and history because they don’t do credit checks.
• Small loans. The downside with cash advance apps is that they generally have smaller loan amounts than payday loans. If you’re a first-time borrower, you may get approved for less than $80.

Your third option: EI installment loans

You may not qualify with a bank, but there are alternative lenders offering installment loans who are open to EI income. Learn more about key features below.

• Borrow larger amounts than with payday loans. Installment loan amounts are typically between $500 and $10,000. But if your only income is EI, you may be approved for smaller amounts.
• Loan term. Loan terms are typically between 3 - 60 months, but for EI installment loans, your loan term may be on the shorter end.
• APR. Rates for EI installment loans range between 18% and 35%.
• Turnaround time. You can get an installment loan in one to two business days.
• Funding options. You can get your installment loan via direct deposit or e-Transfer.

Are EI installment loans harder to get?

Installment loan lenders have stricter requirements than payday lenders. You need to have a certain credit score and income amount to get approved, and not many installment loan lenders accept EI as a valid source of income. Still, it’s worth taking the time to get approved for an installment loan instead of rushing into taking out a payday loan.

Questions to ask yourself before you apply

Installment loans also come with risks, so ask yourself the following questions before you take the leap:

• Can I afford it? Make sure you can afford the monthly payments of your EI loan, and see whether your unemployment benefits will be enough to cover the repayments.
• How much will it cost me? Know how much interest and fees you’ll pay overall. Watch out for any extra charges that could drive up the cost of your EI loan, such as non-sufficient funds (NSF) fees, broker fees and surety fees.
• Is the lender trustworthy? Apply to legitimate lenders only. Avoid those who pressure or rush you into signing as well as those who require you to pay a fee before you get the loan.

How to compare EI loans

While your options may be more limited, you do have options for EI loans. So how do you choose which one is the best fit for you? Consider the following features:

• APR. Keep an eye on the APR. This shows you the annual cost of a loan and helps you compare different types of credit. Payday loans are much more expensive than installment loans, credit cards, cash advance apps and credit card cash advances.
• Loan terms. Installment loans and cash advance apps generally offer more payment flexibility than payday loans.
• Turnaround times. If speed is important to you, payday loans and cash advances are faster to get than installment loans.
• Legitimacy. Be careful when applying for EI loans online, since it’s easier to fall prey to a fraudulent lender when you’re not dealing with them face to face. Make sure the company you want to work with is legitimate and has a good working relationship with its customers. You can also check out common personal loan scams and payday loan scams to find out how to protect yourself when searching for loans.

Representative example: John, a resident of Ontario, needs $700 fast

John, a resident of Ontario, is looking to borrow $700 fast. His credit score is 556 due to missed bill payments. John has been on EI for the past three months, which he receives every two weeks. His next EI payment is in 14 days.

Based on these factors, he narrows down his options to payday loans and installment loans.

	EI payday loan	EI installment loan
Loan amount	$700	$700
Cost of loan	$14 per $100 borrowed = $98 (365% APR)	35% APR
Loan term	14 days	6 months
Payment amount	One full payment of $798	$128.86 monthly for 6 months ($73.17 in total interest)
Total loan cost	$798	$773.17

Based on these calculations, he chooses the installment loan.

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost may vary based on personal factors.

How to apply for EI loans online

1. Check your credit score. The first thing you could do is check your credit score. If your credit score is under 660, expect higher interest rates.
2. Compare lenders. Compare at least three to four lenders to find the most competitive rates and terms.
3. Find out if you’re eligible. Check the eligibility criteria before applying. Do you need to have a certain credit score? Are there any minimum income requirements? Is EI even an acceptable form of income? Only apply for loans you know you can qualify for—and if you’re not sure, contact a lender and ask.
4. Apply. Once you find the right loan for you, fill in an application to get the ball rolling. You can also click the “Go to site” button in the table above to be redirected to a lender’s application page.
5. Get a decision. Lenders that offer EI loans usually give an instant decision.
6. Get verified. If you wish to proceed, your lender may ask for documents to verify your income and identity, such as bank statements and government-issued ID.
7. Review and sign your contract. Become familiar with your repayment schedule, the total cost of your loan and any extra charges you may encounter.

Other loans to consider if you’re on EI

• Car title loan. With a car title loan, you offer your car as collateral. You can continue to use your car in your daily life, but if you fail to make the loan repayments, the lender can repossess your car.
• Personal line of credit. Some online lenders, such as Mogo and Cash Money, may accept non-employment income to approve you for a line of credit. With a line of credit, you can pay off the loan anytime, but this perk comes with risks.
• Debt relief services. If you’re facing legitimate financial hardship, debt relief services may be an option. Debt relief companies like Debt.ca offer different types of services, such as debt management, debt settlement, debt consolidation and credit counselling.

Bottom line

If you’re looking for EI loans online, you can sign up for a payday loan, installment loan or cash advance app. Payday loans have the most options, and you can even get one without a credit check, but they’re also extremely expensive and have very short repayment terms.

Frequently asked questions

• Is it hard to get approved for a payday loan on EI?

  Approval boils down to your personal circumstances, but generally, payday loans for EI are easier to get approved for than other types of loans. Borrowers with a poor credit score can get a payday loan. If you meet a lender's income requirements and have a decent credit history, then you have a higher chance of approval.

• Which payday loan lenders do not accept EI?

  Not all lenders are willing to accept employment insurance, and instead prefer more steady sources of income. Here is a list of some popular payday loan providers in Canada that do not accept EI:

  • Cash4You
  • Loan Express

• How do I know a payday lender is legitimate?

  There are several ways to judge the legitimacy of a payday lender. You can check for a business licence, see how transparent they are with fees, check third-party reviews, look for contact details and see if they abide by provincial regulations.

• Can I get a line of credit on EI?

  It's hard to get approved for a traditional line of credit while on EI, but it's possible to get approved for a small credit line like Nyble.