Loans That Accept EI: Payday, Personal Loans & More

Yes, you can get a loan while receiving employment insurance (EI). Lenders such as LoanConnect, KOHO and Nyble accept EI as a valid source of income due to its recurring nature. Some don’t even perform credit checks.

Rates, loan amounts and terms vary, so compare your options in this guide.

Compare loans you can get while on EI

Get a quick loan online from one of these providers. Skip the credit check when you apply to KOHO, Nyble or Bree.

Lender	Cost	Loan amount	Loan term
LoanConnect personal loan	8.99% - 35.00%	$500 – $60,000	3 - 120 months	Go to site
Loans Canada personal loan	9.99% - 35.00%	$500 – $35,000	6 - 60 months	Go to site
KOHO cash advance	0% + monthly fee from $2	$20 – $250	Flexible	Go to site
Nyble credit line	0%	$30 – $250	31 days, extendable	Go to site
Bree cash advance	0%	$20 – $750	Next pay cycle (90 days max)	Go to site

Last resort option: Payday loan

Payday loans are exceedingly expensive and should generally be avoided. If you’ve decided to get a payday loan after exploring all your alternatives, ensure that the lender is fully licensed and regulated.

Licensed lender	Cost	Loan amount	Loan term
iCash payday loan	$14 per $100 borrowed	$100 – $1,500	7 – 62 days	Go to site

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Which loan should you get while on EI?

The right loan for you depends on your personal circumstances. Below are some features to consider for some well-known Canadian options that received high Finder Scores.

• KOHO. KOHO offers cash advances and is a viable choice if you’re on EI because it doesn’t have any job or income requirements. (Finder Score: 8.7)
• Nyble. Nyble’s credit line is also worth checking out because it charges zero interest and fees if you choose slow funding, essentially making the loan free. It also reports payments to the credit bureau to help boost your credit score. (Finder Score: 9.3)
• Bree. Like Nyble, Bree offers no-interest, no-fee cash advances if you opt for slow funding. A transfer fee applies for every instant transfer. (Finder Score: 8.8)
• LoanConnect. When it comes to personal loans, it might be better to apply to a loan search platform like LoanConnect instead of a direct lender. This is because lenders in this category are stricter, and many do not accept EI. (Finder Score: 8.8)

None of the lenders above offer payday loans. Generally, payday loans are best left as a last resort.

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 or up to three days	No
Installment loans	18% - 35% + potential broker fee	Same or next day	Often

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 on 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.

What do Canadians think is the main risk of payday loans?

According to the Finder: Consumer Sentiment Survey January 2024, 18% of Canadians said they were unaware of any risks associated with payday loans. The most commonly identified risk was not paying the loan off on time (24%), followed by not having enough income left after repayment (23%).

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.
• Potential fee. KOHO charges a mandatory fee, whereas Nyble and Bree only charge a fee if you want instant funding.

Your third option: EI installment loans

You may not qualify with a bank, but some alternative lenders of installment loans accept 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 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, cash advances and installment loans.

	Payday loan	Cash advance	Installment loan
Loan amount	$700	$700	$700
Cost of loan	$14 per $100 borrowed = $98	$11.99	35% APR
Loan term	14 days	30 days	6 months
Payment amount	One full payment of $798	$711.99	$128.86 monthly for 6 months ($73.17 in total interest)
Total loan cost	$798	$711.99	$773.17
APR	365% APR	Interest-free, but the $11.99 fee equates to 21% APR	35%

Based on these calculations, he chooses the cash advance.

*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 a 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.

Alternatives to consider if you’re on EI

• Credit counselling. If you’re facing legitimate financial hardship, consider getting free financial counselling.
• Side hustles. Take on a side hustle while you’re in between jobs to earn some income.
• 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.

Compare more loans that accept EI

• Personal loans
• Cash advance apps
• Payday loans

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 poor credit scores 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.