If you’re on Ontario Works and you’re searching for a loan, it will be difficult to qualify for funding from many traditional lenders. But the good news is that there are some lenders that are willing to accept Ontario Works as a source of income when checking if you can afford to repay a loan.
From payday and installment loans to cash advances, here are your options for loans for Ontario Works.
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How we picked theseTo 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.
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.
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| Lender | How can they help? | Are they legit? |
|---|---|---|
| KOHO | Doesn’t have income or job requirements and doesn’t do credit checks | Yes, KOHO is a fintech company that’s currently pursuing a Schedule 1 bank licence |
| Nyble | Accepts any income as long as it’s paid directly into your bank account and doesn’t do credit checks | Yes, Nyble is one of the first cash advance apps to launch in Canada and reports payments to the credit bureau |
| iCash | Accepts many types of income, including Ontario Works, and offers a no-paperwork process | Yes, it’s one of the biggest online payday lenders in Canada and displays its licences |
| Cashco | Accepts Ontario Works and doesn’t do credit checks | Yes, it’s licensed and has decades of lending experience |
You have three options when searching for loans for people on Ontario Works:
Yes, you can get a payday loan with no credit check while receiving Ontario Works. Instead of examining your credit history, most lenders will instead review your income, debts and expenses to decide whether you can afford a loan. You’ll need to compare a range of options to find payday lenders that accept Ontario Works as income and that also don’t conduct credit checks.
Payday loans might seem like they offer a quick and easy solution to your money problems, but they’re best avoided.
Payday loans’ high cost of borrowing and short repayment period make it very difficult to budget for the loan repayment. They’re extremely expensive, and you run the risk of getting trapped in a cycle of debt. That’s why you should consider all other options before applying for a payday loan.
There are some key factors to consider before deciding which is the right loan for your needs.
Here are a few simple things you can do to boost your chances of getting a loan.
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Payday loans offer fast access to loans of up to $1,500, usually with no credit checks. You can apply online and get funded via e-Transfer in as little as 30 minutes in some cases. You’ll then usually have to repay what you borrow by your next payday.
Cash advance apps offer small loans of $500 or less. Loans are interest-free and there are no credit checks. You’ll receive the funds via e-Transfer, then you can pay them back on your next payday or the repayment may roll over into the following months.
Personal loans offer a more traditional loan structure. Loan amounts range from $500 to $50,000, you can get funded within 24 to 48 hours, and you repay the money you borrow plus interest over terms that generally range from 6 to 60 months. If you’re on Ontario Works, you may only qualify for small personal loans.
Payday loans are very expensive and have very short repayment periods. If you take out a $500 loan that’s due in 14 days, you’ll have two weeks until you have to pay the lender $570—that’s an annual percentage rate of 365%.
Cash advance apps offer small loan amounts only, so you may not be able to borrow as much as you want. Some apps also charge a monthly subscription fee, or you may need to pay a fee to get an instant loan (otherwise, funding could take up to three business days).
If you have bad or limited credit, you can expect a high interest rate on a personal loan. And while the longer loan term can make it easier to budget for repayments, it also means you’ll pay more interest over the life of the loan.
If you take out a payday loan, the lender can charge you $14 for every $100 borrowed. So if you take out a $700 loan, you’ll have to repay $798.
Cash advances don’t charge any interest, but fees may apply. You may need to pay a subscription fee ranging from around $2 - $12 per month, while an additional fee may apply if you want an instant loan.
Personal loans can have APRs of up to 35%. The rate you get depends on factors like your credit history, income and loan amount. Brokerage fees and other charges may also apply, so check the loan agreement carefully before you sign.
Payday loans are easy to get, as lenders have lenient eligibility criteria and offer fast loans online. But your options are somewhat limited, as not all lenders offer payday loans for Ontario Works.
It’s easy to qualify for a cash advance with no credit checks—you simply need enough income to afford to repay your advance. But your options are very limited, with cash advances only available from a small handful of providers.
You’ll likely find it very difficult to get a personal loan on Ontario Works. Very few lenders accept Ontario Works income, so you may also need employment income to qualify for a loan.
Before you take out a loan, consider whether one of these alternatives might be a better option.
Ontario Works is a social assistance program run by the Government of Ontario. It provides financial assistance to help people in need cover their living expenses, including buying food and paying rent.
You’ll typically need to participate in employment-related activities in order to qualify for Ontario Works. A single person can receive up to $733 a month in financial assistance under Ontario Works.
The program also offers other forms of assistance, including health benefits and help for people looking for employment.
If you’re searching for loans for Ontario Works, there are options available to you. Multiple lenders and loan types accept Ontario Works income when assessing whether you can afford a loan. Just make sure you’re aware of the full cost of borrowing—and consider whether there are any alternatives to taking on more debt—before applying for a loan.
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