As Canadians head into their golden years, their income sources shift into government-provided benefits, such as Canada Pension Plan (CPP) and Old Age Security (OAS), and/or a private pension. If these are your only sources of income and you’re looking for a loan, you may find your options are more limited compared to when you were actively employed, but you still have options.
Whether you’re looking for a personal, payday loan or cash advance, there are several pension loans in Canada available to seniors.
To get approved, you’ll just need to show the lender that you have enough pension income to repay the loan. You can do this by providing bank statements from the last 60 to 90 days.
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The providers of personal loans below accept full-time pension as valid income.
| Loan provider | Interest rate | Loan amount | Loan term | Key features | |
|---|---|---|---|---|---|
 Installment Loan | 6.99% - 46.96% | $300–$50,000 | 3 - 60 months | Loan search platform, largest lender network | |
 Installment Loan | 8.99% - 46.96% | $500–$60,000 | 3 - 120 months | Loan search platform, pre-approval in 5 minutes | |
 Installment Loan | 12.99% - 39.99% | $500–$10,000 | 9 - 36 months | Excellent service, fast approvals | |
 Installment Loan | 29.78% - 44.80% | –$1,600 | Up to 36 months | Fast funding, easy approval | |
 Installment Loan | 28.00% - 32.00% + broker fee | $500–$1,000 | 3 - 12 months | Funding within 24 hours of approval, no credit check | |
 Installment Loan | 19.99% - 46.80% | $1,500 – $20,000 | 12 - 60 months | Approval in 24 hours, funding in 24 hours, accepts many types of income and bad credit |
These Canadian payday loan providers service seniors by accepting pension income as a valid source of income.
| Loan provider | Interest rate | Loan amount | Loan term | Key features | |
|---|---|---|---|---|---|
 Payday Loan | Varies by province | $100 – $1,500 | 7 - 62 days | 24/7 approval and e-Transfer, accepts bad credit | |
 Payday loan | Varies by province | $100 – $1,500 | Up to 62 days | Instant approval, e-Transfer, accepts bad credit |
| 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 |
These cash advance providers in Canada also accept pension income.
| Loan provider | Interest rate | Loan amount | Loan term | Key features | |
|---|---|---|---|---|---|
 Early Pay | 0% interest for cash advances but a $2.99 monthly membership fee applies, fee for express funding (varies based on advance) | $20–$350 | Next pay cycle (61 days max.) | Easy to apply, no interest, same-day funding for a small fee, no credit check | |
 Credit Line | 0% interest and no fees to access credit, optional $11.99/month membership for premium services like instant funding | $30 – $150 | 30 days, extendable | Instant approval, no credit check and funding within 30 minutes with a monthly subscription | |
 Cash Advance | No interest but there’s a mandatory subscription fee starting at $2/month. | $20–$250 | Flexible | Easy application, no credit check, instant access to funds |
Canadians looking for loans while on pension income can qualify with select personal loan providers, payday loan lenders and cash advance apps. While traditional banks in Canada may also accept pension income, you’ll typically need to have good credit and a low debt-to-income (DTI) ratio to get approved.
Consider personal loans if you need financing on pension income for higher loan amounts or a longer loan term than you’d find with payday loans and cash advances.
Personal loans in Canada typically come with a loan terms as short as 3 months or as long as 5 years. Although the average personal loan rate in Canada is 9.09%, interest rates can range between 6.99% for excellent credit and up to 46.96% for bad credit.
While requirements vary from lender to lender, you’ll generally need the following:
While it may be a bit harder to secure a personal loan via a traditional lender with just your pension and OAS income, online lenders are readily available to offer pension loans in Canada. As a pensioner, your personal loan options vary from secured and unsecured loans to lines of credit and installment loans. Here’s a closer look at each option and its key features:
Compare personal loans for pensioners
Payday loans are another option for pension loans in Canada. They are fast and easy to get because of their lenient eligibility requirements. Many payday lenders accept pension as a valid source of income, and they can also approve pensioners with bad credit.
It’s worth noting that payday loans cap out at just $1,500 and must be repaid within 62 days. Payday loans are also a very expensive way to borrow, where you could end up paying anywhere from $14 to $17 for every $100 borrowed.
As pensioners, it’s important to ensure you have the money to make the full loan repayment when the time comes, and you’ll have enough left over to pay for other expenses.
You can get approved for a payday loan using your CPP, OAS or other type of pension as long as it’s recurring. The only way you may not get approved even if you have pension income is if your existing debts and expenses are too high. If your bank statements show lenders that you may not have enough pension income to repay your loan, they may not approve you.
Yes, some lenders in Canada offer offer payday loans for pensioners with no credit check, like Money Mart and Pay2Day. But keep in mind that even if a payday loan provider does do credit checks, they tend to have lenient eligibility requirements and you may still be able to qualify with a bad credit score.
Compare payday loans for pensioners
Cash advance apps allow you to access a small loan to help you get through until your next payday that typically must be paid back with your next paycheque. You pay no interest on these cash loans, but you may pay a monthly subscription fee.
It’s possible to access money on the same day in some cases, often for a fee, but funding may take up to three business days in normal circumstances. These types of apps tend to be capped at $150 or $200.
These are the most basic requirements you’ll need to meet to be eligible to get a short-term loan from pay advance apps:
Compare cash advance for pensioners
All lenders want to see that you can comfortably pay back your loan and still pay for expenses in life such as food, housing and other debts.
While many lenders require you to be employed, lenders of pension loans in Canada will accept other forms of income such as:
No matter what type of pension loan you’re considering, it’s helpful to understand the various types of seniors and retiree income. Here is breakdown of how some common types of pension income work.
Canada Pension Plan is the monthly income Canadians receive once they hit retirement age. Throughout your working years, you will have contributed small amounts to your Canada Pension Plan. Some employers also contribute to your CPP, which will likely mean you’ll receive a higher amount than someone who’s employer did not contribute.
Old Age Security provides additional retirement income to people of a certain age after they retire from their careers. Unlike CPP, Canadians don’t pay into OAS directly from their income during their working years. Instead, it’s funded out by federal tax revenues.
You may have also contributed to a private pension, either through your job by funneling your personal savings into a private RRSP. You’ll still receive both CPP and OAS in addition to being able to withdraw from your private pension.
Once you’ve compared lenders that accept pension as a form of income, you’ll need to make sure you meet the other eligibility criteria. You’ll also need to gather documents and then apply online. You can apply online for a pension loan in the table above by clicking the green “Go to site” button, where you’ll be securely redirected to the application page.
While basic eligibility criteria can vary between providers, it usually includes the following:
Documents may include the following:
Even if you’re no longer in the workforce, you can still apply for a pension loan in Canada. Many lenders accept OAS, CPP and private pensions as valid income, which means if you’re able to make your loan repayments and you meet the other eligibility requirements, you could be approved.
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