If you’re a welfare recipient, loans you can apply for that accept social assistance and offer e-Transfer funding include payday loans, cash advances and some installment loans. Payday loans and cash advances are easier to get, but make sure you’re aware of the interest and fees associated with these loans. Payday loans are very expensive, with APRs in the triple digits.
Find out where you can apply for a payday loan as a welfare recipient in Canada, what other loans you can get with your income, and tips to choose the right option for you.
| Lender | Cost | Loan amount | Loan term | |
|---|---|---|---|---|
Cash Advance |
0% + monthly fee from $2 | $20 – $250 | Flexible | |
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Personal Loan |
8.99% - 35.00% | $500 – $60,000 | 3 - 120 months | Go to site |
Personal Loan |
9.99% - 35.00% | $500 – $35,000 | 6 - 60 months | Go to site |
Credit Line |
0% | $30 – $250 | 31 days, extendable | Go to site |
Cash Advance |
0% | $20 – $750 | Next pay cycle (90 days max) | Go to site |
| Licensed payday lender | Interest rate | Loan amount | Loan term | |
|---|---|---|---|---|
Payday Loan |
$14 per $100 borrowed | $100 – $1,500 | 7 – 62 days | Go to site |
Need more options? We've searched beyond featured partners to find additional relevant lenders.
Select payday lenders like iCash, Money Mart and Cashco, as well as cash advance apps like KOHO, Nyble and Bree, offer e-Transfer loans and accept social assistance.
Both groups prioritize instant approvals and e-Transfer funding. If you’d like to lower your cost as much as possible and can wait one to three business days, Nyble and Bree both offer cash advances with zero interest or mandatory fees if you opt for standard delivery.
Payday lenders are more likely to accept welfare as income than traditional lenders, but many in Canada still don’t. You can compare the options below to find a payday lender that accepts your income. You might also wish to consider cash advance apps, which have eligibility requirements similar to those of payday lenders. They can also be less expensive than payday loans.
Yes, you can get a $300 loan while receiving social assistance. Lenders generally consider this amount a small loan, and it’s easier to approve people for small loans than large loans.
To increase your chances of approval, you’ll need to show the lender you have room in your income to repay a $300 loan.
Social assistance is financial support from the government to help people pay for essential living expenses. Examples of social assistance you can use to qualify with some lenders include:
There’s no single loan that best suits everyone. It all depends on your financial situation. Generally speaking, payday loans should be left as your last option.
Installment loans like Loans Canada and LoanConnect let you break up your payments and receive larger amounts, but they’re harder to get approved for.
Cash advance apps like KOHO, Nyble and Bree give you a no-interest small loan (well under $750) with flexible payments. However, a monthly or one-time fee might apply.
Exactly how do the welfare loans differ? Learn more about each type below.
| Feature | Payday loans | Cash advance apps | Personal loans |
|---|---|---|---|
| Rates | APRs over 300% | 0% APR if you opt for free delivery, which takes one to three business days, otherwise it’s over 20% to 70% | 6.99% to 35% |
| Loan amounts | $100 to $1,500 | $20 to $750 | $500 to $10,000 |
| Loan terms | Up to 62 days | Next pay cycle or flexible | 3 – 60 months |
| Credit check required | Sometimes | No | Usually |
| E-Transfers | Common | Common | Not common |
| Speed | Instant | Instant for a fee, one to three business days with slower funding | Within 24-48 hours |
| Eligibility criteria | Pretty equal to cash advance apps, easier than personal loans | Pretty equal to payday loans, easier than personal loans | Harder than payday loans and personal loans |
| Credit score | Good credit not required | Good credit not required | Good credit not required |
| Accepts welfare | Only some lenders | Yes | Few lenders |
It depends on the lender. Some lenders, such as Cashco and Money Mart, accept welfare without requiring a credit check. Others, such as iCash and Cash Money, do perform credit checks, but it’s still possible to get approved even if you have bad credit.
While the application process varies among lenders, you will usually need to supply the following information to get a payday loan on social assistance:
When comparing payday loans as a welfare recipient, ask yourself the following questions:
While payday loans can be helpful when you’re in a financial bind, there are some details you should keep in mind when considering a payday loan:
Aside from e-Transfer, payday lenders offer these funding options:
Payday loans are not your only option. You can apply for a cash advance using your social assistance. These loans have smaller loan amounts, and they don’t involve a credit check. They share the following features:
Online installment loans are another option for people receiving social assistance. These loans, which you can get from alternative lenders, are similar to traditional personal loans you’d get from a bank, except they have smaller loan amounts and higher interest rates. They share the following features:
To illustrate what you can expect from an installment loan vs a payday loan vs a cash advance, as a recipient of Ontario Works income support, here’s an example of the costs based on a $500 loan:
| Feature | Payday loan | Installment loan | Cash advance (standard funding) |
|---|---|---|---|
| Loan amount needed | $500 | $500 | $500 |
| Cost of loan | $14 per $100 borrowed ($70 total). This is an APR of 365% | 22% APR + $225 broker fee | 0% |
| Loan term | 14 days | 90 days | 30 days |
| Payment amount | One full payment of $570 | Six bi-weekly payments of $125 | One payment of $500 |
| Total cost | $570 | $752 | $500 |
When you compare the dollar amounts of the total costs, the cash advance is the cheapest. And when you compare the payday loan to the installment loan, the payday loan appears to be cheaper. However, you must repay a payday loan in full by your next payday, whereas you can break up an installment loan into smaller, more manageable payments over a longer period of time. When choosing a loan, ask yourself which method will put the least strain on your finances.
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the loan may vary depending on your personal factors.
We asked Trust Science, an AI-powered credit scoring platform, what helps an application. Here’s what they had to say.
"In general, lenders are looking for information that demonstrates that you:
Here are other loan options for people on welfare:
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We searched the marketplace for lenders that accept social assistance and organized them in the tables below. Lenders typically don’t accept it, so options are more limited.
We currently don't have that product, but here are others to consider:
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.
Look for lenders that accept welfare as a valid source of income because not all do. Carefully compare rates and fees, and take the time to understand the terms and conditions of any loan you’re interested in getting. If you apply online and you’re approved, many lenders can e-Transfer your social assistance loan to your bank account within minutes.
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