E-Transfer Loans You Can Get While on Social Assistance

If you’re receiving social assistance and need a payday loan to cover essential or urgent expenses, several options are available to you.

This guide covers where you can apply for payday loans as a welfare recipient in Canada, what other loans you can get with your income, and tips to choose the right option for you.

Jump to:

• Installment loans (24–48-hour funding)
• Cash advances (instant e-Transfers for a fee, free if you opt for 3-day funding)
• Payday loans (instant e-Transfers, high interest)

Can I get e-Transfer loans while on social assistance?

Yes, you can. Loans that you can apply for that accept social assistance and often offer e-Transfer include payday loans, installment loans and cash advances. Out of these options, 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 expensive, with APRs in the triple digits.

Compare installment loans for social assistance recipients

The Canadian lenders below are open to accepting welfare as income, and some offer e-Transfer installment loans. These loans can be funded as soon as the same day and are repaid over a set term through scheduled payments.

Compare cash advances for social assistance recipients

These providers offer small, no credit check cash advances for social assistance recipients. You pay no interest on these loans, but you may pay a monthly fee.

Benefits include instant approval and instant funding (but for a fee).

Compare payday loans that accept social assistance in Canada

There are also payday loan providers in Canada that accept social assistance as a legitimate source of income. That said, since payday loans are a very expensive loan option, only consider them as an absolute last resort.

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Who can offer e-Transfer loans and accept welfare?

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 quick approvals and e-Transfer funding. If you’d like to lower your cost as much as possible and can wait up to three business days, check out Nyble and Bree. Both offer free cash advances as long as you opt for slower delivery.

Dive deeper: Quick, easy loans in Canada

Are there many payday loans that accept social assistance in Canada?

While payday lenders are more likely than personal loan lenders to accept welfare as income, many in Canada still don’t. You can compare the options above to find a payday lender that accepts your type of income. You might also consider cash advance apps, which often have eligibility requirements that are just as lenient—or even more so—than payday lenders. They’re also less expensive than payday loans.

Can I get a $300 loan while on social assistance?

Yes, you can get a $300 loan while receiving social assistance. Lenders generally consider this amount to be a small loan, and it’s easier to approve people for a small loan than a large loan.

To increase your chances of approval, you’ll need to show the lender you have room in your income to repay a $300 loan.

What do lenders consider as social assistance income?

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:

• Ontario Disability Support Program (ODSP) or Ontario Works in Ontario (learn more about ODSP loans or Ontario Works loans)
• Income Support, Alberta Works or AISH in Alberta (learn more about AISH loans)
• Income Support in Newfoundland
• Income Assistance or PWD Assistance in BC
• Income Assistance in New Brunswick and Nova Scotia
• Employment and Income Assistance (EIA) in Manitoba
• Saskatchewan Income Support (SIS) in Saskatchewan
• Social Assistance in PEI

What are the best e-Transfer loans for social assistance recipients?

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 may suit you if you want to break up your payments and need larger amounts.

Cash advance apps like KOHO, Nyble and Bree may suit you if you want a no-interest small loan (well under $750) and need more flexible repayments than payday loans.

Payday loans vs cash advance apps vs personal loans

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 3-day delivery, 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-Transfer funding	Common	Common	Not common
Speed	Instant	Instant for a fee, up to 3 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

Features of payday loans for welfare recipients with e-Transfer

• Speed. You can get your loan in as little as two minutes after approval. Learn more about e-Transfer payday loans.
• Loan amount. You can borrow $100 to $1,500, but some provinces limit the amount to a percentage of your income—50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick.
• Loan term. Payday loans are typically repaid by your next payday.
• Borrowing fee. You’ll pay anywhere from $14 for every $100 borrowed.
• Bad credit is OK. Having poor credit doesn’t necessarily mean you’ll be denied a payday loan. Payday lenders have more flexible eligibility requirements than other lenders.
• Non-employment income is OK. Some payday lenders accept non-employment income, and that includes social assistance.

Can you get a no credit check payday loan as a welfare recipient?

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.

How to apply for payday loans

While the application process varies among lenders, you will usually need to supply the following information to get a payday loan on social assistance:

How to compare payday loans that accept social assistance in Canada

When comparing payday loans as a welfare recipient, ask yourself the following questions:

• What is the reputation of the lender? Check out the best payday loans in Canada to find a good payday lender.
• Does the lender follow provincial regulations? Each province has its own regulations for payday loans, such as maximum borrowing cost, loan terms, loan extensions and more.
• Is the lender transparent about fees? The provinces also have rules about how lenders should disclose fees. Your lender should be upfront about how much it’s charging you.
• Does the lender assess your ability to repay? Lenders must make a reasonable judgment on a welfare recipient’s ability to repay the loan. They do so by looking at factors such as your income and debts. They might also do a credit check. Avoid lenders that guarantee you’ll get approved no matter what. Learn more about guaranteed approval loans.

What to watch out for with payday loans for welfare recipients

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:

• Cycle of debt. The high rates, short repayment terms and late payment fees of payday loans can cause a cycle of debt. If you think you might have problems repaying the loan or having enough income left for other expenses once you repay, avoid getting the payday loan in the first place.
• Scams. Some lenders prey on people who need money urgently. Be careful when selecting a lender, and do research to find one who is reputable and trustworthy. Learn more about payday loan scams.

How can I get my payday loan funds aside from e-Transfer?

Aside from e-Transfer, payday lenders offer these funding options:

• Direct deposit. With this method, you give your banking information or void cheque to your lender, who will then deposit the funds directly into your bank account.
• Cash in store. You can visit a physical store, get approved on the spot and walk out with your money.

Cash advance apps are a legit alternative for welfare recipients

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:

• Unsecured. No collateral required.
• Loan terms. Next pay cycle or flexible.
• Loan amounts. Borrow $20 – $750.
• Social assistance is OK. Cash advance lenders are open to any legitimate recurring income.
• Low credit score is OK. Since there are no credit checks involved, it’s possible to get approved even when your credit isn’t the best.
• No interest. You’ll pay zero interest on these loans.

What to watch out for with cash advance apps

• Subscription fee or fee per instant transfer. KOHO charges a monthly fee to access its loan. Nyble charges a monthly fee if you need instant funding (but no fee with three-day funding). Bree charges a fee per instant transfer, which varies based on the amount, and no fee if you opt for slower delivery.

A third option: Installment loans for social assistance recipients

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:

• Unsecured. You don’t have to put up any collateral.
• Fixed loan terms. Loan terms are usually anywhere from 3 - 60 months.
• Fixed loan amounts. Loan amounts are typically between $500 and $10,000.
• Social assistance is OK. Lenders can consider you as long as your social assistance is over their minimum income.
• Low credit score is OK. Alternative lenders are more lenient than traditional lenders, so you can apply with bad credit.

What to watch out for with installment loans

• High interest rates. If you have bad credit or your income is unstable, lenders will charge higher rates.
• Potential fees. See if the lender charges extra fees, such as broker fees, late payment fees and NSF fees.

Tips to get e-Transfer loans on social assistance

• Do not rush. Don’t rush into signing a contract without first understanding the terms of your loan, including the cost, loan term and repayment schedule. Avoid lenders that do not clarify the terms of your loan and the overall cost.
• Avoid lenders that require loan insurance. Loan insurance should be completely optional, never required.
• Avoid lenders that ask for an upfront payment. Legitimate lenders do not ask for upfront payment for welfare loans. If you encounter someone asking for this, it’s likely a scam.

Cost example for a $500 loan

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.

Other options for people receiving social assistance

Here are other loan options for people on welfare:

• Credit card cash advances. This may be an option if you already have a credit card and haven’t borrowed up to your credit limit. Credit card cash advances are expensive but have lower rates than payday loans, with APRs usually around 20% to 23%.
• Car title loans. With an auto title loan, you put your vehicle up as collateral. If you fail to pay back your loan, the lender can repossess your car, boat, RV or motorcycle. For these types of loans, you’ll have to outright own your vehicle.
• Lines of credit. If you’re approved for a line of credit, you can borrow up to a pre-determined limit and repay the amount you owe any time, as long as you make the minimum monthly payments. This is harder to get than other loans. To get approved, you’ll need to show lenders you’re financially disciplined and receive enough monthly income.
• Home equity loans. Are you a homeowner? You may be able to borrow against your home’s equity through a home equity loan or line of credit. This is a secured loan – meaning you use your house as collateral – but it often comes with more lax eligibility criteria than an unsecured personal loan. Only apply if you know you can make the payments, because you could lose your home if you default.
• Side hustles. There are ways to make money from home for free, without needing to shell out cash first. This requires a lot more time than applying for a loan, but you’d be increasing your income, rather than taking on debt.

Bottom line

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.

Frequently asked questions

• Can you get a payday loan on Ontario Works?

  Yes, you can get a payday loan on Ontario Works – you simply need to apply with a lender that accepts Ontario Works as a valid form of income. Payday loans have lenient eligibility criteria, so some payday lenders in Ontario can consider your application. Learn more about payday loans in Ontario.

• Can anyone get approved for a payday loan?

  Payday loans are considered an easy loan to get approved for, but there are still some basic eligibility criteria you would need to meet. A payday loan is not guaranteed, and you should avoid lenders that say they guarantee approval because they may not be legitimate.