Applying for a loan used to mean lots of time spent gathering all the necessary paperwork. But many lenders now offer no document loans in Canada, making it quick and easy to apply for a loan online. The downside is that they often come with high interest rates and fees.
In this guide, we’ll show you how no doc personal loans and payday loans work, where you can apply and what you need to do to get approved.
Can you really get a no doc loan?
“No document loans” is a phrase commonly used by lenders looking to attract new customers. But while it may sound attractive, the reality is that there’s no such thing as a no doc loan.
Any responsible lender will need to see two things before they can approve you for a loan:
Proof of ID so they know you are who you say you are
Proof of income so they know you can afford loan repayments
It wasn’t all that long ago that you would need to provide bank statements and pay stubs to prove your income. You could provide them in-person, by fax or by scanning and uploading copies.
But now many lenders offer instant bank verification, which allows them to access read-only copies of your bank statements online. This removes the need to provide physical paperwork and speeds up the loan approval process.
So when a lender says they offer no document loans, it simply means that they are able to quickly verify your income and identity online. But if a lender says they can approve you for a loan without seeing any proof of income, it’s probably a scam.
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
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
What do you need to get approved for no document loans in Canada?
You’ll need to meet the following requirements to qualify for no document loans in Canada:
Age and residency requirements. You’ll need to be the age of majority in your province or territory as well as a Canadian citizen or permanent resident.
Proof of ID. You may need to provide a form of government-issued ID such as a driver’s licence or passport.
Income requirement. You’ll need to earn a minimum income each month to qualify for a loan. The minimum amount required varies depending on the lender. The type of income you earn is also important. Some lenders will only accept employment income, but others will also accept other income sources such as self-employment or government benefits.
Employment requirement. If you earn employment income, the lender may require you to have held the same job for three months or more. This allows you to demonstrate that you have a steady source of income.
Bank account requirement. Your income will need to be paid into a valid Canadian bank account.
Fill out the application. You’ll need to provide your name, date of birth and contact details along with information about your income and employment.
Verify your income and identity. Next, upload a valid form of ID and complete the instant banking verification services. Verification is handled by a trusted third party, not the lender, and requires you to sign in to your bank account through a secure portal.
Get a decision. The lender will let you know if you’ve been approved, and some lenders offer decisions almost instantly.
Sign your loan agreement. The lender will send you the loan agreement to review, so make sure you read it carefully before signing.
Get funded. The money will be sent to you via e-Transfer or direct deposit.
No. A legitimate lender will always need to verify your income before approving your loan. That’s why you should be very wary of any lender that promises guaranteed approval before reviewing your financial situation — this is a red flag that could indicate a loan scam.
However, payday lenders generally have very lenient eligibility requirements. So if you want to maximize your chances of getting approved, a no paperwork payday loan could be the answer. Just be aware that payday loans have high fees and short terms, so they are extremely expensive to repay.
Instant approval and funding with Interac e-Transfer
Within 24-48 hours
Ease of approval
Easier
Harder
Credit score
Good credit not required
Good credit not required
Income requirements
More flexible
Less flexible
No doc loans vs traditional bank loans
Feature
No doc loans
Traditional loans
Rates
Less competitive
More competitive
Loan amounts
Lower minimums and maximums
Higher minimums and maximums
Speed
Faster
Slower
Ease of approval
Easier
Harder
Credit score
Good credit not required
Good credit required
Income requirements
More flexible
Less flexible
Watch out for illegitimate lenders online
There are plenty of reputable online lenders that offer no doc loans. Unfortunately, there are also plenty of scammers that try to take advantage of unsuspecting borrowers.
The good news is that there are a few simple things you can do to make sure you’re dealing with a legit lender, such as:
Check if they’re licensed. If you’re applying with a payday lender, make sure they’re licensed to offer payday loans in your province.
Check their phone number and address. Illegitimate lenders will often not provide phone contact details or a physical office address, so look for a lender that is upfront with this information.
Know the warning signs of a scam. If a lender promises guaranteed approval, wants you to pay an upfront fee or uses high-pressure tactics to try to get you to sign a loan agreement, steer clear. And remember that if an offer sounds too good to be true, it probably is.
Read customer reviews. Read customer reviews for a lender on Google or independent review sites like Trustpilot. This will give you a good idea of whether the lender is reliable and trustworthy or not.
Summary: Pros and cons of no paperwork loans
No documents loans offer an easy way to get a fast loan, without the hassle of faxing or scanning and uploading lots of paperwork. You can apply in a matter of minutes, verify your banking details online and get a fast decision. If the lender sends the loan amount out by e-Transfer, you can get funded within minutes. You also may not need to complete a credit check.
The downside of no doc loans is the cost. With their high fees and short repayment terms, no paperwork payday loans have extremely high APRs. No doc personal loans also come with high interest rates and additional fees, so the total cost to repay a loan may be significantly more than the amount you borrow. No doc loans also tend to have lower loan amounts than loans from traditional lenders.
The other risk to be aware of is getting scammed by an illegitimate lender. There are some sketchy providers out there that try to pose as legit lenders, so you’ll need to do your due diligence to make sure you’re working with a reputable loan company.
You can get no document loans in Canada from online personal loan lenders and payday lenders. Pay advance apps also offer easy access to small no doc personal loans. You'll need to fill out an online application form with your personal information and contact details, then upload proof of ID and complete an online banking verification process to confirm your income.
Yes, it's possible to get no doc loans with instant approval. Some lenders use automated systems to assess and approve or deny loan applications. If you need funds urgently, look for a lender that approves and funds loans 24/7. Learn more about instant loans.
No. Before approving your loan, the lender will need to verify your income to determine if you can afford to repay what you borrow. They will need to see your bank statements to do this, but thanks to instant banking verification, this can now be done online without the need to upload any paperwork.
Yes, some lenders will offer no doc loans without requiring you to submit to a credit check. Rather than checking your credit history, they will verify your income to ensure that you will be able to afford your loan repayments. Learn more about no credit check loans.
There are two options to consider if you need a no doc loan as soon as possible. The first is a pay advance app such as Nyble or Bree, which allow you to access small interest-free loans. However, you'll need to pay a fee if you want to get your loan amount instantly.
The second option is a payday loan. Payday lenders have lenient eligibility criteria, and some lenders will approve and fund loans 24/7. But payday loans are very expensive, so make sure you can definitely afford to repay your loan before you apply.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
Get a $1,500 loan as either an installment or payday loan. Learn about the pros and cons of each, plus compare lenders and apply today.
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