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Compare short-term loans in Canada

Get a small loan with a term of up to 2 years.

Short-term loans can give you access to quick cash even if you have bad credit. These loans are designed for emergencies and should only be used if you run out of other options since they can be very expensive.

Follow this guide to learn more about these loans and compare lenders that offer them.

Types of short-term loans

Short-term loans are usually small loans that come with a term of 2 years or less. They have higher interest rates and need to be paid back faster than standard personal loans (which can last for 2-5 years). The 3 main types are short-term installment loans, payday loans and credit card cash advances.

  1. Short-term installment loans (repay in 3 months to 2 years)
  2. Payday loans (repay by your next payday, up to 62 days)
  3. Credit card cash advances (repay as soon as possible)

Option 1: Compare short-term installment loans

1 - 6 of 6
Name Product Interest Rate Loan Amount Loan Term Requirements Link
Loanz Personal Loan
29.90% - 46.90%
$1,000 - $15,000
12 - 60 months
Requirements: min. credit score 570, min. income $1,200/month, 3+ months employed
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Loans Canada Installment Loan
8.00% - 46.96%
$500 - $50,000
3 - 60 months
Requirements: min. credit score 300
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SkyCap Installment Loan
12.99% - 39.99%
$500 - $10,000
9 - 60 months
Requirements: min. income $1,600/month, stable employment, min. credit score 550, no bankruptcy
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Spring Financial Installment Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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LoanConnect Installment Loan
$500 - $2,500
3 - 6 months
Requirements: min. credit score 300
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Mogo Installment Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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More Info

Compare up to 4 providers

Features of short-term installment loans

Short-term installment loans are paid off with monthly payments over a set term. They come with the following features:

  • Unsecured (no collateral required)
  • Loan terms of up to 2 years
  • Loan amounts of up to $5,000
  • Rates typically between 18% and 46.96%

Pros and cons of short-term installment loans


  • Lower rates than payday loans
  • High amounts (up to $5,000)
  • Bad credit may qualify
  • Repay in installments
  • Get funded in 1 to 2 business days


  • More expensive than personal loans
  • Credit check usually required
  • Some loans come with hidden fees
  • Stricter eligibility requirements than payday loans

Am I eligible for short-term installment loans?

You may need to meet these eligibility criteria to qualify for short-term installment loans:

  • Be a Canadian citizen or permanent resident
  • Be the age of majority in your province
  • Have a source of income and regular employment
  • Have a Canadian bank account
  • Be willing to get a credit check
  • Meet credit score requirements

Best installment loans in Canada

Option 2: Compare payday loans

⚠️ Warning: Be cautious with payday loans
Payday loans are expensive. 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). Consider payday loan alternatives:
  • Visit A free and confidential service that connects you to organizations that can help with finances, food, housing and more.
  • Debt relief companies. There are services to help you reduce your debt payments.
  • Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
  • Side jobs. Sell unwanted items online, sign up for food delivery and more.
1 - 2 of 2
Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces Offer Table description
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).
Instant decision and e-Transfer funding. Income of at least $1,000/month required.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.
24/7 instant approval and e-Transfer funding. Income of at least $800/month required.

Compare up to 4 providers

Maximum borrowing costs per province
Always refer to your contract for exact repayment amounts and costs as they may vary from our results.
Province Maximum allowable cost of borrowing
Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island $15 per $100 borrowed
Manitoba, Saskatchewan & Nova Scotia $17 per $100 borrowed
Newfoundland and Labrador $21 per $100 borrowed
Northwest Territories, Nunavut & the Yukon Up to $60 per $100 borrowed
Quebec Limit of 35% annual interest rate (AIR)

Features of payday loans

Payday loans in Canada come with very high interest rates and are usually paid back by your next payday. They come with the following features:

  • Unsecured (no collateral required)
  • Loan terms of up to 62 days
  • Loan amounts of up to $1,500
  • Borrowing fee of $15 to $25 for every $100 borrowed

Pros and cons of payday loans


  • Easy to qualify
  • Funding in as little as 1 hour
  • Borrow up to $1,500
  • No credit check required in some cases
  • Regulated in each province
  • Non-employment incomes are valid income
  • Get your payday loan via e-transfer


  • Extremely high fees
  • Full repayment due by your next payday
  • High costs for missed payment (NSF fees and late fees)
  • May not have enough income left once you repay your payday loan

Am I eligible for payday loans?

You’ll typically have to meet these criteria to qualify for payday loans:

  • Be a Canadian citizen or permanent resident
  • Be the age of majority in your province
  • Have a source of income and/or regular employment

Best payday loans in Canada

Option 3: Credit card cash advance

Credit card cash advances let you borrow money against the credit limit on your credit card. They come with the following features:

  • Unsecured (no collateral required)
  • Amounts capped at a percent of your credit limit
  • Comes with 17.99% to 29.99% interest
  • Payment due up to 21 days after you receive your statement
  • Can get cash directly from an ATM – no application

Pros and cons of a credit card cash advance


  • No application for cardholders
  • Lower rates than payday loans
  • No credit check required
  • Quick and easy to get


  • Interest accrues as soon as you withdraw
  • Usually comes with additional fees
  • Eats up the balance on your credit card

Am I eligible for a credit card cash advance?

You’ll typically be eligible if you meet the following criteria:

  • Be a Canadian citizen/resident and age of majority
  • Have a credit card that offers cash advance services (or be able to qualify for one)
  • Have available space on your credit card
  • Be able to visit a bank or ATM in person to withdraw money

How much do short-term loans cost?

Below is an example of how much a $700 loan would cost if you get a short-term installment loan, payday loan or credit card cash advance.

Representative example: Mark, a resident of Ontario, needs $700

Mark, an Ontario resident, needs to borrow $700 for some urgent car repairs. He searches for short-term loans in Ontario and compares the cost of his 3 short-term loan options.

Short-term installment loanPayday loanCredit card cash advance
Loan amount$700$700$700
Loan term6 months14 days14 days
Interest rate46.96%$15 for every $100 borrowed22.99% + 5% fee
Repayments$133.16 per month for 6 months ($98.94 interest)1 full payment of $805 ($105 interest)1 full payment of $741 ($41.17 interest)

What can I use short-term loans for?

You can use short-term loans in Canada for anything, but they’re designed for financial emergencies. You may want to use the money you borrow for car repairs, hospital bills or other expenses that come up unexpectedly between paycheques. It’s best to avoid using borrowed money for vacations, shopping sprees, investing or other unnecessary costs.

Can I get short-term loans with no credit check?

You can get short-term loans with no credit check, but make sure that you apply with a legitimate lender. To find legitimate lenders, look for the following:

  • The lender displays its licence prominently on its website
  • The lender is upfront about interest rates and fees
  • The lender does not guarantee approval
  • The lender reviews your income to make sure you can repay the loan

Before you apply for short-term loans with bad credit

Follow these tips when applying for short-term loans with bad credit to avoid common pitfalls:

  1. Know how much the loan will cost you
  2. Check the payday lender is licensed and follows regulations
  3. Make sure you can pay off an installment loan early without any penalties
  4. Pick a lender that doesn’t guarantee approval (which could imply they’re fraudulent or charge extremely high fees)
  5. Don’t be pressured into signing a contract
  6. Watch out for payday loan scams and personal loan scams

    How to apply for short-term loans online

    Follow these steps to apply online for short-term loans in Canada:

    1. Visit the website for the lender you’re interested in
    2. Click on the link for the application form (usually under “Apply now” on the home page)
    3. Input contact information such as full name, address, phone number and email
    4. Provide income and employment information (pay stubs, bank statements, etc.)
    5. Send in the required documents to support your application
    6. Submit the application package and wait for an agent to contact you
    7. Read your loan agreement carefully and sign it to finalize the transaction
    8. Get your funds deposited into your bank account (or pick them up in store)
    9. Repay your loan in full on your payday or with regular installments

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