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Payday loans for unemployed on benefits in Canada

Find out where to apply for payday loans, plus see your other options for unemployment loans.

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Need a payday loan?

GoDay Payday Loan logo
  • Direct deposit of funds
  • Accepts benefits
  • APR & loan term vary by province
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If you need a payday loan while unemployed on benefits, you may be wondering whether a payday lender in Canada can consider your application. The answer is yes, many payday lenders can accept benefits as income.

Payday loans are the “easiest” loan to get approved for, but because they also come with very high fees, they should be a last resort.

⚠️ 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 alternatives instead of a payday loan:
  • Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
  • 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.

Payday loans for unemployed on benefits in Canada

Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
BC, NS, ON, SK
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).

You'll need to be 18 years of age or older and have a net income of at least $1,000/month. Residents of MB and NB must apply in-store for a loan.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.

To be eligible, you'll need to be at least 19 years of age and have a net income of at least $800/month deposited into your bank account.
GoDay Payday Loan
$100 - $1,500
Up to 62 days
Varies by Province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI, SK
To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.
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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 $17 per $100 borrowed
Nova Scotia $19 per $100 borrowed
Newfoundland and Labrador $21 per $100 borrowed
Northwest Territories, Nunavut & the Yukon $60 per $100 borrowed
Quebec Limit of 35% annual interest rate (AIR)

Features of payday loans for unemployed on benefits

  • Quick, easy approval. Many payday lenders can give approval and funds on the same day even if you’re unemployed on benefits. Some are available 24/7 365 days a year.
  • Bad credit is OK. Having a bad credit score doesn’t necessarily mean you won’t get approved. Many lenders state on their websites that bad credit can be accepted.
  • Loan amounts. Payday loans are issued in the $100 to $1,500 range.
  • Loan term. Payday loans are typically repaid by the next payday (1 to 4 weeks).
  • Benefits are OK for income. Many payday lenders can offer payday loans if you’re unemployed on benefits. This includes employment insurance, disability, pension and more.

What to watch out for

  • High interest rate. Payday loans have extremely high interest rates ($15-$25 for every $100 borrowed for most of Canada), which is why they should be a last resort.
  • Credit check. Some payday lenders will want to look at your credit score.
  • Predatory lenders. The payday loan space is known for predatory lenders, so be sure to choose a legitimate lender. Compare legitimate lenders.

What to consider about payday loans for unemployed on benefits

  • You need to be able to repay it. This is the main thing lenders look for when considering you for a payday loan. You must repay the payday loan in full by your next payday, or you may find yourself in a cycle of debt.
  • Other requirements will need to be met. You’ll need to check the other eligibility requirements set by the payday lender before you apply. Just because they have flexible criteria doesn’t mean they’ll be flexible about other requirements, like your age, residency status and other factors.
  • Automatic payments. Lenders like to list debiting directly from your bank account as a benefit, since you don’t have to remember to make your payments yourself. However, if you don’t have the money to pay back your loan, it could lead to being overdrawn, which means you’ll pay more fees. Always make sure you have enough money in your account to pay your loan repayment, or else your loan could end up costing you a lot more than you originally thought.

Other unemployment loans in Canada

Payday loans are not your only options. Below are other types of unemployment loans in Canada you can consider.

  • Installment loans. These are a type of personal loan with smaller loan amounts, shorter loan terms and higher interest rates than the average personal loan. However, not all lenders offer installment loans for the unemployed on benefits. Compare lenders that do.
  • Lines of credit. You may not qualify for a line of credit from a bank, but you may be able to get one from an online lender. Compare lines of credit.
  • Vehicle title loans. These are secured loans where you use your vehicle as collateral. Vehicle title loans come with short loan terms and high interest rates, but they have flexible eligibility requirements. Jump to vehicle title loans.

Installment loans for the unemployed

You can use your benefits to take out an installment loan from one of these lenders.

Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
LoanConnect Installment Loan
32.00%
$500 - $2,500
3 - 6 months
Currents debts must total less than 60% of income
Min. credit score: 300
Go to site
More Info
Get approved by different lenders in as little as 60 seconds with any credit score. Access resources to help you work toward better finances.
Loans Canada Installment Loan
8.00% to 46.96%
$500 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
Go to site
More Info
An online broker with the largest lender network in Canada. Get matched with lenders for free through one quick application regardless of your financial situation.
Cash Money Installment Loan
46.93%
$500 - $10,000
6 - 60 months
Stable source of income
Min. credit score: 560
Go to site
More Info
Cash Money offers installment loans up to $10,000 for Alberta, Manitoba and New Brunswick residents. Online installment loans are available in Alberta only. Residents of Manitoba and New Brunswick must apply in-store.
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Features of installment loans

  • Benefits can be considered. Some installment loan lenders can consider you if you’re unemployed on benefits.
  • Loan amounts. Installment loans are usually issued in the $500 to $10,000 range.
  • Predictable repayment schedule. You’ll work with your lender to decide how much you repay and when. With these fixed terms, you can plan and budget accordingly.
  • Loan terms. Term lengths often last between 6 months and 5 years.
  • No prepayment penalties. Depending on the lender, you may be able to pay off your loan early without any penalties.
  • Bad credit is considered. It’s possible to get an installment loan if you’re unemployed with benefits and a credit score below 560.

What to watch out for

  • High interest rate. You may encounter a high interest rate, especially if you have bad credit.
  • Credit check. Lenders will want to look at your credit score.

Installment loans

Lines of credit for the unemployed

The lenders below can accept benefits as a valid source of income.

Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
Mogo Mini Line of Credit
47.42%
$1,000 - $3,500
No end dates
Min. income of $13,000 /year
Min. credit score: 500
Go to site
More Info
An online lender offering a flexible line of credit up to $3,500. Apply online and get pre-approved in just 3 minutes. Non-employment income also accepted. Pay back the principal loan amount at any time.
Cash Money Line of Credit
46.93%
$100 (in store), $500 (online) - $10,000
No end dates
No min. income or employment requirements
Min. credit score: 560
Go to site
More Info
Cash Money offers line of credit loans up to $10,000 for AB, BC, NS, ON and SK residents. (Residents of MB or NB can apply in-store only.)
LendDirect Line of Credit
19.99% - 46.93%
$100 - $15,000
No end dates
Min. income of $1,500 /month
Min. credit score: 560
Go to site
More Info
Borrow up to $15,000, based on your income and credit history, with a line of credit from LendDirect.
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Features of lines of credit

  • Open term. Unlike a payday loan or installment loan, you can pay off your loan partially or in full any time. A flexible term allows you to repay the loan when you’re in a better financial position.
  • Borrow up to your limit. You can borrow as much or as little you want up to a predetermined limit.
  • Potentially cheaper than a payday loan. For example, Mogo says its MogoMini line of credit is 88% cheaper than a payday loan.

What to watch out for

  • Waiting too long to repay your loan. With an open term, it can be tempting to only pay the interest and hold off on repaying the loan. But if you wait too long, you could end up paying more interest than a payday loan.
  • Overspending. With easy access to funds, it can be tempting to borrow more than you need.

Lines of credit

Car title loans for the unemployed in Canada

Name Product Loan Interest Rate Max. Loan Amount Loan Term Min. Credit Score Requirements
Loans Canada Vehicle Title Loan
Loans Canada Vehicle Title Loan
0% to 29.99%
$35,000
3 - 96 months
300
Min. income of $1,800 /month, 3+ months employed
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
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Features of car title loans

  • Your car is the collateral. You must own the car, but you can keep and continue to use it.
  • Loan term. Loan term is typically short, ranging between 3 months to 3 years.
  • Bad credit is OK. This loan is usually offered to those with bad credit.
  • Other vehicles are OK. Motorcycles, boats, RVs, trailers and heavy-duty equipment may be accepted as collateral, but be sure to check with the lender first.

What to watch out for

  • High interest rate. Like installment loans and payday loans, watch out for high interest rates.
  • Documents required. You will need to provide proof that you own the vehicle.
  • Potential to lose your car. If you’re unable to make your loan payments, the lender can seize your car.

Vehicle title loans

How to get unemployment loans in Canada

When searching for unemployment loans in Canada, consider the following steps.

  • Check the eligibility criteria before applying. Before filling out an application, make sure you’re eligible for the loan you’re applying for. Lenders will list the specific requirements you must meet in order to qualify, such as minimum income and minimum credit score.
  • Order a copy of your credit report. Check your credit report for free with Canada’s credit bureaus so you know how attractive your application will be to lenders.
  • Compare options before applying. While you may think your options are limited, you should still comparison shop before deciding on the best loan for you. You may find varying interest rates or disparities in charges and fees between bad credit lenders.
  • Have documentation ready. You’ll need to provide proof of your benefits income and government-issued ID.

How to compare loans for the unemployed

With several options available to you, how do you choose which one is for you? Ask yourself the following questions:

  • Can I afford to repay the loan? Can you afford to repay a payday loan within a few days or a few weeks? How much of a monthly repayment can you manage if you get an installment loan? Can you repay money borrowed from a line of credit before it gets too expensive?
  • Are there extra charges? Check whether there are costs in addition to the interest rate such as admin fees and origination fees.
  • What is the reputation of the lender? Read reviews from people who have taken out a loan from the lender. Look for any consistent complaints.
  • How fast do I need the loan? If you’re facing an emergency and have an urgent need for funds within a few hours, then you might prefer payday loans. Payday loans have rapid processing times because of their flexible eligibility requirements and simple applications. Some payday lenders even operate 24/7.

How do I know a payday loan is legit?

There are several ways to determine if a payday lender is legit.

  • Check that the lender is provincially licensed to operate.
  • See if the lender is transparent about fees.
  • Check that the lender abides by the provincial regulations for payday loans.
  • Read reviews about the lender.

Learn more about legitimate payday loans.

Bottom line

There are many payday loans for the unemployed on benefits, but before taking out a payday loan, make sure you’re able to repay it by your next payday so you don’t find yourself in a cycle of debt.

Remember to compare all of your available options to get the best loan for your needs.

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