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10 Best EI Payday Loans in Canada in 2024

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Are you currently on employment insurance (EI) but need emergency funds to cover unforeseen costs? Have you gone to the bank only to be turned down because you are unemployed?

If so, consider EI payday loans or emergency cash loans for the unemployed in Canada.

This article will examine EI payday loans, where you can find them, how to apply for one, and what to look out for.

Key Takeaways

  • EI payday loans are short-term loans that unemployed individuals receiving EI benefits can take out to cover financial needs without impacting their benefits.
  • The best providers of EI payday loans in Canada include Loans Canada, FatCatLoans, iCASH, Cash Money, LoanConnect, and My Canada Payday.
  • When selecting an EI payday loan, consider the interest rate, loan term, cost of payday loans, budget, and the reputation of your chosen lender.

Best Emergency Cash Loans for the Unemployed in Canada

Several lenders offer payday loans, installment loans, and other cash loans for the unemployed in Canada. See what each lender offers and determine what is best for your situation.

1. Loans Canada Installment Loan

Loans Canada

Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.

Interest rate: 2.99% to 46.96%.

Loan term: 4-60 months.

Maximum loan amount: Up to $50,000.

Loans Canada is an independent loan search and financial services comparison platform that matches loan applicants with lenders through a proprietary solution matching technology.

When you use LoansCanada.ca to apply for a loan, it will match you with a qualified third-party provider who will assist you with your request.

Once the third-party lender approves your request, you will receive a loan term and a repayment schedule.

How to Apply

  1. Submit an application request for an installment loan.
  2. Wait for LoansCanada.ca to find a lender that matches you and send you a quote with terms and plans appropriate for your needs.
  3. Accept the quote if you are amenable to the terms.
  4. Receive your funds, which the lender will deposit into your account.

Pros

  • Fast application
  • Offers a free quote
  • Automated debits for easy repayments

Cons

  • Missed payments will incur an insufficient funds fee of around $45.

2. FatCat Loans

FatCat Loans is an online platform that matches customer applications with lending institutions in its network. 

It offers bad credit loans, personal loans, installment loans, debt consolidation and online loans. Loan amounts range from $300 to $50,000. Repayment terms are 3 months to 120 months. 

Application is quick and done online in under seven minutes. When your application is approved, the lender will deposit the cash within 24 hours at the earliest.

How to Apply

  1. Go to the FatCat Loans website and click Get Quote to load the online application form
  2. Complete the form by entering your personal and employment information.
  3. Click “Submit.”

FatCat Loans will match your application with one of its Canadian partner lenders. It will process your application and make a lending decision about your request. 

Once your application is approved, the lender will deposit your funds directly to your personal bank account within one to three days. 

Pros

  • Instant online decision
  • No paperwork or phone calls
  • Borrowers of all credit histories can apply
  • No hidden charges or fees
  • If your application is approved, the lender can send your funds in as little as 10 minutes
  • Affordable payments

Cons

  • Not all lenders in its network can guarantee loan amounts of up to $50,000
  • Not all lenders pay out on the same day
  • Some lenders may run a credit check from a credit reference agency

3. iCASH Payday Loan

iCASH is a Canadian lender that offers short-term loans through its fully automated online loan application that provides instant lending decisions.

Applications at iCASH require no waiting and no paperwork. The lender releases the funds in a matter of minutes.

First-time loan applicants can receive up to $750, while those who repay their loans on time can borrow up to $1,500.

For people who get payday loans on EI in Ontario, the maximum allowable cost of borrowing under the payday loan agreement is $15 for every $100 advance.

How to Apply

  1. Fill out the online application form.
  2. Select the loan amount and repayment plan.
  3. Provide the necessary personal details and submit.
  4. Wait for the instant decision from the automated online loan application.
  5. Upon approval of your loan, electronically sign the contract.
  6. iCASH will send your cash advance by e-Transfer within two minutes.

Pros

  • Fast application
  • A 5-day grace period before loan repayments
  • Customers who finish repaying their loans can get back up to 20% of the cost of borrowing.
  • $20 cashback from a referral program

Cons

  • Short repayment terms
  • High rates

4. Cash Money

Cash Money offers same-day loans to Canadians who need money for unexpected purchases or expenses.

Payday loans range from $100 to $1,500, depending on location. The term length is between 4 and 12 weeks, depending on the amount borrowed.

Approval can be done in 10 minutes or less. Repayments can be made in cash, by debit, or by a post-dated personal cheque.

How to Apply

  1. Apply for a short-term loan online or in-store.
  2. Submit your application and get an instant decision.
  3. Once approved, choose a loan amount.
  4. Review the payday loan terms and sign the loan documents.
  5. Choose to pick up your funds at the CashMoney store via direct deposit or Interac e-Transfer.

Pros

  • Fast loan approval
  • Cash can be released immediately
  • Different repayment options

Cons

  • Fast loan approval
  • Immediate release of cash
  • Different repayment options

5. LoanConnect Installment Loan

LoanConnect is a search engine for unsecured loans that generate lender options for Canadians with excellent, good, poor or no credit.

Loan amounts range from $500 to $50,000, with terms ranging from 6 to 60 months. Payment terms vary by lender but are usually between 12 and 60 months.

Some lenders charge an origination fee, which is often around $100.

The lender will check your credit information to improve search results, but it will not impact your credit score.

How to Apply

  1. Search Canada’s lenders and customize your loan.
  2. Fill out the online loan application form with the loan amount, loan purpose, your personal details, and agree to the Terms and Conditions and Privacy Policy.
  3. After completing the form, you will be taken to the lender’s website to finish the application.
  4. If the lender approves your application, it will deposit the money to your bank in as little as 12 hours.

Pros

  • Pre-approval of up to $50,000 in five minutes
  • Funds are released on the same day
  • Available in all provinces across Canada

Cons

  • High-interest rates
  • Some lenders charge a loan origination fee of $100 (included in the monthly payments).

Related: LoanConnect detailed explainer.

6. My Canada Payday

My Canada Payday is a fully licensed online payday lender that offers payday loans of up to $1,500 in as little as 15 minutes.

It offers quick approvals, does not require faxing of any documents, and provides the funds within minutes.

Borrowers must repay the loan in one lump sum by the next payday instead of in installments. 

How to Apply

  1. Click “Apply Now” on the home page and complete the application form.
  2. Provide your basic personal details and the amount you want to borrow.
  3. Wait for approval. Once your loan is approved, you will receive a download link to your loan agreement.
  4. Review the contract and sign it electronically.
  5. Wait for the lender to deposit the funds to your account via Interac e-Transfer.

Pros

  • Applications are completely online and take less than 5 minutes.
  • Accepts bad credit
  • No collateral required
  • No prepayment penalty
  • Extended repayment option

Cons

  • Hefty interest rates
  • Available only in some provinces (British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and Nova Scotia)

7. LendDirect

LendDirect is an online-based lender that offers lines of credit of up to $15,000, which clients can borrow continuously with unlimited, no-fee cash advances.

The lender also offers loan options with slightly higher interest rates as well as standard or conventional loans, instant loans and others.

Applications are done online and are easy to complete. Applicants need to be able to satisfy the ability to prove they can repay the loan.

How to Apply

  1. Fill out the online application form and supply your personal information and bank details.
  2. Submit the required documents to verify your income.
  3. Wait for the company’s final lending decision.
  4. Once LendDirect approves your loan, you will receive your funds via Interac e-Transfer in as little as 15 minutes.

Pros

  • No prepayment penalties
  • Loans come with credit insurance to protect against default when loans are fully paid
  • Lower interest than payday loans
  • No credit checks
  • No origination fees

Cons

  • Missed payments can impact your credit score since the lender reports it to the credit bureau
  • High-interest rates
  • Not available nationwide

8. Speedy Cash

Speedy Cash is a payday loan chain that offers quick cash payday loans to qualified customers in Alberta, British Columbia, Nova Scotia, and Saskatchewan.

Individuals on employment insurance can apply for loans ranging from $200 to $1,500. Speedy Cash has a 24-hour online application process that requires no paperwork.

Funding time is within 24 hours, with the funds released in person, at a branch or directly into the bank account via e-transfer.

How to Apply

  1. To apply online, fill out the form and provide your personal information.
  2. Customize your loan, select an amount to borrow, and submit.
  3. When the loan is approved, you can receive the money within one business day via direct deposit into your bank account or by electronic email money transfer.

Pros

  • No credit check
  • Various loan options
  • Online and in-store services

Cons

  • Available only in a few provinces
  • High APRs

9. Spring Financial

Spring Financial is an online lender that offers loans for people who need emergency funds, regardless of whether you have good, bad or no credit.

Loan amounts range from $500 to $35,000, with flexible repayment schedules ranging from nine or 60 months.

At Spring Financial, you can qualify for a loan in three minutes through the online form, phone, or text. 

How to Apply

  1. Fill out the online application, provide all the necessary details, and submit.
  2. Provide a valid government-issued ID and complete the verification process.
  3. Wait for the approval and receive the funds in your bank account via EFT or e-Transfer within 24 hours.

Pros

  • No prepayment penalties
  • Completely online process
  • Fast funding

Cons

  • High-interest rates
  • No application fees or maintenance charges
  • A missed payment fee of $30

10. GoDay

GoDay is a licensed online payday lender that provides payday loans ranging from $100 to $1,500 for Canadians with urgent temporary cash needs.

First-time applicants are eligible for a loan of up to $500. Every subsequent loan provides access to higher amounts.

Funding time is as little as 1 hour after approval. Loan repayments will be through automatic withdrawals on the due date.

How to Apply

  1. Go to the GoDay website and click “Apply Now.”
  2. Provide your province and the loan amount you need.
  3. Fill out the online application form with the required information and submit it for pre-approval.
  4. Wait for a representative from GoDay to contact you.
  5. When your application is approved, GoDay will transfer your online payday loan immediately via direct deposit or email money transfer.

Pros

  • 24/7 loan applications and approvals
  • Fast approval
  • Has a BBB accreditation
  • Upfront fee disclosure
  • No paperwork required

Cons

  • High APRs
  • First-time borrower limits
  • Non-sufficient funds charges for late payments
  • Not available across Canada

11. Money Mart

Money Mart is a lending institution specializing in various credit products and financial solutions, such as installment loans for unexpected emergencies or debt consolidation.

Loan amounts range from $1,000 to $15,000. Applications can be made online, in-store, or on the Money Mart mobile app.

Upon loan approval, the funding can be released in 15 minutes (via instant funding), through Interac e-Transfer in as soon as 24 hours, or through direct deposit in 1-2 business days.

How to Apply

  1. Fill out the online application and provide the required details and information.
  2. Review and agree to the terms and conditions and sign the loan agreement.
  3. Send additional documentation if necessary.
  4. When your loan is approved, you can choose to have the funding released instantly, via e-Transfer or direct deposit.

Pros

  • Easy online application in under ten minutes.
  • Instant funding
  • No hidden fees and no additional charges
  • Flexible repayment options
  • No prepayment penalties

Cons

  • High-interest rates
  • High service and administrative fees
  • Eligibility is based on income and other requirements, including a credit check.

What are EI Payday Loans?

EI payday loans are short-term loans that unemployed individuals receiving EI benefits can take out to cover financial needs without impacting their benefits.

Although EI benefits are helpful, they are insufficient in covering daily living expenses and the cost of a financial emergency or an unanticipated situation.

Compared with a traditional loan, a payday loan is for a short time, is easy to qualify without a credit check, and payments for it are organized around your payday schedule.

While not all lenders offer payday loans to EI benefits recipients, others see EI as a source of income that can help borrowers repay a loan even though they are between jobs.

This is why EI payday loans have surged in popularity. You can borrow up to $1,500 and have until 62 days to repay the loan.

As for payday lending regulations, they vary by province. If you are in British Columbia, the maximum cost of borrowing for a $100 EI payday loan in BC is $15. 

If you are an AB resident, the maximum cost of borrowing for $100 EI payday loans in Alberta is also $15.

Find the maximum cost of borrowing for other provinces and territories at the Government of Canada website.

Can You Get a Loan While on EI?

You can take out a loan while on EI without negatively impacting your benefits.

Traditional banks or lending institutions may rule you out since they will consider factors like your income level, credit score, and employment.

If you cannot satisfy their requirements for a personal loan, they will reject your application.

Some lenders, however, offer payday loans for the unemployed on benefits, those with non-traditional sources of income and diverse credit profiles.

Others offer installment loans, an alternative to payday loans, wherein you apply for a specific amount of money and repay it in installments.

The amount you pay back each month is typically fixed and consists of the principal and interest.

How to Apply for an EI Payday Loan

1. Check your credit score. The lower your credit score, the higher your interest rates.

2. Compare payday loan lenders. Find the most competitive rates by comparing lenders in your area.

3. Check your eligibility. Determine the requirements to see if you qualify for a payday loan.

4. Complete an online form. Fill out an online application form once you find the right loan for your needs.

5. Wait for a lending decision. Most payday loan lenders provide pre-approval and loan approval in minutes.

6. Get verification. Lenders may ask for additional documents, such as a government-issued ID and bank statements, to verify your identity and your income.

7. Review and sign your contract. Understand the agreement, the total loan cost, the repayment schedule, the due date, and the fees stated in the contract before signing it.

8. Receive the cash. After you sign the contract, the lender will release the money in person or deposit it in your bank account.

Pros and Cons of EI Payday Loans

If you are considering getting emergency cash loans for the unemployed in Canada, know the pros and cons to help you make the right decision.

Pros

  • Quick solution to borrowing money
  • Easy application
  • Fast loan processing
  • Easy to access
  • Requires fewer requirements than other loan types
  • No credit check
  • An unsecured loan

Cons

  • Actual loan costs can be exorbitant
  • Steep interest rates, annual percentage rates, and fees
  • Requires access to your bank account
  • Will not help build credit
  • Can lead to a cycle of debt
  • Can result in wage garnishment and affect your credit score

What to Look Out for in EI Payday Loans

Before you apply for payday loans for the unemployed on benefits, consider the following first:

  • Interest rate. Find out the interest rate to see if it is reasonable for your situation and will not increase at a later date.
  • Loan terms. Payday loans typically require repayment on the next paycheque. If you can, check if you can get a longer loan term.
  • Cost of payday loans. This type of loan is one of the most expensive methods of borrowing money due to the exorbitant interest rates and steep fees. Understand what it entails and the costs it will incur.
  • Budget. Avoid paying hefty penalties for non-sufficient funds and late fees by repaying your loan on time. Check that you have enough left for your other bills and expenses.
  • Lender reputation. Learn about the lender, check that it has a license, has a good reputation, and adheres to payday loan regulations in your province.

Should You Get An EI Payday Loan?

An EI payday loan is a quick, hassle-free way to access money. It offers convenience and asks for negligible credit requirements.

But due to its sky-high interest rates, exorbitant fees, and tight repayment deadlines, a payday loan may not be the best solution for everyone.

Emergency cash loans for the unemployed in Canada can be a great option if you have a healthy financial history and only need extra money for an emergency situation.

Discuss your loan options with your lender and find the most suitable rate. When you decide to get an EI payday loan, you must be confident you can repay it.

FAQs

Does Cash Money accept EI?

Yes. Cash Money accepts government-assisted income such as employment insurance. Provide the documentation to verify your income during your application.

What is a 310 loan?

310 Loan is the former name of online payday lender Speedy Cash. The lender has been a provider of emergency cash loans for the unemployed in Canada since 1998.

How much money can I get on EI?

In general, you can get up to 55% of your average insurable weekly earnings on EI, up to a maximum amount. As of January 2023, you can get a maximum of $650 weekly.

What is a flipper loan?

A flipper loan can refer to a type of loan wherein a lender attempts to convince you to refinance your property repeatedly. Also called loan flipping, the practice increases your overall debt and decreases the amount of money you receive compared to the refinanced amount.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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