If you are a person with a disability who is on the Ontario Disability Support Program (ODSP), then you may be eligible for ODSP loans in Canada.
You can use your ODSP benefit as a non-traditional form of income when applying for loans online from alternative sources.
Read on to learn how to apply for an online loan using your monthly ODSP benefit, who the best ODSP lenders are and more.
Key Takeaways
- Persons with disabilities who are on the Ontario Disability Support Program (ODSP) can be eligible for ODSP loans in Canada, such as installment loans and payday loans.
- The best ODSP lenders in Canada include Loans Canada, AimFinance, Cash Money, Loan Express, iCash and My Canada Payday.
- Many alternative lenders offer ODSP loans online and no credit check loans with a quick approval process and funds released in a short time.
What is the ODSP Program?
The ODSP is a government program that provides financial assistance to Ontario residents living with a disability. It helps cover basic needs like groceries, shelter, medicine and more.
To be eligible for the ODSP program, you must meet the following requirements:
- Be at least 18 years old
- Be a resident of Ontario
- Be in financial need
- Possess assets no greater than the limits set by the program
- Meet the program’s definition of a person with a disability
- Be financially eligible
If you qualify to receive income support from the ODSP, you will receive a monthly payment of up to $1,308, which will include two parts: basic needs and a shelter allowance.
As of February 1, 2023, a person with a disability can earn up to $1,000 a month as an employee without affecting their ODSP benefits.
In July 2023, the Government of Ontario raised ODSP rates by 6.5% in response to rising inflation. In any year that payments increase, ODSP recipients will get the higher payment at the end of July every year.
How Do ODSP Loans Work?
If you are a recipient of the ODSP benefit, you can qualify for loans that allow you to use your ODSP income to support your application for financing.
Called ODSP loans, this type of financing is exclusive for individuals under the ODSP, a non-traditional form of income provided by the government through its benefits and assistance programs.
There are two types of loans you can get while on ODSP, namely, installment loans and payday loans.
Installment Loans
An installment loan is a type of closed-ended debt that you borrow and pay back in equal monthly payments with a fixed interest rate.
Sometimes referred to as ODSP loans with no credit check, ODSP installment loans are often used for debt consolidation, home renovations and furniture or car purchases.
You can obtain ODSP installment loans from traditional banks or alternative (or online) lenders.
Payday Loans
Payday loans are short-term, high-interest-rate, unsecured loans that borrowers must pay back within the two-week payday cycle.
Referred to as a cash advance, a payday loan is designed for short-term needs, such as an emergency, or when you need to access cash fast.
Qualifying for a payday loan does not always require a credit check, save for some private lenders. The application process is fairly straightforward and less stringent than other credit applications.
Payday loans typically require proof of regular income, a permanent address and a bank account.
To secure a payday loan, you may need to allow the lender to withdraw the payment from your account on the due date or provide a post-dated cheque for the total amount with fees.
Can You Get ODSP Loans With No Credit Check?
Most banks and financial institutions conduct a credit check before approving a personal loan. Payday loan lenders offer no credit check loans in Canada, but these often come with high fees and interest rates.
Payday lenders usually do not conduct credit checks and would only require a steady source of income, an open bank account and identification.
The lending decision is often based on employment status, income, bank account history and other factors.
These lenders may approve your ODSP loan with no credit check, provided you can prove that your monthly budget is sufficient to repay your debt.
Due to their very high interest rates and short repayment terms, payday loans should only be used as a last resort for financing when there are no other available alternatives.
Best ODSP Lenders
Below are some of the best ODSP lenders that offer ODSP loans online and accept Ontario disability support as a valid income source.
Loans Canada
Loans Canada is a loan search platform and comparison website that works with financial services providers to offer a variety of personal loans, including ODSP installment loans and no credit check loans in Canada.
Loans range from $500-$50,000 with terms from 4 months to 60 months or longer. APRs range from 1.99% to 46.96%, depending on the lender’s assessment of your credit profile.
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.
AimFinance
AimFinance is a personal loan lender offering unsecured personal loans that ODSP recipients in Ontario can apply for. These loans can be for debt payment, home improvement, repairs and emergency expenses.
Loan amounts range from $1,000 to $5,000, and terms are from 9-24 months, with an APR of 46.00%. Customer verification includes a credit check. AimFinance personal loans are available in Ontario only.
AimFinance
AimFinance offers personal and installment loans in Ontario and British Columbia. If eligible, you can borrow up to $5,000 and have it deposited in your account within 48 hours. You will need to show proof of income of at least $1,200 monthly and have a fair credit score.
Interest rate: 46.96%.
Loan term: 9-24 months.
Maximum loan amount: Up to $5,000.
Cash Money
Cash Money provides no refusal payday loans in Canada, ODSP loans and payday loans to borrowers who cannot qualify for a loan at traditional lenders. The lender only requires a valid ID, income details, a phone number, an email address and an open chequing account.
Payday loan amounts from Cash Money range from $100-$1,500. APR/Annual Interest Rate is 46.93%, and loan terms are 5 to 40 days. Application is 100% online, and lending decisions are quick. Once approved, you can receive your funds in 15 minutes via Interac e-Transfer.
Loan Express
Loan Express is a payday lender offering short-term cash advances and no credit check loans in Canada. It offers a paperless loan application process with no hidden fees and a high approval rate.
Ontario residents on disability who are on direct deposit can apply for ODSP loans with no credit check. Your loan request can be approved in 10 minutes. Upon approval, your funds will be deposited within 5 minutes. Repayment can be up to 62 days.
iCash
iCash is an online direct lender offering instant online payday loans of up to $1,500. People on disability can get approval for ODSP payday loans online on the same day. You can apply online or through the iCash app, get an instant decision and receive your funds via e-Transfer within two minutes.
The payday lender requires no documents and provides an automated approval process. Once your application is approved, your cash advance will be sent via e-Transfer within 2 minutes. Loan repayment can be in 2 or 3 equal installments via Flexpay.
My Canada Payday
My Canada Payday is an online payday lender offering payday loans of up to $1,500. The application process is straightforward, and no documents are necessary. It also offers ODSP installment loans to people on disability.
You can complete the application online using your phone, without needing to visit a branch. Once you verify your identity and your loan is approved, the funds will be sent to you via Interac email transfer. Loan repayment will start on your next payday.
Who is Eligible for an ODSP Loan?
If you are on ODSP, then you can qualify for an ODSP loan. Once you receive payments under this benefit, you can apply to a lender offering ODSP loans.
When you apply for a loan, the lender will usually look at the amount of your ODSP income, your current debts, and your employment history.
The lender will use the said factors to determine your eligibility for an ODSP loan and the loan amount you can qualify for.
How to Apply for an ODSP Loan
Here are the steps you can follow to apply for an ODSP loan:
- Check your credit score to know what types of loans are available to you.
- Do research on lenders offering ODSP loans online. Compare the interest rates and look at the terms of conditions. Use websites like Loans Canada to get quotes from multiple lenders in a single application.
- Review the requirements for eligibility to see if you can meet them. Many lenders require minimum income and credit scores.
- Once you have selected a lender, go to its website and apply for an online loan using its application form.
Depending on the lender you choose, you can get an instant lending decision and approval and receive your funds quickly.
Pros and Cons of ODSP Loans
As stated above, you can get a personal or payday loan for an ODSP loan. Below are the pros and cons of getting these loans:
Pros of Personal Loans as ODSP Loans:
- Higher loan amounts, depending on your lender
- Lower interest rates
- Flexible terms
- Longer loan terms, up to five years
- Fast funding
Cons of Personal Loans as ODSP Loans:
- Requires credit checks that can potentially affect your credit score
- Charges loan origination fees, administrative charges and late payment fees
- Risk of default and loss of collateral
Pros of Payday Loans as ODSP Loans:
- Fast access to cash
- Easy to qualify
- Few requirements
- Numerous lender options
- A possible solution for financial emergencies
Cons of Payday Loans as ODSP Loans:
- Very high interest rates
- Short repayment period
- Can lead to a debt cycle
- Can negatively impact your credit
- Potential for exploitation and scams
FAQs
ODSP, or the Ontario Disability Support Program, is a government program and does not do credit checks. If you want to use your ODSP benefit as an income source to apply for a loan, your lender may or may not conduct a credit check. Most alternative lenders offering ODSP loans do not perform a credit check.
There are many providers of online payday loans in Ontario, including no refusal payday loans, sometimes referred to as cash advances. A no refusal loan refers to a no credit check loan that a lender guarantees can be received by the borrower within the same day or within 48 business hours.
If you are on ODSP and find a new job, you will receive $100 for each family member when you and your family earn income (from a job or through a training program) and make a profit from your own business. You may also earn up to $500 in 12 months as an employment and training start-up benefit. You can also claim coverage for up-front childcare costs.
If you are on ODSP, the ODSP will require you to report assets that you or your family have. Assets include money in bank accounts, trust funds, and investments, such as Registered Retirement Savings Plans (RRSPs), stocks and bonds.
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