Many Canadians experience financial issues or setbacks. When money is tight but bills still need to be paid, a short-term online loan can help. Quick loans from a reputable online lender will not only allow you to cover the cost of any issues you’re currently experiencing, but will afford you the short approval time you need.
Read on to learn more about short-term online loans.
Key Points
- A fast approval short-term online loan is a small, quick-access loan that’s approved and funded entirely online, often within the same day.
- Loan terms are relatively short, with full repayment typically required within weeks or months.
- Types of fast short-term online loans include installment loans, credit lines, cash advances, and payday loans.
- Many online lenders may not require a credit check, making them more suitable for bad credit borrowers.
What Is A Short-Term Loan?
A short-term loan is a type of financing that offers a lump sum of funds and comes with a short repayment period, usually from a few months to two years. These loans are specifically designed to help individuals meet immediate financial needs.
Approvals are relatively quick, and funding is provided shortly after, typically via direct deposit or e-Transfer.
Do Lenders Offer Instant Approvals?
Yes, many lenders, particularly online lenders, offer instant quotes and pre-approvals. While these aren’t final approvals, they do indicate that you’re likely to be approved if your application details can be verified.
How Fast Can I Get A Loan?
Many online lenders offer same-day approval and funding, especially payday lenders in Canada. To receive funds the same day, you’ll generally need to apply during the early business hours and provide all the information necessary to qualify.
Once approved, you’ll receive your funds via e-transfer within minutes.
Learn more: Same Day Loans
See How Much You Qualify For
Here Are The Best Short-Term Loans You Can Get With Instant Approval
There are different credit products you can apply for, each with their own approval requirements, interest rate, and payment conditions. Here are some of the more common fast-approval loans available online in Canada:
Payday Loans
Payday loans are small, high-interest cash loans of up to $1,500. In most provinces in Canada, the most a payday lender can charge for these loans is $14 per $100 borrowed.
Unlike an installment loan, a payday loan must be fully repaid in one lump sum, including the principal and interest/fees. Generally speaking, you have until your next payday to pay back the loan, though terms can be as long as 62 days.
How Fast Can I Get Approved For A Payday Loan?
The approval speed depends on the lender and when and where you apply. If you apply online, some lenders offer approval within 1 – 2 hours, while others take a maximum of 24 hours. After approval, some payday lenders are able to send you the funds within 30 minutes via e-transfer.
Interest-Free Loans
An interest-free loan let you borrow money and repay only the principal, with no interest charges. This makes this type of financing an affordable alternative to traditional loans, saving you money over the long run.
Examples of interest-free loans are as follows:
| Bree | If you’re short on a few hundred dollars and dealing with bad credit, apps like Bree can offer a smart solution. Bree provides quick access to small cash advances of up to $500 with no credit checks or interest, helping you avoid overdraft fees and cover urgent expenses. |
| Nybe | Nyble offers up to $250 in no-interest cash advances without a credit check, making it accessible for those with bad credit. Nyble can also be used to build credit history through its optional credit-building tool (for an added fee). |
| MoneyUp | MoneyUp is a financial app that offers an instant, interest-free line of credit called FastForward, helping users access up to $1,000. Funds can be approved and accessed in as little as a few minutes, with no credit check required and flexible repayment. |
| Koho Cover | KOHO Cover provides instant, interest-free cash advances of up to $250. The amount can increase with timely payments and higher spending. Koho Cover is subscription based, with prices starting at $2 per month. |
Personal Loans
A personal loan provides a lump sum of money that is repaid over a set term, typically between 6 months to 5 years. Loan amounts can be as high as $35,000, depending on the lender and your creditworthiness.
Note: If you offer an asset as collateral or a cosigner, it’ll help lower your lender’s risk, which can help you qualify for the loan and may help you get a lower interest rate.
How Fast Can I Get Approved For A Short-Term Installment Loan?
While the approval time and funding vary by lender, most lenders provide approvals within 1 – 2 business days. Moreover, the entire loan application can be completed online, making it an extremely convenient option.
Vehicle Title Loans
A vehicle title loan is a type of secured loan that lets you leverage your car’s title (proof of ownership) as collateral in exchange for financing. This can be particularly helpful when you need a large loan, but can’t qualify for an unsecured loan.
Generally speaking, you can borrow up to 25% to 50% of the car’s value, and loan terms range between 3 months to 3 years, on average.
| Note: While vehicle title loans are easy to qualify for, they come with high-interest rates and fees. Moreover, your vehicle can be repossessed if you default on your payments. |
How Fast Can I Get Approved For An Auto Title Loan?
The average approval time varies by lender, but many provide approval within 1 to 2 business days. Your funds will be sent shortly after approval via direct deposit or e-Transfer.
Where Can You Get A Short-Term Loan With Instant Approvals?
While approval time varies by lender, the following lenders are some of the best in the industry:
What Do You Need To Get A Loan Online?
While requirements vary by lender, you generally need the following to apply for a fast approval short-term loan online in Canada:
- Be a Canadian permanent resident or citizen
- Be at least the age of majority in your province or territory
- Have a regular source of income (employment, government benefits, etc.)
- Have an active bank account for instant bank verification (IBV) and e-transfers
| What Is Instant Bank Verification (IBV)? IBV is a secure digital process that allows lenders to instantly access and verify your bank account details through trusted platforms like Flinks. A bank account is required for loans as proof of financial stability and to deposit funds and set up automatic repayments. IBV speeds up loan approvals by replacing manual work and avoiding the need to scan or email bank statements or pay stubs. Learn more: Instant Bank Verification (IBV) |
Can You Get A Loan Fast If You Have Bad Credit?
If you have bad credit, it may be more difficult to get fast approval for a personal loan. However, you can still get a loan quickly with bad credit from a payday lender or the interest-free loan options above.
How To Choose The Best Loan Option
Before you apply for any sort of loan in your province or territory, remember to do lots of research, look at different lenders and compare these important factors:
| Interest (APR) | The interest rate refers to the amount of interest you’re paying to borrow the loan principal.The Annual Percentage Rate (APR) represents the true cost of a loan, including its total interest & fees. |
| Extra Fees and Charges | Some lenders will also charge fees for administrative services and processing your loan (origination), as well as penalties for late payments, early payments (prepayments) and non-sufficient funds (NSF). When combined with your interest rate, these fees can drive the cost of your loan up. |
| Approval Speed | Consider the lender’s approval times and hours of operation, too. Even if their loans normally have fast approval times, you may only receive the funds by the next business day if you apply on a weekend or holiday. There’s no point in applying for a loan if you can’t use it for an urgent expense. |
| Legitimacy | Make sure your lender is a legal business with good reviews, a confirmable address and a valid license to operate in that region. |
Should You Get A Loan?
No matter how easy it can be to qualify for the products above, there are plenty of scenarios when applying for them is NOT the best course of action, including:
- You don’t need financing right away
- You don’t have enough income or savings to cover your payments
- You already have debts pending with other lenders
- You haven’t considered all your options yet
What Are Some Alternative Options?
Alternate options to short-term online loans may be considered, such as the following:
Emergency Fund
Building an emergency fund is a smart alternative to relying on short-term online loans, especially when faced with unexpected expenses. Emergency funds are ideal over loans because they can help you avoid interest charges and falling into a cycle of debt. Plus, they provide peace of mind knowing that you have a financial cushion to fall back on.
Credit Builder Loans
If you’d like to finance something in the future, a credit builder loan may be worthwhile. It can not only help you save money to finance or cover your expenses, but it can also help you build your credit.
A credit builder loan is specifically designed to help you save and improve your credit in the process. With a credit builder loan, you don’t get any money upfront. Rather you make payments to the lender who will put a portion of your payments aside in a secured account.
KOHO’s Credit Building Program and Spring Financial’s The Foundation program are two great examples of products you can use to steadily build healthy credit.
Each payment you make will be reported to Canada’s credit bureaus, which can help raise your credit score. Once your term ends, the lender will give you back your payments minus interest and fees.
Learn more: Best Programs To Help You Build Credit In Canada
Bottom Line
Loans online offer a quick and convenient solution when you’re short on cash and time. If you have an urgent bill to pay, these loans can provide accessible funding with relatively easy loan criteria. Just remember that while speed of funding may be a benefit, be sure to practice responsible borrowing.
Fast Approval Short-Term Loans FAQs
Is it easy to get approved for a loan?
Can I get a fast bank loan with bad credit?
Which loan can I get approved the fastest with bad credit?
Do lenders require a credit check for short term online loans?
Is it better to apply for a loan online or in person?
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC.
†On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.
In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
