Are you in need of a little cash, but don’t have enough funds in your bank account to cover you until your next payday? If so, a short-term, 1-month payday loan may give you just enough money and time needed to deal with your current financial needs. And by the time your next paycheque rolls around, you’ll have enough money to pay back your debt, along with any associated interest and fees.
Let’s take a closer look at 1-month payday loans in Canada and how they work.
Key Points
- In Canada, 1-month payday loans are available.
- The longest term available on a payday loan in Canada is 62 days.
- Payday loans must be repaid in one lump sum by the term end, which can make them difficult to repay compared to installment loans.
- Payday loans also come with very high rates, making them one of the more expensive loan types.
Can You Get A 1-Month Payday Loan In Canada?
Yes, payday loans are available with 1-month terms, which may be convenient if you need a quick, short-term loan to cover a last-minute expense. In fact, payday loans can come in even shorter repayment periods, including 1-week terms.
A 1-month payday loan is a short-term loan that is typically made for smaller loan amounts of up to $1,500. Unlike traditional personal loans that are repaid in regular installment payments, payday loans must be repaid in one lump sum once you receive your next paycheque. As such, while these 30-day loans are fast and easy to acquire, you should only apply for one if you know you will be able to repay the debt by or before the loan amount is due.
| Note: Payday loans are very expensive and can quickly trap you in a debt cycle if you can’t repay the full amount. Be sure to carefully assess your budget and consider alternative loan options before applying. |
Learn more: Payday Loans In Canada
What Do You Need To Get A 30-Day Payday Loan In Canada?
It’s relatively easy to get approved for a 30-day payday loan, as the requirements are typically less stringent than a conventional loan. To qualify for a 30-day loan, you generally just need to meet the following criteria:
- Be the age of majority in your province
- Be a Canadian citizen or permanent resident
- Have a consistent income (some lenders may accept non-employemnt income)
- Have an active Canadian bank account that’s been open for at least 3 months
- Have a valid phone number, mailing address, and email address
Can You Get A 1-Month Payday Loan With No Credit Check In Canada?
Yes, you can get a 1-month payday loan with no credit check in Canada. Unlike conventional lenders, like banks and credit unions, most payday lenders do not conduct a credit check. These lenders will place more weight on other factors instead of your credit score, such as a steady income and a bank account in good standing.
Can You Get A 1-Month Payday Loan With Bad Credit In Canada?
Yes, you can get a 1-month payday loan with bad credit in Canada. Most payday lenders don’t require a credit check, so whether you have good or bad credit doesn’t matter.
As mentioned, these lenders will look at other financial factors such as your income and debt rather than your credit profile when reviewing your application.
Can You Get An Instant 1-Month Payday Loan?
The time it takes for you to get approved for a 1-month payday loan and receive the funds depends on how you apply for the loan.
When you apply online, may payday lenders provide near-instant approvals and same-day funding. These payday lenders may offer instant funding using e-transfer, meaning you can sometimes get your money within 15 minutes after approval. If you apply in-store, you can get approved and receive your loan on the spot.
How Much Does A 1-Month Payday Loan Cost In Canada?
It’s important to understand that 1-month payday loans come with very high-interest rates and fees, which make them an expensive financial product. Given this, you should only consider these 30-day loans as a last resort.
The exact cost of your payday loan depends on where you live in Canada.
Maximum Cost For 30-Day Payday Loans By Province
| Province/Territory | Maximum Borrowing Costs Allowed |
| Quebec | 35% AIR |
| All Other Provinces | $14 per $100 borrowed |
| All 3 Territories | 35% AIR |
Don’t forget to consider late payment fees. Payday lenders may charge additional interest or fees if you default on your loan:
- Dishonoured Payment Fees: Up to $20
- NSF Fee: $45-$50
- Default Interest: Up to 2.5% per month on the total debt
Learn more: Payday Loans: Know Your Rights
What Should You Consider When Getting a 1-Month Payday Loan?
Before you apply for a 1-month payday loan, there are a few important factors to consider first:
- Amount You Can Borrow. Since payday lenders charge per $100 borrowed, for the most part, you’ll be paying more fees on larger loan amounts. For this reason, be sure only to apply for the loan amount you really need, and not a dollar more.
- Interest Rate And Fees. You have to pay interest on the amount you borrow, which is usually charged for every $100 borrowed, as mentioned. Interest and fees for payday loans are typically much higher than conventional loans, though there are laws in place that limit how much a lender can charge. Take some time to go over the terms and conditions of the loan to help you compare different lenders and avoid any unpleasant surprises.
- Payment Flexibility. Find out if the lender charges early repayment penalty fees for paying your loan off early, or if you have some flexibility if you choose to repay the loan before it’s due.
- Additional Fees For Missed Payments. If you fail to pay your loan off on time, the lender will charge you additional fees, which may include non-sufficient funds (NSF) fees or additional interest from the payday lender, which can be as much as 2.5% per month on the remaining loan amount.
Alternatives To 1-Month Payday Loans In Canada
As noted earlier, payday loans are very expensive and can be difficult to repay due to their short terms, requiring repayment in one lump sum. Before applying for a 1-month payday loan, consider some alternatives.
Personal Loans
Installment loan terms tend to be much longer than 1 month. In particular, term lengths tend to range from 3 months to 5 years. While this is much longer than a 1-month loan term, spreading out your loan costs over a longer period makes installment loans much easier to budget for and repay. Plus, interest rates tend to be a lot lower compared to payday loans.
Payday Loans Vs Personal Loans: What’s The Difference?
There are key differences between payday loans and personal loans in Canada:
| Payday Loans | Personal Loans | |
| Loan Amounts | Up to $1,500 | $500 – $35,000+ |
| Loan Terms | 1 weeks to 62 days | 3 months to 5 years |
| Loan Cost | $14 per $100 borrowed in most provinces 35% AIR in Quebec and the territories | Typically, anywhere from 9.99% to 35% APR |
| Repayment | One lump sum due by the end of the term | Monthly, semi-monthly, & bi-weekly payment plans available |
Learn more: Get A Small Installment Loan Instead Of A Payday Loan
Personal Credit Lines
A line of credit works somewhat differently from a payday loan. Rather than taking out a lump sum of money, a line of credit provides you with access to a credit line that you can access at any time. You can withdraw as much or as little as you need, and you’re only charged interest on the amount borrowed.
Then, you can repay what you’ve withdrawn on your own schedule, and you are only required to make interest-only payments. This may be a great option if you like the idea of having access to an emergency fund when the need for extra money arises without having to reapply for a loan every time.
Cash Advance
If your financial needs are small, you may consider looking into interest-free cash advances from places like Bree or Nyble.
- Bree: Get a small cash advance of up to $500 from Bree. This can help tie you over between paycheques and avoid bank overdrafts and NSF fees.
- Nyble: Access a small cash advance of up to $250 from Nyble. There are no credit score requirements, and repayments are reported to the credit bureaus, helping you build good credit.
Final Thoughts
A 1-month payday loan may give you just enough financial help to cover a pressing expense. But make sure you understand your repayment obligations and the high costs associated with these 30-day short-term loans before you apply. If possible, consider an installment loan to make loan repayment more affordable and easier to manage.
