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If your main source of income is government benefits, getting a traditional loan in Canada might be a bit of a challenge. That said, you can still get your hands on a loan despite collecting benefits from employment insurance (EI), disability, a pension, or any other form of government assistance. More specifically, let’s discuss how to get payday loans with government benefits.

Payday lenders are usually open to providing short-term loans to those who may be unable to qualify for conventional loans from a bank or other traditional lenders. But, it’s important to understand that payday loans are one of the most expensive ways to borrow and can cause a cycle of debt. Consider all the pros and cons of payday loans before applying for one.

How To Get Payday Loans With Government Benefits Canada

There are plenty of payday lenders out there that provide short-term loans with flexible lending criteria, including the following.

Government BenefitsAccepted Loan AmountGeographical AvailabilityFunding Time
Cash Money  -Employment Insurance
-Social Assistance
-Child Tax Benefits
$100 – $1,500All provinces-e-transfers: 15 minutes
-Direct deposits: depends on bank
iCashAll government subsidiesDepends on your situationBC, AB, MB, ON, NB, NS, PEIE-transfer: immediately
Direct deposit: by 2:30pm EST same day if applied early in the day; next business day if applied later in the day
Speedy Cash-EI
-Child Tax Benefit
-Private pension
$250 – $1,500BC, AB, SK, NS-Physical branch: immediately
-Direct deposit: 1 hour to next business day
Magical CreditAll government subsidies$500 – $20,000BC, AB, ON, NB, NS, PEIDirect deposit: depends on the bank 
GoDay-Canada Child Benefit
-Disability Tax Credit
-Old Age Security
-Private pension
$100 – $1,500Everywhere except QC & NL 1 business day
-Canada Recovery Benefit (CRB)
Up to $1,500BC, ON, NSe-Transfer within 1 to 2 hours

Cash Money  

Cash Money

Cash Money is an online lender that offers payday loans to Canadians in every province. Their loans range from $100 to $1,500, though the exact maximum amount depends on the province. 

Cash Money accepts government-assisted income, including EI, Social Assistance, Canada Child Benefit, and CPP. However, Social Assistance income is not accepted for residents of Manitoba. 

If approved for a loan, you can receive the funds immediately if you visit a physical Cash Money store, or in as little as 15 minutes if you choose to have the funds sent via Interac e-Transfer. Funding times for direct bank deposits will vary depending on the financial institution. 



With GoDay, you can apply for a loan amount anywhere between $100 to $1,500, though your financial situation will affect the amount you qualify for. If approved, the funds are delivered to you in as little as one business day. Right now, GoDay supplies loans to residents in all provinces except Quebec and Newfoundland. 

You don’t have to be employed in order to get approved for a short-term loan from GoDay. Instead, you can rely on income from your Canada Child Benefit, Disability Tax Credit, CPP, Old Age Security, and any private pension and still secure a loan.


iCash is available to residents in British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, and PEI. The exact amount you can get approved for depends on your financial situation. When you apply, the system’s algorithms will assess the information you enter and will provide you with a loan amount accordingly. 

Your funds will be sent to you immediately if you choose to receive your loan through e-Transfer. If you choose direct deposit, the money will be sent at 2:30 pm EST the same day you’re approved, or the next business day if you apply later in the day. 

iCash accepts all types of income, including those supplied by government agencies. As long as you meet the lending criteria, you can apply for a loan.

Speedy Cash

Speedy Cash

There’s no need to be traditionally employed to apply for a payday loan from Speedy Cash. As long as you have a stable income that can support repayments, you can get approved. Speedy Cash currently accepts EI, CPP, Canada Child Benefit, or private pensions as a form of income. 

You can apply for anywhere between $250 to $1,500, depending on your income. If approved, you can get the funds right away when you visit a physical branch. If you choose direct bank deposit, the funding time can be anywhere from 1 hour to the next business day. Speedy Cash has locations in British Columbia, Alberta, Saskatchewan, and Nova Scotia.

Magical Credit

payday loans with government benefits canada

Magical Credit accepts just about every form of government benefits, including EI, CPP, baby bonuses, maternity benefits, and private pensions. All you need is a regular income that is deposited directly into your bank account once a month to qualify. 

Loan amounts range from $500 to $20,000, depending on your income, and are provided via direct deposit only. As such, the funding time will vary depending on your bank. Currently, residents in all provinces except Saskatchewan, Manitoba, Quebec, and Newfoundland can apply for a loan with Magical Credit. 


payday loans with government benefits canada

Pay2Day provides short-term loans to borrowers in British Columbia, Ontario, and Nova Scotia, both through physical locations and online. Applicants can borrow up to $1,500, and funds are deposited into their bank account via e-Transfer within 1 to 2 hours after loan approval. 

Pay2Day accepts applications from those who are receiving EI benefits, the Canada Recovery Benefit (CRB), or a pension. 

What about a personal loan instead?


Which Government Benefits Are Accepted As A Source Of Income For Payday Lenders?

There are plenty of government benefits available that provide financial assistance to Canadians in different situations. If you are one of those Canadians who currently collect some form of benefit and use those funds as a main source of income, you might be wondering if your specific government benefit will qualify you for a payday loan.

Can You Get A Payday Loan With Employment Insurance (EI)? 

There are lenders out there who accept EI as a form of income. As such, you can apply for a payday loan while you’re collecting EI without it affecting your benefits. The key is to find a lender who states they work with Canadians who collect EI.

Can You Get A Payday Loan With Child Tax Benefits (Canada Child Benefit)?

If you depend on your Child Tax Benefits otherwise known as the Canada Child Benefit (CCB) as an income source, you’ll need to find a payday lender who accepts these government benefits as income. Luckily, the requirements for payday lenders are typically lax, so you shouldn’t have a problem finding a payday lender who will extend a loan to you if you collect these benefits. 

Can You Get A Payday Loan With Disability Tax Credit?

Payday lenders assess your overall income to determine whether or not to approve your loan application. If you’re currently receiving a Disability Tax Credit, you should be able to get approved for a payday loan, as long as the lender you work with accepts this type of benefit as a form of income. 

Can You Get A Payday Loan With Canada Pension Plan (CPP) Or Old Age Security?

If you’re a retiree whose income has shifted from a salary to a government-sponsored pension, you may be wondering if you can still get approved for a loan just as easily as you would before you retired. Although you might find it a bit more challenging to get a loan from a traditional lender using only your pension, there are plenty of payday lenders out there who supply short-term loans to Canadians in your position. 

Note: Payday loans are extremely expensive and can lead to a cycle of debt if you’re unable to repay the full amount borrowed. To Learn about the payday loan laws in your province, click here.

How To Apply For A Payday Loan With Government Benefits

Applying for a payday loan with government benefits is easy and can be done from the comfort of your home. To be eligible for a payday loan, you’ll need to meet the following criteria:

  • Be at least 18 years old 
  • Be a Canadian citizen or permanent resident
  • Have an active bank account
  • Have a steady income source (including government benefits)

When applying for a payday loan, you’ll need to provide the following information or documentation:

  • Personal Information – Full name, home address, phone number, email address
  • Financial Information – Income amount and type. You may also need to provide your bank statements.
  • Banking Information – For funding and repayment, your lender may require certain banking information such as your direct deposit information.

Cost Of A Payday Loan With Government Benefits

The rules and regulations for each province vary, as such, the cost of your payday loan will vary depending on where you live. Below is a table depicting the costs and rules surrounding payday loans in your province.

Maximum Cost Of A $100 Payday Loan By Province

ProvinceMax cost per $100 borrowed Max Penalty for Returned ChequeCooling Off PeriodLoan Rollover or Extension
Ontario$15n/a2 business daysNot allowed
British Columbia$15$202 business daysNot allowed
Alberta$15$252 business daysNot allowed
New Brunswick$15$2048 hours (not including Sundays and holidays)Not allowed
Manitoba$17$2048 hours (not including Sundays and holidays)Allowed
Saskatchewan$17$25Next business dayNot allowed
Nova Scotia$17$40 (default penalty)Next business day (or 2 days for online payday lenders)Not allowed
Newfoundland and Labrador$14$202 business daysAllowed
Prince Edward Island$15n/a2 business daysAllowed
Quebec35% AIRn/a10 daysNot allowed

Benefits Of Payday Loans With Government Benefits 

There are several perks to payday loans, especially for those who rely on government benefits as their main source of income:

  • Fast funding. Payday loans are notorious for their quick funding. You can get access to your loan almost immediately after applying, which can be very helpful if the funds are urgently needed. 
  • Online application. While you may be able to visit a physical branch, payday lenders typically offer an online application that can be submitted without the need to leave your home. 
  • Bad credit accepted. There’s no need for stellar credit to get approved for a payday loan. Although, working to build better credit is a good way to avoid having to take out a payday loan.
  • Non-traditional income sources accepted. If your main source of income is a government benefit, you can still get approved for a payday loan regardless of whether you’re employed or not. 
  • E-Transfer. Not only can you apply for a payday loan online, but you can also receive your funds instantly via e-Transfer.
  • Weekend payday loans. Certain lenders will allow you to apply and be funded any day of the week, including the weekends

Drawbacks Of Payday Loans With Government Benefits 

Along with the benefits, there are also some disadvantages that you should consider before applying:

  • Costly. Interest rates associated with payday loans are very high compared to traditional loan types, making payday loans rather expensive. 
  • Short terms. The funds you apply for must be repaid in a very short period of time. Usually, the money must be paid back in full by the time you receive your next deposit from your government benefit, which doesn’t leave you much time.
  • Small loan amounts. If you need a large loan amount to cover a big expense, the loan amount you get from a payday loan may not be sufficient. 

Payday Loan With Government Benefits FAQs

Can I get a payday loan with government benefits online? 

Yes, you can apply for a payday loan online and even receive your funds via e-Transfer into your bank account.

Will getting a payday loan affect my government benefits?

No. Your government benefits are not considered employment income, so they won’t be affected if you apply for a payday loan.  

Can I apply for two payday loans? 

In most cases, you cannot apply for more than one payday loan, unless you’re located in Manitoba or PEI.

Can I get a no credit check payday loan with my government benefits?

Yes, most payday lenders do not conduct credit checks. You simply need to provide them with proof of income to qualify. Lenders may ask for your bank statements or government benefits documents to verify your income.

Bottom Line

If you’re currently receiving government benefits of some sort, you’re still eligible to apply for a payday loan without your benefits being affected. Just be sure to seek out alternative lenders that deal specifically with borrowers whose main source of income is government benefits.

It’s important to note, however, that payday loans should only be used as a last resort, as they typically come with sky-high interest rates and must be repaid shortly after the funds are extended. 

Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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