If your main source of income is government benefits, getting a traditional loan 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, 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.
Let’s take a closer look at payday loans and how they may be a loan option for you if you depend on government benefits as your main source of income.
There are plenty of payday lenders out there that provide short-term loans with flexible lending criteria, including the following.
| Government Benefits | Accepted Loan Amount | Geographical Availability | Funding Time | |
| Cash Money | -Employment Insurance -Social Assistance -Child Tax Benefits -CPP | $100 – $1,500 | All provinces | -e-transfers: 15 minutes -Direct deposits: depends on bank |
| iCASH | All government subsidies | Depends on your situation | BC, AB, MB, ON, NB, NS, PEI | E-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 -CPP -Child Tax Benefit -Private pension | $250 – $1,500 | BC, AB, SK, NS | -Physical branch: immediately -Direct deposit: 1 hour to next business day |
| Magical Credit | All government subsidies | $500 – $20,000 | Not specified | Direct deposit: depends on the bank |
| GoDay | -Canada Child Benefit -Disability Tax Credit -CPP -Old Age Security -Private pension | $100 – $1,500 | Everywhere except QC & NL | 1 business day |
| Pay2Day | -EI -Canada Recovery Benefit (CRB) -Pension | Up to $1,500 | BC, ON, NS | e-Transfer within 1 to 2 hours |
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, Child Tax Benefits, 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.
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, Child Tax benefits, or private pension 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 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, and Quebec can apply for a loan with Magical Credit.
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.
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.
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.
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.
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.
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.
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:
When applying for a payday loan, you’ll need to provide the following information or documentation:
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.
| Province | Max cost per $100 borrowed | Max Penalty for Returned Cheque | Cooling Off Period | Loan Rollover or Extension |
| Ontario | $15 | n/a | 2 business days | Not allowed |
| British Columbia | $15 | $20 | 2 business days | Not allowed |
| Alberta | $15 | $25 | 2 business days | Not allowed |
| New Brunswick | $15 | $20 | 48 hours (not including Sundays and holidays) | Not allowed |
| Manitoba | $17 | $20 | 48 hours (not including Sundays and holidays) | Allowed |
| Saskatchewan | $17 | $25 | Next business day | Not allowed |
| Nova Scotia | $19 | $40 (default penalty) | Next business day (or 2 days for online payday lenders) | Not allowed |
| Newfoundland and Labrador | $21 | $20 | 2 business days | Allowed |
| Prince Edward Island | $25 | n/a | 2 business days | Allowed |
| Quebec | 35% AIR | n/a | 10 days | Not allowed |
There are several perks to payday loans, especially for those who rely on government benefits as their main source of income:
Along with the benefits, there are also some disadvantages that you should consider before applying:
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 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.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Earn up to 12,000 bonus Scene+™ points in your first year (that’s up to $120 towards travel).
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.
