Unexpected situations and emergencies can happen to anyone, no matter what your employment or financial circumstances are. So even though you may be on Employment Insurance (EI), needing a loan to cover an unforeseen cost could still happen to you.
Getting approved for a loan while on Employment Insurance may seem impossible given that it isn’t a traditional source of income. However, the good news is that it is not impossible and that there are different types of loans out there that you can get while receiving Employment Insurance.
| Loan Amount | Interest Rate | Term | Province Availability | ||
 | $500 - $35,000 | 2.99% to 46.96% | 4 - 60 months | Across Canada | Learn More |
 | Up to $15,000 | 29.99% - 46.96% | 9 - 60 months | BC, AB, SK, MB, ON, NB, NS, PEI, NL | Learn More |
 | Up to $20,000 | 19.99% - 46.8% | 12 - 60 months | BC, AB, ON, NB, NS, PEI, NL | Learn More |
 | Up to $15,000 | Started at 19.99% | Open-end | BC, AB, SK, ON, NS, PEI, NL | Learn More |
 | Up to $1,500 | Varies by province* | Max 62 days | BC, AB, MB, ON, NB, NS, PEI | Learn More |
 | $200 - $1,500 | Varies by province* | Next payday | BC, AB, SK, NS, YT, NT, NU | Learn More |
 | $50 - $1,500 | Varies by province* | 14 days | BC, AB, SK, MB, ON, NS | Learn More |
 | Up to $1,500 | Varies by province* | Up to 62 days | BC, AB, ON | Learn More |
 | $120 - $1,500 | Varies by province* | Max 62 days | BC, AB, SK, MB, ON, NS | Learn More |
 | Up to $1,500 | Varies by province* | Max 62 days | BC, AB, SK, MB, ON, NB, NS, PEI | Learn More |
Employment Insurance (EI) helps countless Canadians every year get back on their feet after the loss of a job. Unfortunately, the benefits aren’t always enough to cover the cost of daily living as well as the cost of an emergency or unexpected event. It’s not uncommon for those on EI to need additional financial assistance; this is where a loan can help.
An EI payday loan will allow you to access up to $1,500. This type of loan is usually repaid by your next payday, which can range from 1 to 4 weeks. Depending on the province you reside in, rates can go as high as $25 per $100 borrowed.
To qualify for an EI payday loan, you’ll need to find a payday lender who accepts EI as a form of income. You can apply for an EI payday loan online or in-store, you simply need to be able to prove you do receive EI.
Depending on the province you live in, the cost of borrowing $100 will vary.
| 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 |
A more affordable option would be an installment loan. An EI installment loan can be a better option as they have lower rates and longer terms, making it easier to repay the loan. Moreover, while installment loan lenders typically have higher requirements than payday lenders, they are much more flexible than banks and other traditional financial institutions.
To qualify for an EI installment loan, you’ll need to find a lender who accepts EI as a form of income. However, these lenders will also look at your debt to ensure you can afford to take on the loan.
If you’re trying to qualify for a personal line of credit while on EI, you’ll need to find a lender who accepts EI as income. Some well-known lenders that offer personal lines of credit to those who get EI are Cash Money and Mogo. This can be a great option as interest is only charged on the amount you use. Moreover, like a credit card you can re-access the same funds as you repay the money.
A car title loan is another type of loan you can get while on EI. Since a car title loan is secured by the car itself, lenders are more willing to lend to individuals with poor credit and non-traditional forms of income. This ensures the lender can recoup payments even if you end up defaulting on the loan. However, it’s important to remember that car title loans come with high-interest rates and have short terms, which can make them very difficult to repay.
A more traditional bank or lending institution may deem you an undesirable candidate for a personal loan because they often focus their approval on factors such as your credit score, income level and whether you have a steady job. Unfortunately, if you don’t meet their requirements you will more than likely be rejected. This is why we recommend that you work with a more specialized lender who accepts non-traditional sources of income and borrowers with different credit profiles.
| Loan Amount | $1,000 |
| Interest Rate | 15% |
| Term Lenght | 6 months |
| Monthly Payment | $174.03 |
| Total Interest Paid | $44.20 |
| Total Cost | $1,044.20 |
Depending on where you live and how much you borrow, the total amount you’ll need to pay back will vary. Below is a breakdown, of how much a $1,000 EI payday loan will cost you in each province.
| Province | Max cost per $100 borrowed (Max Interest Rate) | Total Cost |
| Ontario | $15 | $1,150 |
| British Columbia | $15 | $1,150 |
| Alberta | $15 | $1,150 |
| New Brunswick | $15 | $1,150 |
| Manitoba | $17 | $1,170 |
| Saskatchewan | $17 | $1,170 |
| Nova Scotia | $19 | $1,190 |
| Newfoundland and Labrador | $21 | $1,210 |
| Prince Edward Island | $25 | $1,250 |
| Northwest Territories | $60 | $1,600 |
| Nunavut | $60 | $1,600 |
| Yukon | $60 | $1,600 |
| Quebec | 35% | $1,029.17 |
Getting approved for a loan while on EI is possible, you just need to find the right lender who can and is willing to work with you. Do your research and before long you should be able to find a loan and a lender who are right for you.
Getting a guarantor loan can be an efficient way of financing your expenses while you’re looking for a new job or when your bad credit prevents you from being approved by traditional lenders, such as banks and credit unions. To do this, you would have to find a responsible borrower with good credit and finances. They will then co-sign your application, thereby strengthening your creditworthiness and greatly increasing your chances of approval.
For all the information you need on Employment Insurance, visit the Government of Canada’s website.
Being on Employment Insurance (EI) is probably not something you had ever expected or wanted, but that’s the thing about jobs, life and money, they can be unpredictable even when you think you have it all figured out. At Loans Canada we will be there with the financial help you need when life has gone off the tracks, but we also practice responsible lending practices. There is a right way and a wrong way to take out a loan when you’re on EI. Protecting your financial future is our number one goal and we’ll work with you to get you the appropriate loan for your unique financial situation.
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Caitlin Wood is the Editor-in-Chief at Loans Canada and specializes in personal finance. She is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. Caitlin has covered various subjects such as debt, credit, and loans. Her work has been published on Zoocasa, GoDaddy, and deBanked. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security.
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