If you’re in need of fast cash, a payday loan in Nova Scotia can offer quick, short-term relief when unexpected expenses come up between paycheques. Just be sure to understand the costs, as these high-interest loans can be very expensive and tough to pay back.
Payday Loans: The Basics
Before applying for a payday loan, take a few minutes to get familiar with these unique financing solutions:
| Loan Amounts | Up to $1,500 |
| Loan Cost | $14 per $100 borrowed |
| Loan Terms | Up to 62 days |
| Funding Time & Method | Same-day funding, typically via e-Transfer, direct deposit, cash, or prepaid cards |
Learn more: Payday Loans
What Do You Need To Qualify For A Payday Loan?
Getting a payday loan is very easy. All you’ll typically need is the following:
- Be the age of majority in Nova Scotia
- Earn a steady income
- Have a valid bank account
Do Payday Lenders Require Credit Checks?
No, payday lenders usually don’t conduct a credit check when you apply for a payday loan. Instead, payday lenders base their approval on your income amount and stability.
This makes payday loans much more easily accessible to those with poor credit or no credit history.
Do I Need To Be Employed To Get A Payday Loan?
While having a job is a plus, you may not necessarily need to be employed to get a payday loan, depending on the lender. Some payday lenders accept alternative sources of income, like government benefits and pensions.
As long as you earn the minimum amount required by the lender, you should be able to get approved for a payday loan.
Where Can You Apply For A Payday Loan In Nova Scotia?
You can find most payday lenders online; however, some lenders may be available in your local area. When applying online, be sure to check the lenders’ website to see if they’re licensed.
You can also search the provincial government’s website, which provides a database of licensed payday lenders in Nova Scotia.
| Note: Payday lenders in Nova Scotia must have a current license to operate their business. They are also regulated by the Consumer Protection Act and Payday Lenders Regulations in the province. |
Brick And Mortar Payday Locations In Halifax
There are very few payday lenders that have physical stores you can visit. That said, some lenders, like Cash Money, still offer in-person applications. You can visit a store in Halifax here:
| Lender | Address |
| Cash Money | – 3095 Robie St, Halifax, NS B3K 4P7 – 3480 Joseph Howe Drive suite 402, Halifax, NS B3L 0B5 Find a Cash Money store near you. |
How To Get A Payday Loan In Nova Scotia
To get a payday loan in Nova Scotia, follow these steps:
Step 1: Find A Lender
Make sure you work with a lender who is licensed in Nova Scotia. Then, find out what their eligibility criteria are to ensure you meet these requirements before applying.
Step 2: Apply
Fill out the lender’s application, whether online or in person. Make sure all information is accurate and complete, and provide necessary documents, like your pay stubs or bank account information.
Do note that many online lenders use instant bank verification (IBV) as part of the application and approval process, which allows them to securely and accurately verify your bank account information and your identity. With IBV, the process is streamlined and expedited, allowing for faster approval without sacrificing accuracy and security.
Step 3: Get Approved & Funded
Payday lenders are typically quick when it comes to approving loan applications and funding. Typically, you can get approved and funded the same day you apply.
Your Rights As A Payday Loan Borrower In Nova Scotia
In Nova Scotia, payday loan borrowers have many rights under the Consumer Protection Act and the Payday Loans Regulation, as mentioned. Before you apply for a payday loan, get familiar with the following:
| Loan Amounts | Up to $1,500 |
| Loan Terms | No longer than 62 days |
| Cost Limits | Maximum fee of $14 per $100 borrowed |
| Cooling-Off Period | 48 hours |
| Rollovers | – Permitted, with limits to what lenders may charge – Maximum fee for a replacement loan (ie. rollover loan) is 5% |
| Disclosures | – Cost of borrowing must be clearly displayed in the place of business – Total amount owed, including interest and all fees in loan agreement – Licensing must be clearly displayed |
| Lender Licensing | All payday lenders in Nova Scotia must be licensed in the province |
| Default Charges | – Interest up to 30% for late payments – Maximum NSF fee of $20 |
Learn more: Do You Know Your Payday Loan Rights?
What Happens If You Miss A Payday Loan Payment?
If you miss a payday loan payment in Nova Scotia, several things can happen. That said, payday lenders in Nova Scotia must adhere to regulations in the province that limit what lenders can do in the event of loan default.
| Maximum Penalty Fees | – Up to 30% of the default amount per year – Up to 2.5% per month on the overdue amount beginning the day after the loan due date |
| Maximum NSF Fees | Up to $20 for a late payment |
| Collections Actions | Lenders may contact you to request payment via phone calls, emails, letters, or in-person visits. However, they must not: – Harass you or your family – Contact you before 7am or after 9pm – Contact you outside business hours or on weekends/holidays – Threaten to repossess your assets without authority – Mislead you with falsified court documents |
Source: Novascotia.ca
How To File A Complaint Against A Lender In Nova Scotia
As noted, payday lenders in Nova Scotia have rules to follow when dealing with borrowers. If you believe that your rights are being violated, you can file a complaint with the Consumer Protection Office in the province. Your complaint must be in writing and include as much relevant information as possible.
| By Mail | Public Enquiries – Service Nova Scotia PO Box 2734Halifax, NSB3J 3K5 |
| By Phone | 902-424-52001-800-670-4357 |
| By Email | askus@novascotia.ca |
| By Online Form | Submit this form online |
How Much Will Your Payday Loan Cost You?
Before you take out a payday loan, you should understand the exact amount it will cost you, including all interest and fees. As noted earlier, the most a payday lender in Nova Scotia can charge is $14 per $100 borrowed.
To help you get a sense of how much you can expect to pay for a payday loan, here are a few loan amounts, their respective fees and rates, and the total amount for each:
| Loan Amount | Cost To Borrow | Total Loan Cost |
| $100 | $14 | $114 |
| $200 | $28 | $228 |
| $300 | $42 | $342 |
| $400 | $56 | $456 |
| $500 | $70 | $570 |
| $1,000 | $140 | $1,140 |
| $1,500 | $210 | $1,710 |
Learn more: Payday Loan Interest Rates
Before Getting A Payday Loan, Know This:
The payday lending sphere is a unique one, given the high cost, short repayment terms, and urgent cash needs that characterize this field of financing. As such, there are a couple of key things to watch out for before considering a payday loan in Nova Scotia:
- Watch Out for Scams. Not all payday lenders operate legitimately; some may use predatory tactics or hide fees. Be cautious of lenders who don’t disclose costs up front, guarantee loan approval without properly vetting you, or demand upfront payment before you get the loan.
- Payday Loan Debt Cycle. Payday loans come with very high interest rates, making them very expensive. Their short repayment terms and lump sum repayments also make these loans tough to repay on time. Some borrowers end up taking out new loans to pay off old ones, which can lead to a cycle of debt that’s tough to get out of.
Does A Payday Loan Make Sense For You?
Considering their high costs and short repayment terms, payday loans are only worth it in certain circumstances:
- You’re Struggling With Poor Credit: If your credit score is less than perfect and you can’t get approved for other types of financing, payday loans may offer a quick solution. Instead of your credit score, lenders just need proof of income, a valid address, and a chequing account.
- You Need Cash Fast: Payday loans are designed for speedy funding. You can receive your funds in as little as a few hours after applying, making payday loans a viable option if you’re in urgent need of cash.
Other Ways To Get Quick Cash In Nova Scotia
If your financial struggles are temporary and you’re still able to cover small loan repayments, consider the following options:
| Program | Description |
| Credit Card Cash Advances | If you have a credit card, you can get a cash advance, but be aware of high rates. |
| Personal Loans | You can apply for a personal loan from a bank or online lender, depending on your credit score. |
| Small Advances & Credit Lines | These companies provide small cash advances and credit lines: – Nyble offers a zero-interest line of credit up to $250, which can also be used to build credit. – Bree offers interest-free cash advances up to $500 to help cover urgent bills or avoid NSF fees. |
Having Financial Trouble? Consider Getting Professional Help
Payday loans are risky. If you’re in need of financial assistance but want to avoid the potential risks that come with payday loans, consider the following alternatives:
Government Assistance Programs In Nova Scotia
You may qualify for various provincial government programs if you’re struggling financially:
| Income Assistance | Learn More |
| Nova Scotia Child Benefit | Learn More |
| Disability Support Program | Learn More |
| Affordable Living Tax Credit | Learn More |
Debt Relief
If your financial situation is too difficult for you to clear on your own, consider speaking to a credit counsellor to review your debt relief options:
| Program | Description |
| Debt Consolidation Program | This program combines several debts into a single monthly payment, over up to 5 years. |
| Consumer Proposals | This is a formal offer to your creditors to settle your unsecured debts. Your credit score will take a hit. |
| Bankruptcy | This is a legal process that can help you discharge your debts. You may need to surrender your assets (with exceptions), and your credit score will be significantly affected. |
Bottom Line
Payday loans in Nova Scotia can be a lifesaver if you’ve got poor credit and are in urgent need of funding to cover a last-minute expense. However, they’re very expensive and can quickly lead to a cycle of debt that can be difficult to escape. Only consider a payday loan if you’ve looked into all other options and if you’re sure you can make the full repayment by the due date.
