📅 Last Updated: September 30, 2021
✏️ Written By Bryan Daly
🕵️ Fact-Checked by Caitlin Wood
Filters
Loading...
Loans Canada
Loans Canada
Amount
Up to $50,000
Rate
Prime to 46.96%
Term
3-60 months
Fora
Fora
Amount
$1,000 - $10,000
Rate
19.69% - 46.9%
Term
Varies
Spring Financial
Spring Financial
Amount
Up to $35,000
Rate
9.99% - 46.96%
Term
6 - 60 Months
Fairstone Financial
Fairstone Financial
Amount
Up to $50,000
Rate
19.99% - 39.99%
Term
6 - 120
Cash Money
Cash Money
Amount
$1,500 – $10,000
Rate
Varies by province
Term
Varies
Mogo Finance
Mogo Finance
Amount
Up to $3,500
Rate
9.9% - 47.72%
Term
-
easyfinancial
easyfinancial
Amount
$500 - $100,000
Rate
9.99% - 46.96%
Term
Varies
LoanMeNow
LoanMeNow
Amount
$500 - $1000+
Rate
28% to 32%
Term
3 Months
Nyble
Nyble
Amount
$150
Rate
No Cost!
Term
-
Bree
Bree
Amount
Up to $250
Rate
No Cost!
Term
-
goPeer
goPeer
Amount
$1,000 - $25,000
Rate
7.5% - 31.5%
Term
36 - 60 months
Unfortunately we couldn't find you a provider with the given filters

The payday loan cycle is a serious obstacle that can affect many consumers. Nevertheless, these payday loans in Quebec are a common source of financing for a lot of residents in the province.

Payday loans are popular in Quebec because:

  • They offer fast, often same day approval, which is good if you’re experiencing a financial emergency or you don’t have a credit card
  • Your credit health is not a factor (no credit check is necessary)
  • Proof of 3 months stable income, an active chequing account, and your home address are the only real requirements for approval

Payday loans are dangerous because:

  • They come with extremely high-interest rates (sometimes 400-500% annual percentage rate), along with miscellaneous fees and penalties for defaulting
  • Despite their relatively small amounts (less than $2,000), these costs make them the most expensive credit products in Canada
  • You generally only have 14 days to repay the loan in full (the time until your next paycheck would arrive)
  • If you don’t manage to make the 14-day cut-off point, your combined penalties, interest and debt could lead you down a steep path to the payday loan cycle
  • Scammers and predatory lenders might use your need for fast cash as a way to commit fraud or identity theft, or to charge you ridiculous prices

The True Cost of BorrowingTake a look at this infographic to learn all about the true cost of borrowing.

Quebec Has Effectively Banned Payday Loans

Thankfully, the Quebec Government recently reduced its AIR (annual interest rate) limit to 35%. This has made it unprofitable and nearly impossible for payday loan lenders to operate legally within the province.

Having trouble understanding APR (annual percentage rate) and AIR? Click here.

Better Alternatives to Payday Loans In Quebec

Since payday loans in Quebec are now outlawed, if you’re looking for some relief from your debts, there are a few useful alternatives available all over the province, and some that we offer right here at Loans Canada. While your approval and interest rate for many of these options will depend on the health of your credit and finances, rest assured that when handled responsibly, they will likely be cheaper than the average payday loan.

Alternatives for Emergencies and General Expenses:

  • Installment Loans – A form of personal loan, these are meant to be paid back through equally divided payments (although you can sometimes negotiate with your lender to make advance payments, reducing your loan term). Like payday loans in Quebec , they can be used to finance almost any expense you can think of but will come with a far lower interest rate, saving you more money in the long run.
  • Credit Cards – As long as you don’t overuse them, credit cards are a simple, effective way to pay for the things you need. Just make all your payments on time and in full. If you can’t make full payments, at least try to remain above the designated minimum payment to avoid penalties.
  • Home Equity – There are several different ways of accessing your home equity, such as a HELOC or a second mortgage. You can then use your equity to cover your expenses. Be warned, however, that with a second mortgage, your home may be held as collateral and you’ll have 2 mortgage payments to deal with. If you fail to make your payments on time, you could be risking a foreclosure.
  • Car Title Loans You can also use your car or another vehicle as leverage to borrow cash, assuming you’ve paid it off in full. Again, be very careful with this option, as your vehicle’s title will be forfeit in the event that you default on your payments for too long.
  • Friends and Family – One of the simplest options of all, there’s no shame in asking the people you trust for a bit of financial aid!

Check out the difference between a payday and personal loan.

Alternatives for Serious Debt Issues:

  • Debt Consolidation Loans When your debts are reaching worrisome levels, the first step you can take is to apply for a debt consolidation loan through your lender. If approved, you will be borrowing one loan that’s large enough to eliminate most of your smaller debts, leaving you with a single payment to keep track of. However, these loans are not always easy to qualify for and not all types of debt will be covered, so ask your lender what you need to be approved. Will a debt consolidation loan look bad on your credit report? Find out here.
  • Credit CounsellingWhile it’s not specifically reserved for Quebecers in serious debt, credit counselling is another beneficial service that can help you when you’re struggling with your finances. Even if all you want is a bit of financial education, licensed credit counsellors can make a huge difference in your life.
  • Debt Management Programs The next step you can try, with the help of your credit counsellor, is a debt management program. If your debt level is becoming uncontrollable, they can reach out to your lenders in an effort to negotiate a payment plan that works for your finances. However, not all lenders will agree to these programs, so ask your counsellor if this is the right path for you.
  • Debt SettlementsAnother method you can try on your own or with your counsellor is a debt settlement between you and your lenders. If the agreement goes through, your total debt should be reduced, then consolidated with one large payment or several smaller ones. Want to know how a debt settlement affects your credit? Take a look.
  • Consumer ProposalsWhen your debt is so uncontrollable that no creditors will accept any other method of payments, you could try filing a consumer proposal. This is another instance where you may be able to settle your debt for less than you actually owe. However, in this case, you’ll have to work with a licensed insolvency trustee, who will draw up a legally binding contract between you and your lenders, where the terms are fair for both parties involved.
  • Personal Bankruptcies – This service should truly be reserved for Quebecers who have no chance of paying their debts within a reasonable timeframe. If you owe too much and you’re being pursued by debt collectors, it may be time to consider your last resort, declaring personal bankruptcy. Again with your insolvency trustee, you’ll be entering a court agreement that relieves you of your debts in exchange for your assets (home, car, valuable property, etc.), followed by several years worth of payments.

How to Break The Payday Loan CycleIt’s possible to break the payday loan cycle, check out this infographic to learn now.

Online Payday Loans In Quebec

While physical payday loan locations across Quebec no longer exist, you may still come across payday loan lenders who operate online. Be extremely careful, as this is one way that scammers and predatory lenders can still get their hooks into your finances. Since online sources are much harder to regulate, it’s difficult for the Canadian Government to get these websites shut down. And since payday loans are normally easy to get, many borrowers in desperate situations don’t consider the inherent risks before handing over their personal and banking information.

Watch this video to know how you can identify a loan scam.

Many legitimate payday loan lenders do have an online presence. That being said, if you’re determined to apply, always make sure to do extensive research into every lender’s background. If they seem to have a bad reputation, seemingly fake customer reviews, or their company doesn’t show up in the Better Business Bureau database, do not give them any information and walk away immediately.

Read this to know more about online payday loans in Quebec.

Frequently Asked Questions

Are payday loans banned in Quebec?

Payday loans are not explicitly banned in Quebec. However, the province does not offer any interest rate exemption to payday lenders as other provinces do. In fact, Quebec has an even stricter annual interest rate limit of 35% as opposed to the Canada-wide 60% limit. Such a rate wouldn’t work with the quick turnaround of payday loans. While the structure of a payday loan isn’t necessarily illegal or banned in Quebec, such a business model simply isn’t viable with that kind of rate.

What are the alternatives to payday loans in Quebec?

Credit cards are already significantly cheaper than payday loans for purchases and even when used for cash advances. If credit cards and traditional institutions are not an option due to poor credit, there are alternative lenders that can offer personal loans. These are typically offered as installment loans and can be repaid in small, manageable installments. Securing a loan by using a vehicle or home equity as collateral will also increase your chances of being approved. It can also get you approved for more funds or a lower interest rate.

Can I still apply for a loan even with bad credit?

While more difficult, it is entirely possible. Banks and major institutions typically won’t lend money to those with poor credit. This means that you’ll need to seek out alternative lending institutions. These alternatives generally do not rely on your credit history to make a decision. They will assess your creditworthiness by verifying your income and existing expenses and debts.

Payday Loan? No Thanks!

All this being said, you may still be wondering if a payday loan is the right way to go when it comes to your unique financial situation. Then again, maybe it’s better to go with a safer choice. That’s where Loans Canada can help. We can match you with an affordable payday loan alternative that can help you regain control of your finances.

More From Our Experts

Home Equity Loans For Seniors
Home Equity Loans For Seniors

As a senior, getting a loan can be more difficult due to lower income and age restrictions. Thankfully, there are many home equity loans for seniors i...

Borrower Rights: High-Interest Loan Legislation In Canada
Borrower Rights: High-Interest Loan Legislation In Canada

To better protect vulnerable borrowers, provinces have enacted legislation that sets boundaries on what alternative lenders can and can’t do.

Need Money Today? Find Out Where You Can Get It
Need Money Today? Find Out Where You Can Get It

Do you find yourself saying "I need my money today" often? Here are some simple and quick ways to get money quickly.

Best Bad Credit Loans in Canada 2024
Best Bad Credit Loans in Canada 2024

These are the best bad credit loan options in Canada right now. An easy list to make an easy choice. Here is everything you need to know!

How Does a Line of Credit Work?
How Does a Line of Credit Work?

A line of credit is a less rigid credit option. You only pay interest on what you use. That means flexibility. Read this article to get the

easyfinancial Loan Alternatives
easyfinancial Loan Alternatives

If you've been rejected a loan from easyfinancial, you'll be happy to know that there are plenty of easyfinancial loan alternatives in Canada.

5 Loans Like Fairstone You Should Know
5 Loans Like Fairstone You Should Know

If you are looking for loans like Fairstone, you can find them on Loans Canada. These Alternative lenders offer secured and unsecured loans.

easyfinancial vs. Fairstone
easyfinancial vs. Fairstone

easyfinancial vs. Fairstone? What is the difference? If you have bad credit, you can get a loan from this one faster

Soso (Paluwagan) Or A Personal Loan: Which Is Better?
Soso (Paluwagan) Or A Personal Loan: Which Is Better?

Maligayang pagdating sa Canada! Welcome to Canada! Do you know what is a soso (paluwagan)? Are they better than personal loans?

When Is The CEBA Loan Due? It’s Been Extended!
When Is The CEBA Loan Due? It’s Been Extended!

Did you get the CEBA loan? The CEBA loan repayment due date is close. Find out when and what can you do avoid default.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers
Caitlin Wood Priyanka Correia Lisa Rennie Bryan Daly Cris Ravazzano Margaret Johnson Kale Havervold Liz Enriquez Sean Cooper Veronica Ott Corrina Murdoch Chrissy Kapralos

A Team of Experts

Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card