There are plenty of different financial situations and emergencies that can come up over the course of your life and, when that happens, it can be a huge relief to have same day access to some extra funds. Luckily, there are many ways to get approved for same day loans with decent conditions and rates in Canada.
Can You Get Same Day Loans In Canada?
If you’ve got a real financial emergency on your hands, Canada has plenty of lenders (mostly online) that can offer you a loan on the same day. All you have to do is fill out an application, provide the right documents, sign the authorization form, and wait for a response from the lender by phone or email.
During the approval process, most online lenders will ask for your banking information to send you the funds by direct deposit or Interac e-Transfer. Make sure to apply within the lender’s hours of operation for the best chance of receiving your loan the same day.
Where Can You Get Same Day Loans In Canada?
Same day loans are also beneficial because you can apply for them outside of your bank or credit union, where approval requirements are more strict and having bad credit or a low income can get you denied. Don’t panic, because there are a ton of alternative same day lenders across Canada that offer easier restrictions and better conditions.
How Do Same Day Loans Work?
As mentioned, many same day loans come from online lenders, and you can apply on the lender’s website, over the phone or using their mobile app. Unlike some bank loans in Canada, most same day loans have a fast and easy application process, along with minimal approval requirements and a decision from the lender in less than 10 minutes.
Once you get your approval notification, you can look over the terms and conditions of your loan, give the lender your consent, then receive the funds in your bank account on the same day. Depending on what type of loan you borrow, your repayment period can last anywhere from a few weeks to a few years. Common same day loans include:
Installment Loans
Most installment loans are unsecured cash loans, so you don’t have to provide any down payment or security. While unsecured same day loans can feature higher interest rates, you get to repay them in equal segments over a set period, which can be more affordable and less risky in the long run.
Title Loans
This secured loan involves a similar payment process, only you must give the lender collateral to qualify, like a car title. Although the lender can seize your asset if you miss too many payments, you may be eligible for better rates and more cash. After you pay your loan back in full, the title is released back to you.
Payday Loans
Many payday lenders offer loans within the same day and sometimes within a couple of hours. They have low requirements but very high-interest rates. Moreover, loan amounts are small (capped at $1,500) and must be repaid in one lump sum by your next payday.
How Do You Qualify For A Same Day Loan?
The minimum approval requirements for same day loans are more lenient than with a lot of other credit products, particularly from banks and credit unions.
Here are some general requirements for a same day loan:
- You must be the age of majority in the province you reside in.
- You must be a permanent resident or citizen of Canada.
- You must have a source of income (some may accept alternative sources of income)
Borrow Up To $50,000
Documents For A Same Day Loan
You will also need a few different documents to apply, such as:
- Government photo identification (driver’s license, passport etc.)
- Proof of your permanent Canadian address (utility bill, phone bill, etc.)
- Proof of your income and employment source (paystub, job history, etc.)
- Your latest bank statements (you need an account with direct deposit)
- A preauthorized debit form or VOID cheque (for automatic payments)
- Your cosigner’s personal and financial information (if you are using a cosigner)
How To Apply For A Same-Day Loan
In Canada, applying for a same day loan is relatively easy, especially if you choose an online lender. Every lender has a slightly different process but here are the basic steps:
- Fill Out An Application – Go to the lender’s website and complete your loan application. During the process, you may have to submit documents to prove that you’re a Canadian resident who’s over the age of consent in your province (18 or 19+), and that you have a regular income and active chequing account, such as:
- One or more pieces of government photo ID (driver’s license, etc.)
- Your most recent bank and income statements
- A utility bill or other document with your permanent address
- Your contact information (name, address, Social Insurance Number, etc.)
- Wait For A Response – Once your application is sent, the lender’s decision should be pretty quick. However, the process might take longer and the loan may have higher costs if you apply with a bad credit score or non-traditional income.
- Sign The Agreement – After you qualify, you’ll get an offer with the loan’s details, including the maximum amount you can borrow, as well as its fees, interest and payment term. If everything looks good to you, just agree and sign your contract.
- Receive The Money – If your application and consent form are acceptable, the lender will deposit your funds directly into your bank account within 24 hours. Some physical lenders can also offer you an e-Transfer, cheque or cash amount.
- Repay Your Loan – The final step is to repay your loan, which you should always do on time to avoid late fees or extra interest. If you wish to save on interest and reduce debt, some lenders allow penalty-free prepayments (early payments) too.
What Are The Benefits Of A Same Day Loan?
Perhaps the greatest benefit of a same day loan is how quickly you can get your money. Many same day loans are deposited within hours, even minutes of being approved. Here are some of the other major benefits of the average same day loan:
- Easier Approval – Compared to some credit products, same day loans often have fewer requirements and personal/financial documents to fill out. In most cases, the application process can be completed online in a matter of minutes.
- Bad Credit Friendly – If you have a bad credit score (300 – 559), it can be hard to get approved by a bank or other prime lender. However, many same day loan lenders are more lenient and won’t check your credit if your finances are healthy.
- No Security Required – You often need to have collateral or a cosigner to get approved for a larger, more expensive loan, which isn’t usually a requirement for same day loans (although this is sometimes an option).
- Instant Cash – Since a same day loan is fast liquid money that’s deposited directly into your bank account, you can use it to cover almost any common expense or financial emergency that comes your way.
What Else Should Be Considered When Applying For a Same Day Loan?
Despite the many benefits that same day loans offer, it’s essential to consider all factors and think carefully before you give away any of your personal or financial information. For instance, here are some of the associated costs you’ll have to budget for:
- Interest Rate – While interest rates can vary according to several factors (income, current debts, etc.), the general rule is that the more risk you present as a potential client, the higher and less affordable your rate will be overall.
- Penalties – No matter how responsible of a client you are, you can still be charged a penalty for any late, short or missing payments. Not only can defaulting damage your credit, but it can also lead to serious financial problems, like uncontrollable debt.
- Hidden Fees – Every lender charges different fees for their services. However, there are many that won’t inform you about their fees until your payments start or your term ends. This can include loan origination, document processing, etc.
- The Final Cost – Although your same day loan might be affordable at first, you never know what can happen in the future. Only apply for a loan if you can easily cover all payments, interest, and fees.
| APR | Monthly Payment | Total Interest | Total Cost |
| 10% | $87.92 | $54.99 | $1,054.99 |
| 20% | $92.63 | $111.61 | $1,111.61 |
| 30% | $97.49 | $169.85 | $1,169.85 |
How To Choose A Same Day Loan Provider?
Sadly, one of the major advantages to a same day loan can also be one of its biggest flaws. Since same day loans may only be found with private lending companies, they can be harder to regulate than traditional bank loans. If you’re not careful, this can lead to scamming, identity fraud, and predatory interest rates.
Thankfully, there are a few precautionary measures you can take to make sure you apply with the best same day loan provider possible, including but not limited to:
- Research and compare several lenders in your area
- Make sure they specify their rates and fees (on website, contract, etc.)
- Check their customer reviews, ratings, and complaints
- Look up their company name in the Better Business Bureau database
- Confirm that they have a legitimate address and credentials
- Speak with their customer support and get a price/rate quote
How Can You Tell Your If Your Same Day Lender Is A Scammer?
Here are some red flags that can tell you if a same day loan provider is fake or predatory:
- Their website lacks vital information (fees, rates, terms, etc.)
- Their salespeople are pushy, rude, or they refuse to answer your questions
- You cannot find any legitimate details about their company
- They charge interest rates that are higher than the legal limit in your area
- They have a 100% approval rate, regardless of who you are
- They charge a “security” or “approval” fee before your loan is deposited
What Can You Use A Same Day Loan For?
As mentioned, a same day loan will be deposited into your bank account as cash, so you can use it to cover all sorts of expenses. That said, any loan is a debt that you must repay at some point, so you should only be spending the money on things that are absolutely necessary or totally unexpected, including but not limited to:
- Emergency expenses
- Unplanned travel
- Car repairs
- Emergency home repairs or expenses
- Medical expense
Are Same Day Loans A Payday Loan?
If you’ve been researching same day loans in your area, chances are you’ve come across the idea of taking out a payday loan, which has a similar approval process and can also be deposited within a single business day. However, payday loans are actually quite different from more traditional same day loans because they:
- Are much easier to qualify for (minimal approval restrictions)
- Generally, come in maximum amounts of $100 – $1,500
- Have average payment terms of only 14 days following deposit
- Have extremely high-interest rates (sometimes over 400% APR)
Dangers Of A Payday Loans vs Same Day Loans
Unfortunately, their short repayment terms, combined with their sky high-interest rates can make payday loans very unaffordable, even predatory in nature. For years, many provinces and territories have attempted to impose stricter regulations or even ban payday loans altogether, because of the financial harm they’ve caused to Canadians.
Essentially, while same day loans have their own drawbacks, you should only apply for a payday loan if you have no other choice and can find a legitimate, trustworthy lender.
Looking For The Best Same Day Loans?
Searching for any credit product can often be time-consuming and stressful. If you’re having trouble finding the right lender or loan for your needs, we can help. Our online loan comparison platform can help you compare offers and find the best options.
