Same Day Loans

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 a same day loan with decent conditions and rates in Canada.

How Do Same Day Loans Work?

Generally speaking, a loan is when you borrow a specific amount of liquid cash from a physical or online lender and repay it in divided installments over several weeks, months or years. In most cases, the loan amount is deposited as one lump sum, directly into your bank account soon after your application has been approved. 

As its title suggests, a same day loan is when the lender deposits said cash within 24-hours, unlike with some larger loans (mortgages, car financing, etc.), which can take days or weeks to be approved and processed. Due to this convenience, same day loans are typically smaller and have shorter repayment terms.

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 expenses

Is a Same Day Loan 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)

To qualify for a payday loan, you only need to prove that you’re past the age of majority in your province (18 – 19+) and have a regular source of income (at least $1,000 – $2,000 monthly). Same day loans, on the other hand, can be larger, have longer payment terms and require more personal/financial information to be approved.

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. 

Check out how payday loans can trap you into a cycle of debt. 

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 – 600), 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.

Where Can You Get a Same Day Loan?

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.

Best Personal Loans Providers in Canada

	Amount	APR	Term (Months)	Type of Loan
	Up to $35,000	26.99% - 39.99%	6 - 60	Secured & unsecured	More Info
	Up to $15,000	29.99% - 46.96%	9 - 60	Personal loan	More Info
	$5,000 - $35,000	5.9% - 45.9%	12 - 60	Personal loan	More Info
	$1,000 -$35,000	5.99% - 29.19%	36 – 60	Persona loan	More Info
	Up to $5,000	19.9% - 45.9%	3 - 36	Personal loan	More Info
	Up to $10,000	43%	36 - 60	Guarantor loan	More Info

How Can You Choose the Right Same Day Loan Provider?

Sadly, one of the most 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

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

Additional Reading

Personal Loan Alternatives

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How Do Secured Personal Loans Work?

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Have You Made These Mistakes on a Personal Loan Application? 

Read Post

How Do You Qualify For a Same Day Loan? 

As mentioned, 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. Nonetheless, you will 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)

Increase your odds of approval and check out what lenders look at when assessing loan eligibility. 

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.

Looking For the Right Same Day Loan? 

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.