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.
Loan Amount Interest Rate Term Province Availability $500 to $35,000 9.99% - 46.99% 6 - 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 $120 - $1,500 Varies by province* Max 62 days BC, AB, SK, MB, ON, NS Learn More $500 - $750 Varies by province* 90 to 120 days BC, AB, ON, PEI Learn More Up to $1,500 Varies by province* Up to 62 days BC, AB, ON Learn More $50 - $1,500 Varies by province* 14 days BC, AB, SK, MB, ON, NS Learn More $50 - $1,500 Varies by province* Up to 31 days BC, ON, NS Learn More $200 - $1,500 Varies by province* Next payday BC, AB, SK, NS, YT, NT, NU Learn More Up to $1,500 Varies by province* Next payday BC, ON Learn More Up to $1,500 Varies by province* Max 62 days BC, AB, SK, MN, ON, NB, NS, NL, YT, NT, NU Learn More
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:
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.
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.
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 – 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.
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 40% $102.47 $229.66 $1,229.66
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
Increase your odds of approval and check out what lenders look at when assessing loan eligibility.
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.
Check out how payday loans can trap you into a cycle of debt.
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.
Same Day Loan FAQs
How much money can I get from a same day loan?
What happens if I can’t make my loan payment on time?
Can I get a same day loan if I have bad credit?
Do I need to be employed to get a same day loan?
How do same day loans work?
|Accrued Interest||Interest that is earned by an individual, but not yet received. Or, interest that is owed, but not yet paid. Interest is typically earned or payable after a certain period of time, such as a month or a year, which is why it can accrue.|
|Annual Percentage Rate (APR)||The interest rate you pay over a full year in exchange for borrowing. An APR is expressed annually but is typically charged monthly. You can determine the total monthly interest you’ll pay on debt by multiplying the borrowed amount by the APR and then dividing by 12.|
|Assets||Anything that has financial value is considered an asset. In order to reap the benefits of an asset, you must also own it as an individual or business. When it comes to debt, usually only real estate, jewellry, vehicles, and investments are considered assets.|
|Borrower||An individual or entity that takes something (for example money or equipment) with the intention of returning it to the original owner. When the borrower it taking out a loan, there is usually an agreement involved and applicable interest.|
|Cash Advance||A cash withdrawal from a credit card. Cash advances are a very expensive form of financing as the interest rate on the borrowed amount is higher and there is often a flat fee. In addition, interest becomes effective immediately after you withdraw the cash, instead of after the balance due date.|
|Co-Borrower||An individual who shares an obligation of something that was borrowed with one or more people. All co-borrowers listed on an agreement are fully responsible for repaying the obligation.|
|Collateral||Any asset that is used to secure debt. In the event that the borrower defaults on the loan, the lender has the right to seize the asset and sell it to cover the owed amount. Collateral is also commonly referred to as security.|
|Cosigner||An individual who agrees to make your loan payments and otherwise be responsible for your debt in the event that you default on the loan. Using a cosigner is a popular option for individuals who have trouble securing debt on their own.|
|Cost of Borrowing||All of the costs a borrower incurs when borrowing an asset or money. Examples of borrowing costs include legal fees, interest, loan origination fees and penalties.|
|Debtor||An individual or entity that owes a sum of money to a creditor.|
|Delinquency||Failure to pay the minimum payment on a loan or account on or before the agreed-upon payment date. Delinquency is typically categorized in 30, 60, 90 or 120 days since lenders typically have monthly payment cycles. Delinquent accounts may eventually turn into defaulted accounts.|
|Dependent||An individual who relies on another individual for financial support. Usually, this refers to a family member, common-law partner or spouse who is unable to financially support themselves.|
|Equity||The market value of an asset you own less the amount still owed (including any additional fees to sell or repay debts) on the loan used to purchase the asset if any. Equity increases when you pay down the debt as well as when the value of the asset increases. Equity can be calculated at any point in time and is also referred to as lendable value or net value.|
|Installments||A payment schedule that breaks up an owed amount of money into several equal amounts, otherwise known as installments, which are paid over an agreed period of time.|
|Loan||An amount of money that is borrowed by one entity from another with the expectation that the amount will be paid back. Interest is typically applied on the owed amount.|
|Loan-to-Value Ratio (LTV)||The ratio of what amount was borrowed to purchase an asset in relation to the market value of that asset. The formula would be: the total amount borrowed for the purchase divided by the total selling price of the asset. The borrowed amount can differ from the selling price if the individual makes a down payment, for example. In general, the lower the LTV, the more favourable the terms of the financing will be.|
|Payday Loans||A short term, small loan that a borrower promises to repay on their next pay day. Payday loans are known to be an expensive and risky form of financing that makes it challenging for the borrower to repay and manage.|
|Payment Period||The period of time over which a borrower is obligated to make a payment. Payment periods could be weekly, bi-weekly or monthly, sometimes even longer.|
|Prime Rate||The prime rate advertised by a lender is typically based on the Bank of Canada’s interest rate that is set each night, which may change at any time.|
|Principal Balance||The total remaining balance of a loan, without considering interest and other fees.|
|Secured Loan||A loan that is secured by an asset known as collateral or security. In the event that the borrower defaults on the loan, the lender has the right to seize the asset securing the loan and sell it to repay the owed amount. This type of loan bears less risk for the lender, but more risk for the borrower.|
|Unsecured Loan||A loan that is not secured by an asset known as collateral or security. In the event that the borrower defaults on the loan, the lender will not have the opportunity to seize the collateral or security to repay the owed amount. This type of loan bears more risk for the lender, but less risk for the borrower.|