The pandemic has forced many people in Canada to leave their jobs, resulting in financial pressure until they find new employment. You are trying to get a better job with more pay, or at least the same pay, to make ends meet. But what are you doing about meeting regular monthly expenditures and unexpected financial crises that appear at any time?
The best way to generate cash if you’re unemployed is by applying for instant approval loans in Canada. Payday loans with government benefits are available in Canada for people who are unemployed and looking for work. Or at least received an appointment letter and will be joining in the coming weeks.
What Are Loans For Unemployed Canada?
Are you not having a job at the moment? You might be looking for a particular professional opportunity to lead a comfortable life. Till then, Canadian government benefits for the unemployed people might be helping you survive. Being jobless is something of a surprising concern. Especially after the unexpected outcome of the pandemic, several people lost their employment in Canada. Despite that two things saved the life of unemployed people around.
One is the employment insurance or the government benefits given by the Canadian authorities to financially help jobless people. Secondly, reliable online lenders offering payday loans for the unemployed on benefits Canada to assist in arranging external cash. Even now, payday loans for unemployed people are still relevant among jobless people to arrange an extra set of funds with ease.
It is because handling an unexpected financial situation that demands quick fiscal assistance with no further delay. So, if you have no job at the moment, living your life on limited unemployment benefits, and still face monetary urgency, then the offered loan is for you. Therefore, it is essential for you to understand the ins and out of payday loans for unemployed on benefits in Canada. Simply devote 5-min of your precious time to have a better understanding of this particular loan offer.
Unemployment Loans in Canada
An unemployment loan in Canada is a financial service offered for people who are unemployed and looking for emergency cash. Guaranteed payday loans are offered at high-interest rates, especially for those without a steady income. The loan amount can be anywhere from $200 to $1500, depending on the borrower’s ability to repay. The loan must be repaid within 2 weeks.
Interest rates on loans vary depending on which region of Canada you are in. Apart from Quebec, it is clearly stated that the interest is charged based on per $100 you borrow from the loan. If you borrow $100, you will be charged an extra $15, which comes to around $115. If you borrow an amount like $500, the interest rate comes to approximately $60, and the total comes to about $560.
| Province | Maximum Available Cost of Borrowing |
| Alberta | $15 per $100 borrowed |
| British Columbia | $15 per $100 borrowed |
| Manitoba | $17 per $100 borrowed |
| New Brunswick | $15 per $100 borrowed |
| Nova Scotia | $19 per $100 borrowed |
| Ontario | $15 per $100 borrowed |
| Quebec | Limit of 35% annual interest rate (AIR) |
How Does This Payday Loan Work?
As you already know the fact that traditional loans are complex ones and comprise several steps to get the final approval. On the flip side, payday loans for unemployed benefits in Canada are simple to apply for financial offers and work in a seamless manner. Since these are short-term loans, the repayment period will also be small, 62 days. In this period itself, you have to make the repayment of the acquired loan amount along with the interest charges, and that too in a single go.
In order to apply for the same, it only takes 5-10 min of your time to fill up the digital loan application, send relevant minimal documents, and wait for the approval. Based on your unemployment status and receiving benefits amount from the Canadian government, you will receive the approval in the shortest possible time. And funds are transferred into your bank account on the same day.
Who Can Be Eligible?
To apply for loans for the unemployed, you must meet these basic requirements:
- Be over 18
- Be a citizen of Canada
- Hold a Canadian bank account
- Have a source of income (may benefit if you do not hold a job)
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- Income Information: – (pay cycle, income type, income amount)
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Top Features of Loans For Unemployed
You can apply for guaranteed payday loans in Canada online and get instant approval and funding.
- Some lenders offer same-day loans for people without income in a 24×7 running environment.
- Bad credit has nothing to do with the loan application. It is clearly understood that you are applying because of job loss and inability to pay previous debts.
- As mentioned, the loan amount falls anywhere between $200 to $1500, respectively.
- Depending on your repaying capacity, you will get two weeks to 2 months to repay the loan.
- Non-employment is okay with the lenders, only if you receive unemployment benefits.
What Is Employment Insurance In Canada?
Employment insurance in Canada is a specialized financial benefit available for unemployed individuals who have no such source of income. According to the Canadian authorities, jobless people should get at least bar minimum financial aid to lead their life stably and look forward to finding several job opportunities ahead.
Therefore, the government supports unemployed people to receive a small amount of cash every month. Now, this monthly benefit payment can be considered as jobless people’s income which is more than enough to become eligible for payday loans for the unemployed in Canada. Therefore, if you are living your life under the employment insurance plan, then you can apply for a short-term loan online
How to Know Whether The Loan is Right For You?
Borrowers in Canada can apply for payday loans with government benefits in Canada if they have no source of income. The answer is to meet your fiscal issues only; such loans are offered without looking at your employment profile. Private lenders want to help you get out of debt by offering short-term loans that are approved quickly.
Make sure to apply for employment benefits from the Canadian government if you have lost your job. You will need to provide a valid reason for why you lost your job. Once you fall into this category, you can determine that you are up for this loan offer.
Things to Consider Before Applying for Unemployed Loans in Canada
Can You Repay The Loan On Time?: – The very first thing you need to consider is your repayment capacity. Being unemployed can make it difficult to get a loan, but being on employment insurance can help. So, for this, you need to showcase your monthly expenditures ratio compared with whatever financial benefits you receive. It should not be the case that your expenses can be of a luxurious kind. Still, you are unemployed and applying for emergency loans without job verification in Canada.
Repayment Plans: – You need to check with the lender about different repayment options that you are most comfortable with. The repayment period for a high-interest loan can be 2 weeks to 3 months. You can either pay the loan off in one lump sum or in equal installments.
High APR: – Such loans have a higher Annual Percentage Rate (APR), which means you will be charged higher interest rates and fees.
Automatic Payments: – Since it is offered for unemployed individuals, so there is not any paycheque received from a company. But you must have unemployment benefits from the Canadian government. You can have the loan amount automatically debited from your bank account each month.
What Is The Cost Of Payday Loans For Unemployed People?
Apart from the benefits, it is further essential to know the cost of this payday loan. With cost, we mean the interest charges levied on your borrowed amount. And it differs from province to province in Canada. Therefore, we have enlisted the rate of interest for specific regions in Canada.
| Province in Canada | Max Cost Per $100 Borrowed | Max Penalty for Returned Cheque |
| British Columbia | $15.00 | $20.00 |
| Ontario | $15.00 | N/A |
| Alberta | $15.00 | $25.00 |
| New Brunswick | $15.00 | $20.00 |
| Manitoba | $17.00 | $20.00 |
| Nova Scotia | $19.00 | $40.00 |
| Quebec | 35% AIR | N/A |
| Prince Edward Island | $25.00 | N/A |
| Newfoundland and Labrador | $21.00 | $20.00 |
Preplanning Before Applying for Unemployment Loans
Mainly, you must do three things in advance before applying for an instant approval loan online. Order a copy of your credit score and correct the inaccuracies in that. It can be asked the lender to submit your poor credit report based on which will decide the exact loan amount. Always compare the loan offers from different lenders before applying.
Also, stay away from the frauds and scammers running everywhere behind you. Be sure to have your documentation in order before meeting with a lender. This should include personal details, past employment information, a list of monthly expenses, employment status, and any other required papers.
Frequently Asked Questions
Can I Apply For A Loan While Receiving Unemployment Benefits?
You can apply for an instant cash loan even if you are receiving small fiscal benefits from the Canadian government’s rule.
Is That Possible To Get A Loan On Employment Insurance?
Yes, you can apply only for short-term online loans while living your life with employment insurance. It is a special financing offer available for jobless people in Canada to source necessary funds in the shortest possible timeline.
Does The Lender Consider My Employment Insurance As Income?
Definitely, yes, payday loans for unemployed loan lenders do consider your employment insurance payment as your source of income. Although, limited still it is considered and lets you apply for e-transfer short-term loans without facing any hassle.
How Can I Spend The Loan Money?
That’s totally up to you. There is no such boundation to spend the loan amount on a particular set of things. Depending on your financial emergency, utilize the funds of your own accord without asking anyone for permission.
Does My Unemployment Effects The Loan Approval?
Not at all. It is because the loan offer is meant for unemployed Canadian citizens with no source of income. Even if you receive unemployment benefits from the government, you can still apply for online payday loans with instant approval in Canada.
What if I Did Not Get Guaranteed Approval?
If you are rejected for a loan, you will be given other financial options to get the cash you need.
Final Note
If you’re unemployed due to the current economic situation in Canada and need help meeting your financial obligations, we can help. PaydayCity offers loans for unemployed borrowers that are profitable and result-oriented, so you can get instant cash without going elsewhere.
