Is It Possible to Get a Payday Loan With EI?
Employment Insurance (EI) is a benefit paid by the Canadian government to any Canadian citizen who has lost their job through no fault of their own.
EI can cover many daily necessities, but there may be times when additional financing is needed, such as paying an unexpected medical bill or car repair, and you may need some fast cash to cover this.
A good option is a payday loan, and plenty of payday lenders will consider EI a regular source of income for loan purposes. So you can get a payday loan without affecting your EI.
As long as you can show that you can repay the loan and cover your regular expenses, you should be able to qualify for an EI payday loan while unemployed.
What Should I Know About EI Payday Loans?
- Easy Eligibility - To get a payday loan with EI, you just need to be at least 18 years old, have recurring EI income, and have an active bank account.
- Fast Approval - Payday loans are available online, and since for most lenders the process is fully automated, approval can be instant and the funds can be in your bank account within 24 hours.
- Various Funding Options - If you apply for online payday loans on EI, you can get the money via e-transfer or direct deposit. If you visit a loan store, you can get your loan in cash or through an e-transfer.
- Short Term - The main thing to consider about an EI payday loan is that it must be repaid in a short time frame, usually within a month or when your next EI payment is due.
- Small Amount - The loan amounts are usually small, and some lenders limit first-time borrowers to between $300 and $500, although if you have a good record with a lender you may be able to borrow up to $1,500. Also in some provinces such as Ontario, B.C., Saskatchewan, Newfoundland, and Labrador, the loans are limited to a percentage of the borrower's income, usually up to 50 percent.
- Fixed Fees - Payday lenders tend to charge a fixed fee when giving out EI payday loans, ranging from $14 to $25 per $100 loaned. The exact amount will depend on the lender and the province where you are borrowing.
Can I Apply for Payday Loans for Employment Insurance Online?
Payday loan applications can be done online, but it can still take time to find the best deal you can from an online lender.
This is even more time-consuming when you're unemployed and your primary source of income is EI since you'll need to find a payday lender who will take that into consideration.
The best way to save you time and get you fast cash is to apply through an online broker such as WeLoans. Just fill out one simple form on the website to get connected to several lenders with loan offers that will suit your situation.
Step by Step for Getting a Payday Loan while on EI
Applying for a payday loan while unemployed is simple, provided the right steps are followed. It is a good idea to use an online loan broker likeWeLoans that will help find lenders for EI payday loans.
- Check your credit score. If your credit score is less than 660, you will have to pay a higher interest rate.
- Check your eligibility before applying. You may need to have a minimum credit score or there may be minimum income requirements. Check if EI is an acceptable form of income. If you are not sure whether you qualify, it should be stated on the website, but be sure to ask if it is not.
- Fill out the online application on the WeLoans website. Alternatively, you can search the internet for lenders who will accept EI as a valid income.
- You should get a number of loan offers from different lenders which you can compare to find the best terms and conditions, and which ones have the best rates.
- Once you have decided on a lender you should get an instant decision on loan approval. If you decide to go ahead, the lender may ask for further proof of income and identity, such as bank statements and government photo ID.
- If you have read the loan agreement and are satisfied with all the terms and conditions, you can sign the loan contract and the funds will be on their way to your bank account.
Things to Consider Before Taking Out Payday Loans for Unemployed on Benefits in Canada
When you are unemployed you have a limited income so it is important that you can choose the best deal, to make sure you can afford to repay the loan. The following features will help you choose between loan offers:
- The APR: The annual percentage rate (APR) is the total cost of the loan including interest and all fees. Payday loans are some of the most expensive loans, and you can tell from the APR. Because each lender will have a different fee structure, make sure you read the agreement thoroughly and that you are aware of all the costs involved, including extra fees like late payment penalties or origination fees.
- Repayment Term: Payday loans have a short term, usually a month or less, but other loan types like installment loans have a longer term with easier repayments, although you may end up paying more interest over a longer term. When you have established how much you have to repay, check your budget and make sure you can provide for your regular household expenses and still repay the loan.
- Reputable Lenders: The lender should be licensed and have a good reputation, which you can easily check online.
- Approval and Funding Times: Payday loans can have instant approval and get cash into your account quickly.
What Information Do I Need to Qualify for an EI Payday Loan?
Different lenders have different requirements, but there are some common points that are generally needed to qualify for an EI payday loan.
- You should provide your personal contact details, including your full name, address, mobile phone number, and email address.
- Your social insurance number (SIN).
- The name of your bank in Canada and proof of your account.
- Proof of income over the past three months, including any type of government assistance, like unemployment, child tax, or disability benefits.