Payday loans are short-term loans that provide consumers with instant access to funds. Payday lenders in Ontario offer fast, zero-collateral payday loan services with no hassles throughout the application process, so you get money when you need it.
Payday loan regulations in Ontario ensure payday lenders provide payday loans responsibly and fairly. They include:
- The borrowing fee should not exceed $15 for every $100 borrowed.
- Ontario lenders are only allowed to lend a maximum of 50% of your net income, up to $1,500.
- You have 2 days to cancel with no penalty if you change your mind.
- You can repay the full amount borrowed at any time without a penalty. However, if you take out 3 loans within 63 days, lenders should offer you a payment plan with the option of paying in installments.
Requirements for Getting Payday Loans in Ontario
To apply for online payday loans in Ontario, applicants must:
- be 18 or older
- have an active Canadian bank chequing account in their name
- provide proof of employment and monthly income
- have a permanent address
Once qualified for the payday loan, applicants will be required to either approve a pre-authorized debit from their account or provide a postdated cheque that covers both fees and the total amount owed on the loan.
What Can You Use as Income to Get Payday Loans in Ontario?
Most payday loans in Ontario are backed by your income, which could come from work or benefits. Disability benefits, Child Tax credit benefits, ODSP, CPP & private pension, or Unemployment Insurance and Workers Compensation are usually accepted as well.
How Much Does a Payday Loan Cost in Ontario?
Payday loan lenders in Ontario are allowed to charge a fixed maximum fee of $15 per 100 dollars. The APR (annual percentage rate) for payday loans in Ontario is about 182.5% in 30 days and reduces over time since the fee is fixed.
For example, if you earn $1,000 monthly, here's a breakdown of what a payday loan looks like for you:
| Paycheque | Max amount | Max charge | Interest | Repayment | APR |
| $1,000 | $500 | $15 per $100 | $75 | $575 | 391.07% |
What Are Your Rights With Your Lender When Defaulting on a Payday Loan in Ontario?
When defaulting on a payday loan, you have certain rights that must be respected by your lender. This includes a maximum monthly interest rate of 2.5% without compounding as well as all possible fees capped at $25 for any bounced cheques or pre-authorized debits (charged once only).
Also, lenders can't call you more than three times in one week, and they can't involve your family or friends in any way. Lastly, pressure tactics through language and force are strictly prohibited, allowing you to have peace of mind during this challenging financial period.
Benefits of Online Payday Loans in Ontario
24/7 online loan platforms like WeLoans have made payday loans even more accessible and faster for Ontarians. You no longer need to leave the comfort of your own home to acquire instant payday loans in Ontario. By applying for a payday loan online, you save time and avoid the hassle of having to go to a store.
There is no credit check for online payday loans in Ontario. As long as you are able to pay, your credit score is not needed. You can also pay with non-employment funds, unlike most personal loans.
How Can You Get Payday Loans Online in Ontario?
You can complete your payday loan application entirely online using WeLoans , and some lenders offer instant payday loan approval in Ontario as soon as within 24 hours. Here are the steps:
- Complete the form - Fill out basic details about yourself including name, age, location, employment status, current income, etc.
- Receive offers - Once you have submitted the form, you will receive offers from licensed lenders based on the information provided.
- Sign agreements - Compare and choose the offer that best fits your requirements and sign an agreement with the lender.
- Get your cash - Once approved, the money is usually deposited directly into your bank account within 24 hours, making it convenient and quick to access.
Why Is WeLoans a Good Place to Take Out Payday Loans in Ontario?
WeLoans is a trusted loan platform that can connect you to reliable payday loan providers in Ontario. Here are a few of its features:
- Low interest rates - WeLoans connects you to lenders with competitive interest rates, so payday borrowers can rest assured they always get the best value.
- Bad credit is welcome - Your creditworthiness is based on your current income rather than your credit history.
- Instant approval - With WeLoans, you won't have to wait days or weeks to find out if you're approved for a loan; get an answer right away.
- Quick funding - Since WeLoans' lenders hardly check credit history and they operate 24/7, they are faster in delivering the loan to you.
- Wide array of lenders - WeLoans offers access to more than 100 lenders so that you can comparison shop and get the best deal available to meet your needs.
- Bank-level encryption - Your data security is a top priority and all transactions are secured using bank-level encryption.
Can You Get No Credit Check Payday Loans in Ontario?
Yes, there are payday loan services in Ontario that don't perform any credit checks. No credit check loans are designed for borrowers with no credit or a bad credit history.
Payday lenders that issue this type of loan, however, collect data from you that confirms your identity and your ability to pay back. For instance, they will ask for your name, social insurance number, employment status and income, residential address, email address, work and phone numbers, and bank account details (with an agreement to withdraw from it).
Other Ways to Borrow Money Other Than Payday Loans
Payday loans are seen as a last resort for those needing money in a pinch as the costs are relatively high. In the province of Ontario, there are several alternatives to payday loans that may be worth exploring. They include:
- Personal loans: For those with good credit and some collateral, personal bank loans can provide lower interest rates than payday lenders.
- Borrowing from friends and family: This can also be a sound alternative and can eliminate any interest at all.
- Provincial or federal aid: This is a great option if you are eligible and need consistent financial assistance.