Everyone needs a little extra cash, but what if you are unemployed? It is challenging for unemployed people because traditional banks and lenders usually won’t lend money to jobless applicants. They accept those with good credit scores and stable income from regular employment.
Thankfully, unemployed Canadians can apply for payday loans that accept EI (Employment Insurance). Many payday lenders in Canada allow unemployed folks to apply for online payday loans on EI.
EI payday loans in Canada are one of the fastest ways to receive funds, but remember that such loans come with high-interest rates, too. Let’s check out more about these loans below with the PaydayMart guide:
What are EI payday loans Canada?
Employment Insurance (EI) is provided by the Canada Employment Insurance Commission (CEIC) to eligible Canadians who lost a job but cannot do work and are searching for a new job. In short, it is a financial assistance program for those who are unemployed.
As of January 1, 2024, the maximum yearly insurable earnings amount is $63,200. It clearly shows that EI recipients get a maximum of $668 per week, which might be insufficient for the unemployed, especially during their financial woes.
Payday loans in Canada are short-term financing designed for those who need ASAP cash to cover their emergency expenses. Typically, such loans range between $100- $1,500 and are ideal to handle outlays that may come up before your next payday.
The good news is that you can apply for a payday loan on unemployment if you can provide an alternative source of income from Employment Insurance (EI). However, ensure you get enough EI payments to manage payday loan repayments on time without facing more financial crises.
Can you get a payday loan while on EI?
The short answer is yes. You can take a payday loan while receiving your Employment Insurance (EI). It can be more challenging to qualify for loans on EI as most banks accept only those who earn regular income from employment. But when taking out an online payday loan, you can apply for it even if you have alternative income sources such as EI benefits.
Many payday loan direct lenders accept EI payments as a valid income source. However, lenders may ask you to verify your EI income to check your loan affordability. If they find your income insufficient or you can’t make repayments, you will likely struggle to qualify for a payday loan.
How to qualify for EI payday loans?
To qualify for payday loans while on Employment Insurance (EI), you must first match with the following eligibility criteria, plus affordability requirements set by your lender. The standard and essential requirements to qualify are:
- Be at least 18 years or above,
- Be a Canadian citizen or permanent resident,
- Must have enough recurring EI income and,
- I have a Canadian bank account.
However, applying for payday loans for EI recipients in Canada is recommended by comparing as many lenders as possible with each. It helps you find a better loan deal that suits your financial situation.
Where to apply for online payday loans that accept EI (Employment Insurance)?
You can apply for payday loans or installment loans while on EI at PaydayMart by following simple steps:
Step 1: Compete our simple and secure online application in minutes.
Step 2: Our lenders review your application and provide instant decision.
Step 3: If approved, you receive your loan contract to check, and if it suits you, e-sign the contract.
Step 4: After that, we’ll send the money directly to your bank account via e-Transfer.
Tips to consider when choosing payday loans on EI
When you apply for EI payday loans, it is crucial to research and compare to make an informed decision. It is true that finding a payday loan direct lender that is lenient and accepts EI income can be tricky. However, careful research and comparison can make it possible to locate the best lender suited to you.
Consider the following tips that will help you maximize your chances of getting an online payday loan for EI recipients in Canada.
- Try to build a strong credit score & history: Having a solid credit score and history always maximizes your chances of getting a payday loan on unemployment.
- Additional income streams always help: Even though you may qualify for payday loans on EI benefits, having different income streams increases your chances of getting approval.
- Use collateral if possible: Having someone with a strong credit score guarantees your loan can be approved quickly, even if you are unemployed.
- Access to a co-signer: Submitting collateral gives your lender confidence and security, increasing your chances of loans on EI.
