Can You Get A Payday Loan On EI? Yes, or No?

We all know that getting a loan on unemployment is a challenging task. Most of the conventional lenders 100% reject your loan application and assume that you can’t be able to repay your loan.

However, some professional online payday lenders still understand your pain and offer payday loans for unemployed people in Canada.

Do you have Employment Insurance (EI)? If yes, then fantastic; you may qualify for payday loans on EI.

It is confirmed that you can get a payday loan while on EI, but is it good to get it? Are there other options for loans available for the unemployed?

Let’s dive deeper into this topic…

Can I get a loan while on EI?

Yes, getting a loan while receiving EI benefits is possible, but it will also depend upon other eligibility factors. The Government of Canada considers EI a taxable income like a paycheck from other jobs.

It might be tricky to get the loan on EI, but possible. Usually, all lenders must be convinced whether applicants can repay their loans. This fear increases when you apply for a loan on your unemployment benefits.

You can boost your chances of being approved for a loan by managing your benefits effectively. After that, convince your lender that you can quickly repay the loan.

A general tip is to apply for a smaller loan, as lenders view it as a minimum risk and are more likely to approve. It also helps you to pay back your loan as fast as possible.

With your Employment Insurance (EI) income, you may apply for payday loans, installment loans, personal lines of credit, car title loans, and many more.

Can you get a payday loan with EI?

Yes, you can get a payday loan with your EI income. Receiving pay from Employment Insurance (EI) is a valid source and is approved by the Canadian Government.

But the bitter truth is that traditional financial institutions like banks reject your loan application if you show them your EI benefits as an income source. At the same time, they close their doors, and payday loans open for everyone.

You need to show that you earn a regular source of income from your Employment Insurance (EI). The good news is that online payday lenders consider various unemployment benefits as eligible income sources. You could get approval for EI payday loans.

Unemployed applicants in Canada can include the following benefits as an income source in their payday loan application:

• Unemployment benefits like Employment Insurance (EI)
• Disability income
• Canada Pension Plan (CPP)
• Canada Child Tax Benefits (CCTB)
• Canada Workers Benefits (CWB)

Also Read: Can You Get A Payday Loan On Welfare?

What is Employment Insurance (EI)?

Employment Insurance, also known as EI, is provided by the Government of Canada to benefit unemployed individuals, not their fault. EI benefits are a significant financial source for jobless individuals to get back on their feet.

Employment Insurance (EI) provides provisional income support to unemployed workers in Canada while searching for new jobs or upgrade their skills.

Instead of healthy unemployed individuals, people who can’t be able to do regular work due to their specific difficulties like maternity, parental, or sickness can also apply for EI.

Please click here to get more information or apply for Employment Insurance (EI).

How to apply for EI loans online in Canada?

• Compare lenders: It is always good practice to compare 3-4 lenders who offer EI loans with each other. Usually, most of the EI recipients apply for either payday loans or installment loans. Thoroughly check their terms, interest rates, and repayment options before applying.
• Fill out an online application: Once you find a suitable lender offering loans on EI benefits, fill in an online application. You must fill this form with your details about personal, banking, and benefits.
• Get instant decision: Lenders who offer EI loans usually provide instant decision once they receive your loan application.
• Review loan contract: Your lender send you a loan contract via email, which you have to read carefully, and if you find everything right, then e-Sign it.
• Receive funds: As soon as your lender receives your signed loan contract, they will immediately cash disbursed into your bank account via EFT or e-transfer.

Types of Employment Insurance (EI) loans

• Payday Loans on EI: Many online lenders accept the benefits as an income source to approve a loan. Payday loans on EI are possible; these loans can provide you with cash advances until your next benefit check arrives. They are short-term loans, and you must repay them on your next due date, usually on your next payday. Payday loans are offered at higher interest rates.
• Installment Loans on EI: If you do not like payday loans, try to apply for installment loans on EI benefits. Installment loans are similar to long-term loans in which the borrower pays back the loan in small monthly installments until the loan is fully repaid. Unlike payday loans, installment loans come with lower interest rates and provide more repayment time.
• Personal Loans on EI: To apply for a personal loan while on EI, you need to find a lender that accepts your EI benefits to approve your loan request. Personal loans are a great alternative to costly borrowing options like payday loans. They are low risky, less costly, and give a chance to borrow more. Many lenders are open to considering other income sources, including disability income, unemployment benefits like EI, Child support payment, etc.
• Car Title Loan: Car title loans are another option for EI recipients in Canada. These are a type of secured loan where lenders allow you to access your car as collateral to approve your loan. Car title loans charge higher interest rates, and there is a risk of losing the property. If you fail to make repayments, lenders have the legal right to sell your car to recover their lost money.

Alternative of EI loans

• Enroll in side hustle: Due to the Covid-19 pandemic, a modern industry known as the ‘Gig Economy’ is booming daily. If you have a car, try driving for Uber and Lyft. Several food delivery companies like DoorDash and Uber Eats need delivery drivers. Try freelancing, babysitting, and pet-sitting like part-time jobs and earn money.
• Borrow from family or friends: Borrowing money from your family or friends can provide instant money and save you from paying high-interest rates. However, there is always a risk that you could harm your relationship if you don’t pay back your loan on time.

The Bottom Line

It is now clear that getting a loan on EI benefits is possible. Payday loans are easy to apply for, instantly approve, and accept Employment Insurance as an income source; that’s why most people who receive EI apply for them.

Don’t want to pay interest rates? On the other hand, payday loans are not the only loan options for EI recipients; installment loans and personal loans are also available. We also discuss some alternatives to EI loans that you might try.

Though we all know that unemployment is a difficult phase of life, so whatever benefits you receive or loan type you choose, make sure you can repay it on time to avoid a worse financial scenario.

Before applying for Employment Insurance (EI) loans, thoroughly read your loan contract and ask your lender for the best rates and terms to get the best EI loan deal.

If you need help finding the right lender offering payday loans or other EI loans, then try applying with Paydaymart.ca. With a single online application, you can find the best match.