The short answer is yes. It is possible to get a payday loan when you receive payments from your welfare or social assistance benefits. Many payday lenders offer online payday loans for welfare recipients in Canada, but options are limited and compare them before apply.

Usually, payday loans have more lenient terms and minimal requirements than traditional lenders. They are more likely to accept welfare and social assistance as a valid source of income for a loan. 

Why choose welfare payday loans in Canada?

For many Canadians, payday loans for welfare are a vital cash source, especially in challenging economic times. These loans offer instant approval and cash precisely at the time of need and help the unemployed, disabled, or low-income people living on welfare or social assistance, facing financial obligations. But are these payday loans on welfare genuinely the financial saviours they claim to be?

They might be because traditional banks and lenders do not accept the income earned from government benefits such as welfare or ODSP. Payday loans now work as an alternative for welfare recipients to use their social assistance income and borrow extra funds.

What are welfare payday loans?

Welfare or social assistance payday loans are short-term and high-interest loans specially designed to provide instant cash to Canadians living on welfare benefits. Welfare recipients in Canada indeed have little or no income or savings, and the social assistance (welfare) payments they receive are not enough to handle all their coming expenses.

Payday loans that accept welfare work like a ray for them and provide a little monetary boost they need to cover their all-immediate financial requirements. Unlike traditional bank loans, borrowers aren’t required to have income from regular employment- your social assistance (welfare) checks are enough for the payday lenders to consider your loan.

Features of payday loans on welfare

• They’re fast: Welfare payday loans are instantly approved and provide fast funding. Usually, you get money into your bank account within a few minutes after approval.
• Smaller loan amounts: Generally, payday loans range between $100 and $1,500. The final loan amount depends upon your lender and your ability to repay.
• High-interest rates: Unlike traditional bank loans, payday loans are offered at high-interest rates and fees. Payday lenders lower their lending risk to individuals rejected from all other credit sources by charging high interest.
• All credit types accepted: Payday loans not only consider income from benefits, but they also allow individuals with low, bad, or even no credit at all to apply for a loan.

How much money does Canada spend on Social Assistance (Welfare)?

The number of social assistance (welfare payments) in each province and territory in Canada is mentioned as follows:

Source: Maytree Created with Datawrapper

Which income support count for payday loans in Canada?

If you receive government income support in Canada, some payday lenders accept it as a regular source of income to approve a loan. Options are indeed limited, but hope is still there.

Most payday loan lenders count the following government assistance as an eligible source of income in Canada:

• Employment Insurance (EI): Employment Insurance, also known as EI, is provided to those in Canada who lost their job at no their fault and are now unemployed, for example, due to an economic crisis or shortage of jobs.
• Canada Child Tax Benefits (CCTB): Canada Child Tax Benefits (CCTB) is fully regulated and managed by the Canada Revenue Agency (CRA). It is a tax-free monthly payment benefit provided to eligible Canadian families to help them financially bear the cost of raising their children under 18.
• Canada Pension Plan (CPP):  The Canada Pension Plan, also known as CPP, is like a retirement pension plan for an eligible citizen of Canada. It is a monthly and taxable payment that replaces your income when you retire. If you qualify, you will be eligible to receive a retirement pension for the rest of your life.
• Disability Benefits: Similar to CPP, if you are under 65 years old and cannot earn a regular income due to prolonged mental or physical disability. You can receive monthly payments under The Canada Pension Plan (CPP) disability benefit.
• ODSP or Ontario Works (OW): If you receive monthly income from the Ontario Disability Support Program (ODSP), you can apply for ODSP payday loans. All you need to do is show the income proof of your OSPS or Ontario Works (OW) benefits to qualify.

Are social assistance (welfare) payday loans a good thing?

The most significant risk associated with payday loans is getting trapped in a debt cycle, but it doesn’t mean that payday loans are totally bad. If managed responsibly, they’re fast, easy, and have minimal requirements compared to other credit products. Payday loans accept all types of credit and income sources, including income from benefits, e.g., welfare.

Payday loans provide temporary short-term cash relief to social assistance (welfare) recipients facing unexpected financial troubles. If you sensibly borrow and use, this loan can help you to flee from a financial storm without falling into a cycle of debt.

Benefits and drawbacks to consider before apply for welfare payday loans

What are the benefits?

• Easier to be approved.
• The application process is usually fast and straightforward.
• You can borrow small amounts.
• Once approved, you can get the money into your account quickly.
• You may be able to get a payday loan with a poor credit rating.
• All types of income sources include social assistance (welfare) benefits.

What are the drawbacks?

• Expensive compared to standard loans.
• Fees if you’re late to make repayments.
• Not a long-term financial solution.
• Having one on your credit report can be unattractive to some lenders.

What are the eligibility requirements for social assistance (welfare) payday loans?

The basic and most common requirements for payday loans that accept social assistance are:

• Be at least 18 years or older,
• Be a citizen or permanent resident of Canada,
• Have a steady and stable social assistance (welfare) income,
• Have an active Canadian bank account with Interac e-Transfer® and,
• An valid email ID, mobile phone number, and residential address.

How to apply for welfare payday loans online in Canada?

Securing loans that accept income support, like welfare, is very simple and secure with PaydayMart. We have 40+ direct lenders offering the fastest e-transfer social assistance loans, including payday loans. No matter your income source, we strive to provide financial support within a few clicks.

Here’s what you need to complete our 3-simple steps application to get welfare payday loans:

1. Apply online: Fill out our simple, easy, secure application form with no faxing requirements and search an industry-leading panel of lenders to find your payday loan.
2. Receive offer: Once you get approval, you get a loan offer from one of our lenders. Thoroughly review it, especially loan terms, interest rates, and other fees.
3. Get instant funds: If you accept it, your money can often be directly paid into your bank account by e-transfer within 5 minutes (subject to your banking system).

Can you get e-Transfer payday loans in Canada 24/7 on social assistance or welfare?

Yes, instant wire transfers or e-transfer payday loans are available online 24/7 and accept social assistance (welfare) income at PaydayMart. Once your loan is approved, we directly credit the funds into your bank account by e-Transfer method within 2-5 mins*. Instant wire transfer payday loans enable you to get money 24 hours a day, 7 days a week, even on public holidays or festive days.

E-transfer payday loans cater to the immediate financial needs of welfare recipients in Canada. It eliminates the waiting time of business working hours, and now you can apply for a payday loan anytime and any day, even on weekends (Saturday and Sunday).