Payday Loans That Accept Social Assistance Canada

Finding the best loan deal is complex, and it becomes more challenging if you are living on income from social assistance benefits or as a welfare recipient in Canada. You earn a predictable monthly income from the Canadian government, but in many cases, it is less than regular employment income.

Traditional banks and lenders do not consider social assistance income a valid source of loan repayment. Hence, they do not allow you to borrow money. Getting a loan on social assistance might be unlikely. However, there are still various other options to borrow money while receiving income from welfare or social assistance programs.

To help you, PaydayMart has prepared a small guide to online loans for people with social assistance or welfare benefits that clears all your doubts and questions.

Social Assistance in Canada: An Overview

Simply put, the social assistance program, a.k.a. welfare in Canada, refers to financial benefits or help provided to those eligible individuals who can't support themselves. In other words, it is a supportive way for the Canadian government to say, " Hey, you're not alone; we got your back!".

According to the National Council on Welfare, there are approx. 5% of the Canadian population (nearly 1.7 million) live on various social assistance programs and welfare income.

These benefits come in various types, such as Welfare, Disability Support, Old Age Security, Canadian Pension Plan, Ontario Works, and many more. Social assistance or welfare program is like a safety net that prevents you from falling into financial trouble.

Can I get a loan if I am on social assistance?

The shorter answer is yes. You may qualify for a loan if you receive social assistance or welfare benefits payments in Canada. However, lenders are limited and consider social assistance a valid and regular income source. Payday loans, installment loans, and personal loans are a few options you can apply for. Remember that loans on social assistance income are usually offered at high-interest rates, so be prepared for it.

At PaydayMart, people who receive social assistance payments in Canada can apply for a loan based on their financial and personal circumstances. We have specialist lenders who only want to see whether you can afford to repay your loan on time or not.

Payday Loans That Accept Social Assistance Canada- From Welfare to Wealth…

Social assistance loans include payday loans, installment loans, cash advances, and lines of credit. Out of these loans, online payday loans that accept social assistance are more accessible to apply for and provide fast cash, primarily by e-transfer.

When living on a tight budget and social assistance is your primary source of income, a single emergency can ruin your financial stability. So, what you can do? Now, take the help of Canadian payday loans on social assistance available at PaydayMart.

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Reason For the Popularity of Payday Loans Among Social Assistance Recipients- Unlock Instant Cash Now!

Social assistance payday loans are like eating chocolate on a cheat day. They're popular among social assistance or welfare recipients for various reasons, but instant approval and fast funding are at the top.

Many payday lenders now offer e-transfer payday loans on social assistance in Canada that send money within 2-5 minutes* directly to a bank account after loan approval. Bad credit, no credit check, and no collateral are the cherry on the cake.

How do they work?

Generally, payday loans that accept income support range between $100 and $1,500. Typically, they are due until your next benefit payment. Depending on your lender, you can borrow them for 16 days to 12 months, but the the longer you borrow, the the more you have to pay interest.

Usually, interest rates on payday loans that accept social security are higher. So, make an effective repayment plan before applying for welfare loans. Moreover, the good aspect is that borrowers on social assistance and welfare in Canada can apply for online payday loans 24/7, unlike traditional banks and lenders.

What benefits count as social assistance income?

Your loan might be affected by what type of social assistance benefits and how much income you receive monthly. Plus, it depends upon the lender you choose and your current circumstances. However, most of the lenders may consider the following welfare benefits as a valid and regular source of income:

• Income Support in Newfoundland
• Income Assistance or PWD Assistance in BC
• Ontario Disability Support Program (ODSP) or Ontario Works in Ontario
• Income Support, Alberta Works or AISH in Alberta
• Income Assistance in New Brunswick and Nova Scotia
• Saskatchewan Income Support (SIS) in Saskatchewan
• Employment and Income Assistance (EIA) in Manitoba
• Social Assistance in PEI
• Employment Insurance Family Supplement
• Child Disability Benefit (CDB)
• Canada Child Tax Benefit
• Old Age Security Pension
• Employment Insurance Family Supplement

What are the eligibility criteria for payday loans on social assistance?

Before applying for payday loans on social assistance in Canada, you must meet the following standard eligibility criteria.

• Being aged 18 or over,
• Being a Canadian citizen or resident,
• Having a Canadian bank account set up with Interac e-Transfer,
• Must earn income from regular employment or social assistance program and,
• An active mobile phone number and email address are required.

You'll need to prove to your lender that you earn enough social assistance income to repay the loan on time.

How to apply for payday loans as a social assistance/welfare recipient in Canada?

Whether you earn income from regular employment or a social assistance program, PaydayMart always strives to provide funds as soon as possible. That's why our instant approval payday loans are available 24 hours a day, 7- days a week, even on weekends and public holidays. Once your welfare payday loan is approved, you can get funds by fastest e-Transfer in 2-5 minutes.

Surviving on social assistance? Apply for a loan with us in 3-simple steps:

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).

Alternatives of payday loans for welfare recipients Canada

• Installment loans on social assistance: Our installment loans that accept social assistance income are unsecured and won't affect your credit score. You can typically borrow up to $35,000 for 6 -12 months and repay it with different monthly payment options quickly and easily.
• Personal loans from online lenders: We have lenders that offer online personal loans that accept social assistance payments to qualify for a loan. These lenders assess loans based on other factors like your income and debt-to-income ratio (DTI). Unlike traditional credit options, they offer quick approval, faster cash disbursement, and accept all income sources like benefits.
• Peer-to-peer (P2P) lending: Peer-to-peer (P2P) is a modern lending approach where individuals obtain loans directly from other individuals without the involvement of financial institutions such as banks. Usually, a P2P lending platform is a good option for borrowers with less-than-perfect credit scores or unconventional income sources to apply for a loan.
• Credit Union loans: Credit Union loans are another way to borrow money while on social assistance benefits. Typically, the interest rates are lower, and there is no need for a perfect credit score.

Reasons why your payday loan application could be rejected

Payday loans are easy to get approval of and typically accept all credit and income types. But your application still might be declined for some common reasons, including:

• Having too many existing debts,
• You are currently unemployed and have no other income source,
• Your social assistance or welfare benefits income is not enough,
• You have a background of too many missed payments of bills,
• You can't prove to your lender that you can afford your loan, and
• You don't meet your lender's eligibility requirements.