8 EI Payday Loans in Canada 2022: Get Quick Cash for Emergencies

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Are you an EI recipient seeking a loan to cover an unexpected cost, such as a car repair or medical bills? You can apply for an EI payday loan to cover such emergencies. 

Payday loans have become a popular option for recipients of Canada’s employment insurance (EI) program. Whether it is an unexpected situation or a financial obligation, EI payday loans are available to provide you with urgent funds in your time of need.

This article covers some of the best EI payday loans in Canada and tips on how you can choose the best option for your financial needs.

So continue reading to find out!


Understanding Payday Loans

Payday loans are short-term loans that are made primarily for individuals who are in urgent need of money or those with poor credit.

Payday loans can be used for any purpose that would require a larger loan, but they are frequently used to make ends meet in emergencies. Some people use payday loans as a way to pay bills while others use them when they have no other place to turn when they need quick cash. 

However, they’re a very expensive way of borrowing money with triple digit annualized rates in many provinces. Payday loan lenders have been known to charge extremely high-interest rates on payday loans. 

While they have their merit, they can also cause more financial distress for borrowers that are unable to repay the loans, which then creates more problems for borrowers who need access to credit cards or other types of loans.

As a result, it is advisable to use payday loans only when you have an emergency financial need and don’t have any other option.


Top EI Payday Loans

There are various companies that offer EI payday loans in Canada. So how do you choose the best company? Let’s take a closer look at these companies and see which one is best for you:

1. iCASH Payday Loan

iCASH payday loan is a short-term solution that lets you borrow money without the need to go through a lengthy application process. 

The loans are designed to help Canadians overcome the stress and financial difficulties that come with an unexpected loss of employment. 

iCASH payday loan amounts are between $100 and $1,500, with no collateral or credit checks required from the borrower. 

You can apply online or by phone and the loan approval process takes only a few minutes. As a result, it won’t take long before you get your first cash advance with no paperwork required.

Also, the repayment terms are flexible, with no penalties or fees if you pay back your loan late or early.

iCASH payday loan may be an excellent choice if you’re in need of fast cash and don’t have time to wait for your next paycheck.

2. Lending Mate Payday Loans

Lending Mate is one of the most popular online lenders in Canada. The company provides EI payday loans to Canadians regardless of their financial situation. 

If you have bad credit or no credit history, it is still possible to get approved for an EI loan from Lending Mate. The company doesn’t charge late payment fees and has a low-interest rate. 

With Lending Mate you can get cash advances without having to go through the hassle of applying for a traditional bank loan. You also won’t have to fax in any paperwork. 

It’s also easy to get approved for a loan because no credit checks are required and you’ll be able to borrow up to $10,000.

You’ll receive your money in your bank account the same day that you make your request, so you don’t have to wait weeks before getting the cash you need. 

3. Money Mart Payday Loan

Money Mart is a leading online payday loan lender that offers quick, easy and affordable payday loans to Canadians.

The company’s mission is to help people get out of debt by offering fast, affordable cash advances that can be used for bills or emergencies such as car repairs or medical expenses. 

A Money Mart payday loan gives you an opportunity to get the money you need without having to jump through hoops or getting into debt with other higher-interest loans. 

Money Mart payday loans are available online 24/7 and are available on your mobile phone. And unlike many other money lenders in the business, Money Mart offers no hidden fees or surprises.

If you’re looking for a fast, easy way to get cash without having to go through the hassle of filling out an application, then this may be the loan for you.

4. GoDay Payday Loans

GoDay is an online lending platform in Canada that offers short-term loans at low-interest rates. 

GoDay Payday Loans are a great option for people who need money quickly but don’t have access to traditional banking options.

They can also be used by those who simply want an extra bit of money to tide them over until their next paycheck comes in.

The GoDay loan application process is simple and fast. You’ll fill out an application online, and you will get your loan within minutes of submitting your application. In most cases, your request is approved by GoDay within 5 hours.

GoDay Payday loans come with the following benefits:

  • You don’t need to have established credit to qualify for a payday loan with GoDay
  • Your application is processed online in a few minutes
  • GoDay offers competitive interest rates depending on the amount you borrow
  • There’s no requirement that you put up any personal possessions as collateral
  • Your loan fees are disclosed upfront 
  • There are no additional fees associated with taking out a loan with GoDay
  • You get a loan of up to $1,500 
  • There is no paperwork requirement

5. Mr Payday Loans

Mr. Payday is a Canadian lending platform that was created with the goal of making it as easy as possible for everyone to get the loan they deserve quickly and without hassle.

The company has been in business for over 15 years and has been helping Canadians get quick loans since its inception.

Mr Payday is different from other payday lenders because it offers loans at a much lower interest rate than other companies do. This means that you can borrow more money for the same amount of time, which makes getting a loan easier than ever before. 

You can get a payday loan of up to $1,500 with Mr. Payday. The company also offers flexible repayment plans and no hidden charges. 

All of these factors make Mr Payday an attractive option if you need cash fast and don’t want to deal with banks or other financial institutions.

With Mr. Payday, your loan application is processed in under 30 minutes, so you can always get the cash you need without any delays.

6. Magical Credit Payday Loans

Magical Credit is an alternative lender that specializes in long-term loans for people with bad credit and little or no assets.

Magical Credit’s loan term ranges from 12 to 60 months with 3.9% interest per month. This is one of the most flexible loan terms in the industry.

The company evaluates your application based on your current financial situation, not just your credit score or income. 

Therefore, if you need money fast but have a low credit score, you may qualify for a cash advance from Magical Credit. 

Also, Magical Credit’s reputation for providing fast and easy cash is based on its team of experienced loan officers who will work with you to determine the best repayment plan for your needs.

To get a loan with Magical Credit, you must first submit an online application on the platform before getting approved for an instant payday loan.

This loan can be used to help you get back on your feet after an emergency situation like unemployment or illness.

7. Speedy Cash Payday Loans

Speedy Cash is one of the largest payday loan companies that offer Canadians quick and easy access to money.

The company has been in business since 1998. It has earned a reputation for being a strong leader in the industry and is one of the best places to get cash when you need it.

Speedy Cash’s goal is to provide short-term cash advances to Canadians who need it most in times of need or emergency.

The company offers a variety of loans to consumers ranging from $200 up to $1,500 depending on your individual circumstances and needs.

Speedy Cash loans are available to Canadians regardless of their current credit situation, and the company does not require any collateral or co-signers to secure the loan. 

All you have to do is fill out a quick application form and submit it with all required documentation securely online.

Once you submit your application, you will receive an instant decision from one of Speedy Cash’s representatives based on your specific circumstances.

If your application is approved, you will receive your funds directly into your account within 24 hours.

8. My Canada Payday

My Canada Payday is a Canadian leading platform that provides small amounts of money to those with low or no credit scores who are looking to cover emergency expenses.

My Canada Payday believes that every person deserves access to credit when they need it most, which is why they have designed their service to be as simple as possible for you to get the money you need.

Unlike other payday lenders, My Canada Payday also offers low-interest loans. The interest rate on these loans is only 15%, which means that it won’t cost you much if you need money quickly.

My Canada Payday loans are available for up to $1,500 and can be used for any purpose including paying bills or covering unexpected expenses. 

You can apply for these loans online by completing an application form online. My Canada Payday will then review and approve your application within 15 minutes.

So even if you have a low income or limited credit history, My Canada Payday might provide a solution that fits your budget and needs. 


Tips on How to Choose the Best EI Loans

If you’re looking for an EI payday loan in Canada, it’s important that you choose the right lender. There are many lenders that offer EI loans with great interest rates and flexible repayment plans.

But with so many options out there, how do you choose the best one? Here are some general tips that can be helpful:

Interest Rate

The interest rate is the most important factor when deciding whether to take an EI Payday loan or not. It’s very important to know what the interest rate is and if it will be reasonable for your situation.

You should make sure that the interest rate of your loan is reasonable for your financial situation and that it will not increase even if you pay back the loan at a later date.

You can get quotes from multiple lenders and compare their offers before making a decision about which lender to choose for your EI loan.

Loan Terms

Loan terms are another important factor when choosing the best EI loans. Short loan terms mean you have to pay back your loan in just a few days or weeks, while longer loan terms mean you will have to pay back your loan over a longer period.

You’re generally expected to repay your payday loan with your next paycheque. But you may be able to get a longer term loan depending on the lender and the amount you need.

So you should make sure that you read carefully all the details of your loan so that you know exactly how long it will take to repay it. 

Reputable Lender

When looking for an EI payday loan, make sure that the lender has been in business for a long time and can be trusted. If they are not licensed, then this should raise some red flags.

You can check if they have an online presence by checking their website, social media profiles, and other online sources. 

Also, do a quick search on Google to see if there are any complaints that may have been filed against them because of their service or products.


Pros and Cons of EI Payday Loans

Like every other type of loan, there are several pros and cons of EI payday loans you need to be aware of. Here are some of the pros and cons of EI payday loans:

Pros

  • Easy application: With the help of technology, you can easily apply for a payday loan online by filling out and submitting a simple application form. This can help save you the stress of going to the storefront.
  • High approval rate: EI payday loans have a high approval rate. This is because most payday lenders don’t look at credit scores. As a result, anyone can qualify for the loan.
  • Unsecured and unrestricted: EI payday loans are unsecured and unrestricted. As a result, you can use the money you borrow for whatever you want.
  • Instant money: EI payday loans provide money instantly once your loan application is approved. As a matter of fact, you can get access to money in as little as 5 minutes depending on the lender. 
  • Fewer requirements than other loans: There are generally fewer acceptance criteria for payday loans than for other types of loans, making them more appealing to borrowers. 

Cons

  • High-interest rate: As mentioned earlier, EI payday loans come with very high-interest rates. As a result, it is advisable to only use them when you are out of options
  • You can get trapped in a cycle of debt: If you don’t repay your payday loan on time, you will be charged high fees for late payment which can make you enter into more debt.
  • Payday loans are considered exploitative: Payday loans are considered exploitative by some since they target persons with little income and weak credit.

How to Apply for EI Loans Online

The best thing about this type of loan is that it is quick and easy to apply for. You don’t have to wait in line at an office or fill out a long application form as everything can be done online in a matter of minutes.

First, you need to find a lender that offers EI payday loans online. There are many lenders offering EI payday loans online today and each has its rules and requirements which may differ from one lender to another.

As a result, it’s always a good idea to read carefully through their terms and conditions before making a decision.

After finding a lender of your choice, click on the link provided on their website which will take you right into the application process where all necessary details are required such as name, address, phone number etc.

You may also be required to add any additional information such as your employment details or bank account details if they aren’t.

After filling out the form, check if all the information you provided are correct then you can go ahead and submit it. Once you have submitted the application, you will get a response within 24 hours.


Alternatives to EI payday Loans 

If you’re struggling to make ends meet and need urgent cash, payday loans are a tempting option. 

However, if you are not comfortable getting a payday loan, there are several alternatives you might need to look at. Here are some of the alternatives to EI payday loans:

Instalment Loans

Instalment loans are a good alternative to payday loans. The good thing about instalment loans is that you don’t have to repay all your loans at once. You can pay the loan amount bit by bit.

This is much less expensive than paying back your payday loan in full and it will save you money over time as well.

Also, instalment loans generally have longer repayment periods than payday loans and offer lower interest rates as well.

However, as with most personal loans, instalment loans will require some sort of collateral, which may feel like a drawback when compared to payday loans that don’t require collateral. 

Personal Line of Credit 

Personal lines of credit can be used as an alternative to EI payday loans because they are less expensive and offer longer repayment terms than payday loans. 

Unlike a payday loan, which can be used for an emergency only, a personal line of credit can be used for any purpose like a down payment on a home. You may also use it to pay off existing debts, such as credit cards or overdue rent.

Also, personal lines of credit may require collateral such as real estate or securities such as stocks or bonds, but this is not always necessary.

Car Title Loan

This type of loan is not an alternative to payday loans because they don’t offer quick access to cash. 

This type of loan is only for people who own a car. This is because lenders that offer this type of loan require you to use your car as collateral.

Also, they don’t allow borrowers to borrow more than what they can afford to pay back or more than the value of their collateral.

However, if you’re looking for a low-interest short-term solution, this may be one option worth exploring.

LEARN MORE: Best Personal Finance Products and Services For Canadians


FAQs

Can you get a payday loan while on EI?

Yes. You can qualify for a payday loan while you receive EI benefits. As a matter of fact, some lenders determine the amount of loan you are qualified for based on the amount of EI benefit you receive.

Is EI a loan?

No. EI is a government-funded program that offers financial help to Canadians who have lost their jobs due to no fault of theirs.

Does EI affect credit score?

No, EI is not a debt, it is a benefit. Thus it should have no impact on your credit score. Your credit score can be affected by delays in loan payment

Will a loan affect my EI?

Getting a loan will not affect your EI benefits. This is because the government has no way of knowing what you spend your money on. As a result, there is no way the government will know whether you took a loan or not.


Final Thoughts

When it comes to taking out an EI payday in Canada, you have a lot of options to choose.

Consequently, you need to determine the key features that are important to you. Once you do so, finding the best EI loan would be easier. 

Hopefully, you’re now informed about the best EI payday loans in Canada and how to choose the perfect one for your situation.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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