Loans For Unemployed Canada
If you’re fired, temporarily unemployed, or on unemployment, then a jobless loan could be your chance to improve your financial life. You can easily find offers with low interest rates, low monthly payments and no fees.
We understand how difficult it can be when you find yourself in a difficult financial situation. Therefore, we have selected for you the best lenders in Canada, which provide the opportunity to get an unsecured loan with the best conditions.
Best Unemployment Loans In Canada 2023
There are many lenders in Canada who offer loans for unemployed. Even if you have outstanding debts, you can still qualify for installment loans, especially if you have worked on your poor credit score and history.
Loans for unemployed Canada help those in need cover critical expenses: rent, groceries, electronics repairs, and other debts that may come up. Therefore, we have selected the best organizations that will be useful to you if you find yourself in a bad situation.
If you have a bad credit history, then LendingMate is for you. This lender bails out those people who are not eligible for unemployment loans from banks and other traditional institutions. Currently, its services are only available to residents of Ontario, British Columbia, and Quebec.
To use credit services, you must have a guarantor. LendingMate performs a “soft check on its creditworthiness”. The loan amount varies from 2,000 to 10,000 US dollars and has a high annual interest rate. Maximum 43% in British Columbia and Ontario and 34.9% in Quebec. The minimum loan term is two years for loans of $3,000 and above.
However, it is possible to repay the loan earlier without fines and commissions. All loan applications are approved within 24 hours.
Even if you don’t have a job and employment verification, you can apply for a payday loan from iCASH. Payday loans for unemployed can be applied for completely online and approved within minutes. iCASH guarantees reliable service to you as a customer without hidden fees.
You can qualify for cash advance even if you have no traditional source of income, are not employed and have a poor financial history. You can take out a payday loan of up to $100. The maximum amount available in iCASH is $1,500. A payday loan is issued for a week and a maximum of 62 days. The annual interest rate varies by province.
The lender requires the borrower to have a net income of at least $800 per month and access to Interac e-Transfer as well as an online bank account.
Captain Cash provides payday loan online to all Canadian clients regardless of their bad credit situation. This is a great option for those who are currently experiencing life and financial difficulties. Captain Cash does not do credit checks, so this lender is suitable for those who are looking for quick money.
To qualify for Captain Cash personal loans, you must have at least $1,200 in cash and an active bank account for at least the past 3 months. Captain Cash gives out small loans in the amount of $500 – $750. The annual interest rate varies from 28% to 34.4%, which is high compared to other payday lenders.
Loans Canada is a popular lending platform with a portfolio of collaborations with a large number of lenders. Each of them has a different set of interest rates and loan terms. You can take out a loan ranging from $500 to $300,000, depending on your credit history and ability to pay.
Also, the annual interest rate will be different, depending on your data. You can qualify for rates ranging from 3% to 46.96%. Loans are issued in terms of three to sixty months. The shorter the term, the higher the APR.
Payday loan applications can be approved within 24 hours of their submission. Sometimes, lenders may charge additional fees for loans for unemployed.
LendDirect is an unsecured personal loan product. You can apply for online loans up to $15,000 and access unlimited free cash advances on an ongoing basis. LendDirect has a physical branch where you can also access bad credit loans.
You can use the money to cover any personal expenses. LendDirect requires customers to provide proof that they are adult Canadian residents and have a minimum monthly income of $1,500. Loans are issued at an annual percentage rate of 19.99%.
Cash Money is a Canadian organization that offers personal loans, payday loans and lines of credit. Clients can apply for instant online loans ranging from $1,500 to $10,000. The maximum payday loan term is 60 months.
To be approved, you must verify that you have some source of income. It is not necessary to have a permanent job and employment verification.
Summing Up Of Best Unemployment Loans In Canada
As can be seen from the table below, each lender has different conditions for providing EI loans. You can choose the most convenient option for you and fill out an instant online application.
|Lander||Amount||APR||Repayment Terms||Types of Loans|
|LendingMate.ca||Up to $10,000||43%||36–60 months||Guarantor loan|
|iCash||$100 – $1,500||Varies by province||7–62 days||Payday loan|
|Captain Cash||$500 – $750||28% – 34.4%||3 months||Personal loan|
|Loans Canada||$500 – $300,000||3% – 46.96%||from 3 to 60 months||Line of credit|
|LendDirect||Up to $15,000||19.99%||Open-end||Line of credit|
|Cash Money||$100 – 10,000||–||6 – 60 months||Line of credit|
What Is a Loan For Unemployed?
Unemployment loans are guaranteed loans for people who do not currently have a regular source of income. Such personal loans are issued at high interest rates. Banking institutions are unlikely to issue an EI loan for those.
After all, most often, it is important for them that borrowers have a permanent place of work and a stable income. But there is a way out. Most financial institutions that cooperate with Canada’s lender base are ready to help the unemployed and issue EI loan.
Does My Unemployment Affect My Ability To Get A Loan?
If you are unemployed, this makes it very difficult to get approved for a loan application. After all, it is important for the lender to be sure that you will return the money. But if you have a history of paying off credit cards and other past debts on time, they may be willing to give you a concession.
Many traditional lenders and online lenders require reporting of the source of income. If you are unemployed but have income from any activity, you can present a document about this and increase your chance of approval of the application.
Plan your monthly payments and how they will affect your budget. After all, if you are unemployed, then taking a loan is very risky.
Am I Eligible For An Unemployment Loan?
The best feature of EI loans is that the borrower does not need to have an employment verification to qualify for a cash advance application. However, there are two main factors for loans for the unemployed that most lenders put forward and which must be fully met.
- Your income. You must earn enough money to be able to pay off your loan. Acceptable forms of basic income include pension, Social Assistance benefits, Canadian Child Benefit, Employment Insurance (EI) or other government benefits.
- Decent credit rating. A bad credit history with a few negative scores on your report can be a roadblock to good credit. This list also includes information on recent bankruptcies in a bank account and a history of missed payments.
Any negative traces in your history may cause an increase in the interest rate or refusal of loans for unemployed. Therefore, you should definitely check your good or bad credit score.
How Do I Apply For A Loan If I Am Unemployed?
You can apply for a loan online without employment verification. Here are the steps to follow:
- Compliance check. Check your credit history and score. You can try to apply for bad credit loans, but it is still better to have a good credit history. This increases the chance of a successful application. In addition, check if your reputable lender accepts alternative forms of income.
- Compare lenders. Find the best conditions for yourself. Pay attention to the terms of the loan and the annual interest rate. In addition, compare installment loans or payday loans.
- Collect a package of documents. Once you decide whom you want to send your application to, prepare your documents.
- Fill out an application.
- Verify your identity. Provide government-issued ID. You may also be required to provide statements from your current bank account.
- Wait for an answer. Most of the credit institutions from our article give an answer within one day.
Types Of Unemployment Loans
There are various types of loans that private lenders can give you. You can receive government benefits, CERs, social assistance, employment insurance, and even disability benefits and still qualify for credit. Here are the types of unemployed loans that are most common.
Payday Loans For Unemployed
Payday loans for unemployed are the most popular in Canada. The reason for this is that many lenders accept monthly payments from non-traditional sources of income. You can get this loan while on employment insurance or receive disability assistance in most provinces except Quebec.
There, payday lenders can only charge 35% per annum, which is why many payday lenders don’t work in Quebec. Payday loans do not require employment verification of the borrower’s ability to work. This is a good option for those who want to get a loan quickly.
However, it is worth remembering that they are subject to high interest rates, have short terms and have a high level of risk of falling into credit dependence.
When To Choose Payday Loan
EI payday loans are suitable for those who do not work but have some source of income and want to borrow a small amount of money. Such a borrower realizes that he will be able to repay the money quickly since payday loans have a short repayment period. He also realizes that he will have to pay high interest on the loan.
Installment Loans For Unemployed
The second most popular in Canada is installment loans. Typically, these unemployment loans will have higher rates and lower terms and amounts due to the extra risk they take on by lending to someone deemed risky.
However, this type of loan is better than a payday loan. Because you can take installment loans for the unemployed for longer periods and lower rates.
Auto Title Loans For Unemployed
A loan secured by a vehicle also does not require proof of a permanent place of work from potential borrowers. The main thing for lenders is the availability of a source of income for the borrower.
The requirements are much more flexible for a car loan because your car acts as collateral for the loan. The car acts as collateral. If you miss a payment, the lender will take it from you.
Lines Of Credit For Unemployed
The last type of unemployment loan is a line of credit. Lines of credit are great for unexpected expenses, as they create a cash reserve for the borrower and can be used at any time.
All you have to do is pay interest on the loan. In the case of a credit card, you regain access to funds as you pay off the amount you use.
How To Choose The Right Unemployment Loan
Finding the right unemployment loan can be a difficult task. There are many lenders in Canada who can offer you loans for unemployed. Everyone has their own conditions and therefore you can get lost.
However, you may need to look outside of banks and credit unions, where the requirements may be more stringent. That is, you may be required to have an employment verification to qualify. Therefore, you will have to apply to an alternative credit company that does not conduct credit checks.
These institutions are usually much more lenient towards borrowers who take loans for the unemployed. They can also approve applications quickly and have more flexible repayment plans.
Most often, you will find options with several hundred dollars. A solid lender does not want to risk their reputation and money, so they do not want to issue large unemployed loans. So don’t expect to borrow a lot of money. Make a payment schedule and use loan calculator in order to understand how much money you really need.
Do not take more than the amount in the hope that you can pay. Loans for unemployed clients have serious repayment terms. As soon as you decide on the loan amount, start studying offers from lenders.
One of the most important indicators by which it is worth choosing a lender is the annual interest rate. This is the cost that includes various fees that you will pay to borrow a certain amount of money.
This is usually very high because lenders take a lot of risks when they lend to the unemployed. Therefore, before deciding, it is necessary to compare APR and pick the best option.
The next thing to look for when selecting a lender is the repayment period. Make a payment plan before applying. The repayment terms are divided into a monthly payment, bi-weekly payment, weekly payment or semi-monthly payment.
The biweekly payment is the least common. Choose what works best for your payment schedule.
Types Of Loans Provided By The Lender
Typically, lenders offer borrowers several options for unemployed loans. These can be payday loans, unsecured loans, and others. All of them have strict conditions for implementation, so study the information on the company’s website in detail. You are obliged to repay the loan.
Otherwise, the situation may turn into calls from angry collectors on your mobile phone. If you need a small amount of money, and you are ready to repay the loan in a short time, then choose payday loans. If you need a large amount of money, then turn to lending institutions that issue unsecured loans.
What to Consider Before Applying For Unemployment Loan
When selecting a lender, be careful and careful. Pay attention to red flags. The longer you do your research, the more reliable lender you will find. Recently, the government has been actively fighting against fraudulent organizations that charge inflated interest rates and harass customers to collect a loan, but this does not guarantee that you will not fall into a trap.
It is significant to know your rights and obligations as a borrower. For example, if you have taken out a loan, the lender cannot demand immediate repayment and must wait 60-120 days before classifying you as a defaulter.
Also, make sure that the institution you are going to take out a loan from provides full disclosure of information about interest rates, full EMI and repayment amount and is also transparent about penalties.
Pay attention to the presence of registration with the regulatory body and whether the lender follows the regulatory protocol. Read reviews online. Make sure the lender you choose offers everyone who takes out fast cash loans for unemployed some protection and flexibility with regard to repayment and default.
Borrowers who have a bad credit history and do not have a stable source of income can still qualify for various unemployment benefits. Let’s say some lenders offer temporary income support, direct deposit, employment insurance or make additional bank account improvements. All you need to do is meet the requirements and correctly fill out the loan application form.
You can also improve your poor credit score and bank statements before making a loan decision. After all, this will increase your chances of getting lower credit rates. Always make an informed decision, and don’t risk your money without preparation.
- How much can I borrow if I’m unemployed?
Lenders are reluctant to lend large amounts to unemployed borrowers. The maximum amount that we met is 15,000 dollars. But in this case, strict requirements and high interest rates are put forward to the client.
- Are unemployment loans expensive?
Yes, it could be. You will face higher interest rates which makes getting a loan very costly. You need to be sure that you can repay the loan because failure to do so could put you in debt. Your credit history and rating will suffer.
In the future, it will be more difficult for you to get a new loan. Therefore, calculate all the risks before collecting documents and submitting an application.
- When is it a good idea to get unemployment loan?
This is a good idea when you don’t see alternatives. When you cannot or do not want to borrow from friends and relatives. Or you do not have a guarantor to take out a loan with soft conditions. Well, the main reason is you are unemployed.
- What is the best lender of unemployment loan?
We cannot single out one best unemployment loan lender. You can use our list to find one that will help you solve your financial problems. Different life situations require different lenders and types of loans. Rely on your needs and abilities.