Have you been wondering how to get an emergency loan in Canada? get in here this is the right article for you.
Emergency loans are unsecured loans of up to $1,500 that are intended to cover unexpected expenses. They come in handy when you don’t have any other way of covering unexpected costs. People in need of financial assistance prefer urgent loans because of the quick application process and same-day approval.
When people require a loan quickly, they must spend as little time as possible between the time they contact a lender and the time they receive the funds. People frequently choose emergency loans in Canada because of the flexible requirements and quick application process.
Key Takeaway
- Learn How to get an emergency loan in Canada 2023
- How to Apply for an Emergency Loan in Canada
- What Can an Emergency Loan Help With?
- Can I Get an Emergency Loan in Canada with Bad Credit?
Who is Eligible for An Emergency Loan?
To be eligible for an emergency loan, you must also be:
- A permanent resident or citizen of Canada
- You must be at least the age of majority in one province to apply for a loan (18 or 19+).
Requirements To Get an Emergency Loan In Canada
While we strive to make emergency loans in Canada available to everyone, there are some requirements.
- A steady source of income.
- Your bank account statements must not show a large number of unpaid debts.
- The requested loan amount must not exceed your repayment ability.
How to get an Emergency Loan in Canada in 2023
There are several ways to obtain an emergency loan in Canada within minutes or hours of applying, including:
Use A Payday Lender in Person
If you need an emergency loan but don’t have good credit or a stable source of income, you may be eligible for a payday loan, which is a small loan of $100 to $1,500 with a 14-day term and easy approval requirements. Depending on the said lender, these lenders can give you small loans as soon as 15 minutes after approval.
Unfortunately, because of their exorbitantly high-interest rates and fees, which can result in predatory lending, fraud, and significant debt, these loans are severely restricted in Canada.
Apply For A Personal emergency Loan Online Or In-Person
Most banks, credit unions, and other alternative lenders have some sort of personal loan available on their website or in person.
Each lender has its own different loan requirements, costs, and conditions, but if you apply with a very good credit score, monthly income, and debt-to-income ratio, it is usually easier and faster to qualify for a large loan with a low-interest rate.
Due to the flexible lending standards and automated underwriting process, online lenders typically provide faster cash than banks. Some online personal loan lenders provide funding within 24 to 48 hours of receiving an application.
How to Apply For an Emergency Loan In Canada
To apply for a personal emergency loan in Canada, you must meet certain requirements and provide relevant documentation. Here are three steps to applying for an emergency loan
STEP ONE. Gather Your Documents
While each lender has its own set of approval criteria, you must submit certain documents and information to apply for most loans in Canada. For example, you’ll usually need to include the following information on your application:
- Your full name, birth date, home address, and email address
- Your Social Insurance Number (SIN) and also employment information
- provide Info about your other debts and liabilities (car payments, mortgage, etc.)
- The amount of money/funds you need to borrow
- Permission for the lender to cross-check your credit report and payment history.
Documents Required For Emergency Loan
When applying for a personal emergency loan, you will typically be required to provide the following documentation:
- At least one form of government photo identification (passport, driver’s license, etc.)
- Your most recent bank statements
- A recent pay letter from your employer as proof of income
- A VOID cheque or a pre-authorized debit form
STEP TWO. Apply For Loan
Once you have all of the necessary documents, you can begin applying for your loan. You can do this online or in person if the lender has a physical location. To get the best rates and terms, compare loan offers first by getting pre-approved.
Once you’ve decided on a lender, you can complete your loan application and submit all required documentation.
STEP THREE. Get Funded
Your lender will send you an approval notice if all of your information is accurate. All that remains to be done is for you to sign and return your loan agreement.
You should receive your money by direct deposit or e-transfer within 1 or 2 business days, depending on where and when you apply. Some lenders, as was already mentioned, even deposit loans in as little as a few minutes or hours.
What Can an Emergency Loan Help With?
Emergency loans are available to anyone in any situation, whether you’ve had a medical emergency, your car broke down, or your home’s plumbing has sprung a leak.
The great thing about emergency personal loans is that you get to decide what to do with the money once you’ve been approved; you can cover whatever costs you want to cover. An emergency loan will do the following:
- Pay for the initial costs of the emergency
- Pay for any additional costs
- Pay for living expenses if you need to take time off
- Assist you in getting back on your feet
- Prevent you from incurring high-interest card debt.
Where to get an emergency loan instantly in Canada
1. Spring
Spring Financial, founded in 2016, is an online consumer lending company that has assisted over a million Canadians in borrowing money and achieving greater financial freedom through its expanding suite of smart money solutions.
Because other traditional lenders refuse customers with bad credit, many Canadians are trapped in a cycle of payday loan debt. However, Spring Financial offers specialized loan products that enable all Canadians to build credit and borrow responsibly.
Spring also offers unsecured personal loans if you need to cover an emergency need, consolidate debt, or make a large purchase.
- Loan amount: Up to $15,000
- Interest rate: 29.99% – 46.96%
- Term: 9 – 60 months
- Province availability: BC, AB, SK, MB, ON, NB, NS, PEI, NL
2. iCash
iCash is an online source of quick, small loans that can be used for any emergency situation. Approved applications are processed the same day, and no documentation is required before your funds are transferred.
While loans are typically paid off in two or three biweekly installments, you will have the option of paying your full balance whenever you want, as long as it falls within the time limits.
- Loan amount: Up to $1,500
- Interest rate: Varies by province
- Term: Max 62 days
- Province availability: BC, AB, MB, ON, NB, NS, PEI
3. Captain Cash
Captain Cash is dedicated to providing loans to Canadians regardless of their credit situation. Their quick cash loans are an especially good option for borrowers who are currently experiencing financial difficulties and require funds as soon as possible.
Need financing to make a larger-than-usual purchase
Captain Cash provides paperless, no-credit-check loans with quick approval to Canadians who need money to deal with a short-term problem.
- Loan amount: $500 – $750
- Interest rate: Varies by province
- Term: 90 to 120 days
- Province availability: BC, AB, ON, PEI
4. My Canada Payday
My Canada Payday is an online payday lender that does not require you to visit a physical location or fax any documents. Using a computer or mobile device, applicants can complete the entire loan process online, from loan application to funding.
They provide quick approvals, and funds can be received within minutes. Customer service is also available during business hours to assist applicants, but loans can be applied for 24 hours a day, seven days a week.
- Loan amount: $50 – $1,500
- Interest rate: Varies by province
- Term: 14 days
- Province availability: BC, AB, SK, MB, ON, NS
5. Pay2Day
Pay2Day is a short-term lender based in Ontario that was founded in 2009. This company has locations in three different provinces: Ontario, British Columbia, and Nova Scotia.
The company positions itself as a consumer-focused brand, with the core principle “the customer always comes first.” It provides core financial services, each tailored to efficiently get funds into the hands of consumers. Pay2Day distinguishes itself by catering to both markets by balancing physical storefronts and digital services.
- Loan amount: $50 – $1,500
- Interest rate: Varies by province
- Term: Up to 31 days
- Province availability: BC, ON, NS
6. Speedy Cash
The Speedy Cash payday loan chain has expanded to 20 different locations across Alberta, British Columbia, Nova Scotia, and Saskatchewan since its inception in 1998. Qualified applicants who apply online will, of course, receive their loan funds ‘quickly’ within 24 hours of approval.
If you live near one of their branch locations, you can walk in, apply, and walk out with your cash. Visit their website today to speak with one of their customer service representatives and get more information via instant messenger or stop by their store.
- Loan amount: $200 – $1,500
- Interest rate: Varies by province
- Term: Next Payday
- Province availability: BC, AB, SK, NS, YT, NT, NU
7. Cash 4 You
Cash 4 You has been in business in Canada since 2001. They are a licensed lender with over 100 physical locations throughout Ontario.
Through customized financing solutions, they have assisted millions of Ontarians with their financial needs. Currently, they provide the following services: Installment loans • Payday loans • Cheque cashing, • Western Union wire transfers.
Their core value is to make their customers happy by providing solutions that “wow” them.
- Loan amount: Up to $1,500
- Interest rate: Varies by province
- Term: Next Payday
- Province availability: BC, ON
8. Loan Express
Loan Express is a Canadian payday lender that was founded in 2006. With over 15 years of lending experience, they know how to get you a cash advance quickly. They offer these advances in the form of small loans with 14-day terms.
They accept applications on a daily basis (24/7). People from all walks of life, including those with bad credit, are welcome to apply with Loan Express due to their minimum requirements.
Loan Express will get you the money you need, no matter where you are in Canada, whether you need it for an emergency, a large purchase, or simply to make ends meet.
- Loan amount: Up to $1,500
- Interest rate: Varies by province
- Term: Max 62 days
- Province availability: BC, AB, ON, NB, NS, NL, YT, SK, MN NT, NU
Can I Get an Emergency Loan with Bad Credit?
Yes, there are so many online and alternative lenders who only serve borrowers with poor or no credit. These lenders consider other aspects of your financial profile, such as your income, debt-to-income ratio, and other factors, to determine your creditworthiness.
Despite the quick and easy approval process used by many of these lenders, interest rates are typically much higher than rates obtained with good credit.
However, it is preferable to take out a payday loan or cover your expenses with a credit card because you can spread your costs into more manageable monthly payments.
Read Also:
10 Best Direct Loan Lenders For Poor Credit With Guaranteed Approvals
How To Get A Loan When You Are On Benefits
How To Calculate Payment On A Loan – An Easy Guide
Conclusion
You don’t have to justify how you intend to spend the money with an emergency loan because the funds are unrestricted. You can use the loan funds however you see fit and then repay it in a few manageable installments.
So, the next time you think, “I need money now,” an emergency loan may be the quickest way out of a financial bind.
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My name is Precious Ejiofor, I am a professional self motivated, dependable writer and editor, with over 4 year of experience in writing for variety of business and platforms. I am able and capable to write on any kind of topic.
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