{"id":7310,"date":"2022-05-29T09:00:00","date_gmt":"2022-05-29T13:00:00","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7310"},"modified":"2022-06-01T22:46:13","modified_gmt":"2022-06-02T02:46:13","slug":"small-loans-in-canada-get-money-fast","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/small-loans-in-canada-get-money-fast\/","title":{"rendered":"Small Loans in Canada: Get Money Fast"},"content":{"rendered":"
\n
\"small<\/figure><\/div>\n\n\n

Small loans in Canada aren\u2019t as easy to find as you might think. Traditional financial institutions seldom offer them, since they believe a credit card or a line of credit can fulfill this need.<\/p>\n\n\n\n

However, many people don\u2019t have access to either of these products. This could be due to a limited credit history, no credit, bad credit, or a low income. Even if you have decent credit, your financial institution may not offer loans under a few thousand dollars, due to the reasons mentioned above.<\/p>\n\n\n\n

Whatever the case, this can put you in an uncomfortable situation when you discover you need money quickly. Luckily, you have options.<\/p>\n\n\n\n

Define What \u201cSmall\u201d Means for You<\/h2>\n\n\n\n

Always best to look for a lender that offers the amount you need. The word \u201csmall\u201d is subjective and what some lenders classify small may be much more than what you need.<\/p>\n\n\n\n

Of course, you shouldn\u2019t borrow more than necessary as you\u2019ll need to pay interest on your loan. This can increase your indebtedness greatly and put you in a worse financial situation than you might anticipate.<\/p>\n\n\n\n

For those that can\u2019t or don\u2019t want to borrow against a credit card or line of credit, your two options are usually either a payday loan or an installment loan. Both are viable options for small loans in Canada, but are repaid differently.<\/p>\n\n\n\n

Payday loans are easier to obtain, but must be repaid quickly. Installment loans have greater repayment choices, but also stricter requirements.<\/p>\n\n\n\n

Licensed Canadian Lender<\/h2>\n\n\n\n

The Government of Canada warns against using unlicensed lenders and those located outside of the country for small loans in Canada. This is due to several reasons.<\/p>\n\n\n\n

First, these companies can ignore consumer protection laws. Second, they can charge high, open-ended fees. Third, you might get caught up in a scam, put your personal information at risk, and this can lead to identity theft.<\/p>\n\n\n\n

Finally, non-Canadian lenders may choose to set up shop in an area with laxer lending legislation, because they know it benefits them. Licensed Canadian lenders must adhere to Canadian laws, whether they operate in-person or online.<\/p>\n\n\n\n

How Much Can You Borrow?<\/h2>\n\n\n\n

The legally allowable maximum payday loans in Canada are $1,500. However, some regions will only grant loans based on a percentage of your net salary over the past two pay periods.<\/p>\n\n\n\n

As an example, if your take home pay is $2,000 per month, and the legally allowed maximum is 50% of your net income, you can only borrow $1,000. Some provinces enacted this limitation to ensure you don\u2019t borrow more than you can afford.<\/p>\n\n\n\n

Ontario, BC, and Saskatchewan have a 50% limit. New Brunswick and Manitoba have 30% limits. Alberta, Nova Scotia, and PEI offer the full loan amount, without income limitation.<\/p>\n\n\n\n

If it is your first payday loan through a company, they may not grant you the full amount either. Once you repay your first loan, you will probably qualify for more.<\/p>\n\n\n\n

If you need more than $1,500, you will need an installment loan. Products and lenders vary greatly, as do the requirements to qualify. Once again, choosing a licensed lender is always your best option. They are governed by regional laws and must follow consumer protection protocols.<\/p>\n\n\n\n

What is Your Reason for Borrowing?<\/h2>\n\n\n\n

Lenders are less concerned about why you want to borrow if you choose a payday loan. Nonetheless, you shouldn\u2019t use these loans to top up you bank account regularly, because you\u2019re unable to manage your money. They\u2019re meant for pressing needs.<\/p>\n\n\n\n

The following are just a few reasons customers have chosen GoDay for their payday loan:<\/p>\n\n\n\n