If you receive government benefits as your main source of income, you may find your options are limited if you need a loan. But some payday lenders accept government benefits as valid income. As long as it’s regularly paid into your bank account, there’s a chance of getting approved.
Use this guide to find out where to apply for payday loans with government benefits (plus your alternatives).
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for long-term borrowing, with up to $14 charged per $100 borrowed. If you're experiencing financial hardship, consider calling Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Payday loans for government benefits in Canada
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Cash advance apps also accept benefits—and there’s no credit check
Cash advance apps, which are a payday loan alternative that launched in Canada around 2021, accept many recurring incomes, including government benefits. You pay no interest on these cash loans, but you may pay a monthly fee. Cash advance apps generally work out to be cheaper than payday loans.
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Finder Score for cash advance apps
To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ cash advance apps are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.
Steps to apply for payday loans with government benefits
Compare lenders. Payday lenders differ in what government benefits they accept. Some, for example, don’t accept social assistance, while others do. Before you apply to a lender, check that your government benefit qualifies as income.
Apply online. Include personal details, such as your name, email address, phone number, address, housing situation, income and payment frequency. Verify your income via instant bank verification.
Get a decision. Find out if you’re approved within minutes.
Sign your contract. Review your contract carefully, taking into account the interest rate, repayment amount and payment schedule, and sign when you’re comfortable.
Get funded. Get your money within minutes via e-transfer. If you choose direct deposit, get your money the next day.
Can I get payday loans with government benefits and no credit check?
While you can find some payday loan providers who accept government benefits and don’t do credit checks, other payday lenders do check your credit.
If a payday loan lender checks your credit, it’s not the only factor they consider when assessing your application. They’ll generally be more concerned about your ability to repay the loan, which you can often prove using income from government benefits.
Sample of payday loans that accept government benefits with no credit check
Flexible requirements. Payday loans are one of the easiest loans to get. You can use your governments to qualify for a loan, and you can get approved if you have bad credit or no credit.
Use the money for any purpose. Once you’re approved for a payday loan using your government benefits, you have the freedom to use the money as you’d like.
No credit check. Some payday lenders do not require any credit checks.
Unsecured. Payday loans are unsecured so you don’t need to put up any collateral.
Drawbacks
Here are the drawbacks every consumer needs to take stock of before applying for payday loans with government benefits:
Very expensive. Payday loans should only be a last resort because you’ll pay $14 for every $100 borrowed.
Short repayment terms. You’ll typically repay in full by your next payday, up to 62 days. Before you apply, check that you can repay the loan on time and you’ll have enough money left for other debts and expenses.
Small amount. Payday loans cap at $1,500, so if you need more, this isn’t your best option. Borrowers in some provinces also can’t borrow more than 30-50% of their net income.
Disreputable lenders. Check to make sure the payday lender is licensed. Always choose a reputable company that has positive feedback from real customers. Learn more about payday loan scams.
Eligibility requirements
While requirements vary between lenders, you’ll generally need to meet the following:
Age. You must be 18 years of age, or the age of majority in your province or territory.
Residency. You’ll need to be a Canadian citizen or permanent resident.
Income. You’ll need to show proof of your government benefit.
Bank account. Most lenders will require you to have an active bank account.
How to compare payday loans that accept government benefits
When you’re looking to apply for payday loans with government benefits in Canada, keep these in mind:
Funding speed. How quickly do you need your cash? Some lenders aim to give you instant access to your payday loan 24/7, while others may take longer. If you’re facing a financial emergency, this may be the make-or-break factor in your decision making.
In-person or online customer care. Some payday lenders are solely online while others take a hybrid approach with physical storefronts and an online presence. If you prefer face-to-face customer service when applying for payday loans with government benefits, you may have to stick to a select number of payday lenders, such as Cash Money, Money Mart, PAY2DAY and Cash 4 You.
Legitimacy. Steer clear of lenders that have little to no online presence, have no office address or phone number, and no payday licence to operate in your province.
Are there payday loans that accept CERB?
Canada Emergency Response Benefit (CERB) was government financial support given to Canadians who were directly impacted by COVID-19. CERB ended in 2020. Some payday lenders did accept CERB as valid income, while others did not.
Cost example: Payday loans with government benefits in Ontario
To give you an idea of how much you’d pay for a payday loan in Ontario using your government benefits, we use the following example of using the Ontario government’s disability benefit to get a loan:
Simon borrows $200 using his government benefit
Simon lives in Ontario and currently receives $1,228 per month in government disability income. He applies for an ODSP payday loan on November 3 and is approved to borrow $200. He must repay it on his next Ontario disability payment on November 30.
Feature
Details
Loan amount
$200
Cost of loan
$14 per $100 borrowed = $28 (189% APR)
Loan term
27 days
Payment amount
One full payment of $228
Simon’s total loan cost is $228, which means he’ll have $1,000 ODSP income left on November 30 once he repays his payday loan.
Before you sign a contract with a lender, make sure you’ll have money in your bank account to repay your loan and you’ll have enough left to cover your expenses until your next payday. Otherwise, you may find yourself needing another payday loan.
Check for a payday licence
Some provinces have a publicly available database of payday lenders that are licensed to operate in that province:
Which financial issues do Canadians focus on the most?
Income is one of the most important factors lenders consider when reviewing an application. And for many Canadians, income doesn’t seem to be enough these days. According to the Finder: Consumer Sentiment Survey January 2025, “increasing income” was the third most selected answer when Canadians were asked which financial issues occupied their minds the most.
Bottom line
There are many payday lenders in Canada that accept government benefits income from EI, CPP, OAS, Child Tax Benefits, Disability Tax Credit and more. Each payday lender decides which types of income it accepts, so check out our list of lenders that accept government benefits above to help narrow down your search. Make sure you have proof that you’re receiving benefits income regularly in order to qualify.
Since payday loans are so expensive, it’s worth considering payday loan alternatives that also accept government benefits, which come with better terms and more manageable payment options.
Frequently asked questions
Some payday lenders do accept government benefits as income, including EI, CPP, OAS, Child Tax Benefit, Disability Tax Credit, AISH, ODSP, Canada Recovery Benefit (CRB) and Workers' Compensation Board benefits (WCB). However, payday lenders differ in which incomes they accept.
It depends on your financial situation. Payday loans cap at $1,500, but some provinces do not let you borrow more than 30-50% of your net monthly income. A lender may also approve you for smaller amounts if you're a first-time borrower or if your government benefit amount is low.
If you already have a payday loan with a lender, you cannot get another one from them. You should first pay off your current payday loan and then re-apply for a new loan.
Yes, there are many options for payday loans that accept social assistance in Canada. Payday lenders tend to have more lenient eligibility requirements, including around the types of income they accept. If you need to get your money quickly, check out our full guide to e-transfer loans on social assistance here.
Leanne Escobal is a publisher for Finder. She has spent over 12 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio
Leanne's expertise
Leanne has written 183 Finder guides across topics including:
Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio
Chelsey's expertise
Chelsey has written 139 Finder guides across topics including:
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