In Canada, payday loans are available for those with bad credit that need cash immediately. These are untraditional loans that have high fees associated with them. The Canadian Government has put regulations in place stating that a lender cannot impose more than 60-percent interest on a payday advance. Additional information of the process and qualifications are below.
The qualifications for obtaining a payday loan in Canada are rather simple.
What you need to qualify:
- Proof of Canadian residency
- Permanent employment
- Valid bank account
- Must be at least age 18
Based upon your request and your verifiable income, an amount is determined that you can safely borrow. Other bills are typically not included in this qualification process.
During the application process you must provide proof of identity, proof of residency, employment verification and proof of your valid bank account. The application asks basic demographical questions such as your address, age, place of employment, amount of funds needed and in some cases, other household bills.
Applicants with minimal income may require a co-applicant. The co-applicant is also legally responsible for the repayment of these funds should the primary borrower default.
In Canada, payday loans are not all immediate. Your application must be reviewed. Upon approval and acceptance of the terms of the loan, the funds are deposited into your bank account within a single working day. Approvals take, on average, 15 minutes to 24 hours. You will be notified if your decision does not come instantaneously.
Most Canadian payday loans must be repaid within 14 days. These terms rarely vary as the Government heavily regulates this industry. The interest on the principal is 23-percent and the annual percentage rate is 599.64-percent on average. Some lenders may charge more interest. On a simple, $300 payday loan, you can expect to repay $369.
Stiff consequences, such as criminal charges being filed against you, can be sought by the lender for non-payment. This can also occur if you do not have sufficient funds in the bank account when the account becomes due. It is important to only take the loan if you can honestly afford to repay it in –full and on time. The Canadian Government regulates how many loans a citizen can have at one time and over a period of time. This helps to prevent the payday loan cycle from sucking you in and leaving you in financial despair.