Securing Payday Loans in Canada
In Canada, online payday loans must meet the laws set by the government. You’ll find the laws for each province on the Canadian Payday Loan Association’s website. Here are five tips for securing a payday loan in Canada.
Know How Much You Can BorrowThere are limits on how much you can borrow with Canada’s online payday loans. The government defines a payday loan as a loan of $1,500 or less borrowed for no more than 62 days. Some provinces have special rules too, such as British Columbia and Saskatchewan where the loan cannot exceed more than half of your pay during the loan period. This loan is given in exchange for a post-dated personal check or post-dated debit card transaction that covers the money borrowed and any fees and interest.
Know What Your Interest Rate Should BeEach province has its own rulings on the maximum interest rate that you can be charged when taking out a payday loan, so it’s good to know them. If a Canadian payday loan company tries to charge more than this, do not sign any paperwork.
- Alberta – 23% for initial loan period
- British Columbia – 23% for initial loan period
- Manitoba – 17% for initial loan period
- New Brunswick – Cannot have higher than a 60% APR
- Nova Scotia – 25% for initial loan period
- Ontario – 21% for initial loan period
- Quebec – Cannot have higher than a 35% APR
- Saskatchewan – 23% for initial loan period, 30% if you default