In these testing times of the COVID-19 pandemic, life has been difficult for most blue-collar workers and even other citizens. Even if we remove the pandemic situation, most people who fall into a marginal income section might need loans frequently; often for a short duration. That’s when a payday loan in Canada might be helpful. This article shines a light on the question ‘how to get online payday loans in Canada?’
What Is A Payday Loan?
When you want to borrow the money for a concise term, per se, you go for a payday loan until your next paycheck comes in. Other synonyms for payday loans in Canada are cash advance loans. If you want easy to get Canada payday loans, you should maintain your credit score to be presentable. Most payday loans come with a higher interest rate than that of a conventional personal loan.
How Much Money Can I Get In My Payday Loan?
The sum of money you will get on your payday loan ultimately depends on the next paycheck coming in for you. Most probably, it will be a handsome proportion of the pay.
You might have to apply for the payday loan with a paystub.
Let’s talk about the upper cap of this loan. Most lenders aren’t allowed to lend more than C$1500 to individuals, and that too, after confirming that their paycheck is coming.
How Much Time Does It Take To Get Online Payday Loans Canada?
It takes about thirty minutes to one hour for the money to arrive in your bank account with everything in place.
What Are The Things Required To Easily Get A Payday Loan In Canada?
- A regular income source to assure the lender that you’ll return the money.
- A bank account so that you can get the sum for your usage.
- You should have a permanent address. This gives a sense of confidence to the lender.
- Broadly, there are two types of payday loan lenders in Canada – online stores and private lenders.
- Generally, these loans’ interest rates are between 15% to 21% of the total principal amount.
Step By Step Process Of Applying For An Online Payday Role
- Enter the web address of any online lender of your choice.
- Click on the ‘Apply Now’ button.
- A popup will appear on the screen that might state the loan’s interest rate that’s being lent to you. You will have to accept it if you’d like to continue.
- Then you will have to choose your province.
- A form appears on the screen that asks all the general details a moneylender should know about you like:
- Your name
- Profession (sector and designation)
- Contact information
- Social Insurance Number
- Driving License Id
- Address
- Net worth
- Previous records of payday loans.
- Once you complete all these details, you can continue and get a payday loan quickly.
Rules And Regulations W.R.T. Canada Payday Loans
Most provinces have laws that clearly define the dos and don’ts for payday loans in the country.
- If a borrower hasn’t paid his pending sum, it’s forbidden for the lenders to give them a payday loan.
- The interest of the cash advance loan couldn’t be higher than 23%. So on every C$100, you’ll have to return C$21 extra to the lender.
- Some rules allow the borrower to cancel the loan within two days of applying. This comes with a cushion of zero cancellation fees for the first forty-eight hours.
If you think there are only rules for the borrowers, you might be wrong. Here are some of the most basic rules that are into play for the lenders:
- All the payday loan lenders should have a professional license to lend out money to the people.
- The lenders have no right to talk to anyone but you regarding your loan.
- If you feel that a lender might spam you once you take a loan, don’t worry. They can only check-up with you not more than three times a week.
- Nothing stays under the table when you make a deal with them. They have to specifically disclose the amount, the interest, and the other charges they will charge you. Along with this, they are also bound to reveal the actual duration of the loan.
- Any lender cannot take the money out of your bank account once your salary drops in. But that doesn’t mean that you shouldn’t return the borrowed money.
Do Someone Monitor Where I Use The Payday Loan Money?
Absolutely not…!! No one has a say where you spend the money you got as a payday loan from a lender in your province.
Conclusion
Here was everything from why are payday loans so hyped up things and how to get them to the rules and regulations one should know before applying for the payday loan. Are you thinking of applying for a payday loan in your province? Do check out the detailed rules and regulations in your locality.