Online payday loans that accept disability income

If you’re looking for loans for people on disability, you have options. Payday loans tend to have the most lenient eligibility criteria, so there are lenders in this space that accept disability assistance as income and don’t even do credit checks. However, payday loans are extremely expensive and are only suitable as a last resort.

This guide covers different loans you can apply for if you’re receiving disability income and key factors to consider before applying.

Jump to:

• Loans for disability that are not payday loans
• Payday loans for disability

Compare loans for people on disability

You can get a small, instant loan from one of the providers below. They can consider your application as long as your disability benefits are being paid into your bank account.

Loan provider	Interest rate	Loan amount	Loan term	Key features
Credit Line	0% interest with optional fees	$30 – $250	30 days, extendable	Instant approval, no credit check, funding within 30 minutes with a monthly subscription	Go to site
Cash Advance	0% interest with a subscription fee starting at $2/month	$20–$250	Flexible	No credit check or job requirements, instant access to funds	Go to site
Early Pay	0% interest with a $2.99 monthly membership fee	$20–$350	Next pay cycle (65 days max)	24/7 approval and funding, instant transfers with a fee, no credit check	Go to site

Related: Loans with instant approval and funding

Compare personal loans and lines of credit for disability income

You can use your disability benefits to qualify for a personal loan or line of credit from an alternative lender. Compare your options below.

Loan provider	Interest rate	Loan amount	Loan term	Key features
Installment Loan	9.90% - 46.96%	$500–$50,000	3 - 60 months	Loan search platform, largest lender network	Go to site
Installment Loan	8.99% - 46.96%	$500–$2,500	3 - 6 months	Loan search platform, pre-approval in 5 minutes	Go to site
Installment Loan	29.78% - 44.80%	–$1,600	Up to 36 months	Direct lender, accepts any recurring income	Read review
Line of Credit (MogoMini)	47.42%	$1,000–$3,500	No end dates	Quotes in 3 minutes without impact to credit	Go to site
Line of Credit	19.90% - 34.90%	$1,000–$15,000	Open	Apply online, get funds as soon as same business day	Go to site

Compare payday loans that accept disability assistance

Payday loans have flexible eligibility requirements, which is why people on disability income have more options for this loan than other types of loans. But given payday loans’ super high rates, only consider them when you’ve exhausted all other options.

Loan provider	Interest rate	Loan amount	Loan term	Key features
Payday Loan	Varies by province	$100 – $1,500	7 - 62 days	24/7 approval and e-Transfer, accepts bad credit	Go to site
Payday Loan	Varies by province	$100 – $1,500	5 - 40 days	Instant approval, e-Transfer within minutes, accepts bad credit	Read review
Payday Loan	Varies by province	$100 – $1,500	Up to 62 days	No credit check, private disability income only	Read review

Can I get disability loans with no credit check in Canada?

Yes. Some lenders in Canada, such as payday lenders and pay advance apps, do not do credit checks for their loans and focus on your income instead. You’ll need to show them that you have a recurring disability income by providing access to your bank statements.

Make sure to apply to a legitimate lender in Canada, and watch out for payday loan scams.

Must read: No credit check loans in Canada

Can I get e-Transfer loans while on disability assistance?

Yes, you can borrow money using your disability assistance as income and have the loan funds sent to you via Interac e-Transfer. Many lenders online use this funding method. You will need to be registered for Interac e-Transfer first, which you can do so by signing in to your bank account and entering your personal details.

Option 1: Payday loans that accept disability assistance in Canada

Features

• Quick. You can complete the entire process in as little as 30 minutes.
• Expensive. It’ll cost you between $14 to $17 for every $100 borrowed, depending on your province or territory.
• Small loan amounts. Borrow between $100 and $1,500. Learn more about small loans.
• Short loan terms. Payday loans need to be repaid by your next payday. However, if you’re in Alberta, you have a minimum loan term of 42 days.
• Bad credit is okay. If your credit score is below 560, you are still eligible.

Eligibility requirements

Exact requirements for online payday loans vary among lenders, but generally you need to:

• Be the age of majority in your province or territory (18 or 19 years old)
• Be a Canadian citizen or permanent resident
• Have a steady source of disability income
• Have an active bank account

How to compare payday loans for disability income

• Funding options offered. You can get your payday loan via e-Transfer, direct deposit or cash in-store, but not all lenders offer all these options.
• Speed and availability. If you need an emergency loan, choose a payday lender that can give instant approval and e-Transfer funding within minutes after approval. If you’re applying outside of regular business hours and you need your disability payday loan fast, you may want to choose a lender that offers e-Transfer payday loans 24/7.
• Reputation. Read reviews from people who have taken out a payday loan from the lender. Watch out for a pattern of complaints.
• Accepts disability income. Check first that the lender accepts disability income, because not all lenders accept it. Some payday lenders may not accept government disability benefits but accept private disability income, while others may not accept any kind of disability income.

• Lenders that do not accept disability

  To save you some time, below is a list of lenders that do not accept disability:

  • Mr. Payday does not accept government disability income, but it accepts private disability income.
  • PAY2DAY does not accept disability income.
  • Focus Cash Loans does not accept government disability income.

Before you take out a payday loan using your disability benefits

• Know how much it costs. Payday loans are one of the most expensive ways to borrow money, with annual percentage rates (APRs) in the triple digits.
• Know your rights as a borrower. Each province has its own rules about payday loans, such as maximum borrowing fees, fees for missed payments, cancellation period and loan extensions. Choose a licensed payday lender that follows them.
• Ensure you’ll have enough income left. Before taking out a payday loan, check first that you’ll have enough disability income left over to pay for other debts and expenses once you repay your loan.

How to apply online

1. Fill out the application online. Provide details like your name, address, phone number, email, housing situation and employment situation.
2. Get a decision. The lender’s automated system will review your application and provide a decision.
3. Sign your contract. If you’re approved you’ll be given a contract to sign and submit.
4. Get funded. Receive your funds via e-Transfer within minutes of submitting your contract.

Option 2: Installment loans that accept disability

Features

• Interest rates. Rates are typically between 18% and 47%. How much you’ll be offered will depend on personal factors like your credit score, income and debts.
• Pay in installments. You’ll make equal payments to your lender over a period of time.
• Loan amounts. The range is usually $500 to $10,000.
• Loan terms. Term lengths last between 3 - 60 months.
• No prepayment penalties. You can usually pay off your installment loan early without facing any fees.
• Bad credit is considered. If your credit score is below 560, you could still be eligible for an installment loan. Learn more about bad credit loans.
• Disability income is okay. Not all lenders accept disability income, so check the lender’s requirements before you apply.

An installment loan is a different product from a payday loan, but they are sometimes offered by the same lender.

Installment loans vs payday loans for disability: Which is better?

Installment loans are cheaper than payday loans. Installment loans have a maximum rate of 47% APR. Payday loans, on other hand, have over 300% APR. Installment loans also let you break up your payments, which could help with your monthly budget.

One drawback is that installment loans have stricter eligibility criteria. Unfortunately, lenders of this loan are less likely to accept disability income.

Option 3: Pay advance apps for disability

Features

• Loan amount. $20 – $350.
• Varying loan terms. You’ll usually need to pay off your loan by your next paycheque, though some providers may be open to extending the deadline.
• No interest or fee. These loans usually do not have interest or late fees, but you may need to pay a fee to get instant funding.
• No credit check. You won’t need to go through a credit check, so it’s possible to get approved with bad credit.
• Disability income is okay. Because these are very small loans that cap at $350, lenders are more open to many types of income, such as disability.

Dive deeper: Cash advance apps in Canada

Option 4: Lines of credit for people with disability income

You may be able to get a line of credit, but out of the four loan options, it’s the most difficult one to get approved for.

Features

• Loan amount. Borrow as much or as little as you need up to a limit.
• Open term. Make the interest payments and pay off the loan partially or in full any time without penalty.
• Potentially cheaper than a payday loan. For example, Mogo claims its MogoMini line of credit is up to 88% cheaper than a payday loan.
• High interest rates. Even though online lines of credit are potentially cheaper than payday loans, they still have a high interest rate, and if you wait too long to pay off the balance, you can end up paying more than a payday loan.
• Bad credit is considered. Check the lender’s minimum credit score before you apply.
• Disability income is okay. Not all lenders accept disability income, so be sure to check the requirements before applying.

Lines of credit vs payday loans for disability: Which one to pick?

Like installment loans, lines of credit have lower APRs than payday loans, but they are also harder to get approved for. Borrowers with disability income may have more luck with a product like Nyble, which has features similar to a traditional line of credit but it doesn’t do credit checks and has much lower loan amounts than payday loans.

Can I get a loan with bad credit and on disability?

Yes, you can still get a loan if you have bad credit and are currently on disability. Be prepared to pay high rates though; lenders that accept riskier applications charge more interest precisely because they are taking on more risk.

How to increase your chances of approval if you have bad credit and disability income

To boost your chances, you’ll need to have the following in the last 90 days:

• Have zero NSF transactions in your bank account.
• Have more income coming in than money coming out to pay for debts.
• Have no active payday loan debts.

Questions to ask before you get a loan using your disability benefits

Before you apply or sign on the dotted line, ask these questions:

1. Can I afford it? Are you aware of the total loan cost, and how it’ll fit into your budget? If you get a payday loan, will you have enough income left after you repay the loan?
2. Is the lender legitimate? Make sure you apply to a licensed lender that’s transparent about how much the loan will cost you. Read reviews from people who’ve taken out a loan from the lender.
3. Is the lender pressuring me? If the lender is putting pressure on you to sign a contract with them or doesn’t help you understand the loan offer, try another lender.
4. Do I know the payday loan regulations of my province? This is to protect yourself as a borrower from illegal practices.
5. Have I considered alternatives? Before you apply, consider alternatives to a payday loan.

Will I be charged higher rates because I have a disability?

Lenders aren’t legally allowed to discriminate against you for having a disability. The rate you’re charged will be based on all facets of your loan application, including the total income you make (which could include other sources you have besides disability payments), your credit history and other factors.

If your income is low and you have fair or below average credit, you’ll be considered higher risk to lenders and will likely be charged a higher rate to make up this.

Alternatives for people on disability income

You aren’t limited to borrowing when you’re on disability and need extra funds. Grants and benefits are other options to consider — and the best part is you don’t have to repay them.

For example, if you need money to buy assistive devices or make your car or home more accessible, you may qualify for government funding or grants from private companies (for example, some car manufacturers offer special offers for those who need to modify their vehicles for accessibility purposes).

Here are a few resources to get you started:

• Canada Grant Watch. Search for disability grants by category and eligibility type, plus find resources to learn more about how they work and ways to increase your chances of approval.
• 211.ca. Get connected to information and services based on your needs.
• Canadian Pension Plan (CPP) Disability Benefits. If you’re under 65 years old and you were able to work and pay into your CPP for a time but are no longer able to work due to a disability, you may be eligible for this benefit from the federal government.
• Canada Student Grant for Students with Permanent Disabilities. If you’re a student with a disability in a designated post-secondary institution, you could be eligible for grants to help you towards your education.

Bottom line

Online payday loans that accept disability assistance are readily available in Canada, and some lenders don’t conduct credit checks. However, these loans have very steep interest rates. Before signing on the dotted line, check for a payday loan licence, know the cost of the loan and make sure you have the money to pay it back.

Frequently asked questions

• Can people on disability get a loan?

  Yes. Payday loans have flexible eligibility requirements. As long as you have a steady source of income – and this includes disability income – payday lenders can consider you. Other loans you can apply for are installment loans, pay advance apps and lines of credit.

• How do you know a payday loan that accepts disability is legitimate?

  A few things you could do is to check for a business licence, check that the lender abides by the provincial regulations, read reviews and find its contact information. Look for transparency. The lender should not only be upfront about fees, but it should also be upfront about the product it's selling. It should be clear that it's a payday loan with APRs in the triple digits.