Unemployment loans in Canada with fast approvals

If you need a loan while unemployed in Canada, you may be wondering if a lender will consider your application. The answer is yes, you can still get a loan as long as you have an income, such as government benefits, pension or private disability. That said, unemployment loans tend to have higher interest rates, especially payday loans.

Keep reading to find out about different loan options available to you when you’re in urgent need of financing.

Find a lender:

• Installment loans (funding in 24-48 hours)
• Cash advances (instant for a fee)
• Payday loans (instant)

Compare unemployment loans in Canada

Check out these personal loans you can get without a job. You don’t need to put up any collateral, but recurring non-employment income is required, such as government benefits and private pensions.

Compare cash advances for the unemployed

Use your non-employment income to qualify for a small cash advance. You pay no interest on these cash loans, but you may pay a monthly subscription fee.

KOHO in particular doesn’t have any job or income requirements, which is rare for cash advance apps.

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.

Read the full methodology

Compare unemployment payday loans

Payday loans are easy to get, but you’ll pay for the convenience in the form of steep interest rates. These are only suitable as a last resort.

Is it a good idea to get a loan while you’re unemployed?

It’s generally not recommended to get a loan while you’re unemployed. This is because you’ll be considered a risky borrower who might not be able to make your loan payments, so you’ll only get approved for loans with higher interest rates. Plus, if you find yourself unable to make your repayments, your credit score could down.

Loans for the unemployed are only suitable when you need to borrow to pay for essential, emergency expenses and you’ve exhausted your alternatives.

Related: 20+ ways to make money online

Types of unemployment loans

According to the Credit Counselling Society’s 2024 Consumer Debt Report, over a third of Canadians are anxious about their current situation, and four in five say that spending more on essentials is the top contributor to worsened finances.

You might be thinking of a getting a loan to cover necessary expenses and bills. Before you apply, explore the types of loans available to you so you can decide what’s best for your situation:

• Installment loans
• Cash advance apps
• Payday loans

Option 1: Installment loans for the unemployed in Canada

• Benefits are a valid source of income. Lenders can consider your application as long as your income from benefits is steady.
• Loan amounts. You can typically borrow between $500 and $10,000.
• Loan terms. Term lengths often last between 3 months and 5 years.
• Payment schedule. You can make your payments monthly, bi-weekly, semi-monthly or weekly, depending on the lender.
• No prepayment penalties. Most lenders allow you to pay off your loan early without any penalties, so make sure you pick one that allows this.
• Bad credit is considered. It’s possible to get an installment loan if you’re unemployed with benefits and have a credit score below 560.

Before you sign up for an installment loan

• Know how much you’ll pay in interest and fees. This type of unemployment loan in Canada has high interest rates of up to 35%.
• Examine the payment schedule. Know how much of your payments will go towards paying the interest versus reducing the principal.
• Check the lender’s reputation. Visit consumer review sites like Trustpilot and the Better Business Bureau to make sure the lender hasn’t received a strong pattern of customer complaints.

Related: Best installment loans in Canada

Option 2: Instant cash advances for the unemployed

• Instant 24/7. Get approved right away and receive your money within minutes for an extra fee. Otherwise, it can take a few business days.
• No credit check. You won’t need to go through a credit check with cash advance apps.
• No interest. These loans have 0% interest, but you may pay a monthly fee.
• Loan term. You can extend the due date as needed, or you must repay by a certain date, usually within a month or two. It all depends on the lender.
• Benefits are accepted. You can get a cash advance if you receive non-employment income. In KOHO’s case, you don’t even need to show any proof of income.

Top features of cash advance apps

According to the Finder: Consumer Sentiment Survey January 2025, the top features of cash advance apps that current or potential users in Canada look for are:

1. Zero interest (14%)
2. Zero or low monthly fee (9%)
3. Instant funding (9%)

Option 3: Instant payday loans for the unemployed on benefits

• Quick, easy approval. If you need an emergency loan and you’re unemployed on benefits, you can get instant approval with a payday loan and funding within a few minutes via e-Transfer.
• Bad credit is okay. Instead of focusing on your credit score, lenders focus on your unemployment benefits.
• Borrowing fee. You’ll pay $14 for every $100 borrowed.
• Loan amounts. You can borrow between $100 and $1,500. Some provinces limit the amount to a percentage of your income (50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick).
• Loan term. Payday loans in Canada have a maximum loan term of 62 days, although payday loans in Alberta have a minimum loan term of 42 days.
• Benefits are okay. Many payday lenders can offer payday loans if you’re unemployed on benefits. This includes employment insurance, disability, pension, social assistance and more.

Why are payday loans seen as risky?

Payday loans are considered very risky because of a combination of high fees and short loan terms. When you get a payday loan, you’re generally required to pay it all off by your next payday. Once you do that, you’re left with less income. If you don’t have enough income left to tide you over until your next payday, you might find yourself needing to get another loan—and the cycle continues.

Before you sign up for a payday loan

• Check for a licence. Make sure the lender is licensed in your province and follows all government regulations.
• Have a concrete repayment plan. Check that you’ll have money in your bank account to repay the loan, and once you repay your loan, you’ll have enough money left for your bills, expenses and other debt payments until next payday.
• Know the true cost of payday loans. They’re one of the most expensive ways to borrow money with annual percentage rates (APRs) in the triple digits.

How to get your money

If you apply online, you can get your payday loan via e-Transfer or direct deposit. If you apply in-store, you can get your loan via cash or e-Transfer. If you have an emergency and need funds fast, especially if it’s outside of business hours, the fastest way to get your funds online is through lenders that e-Transfer payday loans 24/7.

Other loans for the unemployed in Canada

• Car title loans. Rather than focusing on your income, lenders focus on your car. This type of loan involves using your car as collateral. Your car must be paid off, in good condition and less than 10 years old.
• Credit card. You can try to increase your limit if you haven’t yet. Credit card cash advances are also an option. They’re expensive but still cheaper than payday loans.
• Line of credit. Bank lines of credit may be out of reach, but you could try online lines of credit, such as the MogoMini. Overall, however, lines of credit are harder to get than the other loans mentioned in this guide.

How to get an unemployment loan in Canada

• Check the eligibility criteria before applying. Before filling out an application, make sure you’re eligible for the loan you want. Lenders often list their requirements, such as minimum income and credit score requirements.
• Order a copy of your credit report. Check your credit report for free with one of Canada’s credit bureaus (Equifax and TransUnion) so you have a good read of how your application will look to lenders.
• Compare options before applying. While you may think your options are limited, you should still comparison shop before choosing the best loan for you. You may find varying interest rates or disparities in charges and fees between bad credit lenders.
• Have documentation ready. No matter which unemployment loan you apply for, you’ll need to provide proof of your benefits income and government-issued ID.

How to compare loans for the unemployed in Canada

With several options available to you, how do you choose which unemployment loan is best for you? Ask yourself the following questions when weighing your options:

• Which loan can I afford? Can you afford to repay a payday loan within a few days or a few weeks, and, when you do, will you have enough income left over to pay for other debts? If you get an installment loan, what monthly repayment amount can you manage?
• Are there extra charges? Check if there are costs in addition to the interest rate, such as broker, surety or admin fees.
• What is the lender’s reputation? Read reviews from people who have taken out a loan from the lender. If you see any consistent complaints, you might want to go with another lender.
• How fast do I need a loan? If you’re looking for an emergency loan, then you might prefer payday loans or cash advances. These loans have rapid turnaround times because of their flexible eligibility requirements and simple application processes.

Are there guaranteed loans for the unemployed in Canada?

There are no guaranteed approval loans for the unemployed in Canada. Legitimate lenders do not guarantee approval and will first evaluate your financial situation, such as your income and debts, before approving. Steer clear of lenders guaranteeing loans for the unemployed because it could be a scam, predatory or have fine print that doesn’t actually make them guaranteed. This can put your personal information and/or finances at risk.

If you need a loan with lenient eligibility requirements, check out the providers above or learn about easy loans in Canada.

Can you get instant online unemployment loans?

Yes, you can get instant online loans from several payday loan providers and cash advance apps in Canada who accept unemployed benefits as income. These online lenders are often able to assess your application, give approval and e-Transfer your loan money directly into your bank account in as little as 30 minutes. Examples of instant loans online for the unemployed include iCash, Nyble and KOHO.

How to increase your chance of approval for unemployment loans in Canada

If you’re unemployed and need a loan in Canada, you might consider applying with a guarantor or cosigner—like a partner, relative or friend—to boost your chance of approval. Many lenders offer the option of joint applications, and some lenders even encourage you to apply with a guarantor so you can be eligible for a larger loan amount. However, this is a large responsibility for the guarantor or cosigner, who is essentially signing up to share the responsibility of repaying the loan.

Are there free online loans for the unemployed?

Cash advance apps have free or almost-free online loans for the unemployed. To lower your cost, opt for standard delivery instead of instant delivery. Instant funding comes with extra fees that will drive up the cost of your loan.

Bottom line

There are many loans for the unemployed on benefits in Canada, including personal loans, cash advances, payday loans and car title loans. Before taking out an unemployment loan, no matter the type of loan, understand how much it’ll cost you overall and have a concrete strategy for repaying it.

Frequently asked questions

• Can I get a loan with no income?

  You can get a no income loan from apps like KOHO. KOHO offers cash advances with no proof of income required.

• Can I get a payday loan if I have no job?

  It depends. If you have no job but still have a steady form of income, such as employment insurance, disability payments or a pension, there are lenders who can approve you. Lenders look at your income to determine if you can repay your loan.

• Can you get a payday loan on benefits?

  Yes. Payday lenders can accept benefits as a valid source of income. However, lenders differ in the benefits they accept, so before applying, check if the lender you're interested in accepts the income you have. Learn more about payday loans for government benefits.

• How can I get a loan in Canada without a job?

  To get a loan in Canada without a job, you need to show that you have some means of repaying the loan, either through government unemployment benefits (like EI) or any other type of money coming in regularly—even if it's not employment income. Lenders offering loans for the unemployed just want to see that you'll be able to pay back the loan.

• Where do I find online loans for the unemployed with no credit checks?

  Online loans with no credit checks can usually be found among payday lenders and car title loan providers. Loans with no credit checks often come with very high interest rates because lenders will assume you are a risky borrower.

  Conducting a credit check is a standard practice for lenders in Canada, and it's a way for them to evaluate if you can manage your debt payments. Lenders who don't do credit checks will hone in on the stability of your income by looking at your bank statements.