Payday Loans With Government Benefits Canada
What do you think about payday loans in Canada? Is it a blessing or a curse? You will be surprises to know the fact that around 2 million Canadian use payday loan on an average basis to bear the unexpected set of expenditures they have not accounted for.
If you run this guaranteed approval payday loans in Canada offer in the right away, then it will appear as blessing for you to handle uncalled fiscal circumstances.
Now, even people living on government benefits have the liberty to apply for payday loans. It means, you have the source now to arrange some instant funds to lay off the pending dues without stretching them for too long.
In this blog, we will cover different points related to the different type of people on government benefits who can apply for payday loans, things to understand at first, consequences of not repaying the loan and the related points. So, let's get started.
Different Categories of People Living on Government Benefits in Canada
Broadly, there are several categories under which Canadian citizens live on government benefits with either not able to earn on a monthly basis or avail as an extra source of income.
Unemployment Benefits: There are people who are unemployed and receive fiscal benefits from EL in Canada up to a minimum amount of $800. Such people can apply for payday loan, if receiving such funds for at least 3 months in a continuation period.
Disability Benefits: In Canada, disable people receive special funding due to their short term or long term disability. This income can be used as a source of benefits to apply for short term cash loan.
Child Tax Benefits: If having children and receiving special tax benefit, then you are eligible to apply for instant cash loan. You must be having the benefit of at least $800 per month.
CPP Benefits: Take advantage of the small loan offer, if you are Canadian government pension benefit and receive a monthly sum of at least $800.
AISH Benefits: Get the funds generated from payday loans, if you are already receiving the AISH benefits.
ODSP Benefits: Specially residents of Ontario have the special benefit to apply for a maximum amount of $1500 as payday loan.
Understanding the Costing of Payday Loans
The cost associated with payday loan is not anything different for citizens of Canada living their life on government benefits. The rate of interest varies as per lender to lender and according to different states law rules. But in general, there could be $10, $15, $20 or even $30 as interest charges for every $100 you buy from the lender.
Let's take a payday loan scenario.
If you get a loan approval of $300, then you might be charged with $45 as interest charges, so in total you will pay back as $345. But if you are unable to repay the loan on time, then you will again be charged with $45, so the total will come around $390.
If you cannot this amount also, then you have to look for another source to pay off the loan.
The situation for every borrower is different and you need to understand you ways of settling the loan amount. So, best advice is to borrow the amount that you can repay within the stipulated period of time, otherwise not.
What If you cannot Payday the Loan?
Not all lenders will tell you about this. What will happen, if you fail to repay the loan well on time? Not just your reputation as a person living on government benefits goes down, but you also face severe consequences as per different state laws.
Some of the common consequences are mentioned below:
- The lender might charge you with high fee.
- The financial institution might also charge fee, if there is not enough funds in your account.
- The principal amount and the loan fee will remain as it is and increase with over time.
- The loan lender might get in touch with your friends, relatives and near ones to collect their money.
- The lender might deal with the collection agency of your credit card to exert additional pressure on you.
- The lending or collection agency might sue you for not making the payment.
- The collection agency or lender might seize your assets or property.
- The lender might go to the court to retrieve pending money from you.
Don't fall for the trap of payday loans, if you are unsure about the repayment at first hand. Always make your options open for arranging additional cash in terms of emergency, and lastly rely on this loan offer.
Eligibility Criteria of Payday Loans for People Living on Benefits
As compared to other normal lenders, the prerequisites of payday loan for people living on benefits are slightly different.
- Your age should be above 19 years.
- You must be having a government benefit income of not less than $800 a month.
- You must be a Canadian citizen and a resident of Ontario, Alberta, British Columbia, Manitoba, Prince Edward Island, New Brunswick, or Nova Scotia.
Now, the picture is clear to you. Payday loans for people living in government benefits can be a real benefit for taking care of unsure dues. Do take care of your fiscal behaviour and repay loan well on time.Apply Now