Those receiving government assistance or benefits of some types and looking to borrow often find that applying for e transfer loans on social assistance can help when funds are needed.
When you need fast funds and the banks are unable to help, there are a number of online lenders that can be the answer to getting the funds you need quickly.
Loans That Accept Social Assistance
There are a variety of Canadian social assistance programs that lenders may consider as reliable and regular income such as pension, disability and others where an e-transfer loan could be an option.
These can include social assistance like Child Tax Benefit, welfare, ODSP (Ontario Disability Support Program), AISH (Assured Income for the Severely Handicapped), CPP (Canadian Pension Plan) and others. Note that some programs like employment insurance (EI) can be less likely to qualify. Other types can include Income Support in Alberta, Income Assistance in BC, Saskatchewan Income Support , or Income Assistance in Nova Scotia.
Sometimes you might be facing an emergency or need to borrow money quickly, and there are options that can help.
Advantages of e Transfer Loans
When you need fast cash, an e transfer loan can be provided in minutes with some lenders and deposited in your bank account. This often makes online lenders a more convenient and faster option than most alternatives available. The freedom to apply from your desktop or mobile device from just about anywhere to get fast cash can be a huge convenience.
A word of caution about loans when on Social Assistance
When you are on a fixed income such as government assistance or benefits you need to work with the funds available to you and budget your money.
Sometimes unexpected expenses happen where you might not have the savings available and an option like e transfer loans on social assistance may become a necessity for some Canadians, but there are a few things to keep in mind when looking for a Canadian payday loan on social assistance.
Short term loans often come with high interest rates, and short repayment terms. If you get a payday loan the full amount becomes due on your next pay cycle or payday, which is automatically deducted from your account when it becomes due. This can put you in a bad financial situation, leaving you without funds to cover your usual expenses after you have repaid your loan and put you in a debt cycle. It’s typically best to avoid payday loans if you can. A few types that are popular that some people with benefits look for is e transfer payday loans canada odsp or some might look for no refusal payday loans in hopes that benefits are not a concern.
An alternative can be online installment loans, which still come with higher interest rates but are not as bad as payday loans for social assistance. An installment loan also comes with short repayment terms but they are usually spread across several months. The terms vary from lender to lender for the duration but are a much better solution and more manageable to work with.
Choosing an installment loan means you have monthly scheduled payments without collateral being required as this is an unsecured loan.
Quick Tips When Borrowing
Avoid lenders that require:
- Fees up front to borrow
- Lenders that require insurance
You should also avoid lenders that do not clarify any terms of a loan that you don’t understand.
Always read the terms of a loan agreement before signing and make sure you understand all parts of the agreement.
Whether you live in Ontario, Alberta, BC or another province, there are many government benefits programs that lenders may consider as a viable income to qualify with. Many social assistance loans in Canada require you to provide government issued ID and proof of residency, be at least 18 years of age, have a valid bank account, and meet their minimum income requirements. Some lenders may request additional documentation to validate proof of a regular income. When borrowing an installment loan, many lenders may look at your credit score as part of the process to prequalify whether they would loan to you. Choosing a personal installment loan is usually your best option when borrowing. Installment loans with bad credit is still possible, and you may find lenders that will approve your loan request.
Alternatives for Borrowing
You might find that there are other options that may work for you as alternatives to borrowing high interest loans. These can include taking a cash advance from a credit card, lines of credit, home equity loans, or possibly car title loans. It is important to point out that the risk with home equity or car title loans is that if you fail to make payments you can lose your car or home.
Using e transfer loans while on social assistance does not require collateral and can be the right option for some depending on their own situation.
Some suggested reading that may be of interest:
Be sure to borrow responsibly and always read the terms before signing.