Sometimes receiving provincial government benefits or social assistance doesn’t stretch as far as hoped and people sometimes find themselves running low on funds before their next cheque or deposit. This type of assistance is to cover basic needs or cost-of-living expenses.
The type of online loans for social assistance depends on the lender and the benefits received, as each lender has their own version of what is considered an eligible income.
When it comes to funding the e transfer loans on social assistance provides the fastest way to get funded when approved.
Some of the social assistance benefit programs that are considered for loans by some lenders include Employment Insurance (EI), Child Tax Benefits, Disability Tax Credit, Canada Pension Plan (CPP), Old Age Security, Ontario Disability Support Program (ODSP), Alberta’s Assured Income for the Severely Handicapped (AISH) and others.
Requirements for Online Loans with Social Assistance
Most lenders have fairly similar requirements when it comes to online loans with social assistance, and those with social assistance for an income will find that some lenders accept this as an eligible alternative to employment, depending on the type of benefits.
- Applicant must be of legal age (18 or older, depending on province)
- Applicant must be a Canadian citizen or resident with government ID
- Applicant must have an active Canadian chequing account
- Applicant must provide proof of a steady approved income
- Applicant must meet other eligibility requirements like minimum income
Not all lenders are the same, especially about what social assistance they approve for online loans. When applying for online loans, many lenders will also require you to complete the instant bank verification (IBV) in order to consider your application. Failure to do so will usually have your request considered incomplete and you will not be approved.
Benefits of Online Loans with Social Assistance
Choosing online loans has its benefits, and with social assistance loans it’s easy to see why so many choose this option when low on funds.
Fast – when fast cash is needed, an e transfer online loan is quick
Convenience – applying online for social assistance loans is just easy
Unsecured – there is no collateral required when borrowing
While it can be challenging to find online loans that accept government benefits or social assistance as a form of income there are lenders that will consider this as a reliable income source. Looking at their frequently asked questions or how it works page will often provide clarity about what sources of income are accepted.
Being on a limited income means following a tight budget and living within your means, and if you have a need to borrow, it’s important that your payments will fit within your budget. Otherwise, you may find your finances suffer if you have not accounted for this.
Getting an online loan while on social assistance can be an option, but it is advised that proper planning goes into repayment, how it’s used, and how you can avoid borrowing in future such as building an emergency fund to avoid borrowing if possible. You can learn more about this on GoodCheddar where we offer articles and advice for personal finance.