Loans for people on benefits can help you get out of financial trouble, with credit you can afford and without getting into debt.
However, to do this, you need to carefully analyze the market alternatives. Otherwise, you run a high risk of ending up contracting a loan for people that will be detrimental to you in the long run.
Below, you will find a direct guide, delving into the ten most relevant credit options for beneficiaries, from installment loans to forgivable government programs. Let’s go!
Detailed Analysis of the Main Options for Loans for People on Benefits in Canada
In Canada, several alternative financial institutions and specific programs stand out for considering government benefits as valid income. Let’s go!
1. Fairstone
Fairstone is one of the biggest names in the alternative credit scenario in Canada.
They offer two loans for people receiving benefits: the unsecured and the secured, which help meet different levels of risk and capital needs.
- Unsecured Loans: The amount ranges from CAD 500.00 to CAD 25,000.00 with repayment terms of six to 60 months. Annual interest rates are between 29.99% and 34.99%;
- Secured Loans: If you mortgage a property, a vehicle, or another valuable asset, the amounts go up to CAD 500.00 to CAD 60,000.00 and the term extends from 36 to 120 months. The great advantage is the drop in interest rates, which are between 19.99% and 25.99%;
2. Spring Financial
Spring Financial is known for helping clients who need not only money but also a way to rebuild or establish their credit.
In addition to traditional loans, the focus on structured programs makes it an interesting option for loans for people receiving benefits who aim for a more solid financial future.
In this case, you can apply for CAD 300.00 to CAD 35,000.00, with terms that can reach 84 months (seven years) and interest rates ranging from 9.99% to 34.95% per year. Approval is fast and online.
3. LoanMeNow (Loans for people on benefits)
LoanMeNow focuses on providing small emergency loans with very fast approval, often without a detailed credit check. It is a short-term solution for urgent needs.
Because of this, the amounts you can get are lower, ranging from CAD 300.00 to a maximum of CAD 1000.00, with a repayment period of 3 months.
The annual interest rate is between 28% and 32%.
Pay attention to the income requirement; you must have a minimum income of CAD 1,200.00.
Therefore, this option is beneficial for those who need immediate money for an emergency, provided they meet the net income requirement and are aware of the cost.
4. LendDirect
Instead of a fixed-value loan, LendDirect offers a line of credit, functioning like a credit card with cash, ideal for those who need flexible access to funds.
Initially, you can get up to CAD 15,000.00. However, the interest rate varies from 19.99% to 46.93% per year.
The differential is that interest is only charged on the amount you actually withdraw from the line of credit.
The client can defer payments, and there is no penalty for early repayment.
5. Loan Away (Loans for people on benefits)
Loan Away specializes in clients facing credit difficulties, including those with low scores or who have just emerged from bankruptcy. They are flexible regarding the source of income, accepting loans for people receiving benefits.
First, you can get between CAD 1,000.00 and CAD 5,000.00. Regardless of the amount you take, you must repay the credit in a maximum of 36 months. Pay attention to interest rates, which can vary between 19.9% and 45.9%.
Undoubtedly, this is a good option for people with low income, bad credit, or a recent history of bankruptcy, who are looking for medium amounts for consolidation or expenses.
6. Mogo
Mogo is a Canadian fintech with an interesting line of loans, including personal loans. The company is known for its agile approval and for accepting applicants with weak credit.
Personal loans range from CAD 500.00 to CAD 35,000.00, with terms of six to 60 months. Annual interest rates are between 9.90% and 35.00% [12].
One of the differentials is the “100-day money-back guarantee.” The client can return the principal amount of the loan and receive back the interest paid, which offers a unique safety net.
7. Magical Credit (Loans for people on benefits)
Magical Credit is a lender that specializes in serving people who depend on benefits such as Employment Insurance, child benefits, or provincial subsidies, providing loans for people receiving benefits in small and medium amounts.
The amount available varies between CAD 1500.00 and CAD 20,000.00, which must be repaid within 60 months. Furthermore, the interest rate varies between 19.99% and 35% per year.
8. Helium Loan
Helium Loans is a lender that specifically serves people receiving AISH (Assured Income for the Severely Handicapped) in Alberta.
Although the website indicates that loans for people receiving AISH benefits are granted, they generally require this income to be combined with another source of income or that there is a guarantor (co-signer).
As a rule, the process for applying for credit is completely online and fast, getting the amount in a few minutes.
9. HASI (Loans for people on benefits)
In addition to private lenders, the Canadian government offers valuable programs. The Home Adaptations for Seniors’ Independence (HASI) is a grant (forgivable loan) administered by CMHC (Canada Mortgage and Housing Corporation).
First, you can get up to CAD 20,000.00 for home adaptations that increase safety and allow low-income seniors to remain in their homes. This includes the installation of handrails, grab bars, accessible showers, etc.
The advantage is that the amount does not need to be repaid if the senior remains in the residence for at least six months after the completion of the works.
Comparative Table of Loan Options
| Institution/Program | Credit Amount (CA$) | Typical Term | Rate/Charges (Indicative) |
| Fairstone – Unsecured | $500 – $25,000 | 6 – 60 months | 29.99% – 34.99% p.a. |
| Fairstone – Secured | $5,000 – $60,000 | 36 – 120 months | 19.99% – 25.99% p.a. |
| Spring Financial | $300 – $35,000 | Up to 84 months | 9.99% – 34.95% p.a. |
| LoanMeNow | $300 – $1,000 | 3 months | 28% – 32% p.a. |
| LendDirect (Line of Credit) | Up to $15,000 | No fixed term | 19.99% – 46.93% p.a. |
| iCash | Up to $1,500 | Up to 62 days | $14 per $100 borrowed (≈14%) |
| Loan Away | $1,000 – $5,000 | 6 – 36 months | 19.9% – 45.9% p.a. |
| Mogo | $500 – $35,000 | 6 – 60 months | 9.90% – 35.00% p.a. |
| Magical Credit – Installment | $1,500 – $20,000 | 12 – 60 months | 19.99% – 35% p.a. |
| Magical Credit – Cash | $100 – $1,500 | 14 days (average) | $14 per $100 (APR ~365%) |
| HASI | Up to $20,000 (Forgivable) | N/A | Zero interest (it’s a grant) |
Conclusion (Loans for people on benefits)
Loans for people receiving benefits in Canada are very varied, able to serve all audiences.
The essential point is to recognize that income from benefits is valid, as long as the lender analyzes the profile completely and fairly.
Before choosing credit, act cautiously, analyze the options well, and see if you meet the requirements before applying for credit.
If your score is low, some of the options mentioned may not be approved. However, don’t worry, there are good quick loans for bad credit that can help you.