Cash Loans

A cash loan is a fast and easy method of getting financing in Canada. Whether you are looking to pay for unexpected bills, fix up your car, make an investment into your business, or just go on vacation, cash loans in Canada are quickly becoming a popular financing solution.

It’s easy to get approved for a cash loan in Canada. You don’t need to wait in long lines or fill out stacks of paperwork. After you complete a simple application online, you can usually get the cash you are looking for within just a few days, deposited directly into your bank account.

At Smarter Loans, we’ve done the heavy lifting for you. Below you’ll find a list of reputable companies that offer cash loans in Canada. Take a look and compare your options, including products offered, interest rates, terms, qualifications and even reviews from other customers. When you’ve found the loan you’re looking for, hit “Apply Now” next to the lender you want to try. You’ll be redirected to their website where you complete the online loan application.

You can also pre-apply for a Canada cash loan right here on Smarter Loans, and we will find a suitable lender for your situation. They will reach out to you to process your loan request within 24-48 hours.

We can help connect you with the top loan providers in Canada.

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Top Cash Loans Providers in Canada

Company
Amount
Interest Rate
Reviews
Terms
$500 - $35,000
5.9% - 39.9%
12 - 60 Months
$1,500 - $12,500
19.99% - 34.99%
12 - 60 Months
$500 - $30,000
19.99% - 39.99%
6 - 120 Months
$500 - $20,000
19.99% - 46.8%
6 - 60 Months
$2,000 - $10,000
34.9% - 43%
12 - 60 Months
$500 - $10,000
46.93%
Open Line of Credit
$100 – $15,000
19.99% - 46.93%
Open Line of Credit
$100 - $15,000
46.93%
12 - 60 Months
$500 - $10,000
19.99% - 46.99%
12 - 36 Months
$500 - $10,000
12.99% - 39.99%
9 - 36 Months
$2,000 - $10,000
18.9% to 54.9%
12 - 60 Months

What is a fast cash loan?

A fast cash loan is a debt facility offered to consumers which enables them to receive liquid funds into their accounts on an accelerated timeline compared to other retail loans. These types of loans are available online and typically get processed in under an hour, providing the borrower with almost an immediate access to liquidity that they may need during certain times of their life.

All things equal, fast cash loans generally have a higher rate of interest than other forms of retail banking loans provided by financial institutions due to their unsecured nature. This means that there is a higher burden of risk on the part of the lender as a default by the borrower does not trigger access to assets that the lender can sell to recoup money. For example, mortgage rates are generally lower than fast cash loan rates because a defaulted payment can lead to foreclosure on the home wherein the lender can reclaim at least a majority of loan losses.

In terms of the principal amount offered by fast cash loan providers, these types of loans do offer more than the average payday loan (which is also a type of debt that provides near-instant cash) but is normally lower than other forms of retail loans (e.g. mortgages, auto loans). This is largely attributable to the relatively limited requirements needed on the part of borrowers to obtain such a loan. In Canada, principal amounts offered by providers tend to range between $500 to an upper limit of ~$10,000.

The loans are structured to be paid back in installments wherein the lump sum is funded right after loan approval and paid back over time. This payback period can be anywhere from a few months to a few years (typically under 5 years).

cash loans

What the numbers say…

By demographical trends, the greatest growth in non-mortgage credit comes from the millennial and Gen Z population as they grapple with increasing costs by way of supporting children, acquiring vehicles, and increasing tuition.

 

Source: TransUnion

Who can and should use a fast cash loan?


Although fast cash loans are available to any Canadian above 18 years of age with a valid ID, verifiable source of income and an active bank account, their use is contingent on the borrower’s individual financial profile. Due to the higher borrowing costs, people with a non-immediate need for cash may not be the optimal target market for such a product.

A typical user of a fast cash loan might exhibit one or both of the following characteristics:

1. Requiring a sizeable sum of immediate cash to cover an unforeseen expense e.g. car repairs, while payday is still a few weeks away.

2. Requiring a sizeable sum of immediate cash to cover an unforeseen expense e.g. hospital expenses, which their savings and next paycheque may not be sufficient to accommodate.

Before undertaking a fast cash loan, it is therefore critical to consider the urgency of the required funds, the cumulative quantum of savings and the next paycheque, and the timeline in which that paycheque will be received.

End-to-End Process:


Step 1: Application

Most fast cash loan applications are now available online through a multitude of lenders. However, if the borrower does not have access to a reliable Internet connection, these applications can be made in select retail stores or over the telephone as well.

Prior to completing the application, the borrower must have a valid identification (passport, driver’s license or other government-issued ID), an active and open bank account, and a proof of income from a job that has been held for at least 3 months

Step 2: Decision

Once the application has been completed, the decision is processed by the lender. Online applications generally get processed faster, and funds can be received from anywhere within a few minutes to 1 business day.

If applying over the phone or online, the funds will be deposited to your account through a direct deposit (although some lenders also offer an e-transfer option)

Step 3: Documentation

After the decision is made, the lender will approve the borrower for a certain threshold of borrowing that is available to him/her.

The borrower can then select the option that makes most financial sense for his/her individual needs at that point of time and sign the requisite documentation accordingly to get funded

Step 4: Cash In

At this stage, the loan becomes funded and is deposited into the borrower’s account as per the stipulated preference made in the “Application” step above.

Decisions are made and funding is received at a much faster pace than other retail loans, which almost always require physical meetings with loan specialists prior to funding

Step 5: Repayment

During the “Application” and “Documentation” steps, the borrower and lender will mutually agree on repayment terms in terms of principal and interest repayments. These loans are then repaid over a timeline that could be as short as a few weeks to the length of a few years

Pre-Apply for a Cash Loan Here

Points of Difference:


As an instrument, the fast cash loan is somewhat of an intermediary between ordinary retail loans and payday loans. As illustrated by the table below, its key features lie somewhere between the other two, which are on opposite ends of the spectrum:

Key Advantages of Cash Loans:


Despite the higher borrowing costs though, there are certain advantages offered by the fast cash loan facilities:

Need for Speed

The key benefit from these loans, however, is the speed, efficiency and reliability that borrowers needing immediate liquidity are looking for. With the debt funding occurring on an accelerated timeline due to the lower volume of requirements, borrowers can get to work deploying it to pay off expenses almost instantaneously. Compared to other conventional loans, this could potentially be the sole factor that tips the scales for borrowers in favour of fast cash loans

Lower Monthly Payments

Unlike payday loans, which are largely offered for a period of a few weeks, it is possible for cash loans to be offered for a longer timeframe that decreases your biweekly/monthly repayment amount

Fixed in Time

Due to the extended length of retail loans, banks and financial institutions often offer these at variable rates, meaning that the interest payment amount is tied to a broader macroeconomic metric. Fast cash loans, however, tend to be issued on a shorter-term basis, so lenders are more comfortable with providing them at fixed rates. This enables the borrower to have a strong degree of visibility into his/her expected cash outflows and allows for a simpler budgeting process when considering the various debt options available

Factors to Consider about Cash Loans:


There are also certain features that can pose risks to prospective borrowers:

1. Interest: Depending on the duration that the loan is obtained for and the rate charged by the lender, fast cash loans can be an expensive form of financing compared to other short-term loans and/or credit cards.

2. Rinse and Repeat: Often, borrowers find themselves in a cycle of debt wherein each paycheque goes towards the pay-down of existing loans, leaving little for the operating expenses they took out the loan for. The extensions of the loans as a consequence come with strings attached in the form of higher fees added to the original amount.

3. Predatory Practices: Non-sophisticated borrowers may be susceptible to lending practices that are intended to be unfavourable from the borrower’s perspective by exploiting contract loopholes or misleading marketing materials. It is therefore critical for consumers to find registered institutions that are vetted by regulatory authorities.

Cash Loan Best Practices:


Because these loans come with high borrowing costs and other affiliated fees, it is in the best interests of borrowers to follow the below precautions:

Borrow Right Amount

Don’t borrow more than what you need: While it can be tempting to take out higher amounts offered under the maximum allowable amount to pay expenses in full, higher rates mean that the repayment will be that much larger. Take out only what you need to cover the savings and/or paycheque shortfall

Review Documents

Read offer documents carefully: While the Canadian regulatory landscape is relatively stringent, it is equally important on the part of the borrower to understand what type of fee structure they would pay as a consequence of missed/late payments

Make Payments

Always pay back on time: Payments that are made past their due date or not made at all are subject to fees from the lender. In addition, if the borrower has signed up for a direct deposit and has insufficient funds in the account, the financial institution could charge further NSF fees

Other Useful Reading:


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