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Is a payday loan legal in New Brunswick?
Yes - payday lending is legal in NB under the New Brunswick Payday Loans Act. Licensed payday lenders must adhere to strict fee caps, disclosure requirements, and regulation by NB authorities. Always verify a provider's licence before borrowing.
What is the maximum cost of borrowing in NB?
Under NB law, payday lenders may charge up to $15 for every $100 borrowed. For example, borrowing $200 costs $30 in fees, making total repayment $230. Any cost beyond that is unlawful.
How long can I borrow under a NB payday loan?
Most payday loans must be repaid within 62 days or less, often tied to your next pay cycle. Some lenders may offer shorter terms, particularly in smaller communities in NB.
How much can I borrow in NB?
You can typically borrow up to 50% of your net income, depending on lender policy. If your take-home pay after deductions is $1,000, many lenders will limit your loan amount to $500 or less to avoid overextending your budget in NB.
What documents do NB lenders ask for?
In New Brunswick, common requirements include:
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Government-issued identification
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Proof of income (recent pay stub or direct deposit history)
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An active bank account
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Proof of residence
Lenders may also ask for further information if you've taken previous payday loans or have bank history issues.
How fast is the approval and funding?
In NB, licensed payday lenders often approve applications within minutes to a few hours, and funds can arrive the same banking day (via e-transfer or direct deposit). Rural branches or smaller communities may take slightly longer due to verification delays.
What happens if I can't repay my payday loan on time?
If you default in NB, you may incur non-sufficient funds (NSF) fees or collection charges, but your costs cannot exceed the legal cap. You risk damage to your credit history and possible bank account consequences. NB law bans rollovers that simply extend the debt without reducing principal.
Can I repay early or cancel a payday loan?
Yes. You can repay any time without penalty. In NB, lenders must also offer a cooling-off period typically of two business days, during which you can cancel the loan with no extra fees. Use this time to review whether you truly need the loan.
How can I avoid debt cycles and reduce cost?
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Borrow only what you can confidently repay
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Use the debt payoff calculator to plan your payments
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Avoid rollovers or taking another payday to cover one
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Build an emergency reserve using the budget calculator
Being proactive often prevents repeating debt traps in NB.
What is a safer alternative to a payday loan in NB?
Rather than a short-term high-cost loan, consider an installment loan. With an installment loan, you receive a lump sum and repay over months or years with fixed scheduled payments. They often carry lower overall interest and reduce the risk of falling into cycles. Check out our installment loans page for details and comparison.
What are the risks of using payday loans in NB?
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Very high cost relative to borrowed amount
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Short repayment windows increase default risk
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Potential to spiral into repeated borrowing
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Negative impact on credit or banking if default
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Limited budgeting flexibility when repayment is due
Only use payday loans for urgent, non-negotiable expenses.
What should I check before applying in NB?
Before you commit:
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Ensure the lender is licensed in New Brunswick
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Confirm the total cost of borrowing (fees + principal) up front
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Ask whether early repayment or cancellation is allowed
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Compare to a personal or installment loan using our calculator
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Be wary of lenders without clear disclosure or vague terms
What's the first step in NB before applying?
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Use the personal loan calculator to see how an installment loan might compare
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Evaluate your income and ability to repay
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Check licensing status of payday lenders in NB
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If payday is still your best option, apply for a New Brunswick payday loan with a clear understanding of terms and risks
Written by:
Amy Orr
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Reviewed by:
Jenna West
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
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