No matter how well you manage your personal finances, there will always be times when you need a loan fast. That’s where same day loans come in. While you’ll usually pay a premium in terms of interest rates and loan terms compared to a traditional lending arrangement, sometimes you really can’t afford to wait for your money.
Not all Canadian same day cash loan lenders are created equal. That’s why Smarter Loans have compiled a list of the most trusted firms in the industry. The lenders rank highly in terms of client satisfaction, reliability and fairness of same day personal loan terms. Most of these companies offer an online loan application process, and you can expect to learn whether you’ve been approved within minutes.
Because same day personal loans tend to be for smaller sums, you will also not need to provide much in the way of collateral.
Use the comparison of Canadian same day lenders below as an aid in your research. We’re confident you’ll find the right offer for your needs. Once you have compared the same day loan providers, click “Apply Now” and you’ll be able to proceed with the appropriate online application. Another option is to pre-apply with Smarter Loans where in that case, we’ll pair you up with a lender that is most appropriate for your needs.
We can help connect you with the top same day cash loan providers in Canada.
Emergencies can happen to anyone and everyone. When they do happen, they normally come unannounced. Whatever the nature of this emergency though, these are the times when you may need liquid cash urgently. The same day loan, as the name suggests, provides these funds to you on the same day as you complete the application. Over the course of this article, we will explore how to obtain one, and the factors that need to be weighed before deciding if this is the best financial solution for your needs.
The mechanics of the loan themselves are pretty easy to understand. Most sameday loans these days are available on the Internet, wherein the application process can be completed online, through a call or through an app from inception to completion. Unlike personal loans from a retail bank for example, the same day loan does not perform a hard credit check. Therefore, by operating via a substantially shorter application process, the same day loan makes an approval decision for customers in as little as 5 minutes.
Once the approval decision is made, the customer then receives a notification regarding the terms of the loan (i.e. the maximum principal that can be borrowed and the rate it will be lent out at). If these terms are agreeable to the customer, then they can select the loan and the funds are deposited from the lender into the borrower’s bank account within the day.
Repayment thereafter depends on the type of same day loan that is extended. The most common type of this loan used by consumers is the payday loan, wherein the funds are repaid by the borrower after the arrival of the subsequent paycheque. Another common type of loan is called the title loan, where the borrower pledges asset collateral (e.g. a car). During the life of the loan, the title of the asset is passed to the lender. Once the loan is repaid in full including interest, the title is then returned.
Despite the fast application process and fund receipt, the same day loans do come with higher price tags by way of the interest rates charged on them. Because the lender does not perform the level of detailed credit checks and verifications that would be done at a local bank for example, they are subject to higher credit risk from defaulting customers. To be compensated for this higher risk, they thus charge premium rates.
Retail Loan with a principal of $10,000 for 1 year, 6% per year – Monthly repayment: $860.66
Day Loan with a principal of $5,000 for 1 year, 21% APR – Monthly repayment $931.14
As can be seen above, while the payday loan does offer a quick, hassle-free application process, the rates when annualized are comparable to credit card rates, which can make interest payments more expensive the greater the value of the loan being obtained.
In most Canadian provinces including Ontario and Alberta, the minimum requirements for a same day loan include the prospective borrower being at least 18 years of age with a checking account within a Canadian financial institution and a steady source of income.
The checking account is primarily a tool for the deposit and withdrawal of funds during funding and repayment stages, respectively. At the borrower’s option, the funds can be automatically extracted from their accounts on the date of their next payday to avoid the late payment fees that can accompany these loans.
The income requirement is to ensure that the lender retains some level of comfort that the loan will eventually be repaid. While part-time jobs are acceptable under this requirement, a job that the borrower has only commenced recently might be cause for potential non-approval.
For cash-strapped borrowers who need instant liquidity to fund an immediate and/or emergency expenditure such as a medical bill, the appeal of a same day loan is clear.
Despite these seemingly compelling benefits though, there are also downsides to the same day loans that cannot be ignored. When making a final decision, consumers would do well to remember these:
For both individuals and businesses, there are a range of usage applications of the same day loan. In cases where time is critical, and funds need to be acquired immediately to make a payment, the day loan stands out in comparison to other types.
While there are no specific conditions with regards to the usage of this loan, individuals most often use it for emergency expenses including:
In a similar vein, businesses might also use the same day loan for a variety of purposes. Most often, this has included:
Different lenders have a variety of different preferred repayment methods, some of which include post-dated checks, automatic payments credited directly from the bank account, and/or cash settlement on a pre-defined date.
Each lender has their own restrictions concerning the cap on the amount available to be lent out. This is also a function of the borrower’s income and collateral. The higher the income and/or level of collateral posted, the higher the lender will be willing to go in terms of principal amounts lent.
Same day loans may often come with fees regarding certain aspects like: early repayment penalties, administrative fees, missed payment fees etc. At the outset of gaining the funds, it is important to read the requisite documents to make sure that you understand all fees that you could be on the hook for.
A representative of the lender will contact you and ask for the payment to be made. If it cannot be made, then there is the option of a loan extension. Failing that (e.g. if the borrower is delinquent), then the credit score will be impacted for up to 5 years and the lender may choose to take additional legal action.
While there is no restriction on the usage as mentioned above, it is important to keep in mind that the interest costs for the payday loan are significantly higher. Therefore, this option should likely only be undertaken when a debt repayment is due soon, and the borrower has absolutely no way of raising the cash required.
Yes. While there is no guarantee of being approved, borrowers with poor credit may apply for same day loans.
Same day personal loan lenders understand that it’s hard to prepare so many documents if you need a fast loan. The vast majority of Canadians have the necessary documents for a same day loan. Usually, all you need to apply for a same day loan is a government-issued ID and proof of income.
To get a payday loan in Canada, you must be at least 18 years old. Each lender will assess you by their own standards, but if you are an adult with an income, it should be easy to get a loan same day. Many same day lenders can transfer you the funds in a couple of hours.