What Do You Need to Get a Payday Loan?

Payday Loans Requirements and Application process

Payday loans are often the easiest to qualify and be approved for among all credit products on the market today. They are considered low-amount loans since $1,500 is the maximum a person can borrow in Canada. They are also issued for a short duration of time, usually from 2 to 6 weeks.

Whether it’s a matter of unexpected bills or expenses, family emergencies, cash flow problems, home or car repairs, a cash loan can help. Payday loans are a great way to quickly obtain funds, without risking any of your assets. They can be an invaluable tool to bridge cash flow gaps and steady your finances in difficult times.

Since these loans have minimal eligibility requirements and offer a fast, easy application process, they are the most preferred type of unsecured loan for the majority of Canadians.

Need payday loans in Canada?

• Get up to $1,500 from a trusted lender like iCash.
• Fast application process.
• Easy to meet eligibility requirements, even with bad credit.
• Access loans 24/7 with competitive rates.
• Repay your loan in 1 or multiple installments*
• No paperwork required.
• Quick funding in just 5 minutes via e-transfer.

Payday Loan Eligibility Requirements

In Canada, payday loan eligibility requirements are established by each lender, based on the risk they are willing to undertake. Before applying with a lender, it's recommended to review their requirements in detail, to increase your chances of getting your loan application approved.

Compared to other financial products, payday loans have limited qualification requirements making it easier for most people to get urgent cash. Since most emergency lenders have very low or no minimum credit score requirements for their loans, they are easy to qualify for. Unlike banks that rely mostly on credit scores for their lending decision, private lenders evaluate individuals in all aspects.

Even though direct lenders usually approve around 90% of applications, it doesn’t mean approval is guaranteed. No reputable lender could reasonably make that promise, however, it is much easy to get approved for a cash loan, even with bad credit.

Bad credit small loans are available for Canadians who have poor credit or no credit history at all through direct lenders.

To qualify for an online loan from iCash, you must:

• Be at least 18 years old (19 years old for applicants in British Columbia, New Brunswick, Nova Scotia).

• Be a resident of any of the provinces in which we operate.

• Show that you have been receiving the same source of income for the past three months.

• Have a total net income of at least $800/month.

• Have access to an online bank account.

• Have a valid mobile phone number, address, and email address (VoIP numbers are not accepted).

At iCash, we accept multiple sources of income that qualify for a loan such as:

• Salary
• Social Benefit Income
• Employment Insurance
• Disability Pension
• Armed Forces
• Canada Pension
• Old Age Pension
• Child Tax Benefit
• Provincial Disability
• Veterans Disability Pension
• Workers' Compensation
• Company Pension

We accept most fixed income sources that are received monthly by direct deposit. For instance, if you have been receiving your pension funds for at least a few months, you can be eligible for a CPP payday loan.

If you are unsure if your income source qualifies for a cash loan with iCash, please contact our support team. We will be happy to assist you.

Payday Loan Application Process

Compared to other financial products, payday loans have an easy and fast application process.

During the application, direct lenders may ask you to provide financial and personal information such as full name, social insurance number, home address, income amount, current employer, job address, outstanding loans, etc.

Traditional direct lenders may require you to provide physical documentation to support your application, such as pay stubs, bank statements, etc. They also may have significant paperwork involved or may make you visit the store to validate your identity.

However, modern online lenders like iCash can validate your information without physical paperwork. The best online payday lenders allow you to apply remotely at any time and from anywhere.

On average, completing an application may take you from 10 to 30 minutes. Once you have submitted your application, it will be reviewed and evaluated. Most direct lenders will provide you with an approval decision within 1 business day. The funding time will vary according to the lender you choose.

When you apply for an online payday loan with iCash you can receive your funds within 5 minutes 24/7. The process of obtaining a loan with us is simple:

1. Visit our website or download the iCash app on your phone.
2. Fill out your loan application and submit it.
3. We will review your information and perform a credit check.
4. Receive an approval decision in minutes.
5. Sign your loan agreement and send it back to us.
6. Receive your funds within 5 minutes via e-transfer or the next business day via direct deposit. Thanks to our entire online application process, Canadians can have access to quick cash easy and safe.

FAQs: Payday Loan Requirements and Application Process

Below are some of the most frequently asked questions about payday loan eligibility and approval, as well as detailed answers from our expert staff.

Is it hard to get a payday loan?

Payday loans are some of the easiest loan and credit products to obtain. Compared to traditional bank loans, cash loans generally have lower credit score requirements to qualify.

Because these loans are unsecured, they don’t require any collateral and physical documents to validate the value of your assets; they are easier and faster to obtain. Unlike loans offered by banks that require a good credit score, payday loans can be obtained even with poor credit.

How do you get approved for a payday loan?

While no lender can guarantee approval to its customers, there are some steps that borrowers can take to maximize their chances of getting approved for an emergency loan. Many payday lenders have approval rates from 60% to 90%.

If you stick to the following advice, you’ll improve your odds of being approved for your desired short-term loan.

1. Carefully review the eligibility requirements to apply at your chosen lender. Be sure you meet or exceed those requirements before applying.

2. Know your credit score and work to improve it. This is especially important for lenders that have a minimum credit score criteria for lending.

3. Compare lenders to find the one that suits your needs and that has high approval rates.

4. Fill out the loan application completely and honestly. Take time to double-check and ensure all the information provided is accurate before submitting the application.

5. Apply for the money you need. This demonstrates your financial responsibility and increases the likelihood of being approved.

6. Respond to any questions or clarifications requested by the lender in a timely and accurate manner.

If you follow the recommendations mentioned before, your loan application will likely be approved. It is important to mention, that receiving a loan approval doesn’t guarantee you will be approved for the amount requested. Your loan amount will be determined by the lender based on its criteria.

Can you be denied a payday loan?

Yes, you can be denied a payday loan. Like any loan or credit application, there is no guarantee of approval. Lenders must protect themselves and reserve the right to reject applicants who don’t meet their lending requirements. However, the rates or rejection or denial are much lower with short term loans than other kinds of loans and credit products, especially those offered by banks and traditional financial institution lenders.

Sometimes, money lenders will advise the reasons because of your rejection, this way you can seek to improve those aspects and reapply for a loan in the future. In some cases, instead of being outright denied, you may be approved for a smaller loan. For example, if you request $1,000, but your financials or other information provided don’t seem like you could reasonably repay that amount, you may be approved for a smaller amount.

You don’t have an obligation to accept the offered amount, but it’s a solution that lenders have, instead of rejecting you completely. After all, responsible lenders want to help you improve your financial situation and lend you only the money you can repay.

Why would you be denied a payday loan?

There are several reasons why you might be denied a payday loan. The most common reasons are listed below but they are not the only reasons why you may be rejected.

1. You don’t meet the lender’s eligibility requirements and therefore you cannot qualify for the loan.
2. You may have too many existing loans or outstanding payday loans.
3. You may have failed to repay your loan in the past.
4. You are paid in cash and don’t receive a direct deposit in your bank account.
5. You may have warnings in your credit report, history or bank records, including extensive overdrafts, late loan repayments, prior bankruptcies and similar. Most lenders don’t automatically disqualify you based on these events but may have internal criteria and thresholds to decide.

If you are denied a cash loan, be sure to try to find out why you were rejected. You can also try applying with other lenders who have lower requirements for a greater chance of being approved.

How long does it take to get approved for a payday loan?

The amount of time it takes to get approved for a payday loan will vary by lender. Most small-term lenders will tell you how long their approval process takes.

Online cash lenders often offer quicker decision processes than traditional lenders. Some of the best online lenders provide instant approval decisions at any time, including weekends, night and day hours. In some cases, approval can be provided as soon as you complete your application, usually within 1-2 hours.

Upon signing your loan agreement, your money may be released the same day depending on the lender. Nowadays, modern lenders can provide you with immediate funds in minutes. Overall, from the moment you start the application to the moment you receive the funds; it might take around 30 to 60 minutes when applying with online lenders.

Can I get a payday loan from two different places?

Yes, it is possible to get a payday loan from two different places. In Canada, private lenders are required to limit your number of loans with them to one at a time. However, if you already have a loan and you need another, you may apply for a second loan with a different lender.

Some provinces and territories control the number of same day loans a borrower can have at a time. This varies according to the province you live in. Even though provincial regulations allow you to obtain a second loan from a different lender, not all lenders will be willing to offer you a second one.

Private Lenders will make their decision based on their policies and eligibility criteria. They may ask you during their application process to disclose any outstanding loans. Based on the information provided, they will evaluate your financial capacity to determine your eligibility.