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Personal and payday loan options for Canadian borrowers
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View optionPayday Loans in Canada
Payday loans are small, short-term, high-cost loans repaid on your next payday. In Canada and across your province, payday lending is regulated and the cost of borrowing is capped by law.
What payday loans are
A payday loan is a short-term loan, typically up to $1,500 and repaid within 62 days. Because the term is short and the fee is high relative to the amount borrowed, the effective annual percentage rate is very high. Since 1 January 2025, federal regulations cap the cost of borrowing at $14 per $100 in provinces that operate a payday lending regime, and cap dishonoured-payment fees at $20.
Eligibility
- You are the age of majority in your province
- You have a bank account and proof of income or benefits
- You provide government-issued identification
- You meet any provincial borrowing limits, such as a percentage of net pay
How it works
- Confirm the maximum cost per $100 allowed in {province} before you apply
- Borrow only what you can repay in full on the due date
- Review the loan agreement — the cost of borrowing and due date must be disclosed
- You generally have a cooling-off period during which you can cancel without cost
- Repay in full on time; rollovers are restricted or prohibited in most provinces
What to watch for
- Payday loans are the most expensive common form of consumer credit
- A two-week $500 loan at $14 per $100 costs $70 and works out to roughly 365% APR
- Compare alternatives first: a line of credit, a small instalment loan, or a payment arrangement
- If you are struggling with debt, contact a non-profit credit counsellor or Licensed Insolvency Trustee
Frequently asked questions
How much can a payday lender charge in Canada?
In provinces with a payday lending regime, federal regulations cap the cost of borrowing at $14 per $100 borrowed, and dishonoured-payment fees at $20. Quebec does not permit payday lending; the maximum rate of credit there is 35% per year.
Can I cancel a payday loan in Canada?
Most provinces provide a cooling-off period — commonly one to two business days — during which you can cancel the loan without penalty. Confirm the exact period with your provincial consumer affairs office.
What happens if I cannot repay a payday loan?
You may face additional interest, collection activity and negative credit reporting. Rollovers are restricted or prohibited in most provinces. Contact the lender and a credit counsellor before the due date rather than defaulting.
What is a lower-cost alternative to a payday loan?
Options include a line of credit, a small instalment loan repaid over several months, a payment deferral with an existing creditor, or a non-profit credit counselling program.
Related tools and guides
Find payday loans by province
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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Payday Expert
Short-term and payday loan options
Payday loans are high-cost. Borrow only what you can repay on time.
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Compare loan optionsAffiliate disclosure: Promissory.ca is a free comparison and referral service. We may receive compensation from lending partners when you click a partner link or submit an application. This compensation does not affect the information or comparisons we publish.