Payday Loans Canada - Rates and Fees

 

The terms and conditions mentioned on this page and the pages or documents that are referenced are together known as the ‘Terms of Use’. The ‘Terms of Use’ represent an agreement between the user and Payday Loans Canada. The ‘Terms of Use’ are applicable on the use of this website, its content, the products or the functionality by you as a registered user or a guest visitor. Throughout the ‘Terms of Use’, Payday Loans Canada may be referred to as ‘our’, ‘us’, ‘we’, ‘website’ or ‘site’. It is advised that before you use this website, its services or its products, take some time to go though the terms of use. When you use this website for any reason, be it for gathering information about our products and services or procuring the same, you acknowledge that you have gone through this document and our privacy policy which has been referred to in this document. In case you do not agree to any of the clauses mentioned in either our privacy policy or terms of use, it is advised that you exit the website immediately.

 

Loans should be used responsibly
When you are a user accept a short term loan offer from a lender, you are assuming some risk and some responsibility, similar to any other form of credit services. You should use these loans responsibly and take a conscious decision before application because these loans are not supposed to be used as a means of handling debt but for handling unexpected financial needs that may arise from time to time. We always encourage our customers to decide the loan amount conservatively and apply only for the amount that is necessary for handling the current financial emergency. Since short terms loans as the name suggests are supposed to be paid within a few days of loan disbursement, the users should also make sure that they would be able to pay the loan back within the specified period and would be able to handle the other necessary financial needs from the amount left after repaying the debt. Short term loans come with a high risk for the lenders when compared to any other form of credit, hence such loans would be subject to a greater interest rate and charges as well as certain restrictions.


Understanding short term loan interest rates
As mentioned above, short term loans come associated with interest, charges and fees. The majority of the charges over the principal amount are comprised of the interest. In order to protect the consumers, this interest rate has been capped as per Canadian regulations. When all these charges associated with a short term loan are combined, they form the annual percentage rate, also known as APR.


Restrictions of Loans
Canadian regulations have capped the annual percentage rate at 60% in order to protect the consumers and to prevent any exploitation by lenders. All the lenders in the network of Payday Loans Canada follow these regulations precisely. The regulations in Canada are not very strict and you may find a number of lenders in the short term loans market who may charge you unreasonable interest rates and swindle your hard earned money. All the lenders in our network are carefully chosen and all of them are expected to follow the Canadian short term loan regulations strictly. In doing so, Payday Loans Canada has made it easier for you to receive funds from our lenders and has also made it easier for you to repay the loan by ensuring that you only have to repay a justified amount.


Provincial Regulations
Short term loan regulations in Canada vary from province to province. According to an amendment brought to the criminal code of Canada in 2006, provinces have been given the right to bring regulations for the short term loans market. Most of the provinces have brought in their separate regulations but some provinces have not done so. You can find the complete regulations in your province at the website of Canadian Payday loan association.


Implications of non-payment according to province


Alberta
Default Loans are charged at 2.5% per month. In addition, a charge of 25$ can be made for non sufficient funds (NSF). This charge can be made two times at maximum.
British Columbia
Default Loans are allowed to be charged at a maximum of 30% per annum. In addition, a charge of 25$ can be made for non sufficient funds (NSF). This charge can be made two times at maximum.
Saskatchewan
Default Loans are allowed to be charged at a maximum of 30% per annum. In addition, a onetime charge of 25$ can be made for non sufficient funds (NSF).  After the loan is paid, the charges are expected to be reset.
Manitoba
No information available.
Nunavut
No information available.
Nova Scotia
Default loans that are at least one day past due are charged at a maximum of 59% per annum. A maximum of 40$ additional charge can also be charged.
Ontario
No information available.
Prince Edward Island
Default Loans are allowed to be charged at a maximum of 59% per annum. Maximum administration charges of 50$ can be charged for a loan that is at least one day past due date. There is no limit to the number of times a penalty can be charged for non-sufficient funds, however, the total penalty for a loan cannot exceed 50$ irrespective of the number of instances.
Quebec
No information available
Yukon
Default Loans are allowed to be charged at a maximum of 59% per annum. Maximum administration charges of 150$, depending on the principal amount due can be charged for a loan that is at least one day past due date. There is no limit to the number of times a penalty can be charged for non-sufficient funds, however, the total penalty for a loan cannot exceed 50$ irrespective of the number of instances.
Northwest Territories
Default Loans are allowed to be charged at a maximum of 59% per annum. Maximum administration charges of 50$ can be charged for a loan that is at least one day past due date. There is no limit to the number of times a penalty can be charged for non-sufficient funds, however, the total penalty for a loan cannot exceed 50$ irrespective of the number of instances.
New Brunswick
Default Loans are allowed to be charged at a maximum of 30% per annum. In addition, a charge of 40$ can be made for non sufficient funds (NSF).
Newfoundland and Labrador
Default Loans are allowed to be charged at a maximum of 59% per annum. 40$ penalty is automatically added to loans that are at least one day past due date. There is no limit to the number of times a penalty can be charged for non-sufficient funds, however, the total penalty for a loan cannot exceed 50$ irrespective of the number of instances.
Representative annual percentage rate (APR)
All the charges and interest rates mentioned in this section are representative and are not guaranteed. Your actual APR would depend on a lot of factors including your province, your lender, the amount you want to lend and your financial stability.
Representative example: British Columbia and Alberta
If you borrow 300$ and pay in back after 14 days, the total charges on this loan would be 62.94$. The fixed APR in this case would be 599.12% which would roughly translate to a fixed interest rate of 22.98%. While calculating the annual percentage rate, various factors like the interest rate, the loan period, mode of repayment and other factors are taken into consideration.
Representative example: Ontario
If you borrow 300$ for a loan period of 14 days, the total charges would be 62.94$, at a fixed interest rate of 20.98% translating to an APR of 546.98%. This means you would be expected to repay an amount of 362.94$.
Representative Example: British Columbia, Alberta and Saskatchewan
If you borrow 300$ for a loan period of 14 days, the total charges would be 69.00$, at a fixed interest rate of 23% translating to an APR of 599.64%. This means that the interest is 23$ per 100$ borrowed. In this case you would be expected to repay 369$.
Representative Example: Nova Scotia
If you borrow 300$ for a loan period of 14 days, the total charges would be 75.00$, at a fixed interest rate of 25% translating to an APR of 552%. This means that the interest is 25$ per 100$ borrowed. In this case you would be expected to repay 375$.
Representative Example: Newfoundland, New Brunswick, Labrador, Prince Edward Island, Nunavut, Yukon Territory and Northwest Territories
If you borrow 300$ for a loan period of 14 days, the total charges would be 89.55$, at a fixed interest rate of 29.85% translating to an APR of 778%. This means that the interest is 29.85$ per 100$ borrowed. In this case you would be expected to repay 389.55$.