It’s a cruel irony that money is often the most tight when you don’t have a reliable source, such as when you are unemployed, between jobs, or going through a life transition. However, even if you don’t have a stable income, the expenses keep coming.
Costs such as emergency repairs, medical overheads, or family commitments can appear out of the blue and put further strain on an already unstable financial time.
If you are unemployed, however, you may not think that you are eligible for a loan. Wrong! Even for Canadians that are unemployed or on benefits, the advantages of a short term loan are still very much available. While the circumstances and eligibility requirements may vary slightly from a regular payday loan, the process of applying and receiving funds quickly is still very easy and accessible.
For Canadians receiving unemployment benefits, online direct lenders provide fast and simple access to EI loans. Rather than a regular income, this kind of small loan relies on the employment insurance funds as the proof of income for the borrower.
We offer fast, flexible and affordable loans for those that are receiving EI from the Canadian government. If this is you and you have found yourself in a tough financial situation, you can apply for a payday loan for the unemployed with us.
Will My Unemployment Affect My Ability To Get A Loan?
No! Many direct lenders (including us!) understand that a traditional income source is not the only way to approve an applicant for a loan. The Canadian government offers an Employment Insurance scheme (EI) that provides temporary income support to individuals who have lost their jobs and are actively looking for employment or upgrading their skills.
If you are unemployed, receive EI, and apply for a payday loan, the application process works the same way as other small loans. The only difference is that the borrower applies for a loan using their monthly EI payments as their source of income.
What Is Employment Insurance?
To help unemployed Canadians in tough times, the Canadian government runs an Employment Insurance (EI) program which provides income support on a temporary basis for those who are out of work or between jobs. While job hunting or updating current skills, this program is designed to keep Canadians from falling into a debt cycle or being forced to give up basic necessities.
It is also valuable for those taking time off of work for major life events, including things like:
A portion of any money you make in Canada is automatically diverted to EI, so the chances are you have already been paying into the communal kitty in the case that you ever need to access it. It is a crucial social resource to help ease the burden of financial instability that can arise during times of change, though often doesn’t cover life’s full expenses. This is why many Canadians opt to move away from EI as soon as possible, and sometimes need to seek short term loans on these EI payments.
How Do I Apply For A Loan If I Am Unemployed?
Applying for an EI loan looks like applying for any other kind of short term loan from a direct lender:
Benefits of EI Payday Loans
Like all financial contracts, EI payday loans come with their own set of pros and cons. You should take the process of finding and securing a loan seriously, and do the research to decide if this loan option is right for you.
To offer some insight, here are some top advantages of taking out a payday loan for EI recipients:
Do You Lend To Unemployed People With Poor Credit?
Yes! We don’t look just at your credit score, rather at your overall application
You may still be approved, or you may qualify for an amount lower than $1500. Though we don’t base our decision on credit alone, we will likely still check your credit details to validate your identity, income and employment information.