Payday loans

Are payday loans legal in Canada?

Payday loans are a relatively new type of personal lending. Therefore, many potential borrowers may have questions about their legality.

Yes, payday loans are completely legal in Canada and are regulated by provincial laws to protect consumer rights. These are short-term loans issued by banks and microfinance organizations until the borrower's next salary. The main purpose of such loans is to cover the borrower's immediate, unforeseen, and unplanned expenses.

The main characteristics of payday loans:

• Interest rates compared to other types of loans are usually very high.
• Small loan amounts: Most lenders set limits on these loans, usually up to $1,500
• You can find out about the repayment period from the name of the loan itself - until the next salary or often within 1-2 weeks.

Where can I borrow money immediately?

If you need credit funds very quickly, you can use payday loans or Peer-to-Peer Lending (online platforms that connect borrowers with investors). These types of loans are characterized by fast approval and high interest rates. Therefore, we recommend that you take out such loans with great care, they can satisfy your needs for quick funds almost instantly, but their price will therefore be high.

However, you can use the Bankchart service and compare interest rates to find the cheapest loan that meets your needs.