Getting approved for a loan while receiving Employment Insurance benefits may sound impossible based on your lower credit score and lower income. The good news is, getting approved is not impossible, and that there are several types of loans out there, you can obtain while receiving Employment Insurance (EI).
In Canada, you can take out a payday loan while receiving employment insurance, which does not affect your benefits. Employment insurance will be there for you to back up your financial situation; however, there may always be a pressing need to borrow. It is even possible to obtain short-term and specialized loans to meet other expenses over a more extended period. Even for Canadians who are out of work or receiving benefits, the benefits of short-term loans are still very available.
Can I get a loan on EI?
Yes, you can obtain payday loans while you are on Employment Insurance (EI); however, you may also get installment loans, personal lines of credit, or a vehicle title loan while on EI. While the Canada Emergency Response Benefit cannot be used as an income stream to help a borrower qualify for a loan, employment insurance in certain circumstances can. For example, to help Canadians out of work during difficult times, the Government of Canada operates an employment insurance (EI) program that provides income support on an interim basis for people out of work or between jobs. To help provide support in these times, Canadians may be able to claim the CERB as a temporary income stream.
Types of EI Loans
Apply for only loans that you know you will be eligible for — if you are unsure, contact a lender and ask. Regardless of what kind of loan you are looking for, it is recommended that you have done a little advance prep work before applying for credit. Then, pick out at least 3-4 lenders who are excellent for the particular types of loans you are looking to get.
With a better credit score, you may have more options later on when it comes to choosing a type of loan. For example, you might select a cosigner loan if you want to borrow more money over a longer term. When applying for a guarantor loan, you typically have a high-credit profile cosigner.
Your credit score will not be the determining factor for your loan approval, which means that anyone receiving an EI from the Canadian government is eligible to apply for a payday loan. The application process works like other small loans if you are unemployed, receiving EI, and applying for a payday loan. While circumstances and qualification requirements might differ a bit from regular payday loans, the application and quick-access funding process is still super simple and easy.
- Short-term Collateral Loans
- Payday Loans
- Cash Loans
Short-term Loans Lender
To qualify for a home equity loan with EI, you must find a lender accepting EI as a form of income. For example, suppose you find a lender that considers employment insurance (EI) an acceptable form of income and meets their other qualification criteria. In that case, you can potentially qualify for an Employment Insurance Program loan in Canada. Before applying, contact the lender you are interested in to verify they offer loans for EI and compare multiple lenders to find the best rates and terms available.
Apply for a Payday loan
From March 30, 2020, through September 30, 2020, you do not have to make loan payments, and no interest accrues on your student loans. Be sure that you can pay off the EI Payday Loan on time and that once the Payday Loan is paid off, you will have sufficient income left over to cover your other debts and expenses. To qualify for an EI payday loan, you must be 18 or older, have regular EI earnings, and have an active bank account. Many payday lenders will still check your income and employment since they want to be sure that you can afford your loan payments.
Bad credit, a history of missed payments, or recent bankruptcy may limit your options, increase interest rates, or make it difficult to obtain credit. Some mainstream banks and financial institutions may consider you ineligible to borrow because of lost income or low credit scores. Because car title loans are secured against the vehicle, lenders are more likely to loan to individuals with lower credit scores and unconventional forms of income. You are free to continue using a vehicle you own as part of your everyday life, but should you be unable to repay your loan, the lender may repossess your vehicle.
What loans for the unemployed on benefits in Canada?
If you are looking for a fast loan, you are better off choosing an online lender that offers quick loans without lots of applications. Some may think applying for more loans may improve your chances of getting one, but that could work against your best interests.
things to know about getting a loan while on employment insurance
While income from the CERB cannot qualify for mortgages, You may use the EI under specific circumstances. Yes, some lenders in Canada will accept employment insurance (EI), the CERB, welfare payments, and other government benefits as income. However, you will have to have a specific credit score and amount of income to be approved, and not many home equity lenders will accept EI as a valid income source. Nevertheless, getting approved for a loan while you are receiving employment insurance (EI) is possible; you just have to find the right lender that is capable of working with you and is willing.
Applying for an EI loan
Because of the restrictions in place in Quebec concerning loans, obtaining a payday loan may become challenging when you are receiving unemployment benefits. However, many lenders in Canada now offer unemployment loans to users who are not working and are falling behind in their debt. You can obtain payday loans when receiving unemployment benefits in Ontario, Alberta, British Columbia, or any other jurisdiction. In addition, Canada has lenders that offer installment loans for people who are out of work because of disability, an injury, pregnancy, or just because their employer has had to lay them off. Installment Loans for People Who Are Out of Work Because of Disability, An Injury, Pregnancy, or Just Because Their Employer Has Had To Lay Them Off.