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payday loans Nov 27, 2018

How to Qualify for an Cash Advance Loans that Accepts Social Assistance Benefits

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How to Qualify for an Cash Advance Loans that Accepts Social Assistance Benefits

Cash advance loans can be tremendously useful for many people that are on social assistance programs in Canada. They provide a short-term cash benefit, without the need for collateral. These funds can be used as the borrower sees fit, allowing the kind of flexibility that many people need such as paying for unexpected bills, repairs, or purchases, and manage their cash flow as well as their overall finances.

Qualifying for a loan

But, for people who are on social assistance program, qualifying for an payday loan is a challenge in and of itself. Things like bad credit history, underemployment or unemployment, disability, and other factors can wreak havoc with your financial life and scare off many traditional lenders. This is especially true when your social assistance program benefits have a limited or fixed income.

Fortunately, there are lending providers where you can qualify for an cash loan and allow you to borrow money, even when you are on social assistance benefits. iCASH is one of those providers, offering quick and simple online service for payday lending, even for those who qualify for social assistance benefits. In this guide, we’ll tell you everything you need to know about how payday loans work. We’ll also explore some of the common social assistance programs and benefits available in Canada. Then, we’ll explain how to qualify for a payday loans that accepts income assistance and finally, detail why you should choose iCASH for your short-term lending needs.

Payday loans for disability benefits

Payday Loans also known as cash loans, as a concept, are fairly simple and straightforward. That’s one of the reasons they are so popular and have been around for such a long time in the personal finance world.

In essence, a small cash loan is provided to the borrower, without the need for collateral assets. This loan is then repaid, along with an interest charge, at the end of the loan term. In most cases, the loan term is fairly short.

In modern times, though, these type of loans have evolved a bit beyond this basic definition. While they still work on the same principles, there are options with repayment terms that are a bit longer than the next pay cycle. iCASH provides flexible repayment plans, which allow customers to pay back the loan over 2 or 3 pay periods, rather than paying it back in one big amount.

The loan application and qualification process vary from lender to lender. Some require documentation proving your income, such as pay stubs and other records. Others do not require formal documentation. Most do generally require a certain income threshold, however, in order to determine your loan eligibility, or qualify you for a certain loan amount. Some lenders may have minimum credit scores for borrowers to meet or charge higher interest rates for those with poorer credit. Others may not do a credit check at all, and still others may take a middle ground, looking at credit reports but not using them as the basis for a decision by themselves. Various residency, employment, bank account, and other requirements may apply as well.

Some lenders require in-person office visits and approval, notarization of forms, and other activities in order to complete the lending process. Mailing, faxing, scanning, and other activities are not uncommon parts of the application process. However, a new breed of lenders, like iCASH, are bringing payday lending into the 21st century, with digital application processes that are fast, easy, and have minimal requirements to qualify.

Regardless of the criteria and processes, however, payday loans all share a similar foundation in how they work and what they are. Let’s put a pin in this topic for a minute, and shift gears to social assistance programs in Canada and their benefits, before we bring the two together.

Social Assistance Programs and Benefits

In Canada, there are many various social assistance programs that are available to residents. These vary by province, but may include such programs as unemployment, basic income/welfare assistance, disability benefits, old age security (OAS), pensions, and other programs. Some are administrated at a provincial level and some are managed federally. In general, they are all designed to provide either an earned benefit or a safety net to citizens, such that they can, at a minimum, afford food, housing, and other basic life necessities.

The Government of Canada has a website which allows you to “get a customized list of benefits for which you may be eligible” for. It’s called “Welcome to the Benefits Finder - Canada Benefits”.

The Government of Canada “income assistance” page allows people to view and learn about the different social programs that they might be eligible for.

Wikipedia also has a section where you can read about the different social programs in Canada and their history.

Province of Alberta Income Support
Province of British Columbia Income Assistance
Province of Ontario Social Assistance
Province of New Brunswick Social Assistance Program

It can be quite challenging, however, to deal with emergency or unexpected expenses, bills, repairs, and similar when you are the recipient of a fixed income from social assistance programs. Often, those who are the recipients of social assistance are those who are in need most of a quick and easy access to small loans, especially when something breaks down or an emergency expense comes up.

Where social assistance programs provide funds to citizens that can be used in a discretionary manner (e.g., not restricted to a particular use like housing or food), they can play a role in qualifying for payday advance loans, as we’ll explore in the next section.

What do you need to apply for a payday loan?

As we mentioned earlier, Payday loans typically have several requirements in order to qualify for a loan. One of these is an income requirement. The period and amount of income required for a loan can vary from one lender to the next and vary based on the loan amount you are seeking. Often, this requirement is expressed in terms of a minimum dollar amount of net income on a weekly, bi-weekly, monthly, or similar basis – whatever the pay period or pay frequency of an individual may be. In general, however, this is a fundamental principle of a cash advanced loan – you have to be receiving sufficient income in a regular fashion in order to repay the amount within a reasonable short-term time frame.

The definition of income or net income is where social assistance programs can come into play. So long as a social assistance program provides benefit funding that can be used for any purpose, it can be considered part of the net income towards qualification requirements for a short-term loan. That means that, even if you don’t have a formal or regular job-based income, such as wages, you can still often meet the income requirement for a payday loan. Pooling all of your income sources, including wages, investment income, social assistance benefits, pensions, and so on, to make up your total weekly / bi-weekly / monthly income picture, can allow you to access payday loan funds by satisfying their requirements.

Of course, not every company offers these kinds of flexible services. Direct lenders in Canada are ultimately concerned about getting their money back, with interest. Regular paychecks and job wages are traditionally seen as the most secure way to do that. Therefore, some lenders only accept clients with regular wages from a normal job. But the better and more open-minded lenders, including iCASH, recognize that regular government benefits, from social assistance programs and similar operations, are perfectly acceptable forms of income – and just as reliably delivered on a regular basis as a traditional paycheck. In fact, it could be argued that government assistance or social assistance benefits are even more reliable than a paycheck, since the government doesn’t generally shut down or close up shop or go bankrupt in the same way that a private enterprise might.

What’s more, as we’ve stressed, people who are receiving social assistance benefits often are the MOST in need of the financial flexibility that cash advance loans can provide. Being on a fixed income doesn’t provide you with a whole lot in the way of options, as building up savings or a safety net is usually not possible, or at best is extremely difficult. Disqualifying individuals in need, who are receiving social assistance benefits, from accessing loan funds, just because they don’t have a regular “pay check”, so to speak, just isn’t fair. And, with government benefits being involved, there’s no real greater risk to a lender than from someone who receives a regular paycheck. So, safe honest lenders like iCASH consider many of these social assistance benefits as income elements when asking for your net income to satisfy their minimum lending requirements.

Can I get a payday loan on benefits?

iCASH is a digital online lender, offering an application process, approval decision, and funding that can all be completed easily, and very quickly at your own convince. As we’ve highlighted throughout this guide, iCASH is fairly open-minded when it comes to lending, and wants to be able to offer cash advance loans those in need. Therefore, iCASH fully considers government benefits, including social assistance benefits, as part of your net income. This holds true so long as the funds are provided to you, under your control, and are not restricted in terms of what they can be used for.

Based on that information, as you can see below, there are really only a few key criteria for qualifying for a cash loan with iCASH. Obviously, as with any loan application, there is a process of review, and your loan may be approved or rejected for various reasons, or the requested loan amount may be reduced based on your income. But you are eligible to apply so long as you meet these relatively simple and straightforward lending requirements:

  • You must be at least 19 years old as of the application date.
  • You must be a Canadian citizen, and a resident of one of the following provinces:
  • You must have been receiving the same source of income for the past 3 months.
    • This includes any kind of social assistance benefits. As long as your income “mix” or sources are consistent, demonstrating stability in the short-term future, then you satisfy this requirement. So, if your income is made up of wages and social benefit income, for example, that’s perfectly fine, so long as that mix has been receiving it for the past 3 months at a minimum.
  • You must have a total net monthly income of $800.
    • As part of the application process, you detail your sources and amount of income, and what pay period or receipt period you receive that income on. The list of income sources that qualify is also included as part of this process and includes most Canada social assistance program benefits from the provinces in which iCASH operates, along with pensions, wages, investments, and similar sources.
  • You must have a Canadian bank account, which you have had open for at least 3 months, that has self-service access to online banking functionality.
  • You must have a valid phone number, email and home address.

Those are the only requirements to qualify for a payday loan with iCASH. If you meet them, you can apply, and get an approval decision for your requested loan amount. Qualifying is no guarantee of approval, of course, but it’s the first and most important step.

When You Need a Payday Loan that Accepts Social Assistance Benefits, Choose iCASH?

iCASH offers several advantages for consumers over traditional short-term loan lenders and other lending sources. First and foremost, as we’ve discussed throughout this guide, iCASH considers social assistance benefits as part of your net income, which is not something that every lender offers. This allows the people who are most in need of short-term loans to easily access credit.

Secondly, the loan applications can be done on the iCASH website or via the iCASH loan app, which saves you time and hassle. The easy online loan application takes most people only 5 to 10 minutes to complete. After you submit the application, it is transmitted to our automated decision-making software, which checks over the information, does a credit check, and considers all of those data points to render an approval decision.

This is a process that is near-instantaneous in almost all cases. And, don’t worry if you need a bad credit loan – there are no minimum credit score requirements for lending at iCASH, and you don’t pay a higher interest rate just because of a lower credit score. Once you’re approved, you get your loan agreement online, sign it digitally and submit it back.

We are the only company in Canada to provide a 5-minute e-transfer of funds once your loan is approved which is extremely important when you need to borrow money in an emergency.

The entire process can be completed with no visits to a branch office, no faxing, emailing, notarizing, mailing, calling, or other tedious tasks.

iCASH is also fairly unique in the context of licensing and certification. As a fully qualified as a direct lender to operate in all of the provinces we currently service. This means that the company is regulated by provincial law, providing consumers the financial protection and security. And, iCASH is based in Canada, operates in Canada, and only services Canada. In other words, iCASH is made for Canadians by Canadians.

Further, we are committed to fair, ethical, responsible lending. It’s one of the reasons why we believe it’s so important to consider all of a person’s income sources, including social assistance benefits, when determining their loan eligibility. While we can’t always approve every customer and may not always be able to provide the full loan amount requested, we strive to offer as much as we responsibly can.

We want to be sure that you have the financial means to pay back your loan and interest payment when due and won’t loan you more than you can reasonably be expected to repay. We also don’t believe in surprise or hidden fees, and spell everything out clearly as part of the lending process, in clear, simple, transparent terms.

iCASH is simply a different kind of direct short-term lender, offering flexible lending options, 24/7 availability, a fast and easy application process, limited and basic qualification requirements, and a reliable, secure, and positive experience for our clients.

If you are in need of an payday loan, are receiving fixed income or social benefits as, and live in a province in which we operate, you should consider iCASH as your first and best choice for short-term loans.

At iCASH we do our best to provide you with the means to improve and manage your financial situation, helping make life better, one customer at a time.