Online payday loans in Canada
A plain-language guide to what you can borrow, what it costs, who approves it and what happens on the day it's due.
What is an online payday loan? It's a small, short-term loan, between $100 and $1,500 in Canada, that you apply for and sign entirely online. You repay it in one payment (or instalments, in some provinces) on your next payday, within a maximum of 62 days. In designated provinces the cost is capped at $14 per $100.
How much you can borrow
The legal ceiling is $1,500, but most people are offered less. Provinces tie the loan size to your take-home pay: Ontario, BC and Newfoundland and Labrador allow up to half of your net pay, while Manitoba and New Brunswick cap it at 30%. A lender will also look at your other commitments. If you bring home $1,800 every two weeks in Manitoba, the most you're likely to see is about $540.
What it really costs
The fee is a flat amount per $100 rather than an interest rate. At the $14 maximum:
- $200 costs $28, so you repay $228
- $500 costs $70, so you repay $570
- $1,000 costs $140, so you repay $1,140
- $1,500 costs $210, so you repay $1,710
Your agreement also has to show the cost as an annual percentage rate. Over 14 days, $14 per $100 works out to roughly 365%. That's why a payday loan only makes sense for a short, one-off gap.
Who decides, and how
ICCE doesn't approve anyone. We send your application to a lender licensed in your province, and the lender decides based on your income, how often you're paid and how your bank account has behaved over the past few months. Many use instant bank verification, which lets them read recent transactions through a secure connection instead of asking you for statements.
Repayment day
Most lenders collect the full amount by pre-authorized debit on your next payday. Make sure the money is in your account the night before. If a payment bounces, the lender can charge up to $20, and your bank will likely charge its own NSF fee. If you can see a problem coming, contact the lender before the due date. Lenders in most provinces can't roll your loan into a new one with fresh fees.
Why apply online
Applying online means no storefront, no line-up and no paperwork to fax. It also means you can read the full offer at your own pace, on your own screen, without anyone standing over you. That's a bigger deal than it sounds when you're stressed and need money quickly.
Common questions
What's the minimum payday loan in Canada?
Most lenders start at $100. Some set their minimum at $200 or $300.
Can I have two payday loans at once?
Most provinces stop a lender from giving you a second loan while the first is still outstanding, and several require extra protections for people who borrow repeatedly in a short period.
Can I repay early?
Yes. You can repay a payday loan early in every designated province. Check your agreement to see whether any part of the fee is refunded when you do.
Written by the ICCE Editorial Team. Last reviewed October 2026.