Unemployment can cripple anyone. A household without any means of income cannot sustain the needs of its members. Whatever the reason is for a person losing a job, individuals can benefit from loans for unemployed in Canada as a temporary means of paying for your needs and the needs of your family.
However, not all jobless people will receive approval for a payday loan. Since it is a loan, you have to pay it back at a specific date that you and your loan provider agreed on. If you are an unemployed person receiving unemployment benefits from the government, then you can apply for a payday loan.
What is a Payday Loan?
A payday loan is what it is. You can borrow money and get approval from iCASH loans, but you will have to return the amount with interest once you receive your salary. It is a popular way of sourcing enough cash to meet emergency needs when payday is still far off. Payday loans are easy to apply for, and it is available everywhere, be it online or at physical shops.
The following are standard requirements you need to get a payday loan:
- Must be at least 18 years old and above
- Must have proof of income
- Proof of identification
- Savings or checking account
- A valid phone number
The few requirements make payday loans the choice for those who are looking for a specific amount to get by. Plus, you don’t have to fill out lengthy forms like you would on banking institutions for a loan. Any information they take is solely for verification purposes only. Payday loan providers are subject to laws as well, which is why they are just as safe.
Who Are The Unemployed With Insurance?
Back then, you had to have employment proof alone to be able to receive a loan. As it turns out, unemployment benefits also count as income since you are receiving money from the government. Before applying for a payday loan, it is essential to understand what unemployment benefits are and who can avail them.
What Is The Unemployment Benefit Program?
The Supplemental Unemployment Benefit or SUB is another term for unemployment benefits that employers top up on Employment Insurance (EI) in various cases. These benefits are only for former employees that meet specific requirements. Anyone fired for a due cause, and individuals who had voluntarily quit their jobs cannot get a supplemental unemployment benefit.
Benefits depend on the salary, and one can get 55% of the wage at $573 weekly. While not every employer has SUB plans, payments can be deducted from the employee’s EI payments if the employee has a second source of income. But when an employer decides to register a SUB plan with Service Canada, it secures the top-up benefits and saves the employee from the deductions.
Who Is Eligible For Unemployment Benefits?
All laid-off employees are eligible for the Supplemental Unemployment Benefit provided that they have registered a SUB Plan under Service Canada before filing a claim. Employees to benefit from the top-up must be unemployed due to the following reasons:
- Stoppage of work
- Must be covered with Employment Insurance
How Much Unemployment Benefits You Will Receive
Knowing the amount of compensation is essential, so that you will only need to borrow what you can pay back if you take out a payday loan. The number of benefits will depend on your earnings and must not be past 95% of your weekly wages. Your employer chooses the kind of top-up, whether it is a fixed amount or as a fraction of the weekly earnings. Because insurable earnings have reached $54,200 annually, employees are now receiving $573 weekly as of January 1, 2020.
Employers also include how long employees will be receiving the unemployment benefits into their SUB Plan. They can decide on the number of weeks since there is no indication of a minimum or maximum in the program. SUB Plans provided by the employer also indicate where the funding comes from aside from the insurance premiums they pay.
Benefits Of Payday Loans
Payday loans are relatively easy to get, and you can pay with the benefits you receive if you have employment insurance. This type of loan is not like any other installment loan because it is only short term and up to two weeks. Of course, there may come a time that you will need cash to pay for sudden expenses. While your unemployment check is still underway, you may apply for a payday loan to get through these trying times.
1) Simple Requirements
Unlike bank requirements that may take time and effort to produce, payday loan requirements are very few, and you can offer them on the spot such as your last pay stub and bank details. Some lenders also provide service to those unemployed with bad credit scores.
2) Fast Approval
Payday loan approvals take from as little as fifteen minutes up to the second business day of application. It is beneficial that you can get a quick decision so that you will have more time to come up with other solutions and not wait for something that you cannot have.
3) Offers Convenience
You can apply for a payday loan electronically if you do not have the time to drop by a specific location or through a physical shop. You are also not questioned where the money will go, and that gives you privacy.
4) Earn Lender’s Trust
Paying for your loan on time may qualify you to a higher amount on your next loan. The amount will still depend on your salary range to make sure that you can pay it back.
Payday loans are beneficial even to those who are unemployed but are receiving state benefits. Keeping a reasonable employment period and making sure that you have no other loans will make it easier for you to keep borrowing from a payday loan lender. While it is straightforward to get a payday loan, you must also do your research to make sure you are getting the money from a lender with sound business practices to save you headaches in the future.