Are you looking for a quick loan but worried about your employment status? Now you can apply for a payday loan even on EI (Employment Insurance). Read along to find out more.
After the outbreak of Covid-19, the world has witnessed an unprecedented number of people losing their jobs and becoming unemployed. More and more people are falling behind the poverty line. They find it extremely difficult to cope with their finances and fail to pay for their basic needs like rent and utilities.
Best loan for unemployment EI Redpayday
The government intervened to save the economy by deploying Employment Insurances (EI); this is a life savior for all those in need. But, what if you are expecting a considerable expense coming up? For example, does your house or car needs urgent repair? Your unemployment benefit won’t hit your account until the next month, so what else can you do in such a scenario? This is where payday lenders like redpayday come into the picture, where unemployed people with Employment Insurance can apply for a loan. Do note that not all payday lender accepts Government Employment Insurance as a form of income source so, make sure you apply to the ones that do like redpayday.
What is employment insurance?
Employment insurance is a program conducted by the government in Canada to provide financial help to anyone who is currently unemployed or in the midst of upgrading their skillset so between jobs or for anyone who had unforeseen life events like a major illness, pregnancy, any life event that may hold back to work full time.
Apply for Employment Insurance (EI) as soon as you are unemployed. EI benefits can only be claimed by workers who have paid premiums in previous years and meet the requirements for eligibility. EI benefits may also be available to self-employed workers. Delaying could result in your benefits being lost as EI benefits do not stack up.
Although EI insurance is an excellent perk for many Canadians and helps cover up a significant loan from their monthly expenses, it is still not sufficient, especially for urgent cash crunch and emergencies. [REF]
What is the right loan for unemployed people?
Getting a loan approved is no easy feat, especially during the pandemic when banks are taking extensive measures and increased paperwork to get a loan approved. The most obvious choice is applying for a personal loan; lenders usually check your credit score and source of income. They typically do not agree on EI as a valid source of a steady income, and unless you can prove your employment, your loan application is likely to be refused.
Fortunately for you, you can still apply for a fast payday loan, which is by far the best loan for unemployed people. Being unemployed is not a crime you will be penalized for; life is unpredictable, and you may face financial situations requiring urgent cash. A payday loan can be a great option in these scenarios.
Requirements of payday loans for unemployed people
Unlike many other loans, the requirements for a payday loan are straightforward. To be eligible, you need to fulfill some criteria, they are:
You must be a valid residency in Canada
Above the age of 18
Have proof of earning, Employment Insurance from the government is accepted
Have a valid bank account
Proof of permanent residency: You may only apply for a loan while physically in Canada.
If you have previously applied for loans, you will probably feel we missed something important on the list. Yes, a credit score is not mentioned, as a mandatory credit check is not required for a payday loan. This is particularly useful for people who have previously had loans and had problems replaying the loans on due time. These days, just missing one premium of your credit card may be reported and flagged as a defaulter. Therefore no credit check is required, and you can get a loan approved with a bad credit score.
Payday loans also do not require you to keep any collateral pledged to the lender. This means in case the worst happens, and you somehow do not manage to pay back the loan on time, your assets will not be hampered. This is a nice peace of mind to have compared to other loans.
Interest rates for payday loans
You may be curious about the interest rates and fees that are associated with payday loans. The internet is flooded with myths on how payday loans charge astronomical rates for their loans which is not true.
Payday loans are short-term loans for an immediate solution for your financial needs. They are not meant for the long term, and calculating the interest rate over a long period does not give the right picture.
Let me give you an example, taking a $500 payday loan for a month will set you back around $80 – $100 depending on your exact situation. This is a one-time fee with no surprises; for all the convenience payday loans provide ( no credit check, no collateral), it is considered a high-risk loan for the lender, and the small premium they charge is justifiable. To get an exact quote on interest, please head over to our website to get an accurate quote about rates on payday loans.
We are going through a global economic recession, and things are not easy for anyone, especially those who got laid off due to the pandemic. Although Employment insurance has helped many people meet their needs, it is still insufficient, especially for larger, unforeseen expenses like a medical emergency. A payday loan can be a great way to face such situations. You can apply for a payday loan and get a loan approved in under an hour, and the best part is you can do all these from the comfort of your home. Payday loans are entirely online and do not require going to banks. To learn more, please head over to the Redpayday website, where we discuss many other use cases on payday loans.