Pension Loans
Pension Loans in Canada
Although a large percentage of senior Canadian citizens receive pension funds, the sad fact of life is that they’re often not enough to sustain the expenses of the beneficiaries.
Due to this, seniors have to come up with other sources of income to deal with their needs. However, what happens if an unexpected expense is needed?
Medical emergencies may be common and even expected among older people, but other things like accidents, home repairs, and delayed benefits do not pause for age. When times like this arise, and you need more flexibility in your cash resources, you can turn to pension loans.
In this article, we’ll discuss what a pension loan is, who needs one, what the requirements are to qualify, and everything else you need to learn about pension loans in Canada.
What are Pension Loans?
Pension loans are financial vehicles that act much like other short-term, high-interest loans such as salary loans.
With pension loans, you can take out a loan using your pension benefits as proof of income, and the payment will be automatically deducted from your next few cheques. Because of this, pension loans are also sometimes referred to as pension advances.
But if pension loans are just like any other form of loan, why take them out specifically?
Here are a few benefits that pension loans have over other types of loans.
- Eligibility. Other loan types, such as credit cards or bank loans, won’t lend to you if you don’t pass their strict eligibility requirements. Pension loans, however, are not as strict. As long as you’re receiving a steady pension, you should be eligible for a pension loan.
- Speed. Bank loans often take days to file and evaluate, while pension loans are quick-release loans that can take as long as 15 minutes in the best cases.
- Flexibility. With all the restrictions that bank loans have and the hassle it takes to be approved and applied, you will only likely get bank loans for big needs. Pension loans give you the flexibility you need to handle smaller yet equally important cash needs.
However, not all pension loans are the same. Among all the lenders in the entire country, My Canada Payday is one of the best.
Who Needs Pension Loans?
According to a 2020 whitepaper by PWL, 17% of the total Canadian population were seniors by the year 2018. This represents 6.4 million senior citizens – a number that is expected to grow to 55.2 million in 2068 at a rate of 1.4%.
Among these, more than 90% of seniors are receiving their CPP (Canada Pension Plan) and OAS (Old Age Security.)
However, these two retirement benefits compose only 38% (27% from OAS and 11% from CPP) of the average senior’s total income. 27%, the second-largest share, comes from wages, salaries, and commissions, even after they’ve retired from their benefit-paying job.
The whitepaper’s conclusion suggests that the lifestyle expenses of senior Canadians stay roughly the same, even as their incomes get lower over time.
This makes pension loans in Canada a necessary financial instrument that seniors in need can tap into anytime.
What Do You Need to Qualify for a Pension Loan?
Banks and government institutions have stringent requirements when allowing who to lend money to. Typically, they evaluate the financial capability, credit rating, and employment status of their client.
This can take several days to complete, which not only increases your waiting time but also lessens your chances of being approved for the loan.
On the other hand, pension loans don’t need extensive credit background for you to qualify for a loan. For instance, My Canada Payday only requires three things:
- Proof of income. To ensure that your finances are secure, you must have 6 months’ worth of bank statements showing regular pension deposits of at least $1000 every month (whether private pensions or CPP).
- Age. Pensioners don’t need to worry about this, but the law requires that borrowers be at least 19 years old to qualify for a loan. Presenting your legal identification on the application process will verify your age.
- Residency. My Canada Payday is licensed to operate in these provinces:
This makes borrowing from My Canada Payday incredibly easy and hassle-free. It also allows you the flexibility you need to face unexpected expenses using your monthly benefits as collateral.
Requirements for Borrowing
You don’t need to do extensive paperwork or undergo complex legal processes to take out a pension loan. You simply need to fill in a few fields and submit a few identifications.
Here’s what you can expect to find in the loan application form.
- Personal information. Information such as your complete legal name, address, and contact information will be required.
- Legal information. Be prepared to provide legal identification such as driver’s license and social security number.
- Employment information. This category includes details about your source of income, such as your regular monthly payment amount, salary schedule, next expected salary date, etc. In the case of pensioners, this refers to details regarding your pension.
- Loan information. Finally, expect to enter your desired loan amount.
And that’s it! If you’re quick, you can complete the entire application process in about 15 to 30 minutes, which means that you can get your loan in less than an hour.
How Much Can I Borrow?
Typically, short-term loans like salary loans or same-day loans only allow you to borrow an amount equivalent to a percentage of your income. Pension loans are the same.
My Canada Payday evaluates the loan limits on a case-to-case basis. Usually, these limits max out at 30 to 50% of your pension amount, which generally ranges from $100 to $500, depending on which province you live in.
However, you can potentially increase your limit by repaying your cash advance completely within the deadline. This means that you can loan a higher amount on your reloan.
How Do Pension Loans Work?
Like other cash loans in Canada, taking out a pension loan is rather simple. On My Canada Payday, for example, everything is online, and you can accomplish the loan process in as fast as 15 minutes.
The first thing you have to do is fill out the online application form, which includes your personal information and various other things to confirm your identity and employment. You will also have to confirm your identity by uploading your legal documents on a secure platform.
After that, you just have to wait to get approved. If you’re approved, a contract will be sent to you via email. Once you’ve signed the contract, the funds will be transferred to your bank account via email transfer.
If your loan application is denied, don’t worry. You can always reapply once your financial situation improves.
My Canada Payday Pension Loans
As mentioned above, My Canada Payday offers hassle-free short-term loans like pension loans. For this type of loan, My Canada Payday will let you borrow an amount based on the percentage of your next benefit cheque and then automatically deduct your dues from your next paycheck.
Unlike other lenders, My Canada Payday’s pension loans are designed for your convenience.
Here are a few reasons why you should consider taking out a pension loan with My Canada Payday:
1. Fast and convenient application
Our greatest strength lies in the ease of our loan application. Unlike other lenders that require you to go to a physical location and fill out a tedious application, My Canada Payday can be accomplished entirely online and on your phone.
Additionally, the whole application process takes no more than 30 minutes to complete, while approval can take as little as 15 minutes.
All in all, you can accomplish your application and get your money in less than an hour.
2. Friendly eligibility requirements
Banks and government institutions often require borrowers to undergo a strict credit check first. Not only can this be a major inconvenience on your part, but it will also lengthen the time you have to wait before you get your money.
At My Canada Payday, we only have three eligibility requirements: proof of income, age, and online banking access.
3. Excellent customer service
Do you have more questions about pension loans? Are you finding the application process difficult?
Whatever your concerns are, you can easily reach My Canada Payday through the information posted on our website:
- Landline: 604-630-4783 or 877-730-8406 (toll free)
- Email: getpaid@mycanadapayday.com
- Address: 425 - 15225 104th Avenue, Surrey, BC, Canada V3R 6Y8
At My Canada Payday, we believe that a healthy relationship between lenders and customers is the key to a successful business. Therefore, we also provide a strong knowledge base to help you manage your finances.
How to Take Out a Pension Loan at My Canada Payday
Are you interested in taking out a pension loan with My Canada Payday? Just follow the steps below!
Step 1. Accomplish your online application
If you’re eligible for a pension loan, head over to our website and fill out our application form.
Keep in mind that you will have to enter your province and email address first before you see the rest of the application form. This is a normal part of our process to assess your interest rates, which will vary by province.
After that, be ready to fill out the following information:
- Province
- Name
- Social Insurance Number (SIN):
- Drivers License or ID #:
- License or ID Province:
- Address (street and city)
- Postal
- Home phone number and type
- Employment status
- Salary payment method (whether cash, check, etc.)
- Net monthly pay
- Pay dates (previous, next, and the following dates)
- Loan amount desired
- Where you heard about MyCanadaPayday
Although it may look like a lot, this part shouldn’t take more than 15 minutes to fully accomplish, as long as you have all your legal documents on hand.
On the next page, you will be asked to verify your legal documents with Inverite. You’ll need to upload photos of your legal documents and take screenshots of 6 months’ worth of bank history for this part. Simply follow the on-screen instructions, and you’ll be done soon.
Step 2: Wait for the loan confirmation
Once you’ve successfully filed your loan application, all you need to do is to wait.
In this stage, we will be evaluating your application and determining if lending to you wouldn’t present undue risk.
Our guarantee at My Canada Payday is that this stage won’t take more than 15 minutes.
Please keep your phone on hand in case we need to ask for more information. We may also send you an email, so be sure you have access to your email account.
Upon evaluation, the outcome can be either one of the following:
- Your loan is approved. If your loan is approved, we will send an email containing the details of your disbursement, as well as your loan contract. The loan contract will contain the complete details of your loan.
- Your loan is not approved. If your loan is denied, we will still send you an email notifying you of our decision. Don’t worry, you can always apply again at a later date.
Step 3: Claim your disbursed funds
Once you’ve sent the signed loan contract, simply wait for your loan to be disbursed. We will send your money through Interac email transfer, a fast and secure transfer that goes straight to your provided bank account.
Step 5: Repay your loans
Your loan contract will stipulate your loan terms, which will include the due date for your loan payment.
Your due depends on your approved loan terms, so if you have any questions, discuss them with our representatives before signing the contract. Typically, your due date is 14-30 days from the date you receive your loan amount.
My Canada Payday offers flexible loan repayment plans judged on a case-by-case basis to accommodate for differences in pay schedule and amounts.
Pension Loans in Canada with My Canada Payday
Pension loans are critical for pensioners with limited financial capability. Financial emergencies and accidents don’t stop happening just because you’re not ready for them. Without an accessible and flexible financial solution, you’ll be left to suffer the consequences.
Here at My Canada Payday, we strive to deliver responsible, fast, and secure pension loans. Our process is the fastest around, taking less than an hour from start to finish.
With this, you can rest assured that we’ll be here to provide you with the funds you need when you need them the most.