No products in the cart.

Using Your ODSP as a Source of Income in Borrowing e-Transfer Payday Loans

Using Your ODSP as a Source of Income in Borrowing e-Transfer Payday Loans

Published by Allen Brown

The lender will require you to disclose your source of income when you borrow money through an e-transfer payday loan. In this case, you can consider the funds you are receiving from your Ontario Disability Support Program (OSDP) as a valid source of income. 

ODSP is a social assistance program granted by the Government of Ontario to people with disabilities. Some payday loan lenders may consider ODSP as a valid source of income for their loan applicants. However, be sure you schedule your loan repayment (assuming you get approved) not before you receive your ODSP payment. 

Moreover, you should ensure you can make your monthly loan payments and prevent the all-too-common debt trap experienced by payday loan borrowers. Remember, payday loans come with high-interest rates. Too much dependence on payday loans is a sign of a deep-seated financial problem. Take note of this guide for your benefit. 

Features of a Payday Loan

Typically, payday loans have some features that you see in other loan types. But there are also differences. 

  • Many payday loan providers put a limit on the amount you can borrow. Typically, it will be 50% or below of your income. The loan amount ranges from $100 to $1,500 as commonly practiced. 
  • The name of the loan itself suggests that the borrower has to pay it by his next payday. However, some lenders allow for a loan payment 62 days later. 
  • Borrowing $100 comes with a fee of $15 to $25, which is the cost of a payday loan. 
  • Since lenders now offer e-transfer, the turnaround time for getting payday loans is just a few minutes to a couple of hours. Consider getting etransfer loans at GoodCheddar if you need to borrow money. 
  • For many payday loan lenders, a borrower with bad credit is not a big deal. They will not even check your credit score, but they will assess income and other data to determine your creditworthiness. 

Non-Employment Income Can Qualify You to Borrow Money

ODSP is a form of social assistance, and it can help you qualify for an e-transfer payday loan. Non-employment income like ODSP can be a valid source of income when borrowing money. However, be mindful that there are other variables that lenders look into to approve your loan application. 

So, it is not a simple yes or no if you ask if it is easy to get a payday loan with just an ODSP as your source of income. Discuss with your lender the other qualifications and requirements to get the loan. Also, check the annual percentage rates, extra fees, and other features of the loan product. 

Common Payday Loan Requirements

Not all payday loan lenders are the same, but they place common requirements that borrowers must comply with. 

  • Must be a citizen and resident of Ontario, Canada
  • Must be 18 years old and above
  • Must give proof of valid identification
  • Must give proof of employment or social assistance (3 months or above)
  • Must have an active Canadian chequing account
  • Must have a bank account connected with instant bank account (IBV)

When the lender asks for your bank information, be sure to give your bank account, routing number, and institution number. Now, it is easy to get the funds of the loan via e-transfer or direct deposit. This fast and convenient way of fund transfer is used by lenders to promote their payday loans. 

However, beware of lenders claiming to provide no refusal or guaranteed approval of payday loans. Also, be cautious of credit lines because it is a broad term and it may lead you to pay more in interest. 

Borrowing Responsibly with e-Transfer Payday Loans

There comes a time in your life when you are burdened with unexpected expenses. You will have no choice but to resort to borrowing a payday loan to make ends meet, especially if you have a bad credit score. 

If you are not yet aware, you must know that payday loans have high interest rates. For every $100 you borrow, the lender will charge a corresponding fee of $15 to $25.  Failing to pay your financial obligation on your next payday will result in higher payments, which can further lead you into a debt cycle. 

Therefore, you must borrow responsibly. Do not borrow a higher loan amount if you know you will hardly repay it. Not paying your payday loan on time can further damage your credit, and it will be difficult for you to get approved for a loan later. 


Yes, it is possible to use your ODSP as a valid source of income when you apply for an e-transfer payday loan. Many lenders accept this type of social assistance for you to qualify to borrow money from them. Just ensure that you avoid borrowing a loan amount higher than what you are receiving from your ODSP. Do not be like other payday loan borrowers who are in a debt cycle because of irresponsible borrowing.