How payday loans work in Alberta
Alberta is the only province that has done away with the classic two-week, one-payment payday loan. Under the Consumer Protection Act and the Payday Loans Regulation, every loan is repaid in instalments over at least 42 days, which gives your budget more room to breathe.
Since January 1, 2025, a payday loan in Alberta can cost no more than $14 per $100 borrowed, including every fee, under the federal Criminal Interest Rate Regulations. The loan can be up to $1,500 and can't run longer than 62 days.
How much you can borrow in Alberta
The national maximum is $1,500. How much of that you're offered depends on your take-home pay, since licensed lenders in Alberta must make sure the repayment fits your income.
What a payday loan costs in Alberta
| You borrow | Maximum cost | Total to repay | APR over 42 days |
|---|---|---|---|
| $300 | $42 | $342 | about 122% |
| $500 | $70 | $570 | about 122% |
| $1,000 | $140 | $1,140 | about 122% |
| $1,500 | $210 | $1,710 | about 122% |
On a $500 loan paid every two weeks over 42 days, you'd make three instalments of $190 each, due on your paydays.
Your rights as a borrower in Alberta
- Cancellation: You can cancel within two business days of receiving the money, with no cancellation fee.
- Repeat loans: Rollovers are banned. Every Alberta payday loan must run at least 42 days and no more than 62, and you repay it in instalments on each of your paydays, with instalment amounts that can't differ by more than $10.
- Late or missed payments: If a payment bounces, the lender can charge one dishonoured payment fee of up to $20. If a pre-authorized debit is dishonoured, the lender can't simply keep retrying it.
- Early repayment: you can repay early without a prepayment penalty.
- Disclosure: your written agreement must show the amount, the total cost in dollars, the APR and every due date before you sign.
- No extras: a lender can't require insurance or charge you anything upfront.
Because the $14 per $100 fee covers the whole 42 to 62-day term, an Alberta payday loan has a much lower APR than the same loan elsewhere: about 122% over 42 days versus about 365% over 14 days. It's still expensive credit, but it's less likely to leave you short on your very next payday.
Applying online from anywhere in Alberta
You can apply for an online or e-Transfer payday loan from anywhere in the province, including Calgary, Edmonton, Red Deer, Lethbridge, St. Albert, Medicine Hat, Grande Prairie, Airdrie and Fort McMurray. The same provincial rules apply whether you live in a large city or a small town, and whether you borrow online or at a store.
To apply, you'll need to be at least 18 (the age of majority in Alberta), have had regular income for three months or more, and have an active Canadian bank account. See how it works for the full process.
Payday loans in Alberta cities
Alberta's rules are the same everywhere in the province, but what people borrow for, and where to find free local help, varies from city to city. Choose your city for a local guide.
How to check a lender's licence in Alberta
Payday lenders in Alberta are licensed and overseen by Service Alberta. A legitimate lender will show its licence number on its website and in your loan agreement. If you can't find it, check the regulator's public list before you sign anything, and walk away from any lender that asks for money upfront.
If you're struggling to repay in Alberta
Contact your lender before the due date and ask about a payment plan. A non-profit credit counselling agency can review your budget for free, and Service Alberta can help if you believe a lender broke provincial rules. Our responsible lending guide lists more options.