How payday loans work in Newfoundland and Labrador
Newfoundland and Labrador regulates payday loans under the Consumer Protection and Business Practices Act and its Payday Loans Regulations, in force since 2019. Before the federal cap, NL already had the lowest provincial limit in Canada at $14 per $100.
Since January 1, 2025, a payday loan in Newfoundland and Labrador 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 Newfoundland and Labrador
A payday loan in Newfoundland and Labrador can be no more than 50% of your net pay for the pay period, up to the national maximum of $1,500. With take-home pay of $1,200 per pay period, the most you could borrow is $600.
What a payday loan costs in Newfoundland and Labrador
| You borrow | Maximum cost | Total to repay | APR on 14 days |
|---|---|---|---|
| $300 | $42 | $342 | 365% |
| $500 | $70 | $570 | 365% |
| $1,000 | $140 | $1,140 | 365% |
| $1,500 | $210 | $1,710 | 365% |
Your rights as a borrower in Newfoundland and Labrador
- Cancellation: Provincial regulations give you a cooling-off period to cancel after signing. Your loan agreement sets out exactly how long it is and how to cancel.
- Repeat loans: A lender can't give you a new payday loan while you have one outstanding with them, and rollovers are prohibited. Your due date can't be earlier than your next payday.
- Late or missed payments: If a payment bounces, the lender can charge one dishonoured payment fee of up to $20. Lenders can't charge any fee not listed in your agreement.
- 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.
NL's regulations are strict about extra charges: a lender can't discount your loan, ask for payment before it's due, or add any fee that isn't in your agreement. If you're asked for money upfront, walk away.
Applying online from anywhere in Newfoundland and Labrador
You can apply for an online or e-Transfer payday loan from anywhere in the province, including St. John's, Mount Pearl, Corner Brook, Conception Bay South, Paradise, Grand Falls-Windsor, Gander and Happy Valley-Goose Bay. 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 19 (the age of majority in Newfoundland and Labrador), have had regular income for three months or more, and have an active Canadian bank account. See how it works for the full process.
How to check a lender's licence in Newfoundland and Labrador
Payday lenders in Newfoundland and Labrador are licensed and overseen by the Consumer Affairs Division of Digital Government and Service NL. 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 Newfoundland and Labrador
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 NL can help if you believe a lender broke provincial rules. Our responsible lending guide lists more options.