How payday loans work in Prince Edward Island
Prince Edward Island has regulated payday lenders since 2015 under the Payday Loans Act. Both lenders and loan brokers need a provincial licence, and the Act bans concurrent loans and rollovers.
Since January 1, 2025, a payday loan in Prince Edward Island 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 Prince Edward Island
The national maximum is $1,500. How much of that you're offered depends on your take-home pay, since licensed lenders in Prince Edward Island must make sure the repayment fits your income.
What a payday loan costs in Prince Edward Island
| 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 Prince Edward Island
- Cancellation: You have a two-day cooling-off period after signing, during which you can cancel without penalty.
- Repeat loans: Lenders can't give you a new payday loan until your previous loans with them are fully repaid, and rollovers are prohibited.
- Late or missed payments: If a payment bounces, the lender can charge one dishonoured payment fee of up to $20.
- 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 PEI bans concurrent loans with the same lender, you'll need to repay a loan in full before that lender can offer you another. That rule is there to stop small loans from snowballing.
Applying online from anywhere in Prince Edward Island
You can apply for an online or e-Transfer payday loan from anywhere in the province, including Charlottetown, Summerside, Stratford, Cornwall, Montague and Kensington. 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 Prince Edward Island), 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 Prince Edward Island
Payday lenders in Prince Edward Island are licensed and overseen by the Registrar under PEI's Payday Loans Act (Consumer Services). 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 Prince Edward Island
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 PEI Consumer Services can help if you believe a lender broke provincial rules. Our responsible lending guide lists more options.