Payday Loan Rules by Province and Territory in Canada

Every province with a payday lending regime caps the total cost of borrowing at $14 per $100 under a federal limit that took effect on January 1, 2025. Provincial regulators license lenders and add their own limits on loan size, term and default fees.

Payday lending is regulated province by province, within a federal framework. The Criminal Code allows a payday loan only if the advance is $1,500 or less, the term is 62 days or less, the lender is provincially licensed and the province is designated. The Criminal Interest Rate Regulations (SOR/2024-114), in force January 1, 2025, cap the total cost of borrowing at $14 per $100 in designated provinces, and provinces publish their own limits, default-fee caps and licensing rules.

How to read this table

Nine provinces have an approved payday lending regime: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. Quebec has not sought designation and effectively prohibits payday lending. The three territories have no payday-specific regime, so short-term credit there is governed by the federal criminal rate of 35% APR.

Where a provincial regulator's page still publishes an older per-$100 cap, the federal $14 limit is the binding maximum; the note records both figures.

CAD per $100 borrowed

Item	Value	As of	Source
Ontario Maximum cost of borrowing is $14 per $100, aligned to the federal cap effective 2025-01-01. Max loan: no fixed dollar amount; a lender cannot lend more than 50% of net income per loan, and the federal exemption caps advances at $1,500. Max term: 62 days. Regulator: Consumer Protection Ontario (Ministry of Public and Business Service Delivery and Procurement). Licensing: lenders and loan brokers must be licensed under the Payday Loans Act, 2008. Default interest is capped at 2.5% per month, non-compounding, and the dishonoured-payment fee is capped at $20.	14	2025-01-01	Government of Ontario
British Columbia As of 2025-01-01 payday lenders cannot charge more than $14 per $100 (down from $15). Max loan: $1,500, and a loan must not be more than 50% of the borrower's paycheque. Max term: 62 days. Regulator: Consumer Protection BC (Business Practices and Consumer Protection Authority). Licensing: required under the Business Practices and Consumer Protection Act; the lender's licence number must appear in the agreement.	14	2025-01-01	Consumer Protection BC
Alberta Effective 2025-01-01 the maximum fee is $14 per $100, including all fees and charges. Max loan: $1,500. Max term: 62 days. Regulator: Service Alberta and Red Tape Reduction (Consumer Services). Licensing: all payday lenders must hold a Payday Loan licence, including online lenders.	14	2025-01-01	Government of Alberta
Saskatchewan The FCAA consumer page (https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/consumers/borrowing-from-a-payday-lender/what-you-need-to-know) still publishes a $17 per $100 provincial maximum; the binding federal cap is $14 per $100 from 2025-01-01. Max loan: $1,500. Max term: under 62 days. Regulator: Financial and Consumer Affairs Authority of Saskatchewan (FCAA). Licensing: required for each location, including out-of-province online lenders. Default interest is capped at 30% per annum and the NSF fee at $25.	14	2025-01-01	Government of Canada
Manitoba The Manitoba Consumer Protection Office page (https://www.manitoba.ca/cp/cpo/info/payday.html) still publishes $17 per $100; the federal cap is $14 per $100 from 2025-01-01 and Manitoba's Public Utilities Board recommended lowering the cap to $14. Max loan: $1,500 and no more than 30% of net pay. Max term: 62 days. Regulator: Consumer Protection Office (Manitoba). Licensing: one licence per location where payday loans are offered.	14	2025-01-01	Government of Canada
New Brunswick The maximum you can be charged is $14 per $100 borrowed. Max loan: up to 30% of net pay, to a maximum of $1,500. Max term: 62 days. Regulator: Financial and Consumer Services Commission (FCNB). Licensing: required under the Cost of Credit Disclosure and Payday Loans Act, including online lenders.	14	2025-01-01	Financial and Consumer Services Commission (New Brunswick)
Nova Scotia Lenders may charge a maximum of $14 per $100 borrowed. Max loan: $1,500. Max term: 62 days. Regulator: Service Nova Scotia under the Consumer Protection Act; the Nova Scotia Utility and Review Board sets the maximum cost of borrowing. Licensing: a Payday Lender Permit is required. The maximum default charge is $20 and default interest is capped at 30% per annum.	14	2025-01-01	Government of Nova Scotia
Prince Edward Island Section 24 of the Payday Loans Act Regulations sets the prescribed limit at $14 per $100 advanced (amended in 2025). Max loan: $1,500. Max term: 62 days. Regulator: Financial and Consumer Services Division, Department of Justice and Public Safety. Licensing: lenders and loan brokers must be licensed under the Payday Loans Act.	14	2025-01-01	Government of Prince Edward Island

CAD per $100 lent

Item	Value	As of	Source
Newfoundland and Labrador Payday Loans Regulations s.7(1) sets the maximum total cost of borrowing at $14 per $100 lent. Max loan: under $1,500. Max term: under 62 days. Regulator: Consumer Affairs Division, Digital Government and Service NL. Licensing: required under the Consumer Protection and Business Practices Act. Default interest is capped at 2.5% per month and the dishonoured-payment fee at $20.	14	2025-01-01	Government of Newfoundland and Labrador

no per-$100 cap (regime effectively prohibits payday lending)

Item	Value	As of	Source
Quebec Quebec has not sought designation under Criminal Code s.347.1 and effectively prohibits payday lending: the Office de la protection du consommateur may not issue the required money-lender permit where the lender charges a credit rate above 35%. No per-$100 payday cap is published because the product cannot be offered within the 35% credit-rate limit.	Office de la protection du consommateur — see the latest published figure	2021-05-03	Office de la protection du consommateur

no territorial payday cap

Item	Value	As of	Source
Yukon Yukon has not enacted a payday lending regime and has not sought designation under Criminal Code s.347.1, so there is no territorial per-$100 cap or payday licence. Short-term credit is governed by the federal criminal rate of 35% APR. Regulator: Consumer and Safety Services, Department of Community Services.	Government of Yukon — see the latest published figure	2025-01-01	Government of Yukon
Northwest Territories The Northwest Territories does not regulate payday lending; there is no territorial cap or payday licence. Short-term credit is governed by the federal criminal rate of 35% APR. Regulator: Consumer Affairs, Public Safety Division, Municipal and Community Affairs (MACA).	Government of the Northwest Territories — see the latest published figure	2025-01-01	Government of the Northwest Territories
Nunavut Nunavut has not enacted a payday lending regime and has not sought designation under Criminal Code s.347.1; there is no territorial cap or payday licence. Short-term credit is governed by the federal criminal rate of 35% APR. Regulator: Consumer Affairs, Department of Community and Government Services.	Government of Nunavut — see the latest published figure	2025-01-01	Government of Nunavut

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Frequently Asked Questions

What is the maximum cost of borrowing for a payday loan in Canada?

In provinces with an approved payday lending regime the total cost of borrowing is capped at $14 per $100 borrowed under the federal Criminal Interest Rate Regulations, in force since January 1, 2025.

How much can I borrow with a payday loan?

A payday loan qualifying for the federal exemption cannot exceed $1,500 and must be repaid within 62 days. Some provinces set lower limits based on a percentage of your net pay.

Which province has no payday lending regime?

Quebec has not sought designation under the Criminal Code and effectively prohibits payday lending by refusing a money-lender permit where the credit rate exceeds 35%. The three territories also have no payday-specific regime.

Are payday lenders licensed?

Yes. Lenders must be licensed by the provincial regulator where they do business, including online lenders serving residents of that province. Licence numbers must appear on the loan agreement.

Sources

Sources are provided for verification. Instalment.ca is not affiliated with these organisations.

Last updated: September 16, 2026 · By the Instalment.ca Editorial Team

We research Canadian lending rules and update these pages when the law, the data, or the available offers change. We are not a lender and we do not provide personal financial advice.

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Rates and terms vary by lender, creditworthiness, and province. Figures shown are examples only.