Payday Loans in Canada Payday loans are short-term financing instruments that serve to cover the expenses of the borrower until the next paycheck comes. Also known as paycheck advances, these loans are used to cover unexpected expenses such as emergency medical treatment, traffic police tickets, etc. Whatever the reason for your financial predicament is, you can ask your friends and relatives to bail you out with little cash, which you will return in time. The truth is, however, that few of us are lucky to have wealthy friends and relatives, especially now, when the global financial turmoil has just begun to ease. Alternatively, you can turn to your good old bank for financing, but it may take weeks before they lend you the money you have applied for. In this case, the only option left is to apply for cash with some of the payday loan or cash advance lenders in Canada. You may wonder if the forefathers of these financial establishments are fellows like Christopher Marlowe's Jew of Malta and Shakespeare's Merchant of Venice. Pressed by overdue bills and financial obligations, you are very likely to feel tempted to take advantage of their financial services, especially if God Almighty has blessed you with a nagging wife or a spoilt child….or with both aggravating factors. All of these institutions promise very high approval rate (about ninety per cent or higher), minimum paper work and super-fast money transfer which is usually within 30 minutes from the moment your application has been approved. What they never tell you, however, is that their interest rates are mind-numbingly high; so high that you may even start thinking if it wouldn't be a better idea to ask some of the local Yakuza guys for cash. They, in the worst possible case, will send some thick necks to cut off the tip of your little finger as a reminder that your payment is overdue by a day or two. Legislation regarding payday loans varies greatly around the world. The good news is that each of Canada's numerous provinces has assumed responsibility to curb the interest rates which payday lenders charge on their customers. The guys from Manitoba, for example, have recently decided to lower the maximum payday loan interest rate to $17 per each $100 that one has borrowed. While you may agree that this mild interest rate still sounds atrocious, the previous interest rate was as high as $20 per each 100 borrowed. Some wise heads have calculated that the short-term lenders' costs are as high as $26 per each $100 that they lend in the form of payday loans. These fellows might be forced out of business by the newly-introduced provincial interest limits, as they make the situation of the poorest households worse. Are you going to buy this? Here is a better explanation – while some of these companies may be forced to close down, those who survive will be the largest and the most reliable ones and, consequently, the ones having the most consumer-friendly business policy.