What is Employment Insurance, and Does it Qualify Me For a Cash Loan?

What is Employment Insurance (EI)?

Employment Insurance (EI) is a government income that provides temporary financial assistance for any Canadian who has lost their job through no fault of their own. You're eligible to apply if you aren't working for any of the following reasons:

  • Sick or injured
  • Caring for a critically sick family member with significant risk of death
  • Caring for a critically sick or injured child
  • Actively looking but unable to find work

Be sure to apply as soon as possible after becoming unemployed, because delaying the application past 4 weeks of your last work day could result in a loss of benefits.

How Much Will I Receive From Unemployment Insurance?

In most cases, to qualify for EI you must have worked anywhere between 420 and 700 hours. Depending on where in Canada you live and the unemployment rate in your area, that number can climb as high as 910 hours in some cases. The amount you receive is based on how much you earned weekly. You can receive EI for anywhere between 14 and 45 weeks, depending on the unemployment rate in your area at the time you apply.

The basic benefits rate is 55% of your average earnings, up to a yearly maximum of $49,500, which works out to a maximum of $524 per week. Also remember your EI is taxable, so applicable taxes will be deducted. You may also be eligible for a higher benefit rate if you are in a low-income family (less than $26,000 per year) with children and you receive the Canada Child Tax Benefit (CCTB).

Do I Qualify For a Cash Loan?

If you receive unemployment income from EI, then you qualify for a Magical Credit cash loan! Check out our blog for tips on how to stay financially stable during unemployment. If you're having trouble making ends meet, we provide short-term unemployment loans to people who are currently receiving income from employment insurance.

Magical Credit is a Toronto-based private loan company that specializes in providing cash loans to people who are receiving fixed government income, such as employment insurance. If you need a loan during your temporary unemployment, fill out an application or call us at 1-877-213-2088 now!