What are Child Tax Loans?

What are Child Tax Loans?

When you get a loan, you need to show that you have regular income because loans are meant to be paid back. That income source proves that you can pay back the loan later on, but it does not need to be any specific source.

Your source of income could be the income from your job, your pension or even the payment you get from your child tax benefits.

Yes, the money you get from your child tax benefit can indeed be used as income to apply for a loan, these are known as child tax loans.

What is the Child Tax Benefit Program?

The Child Tax Benefit Program is a government program that pays families a benefit if they have children under the age of 18. The payments they receive are tax-free.

The sole purpose of this program is to help reduce the financial burden of raising children for the families involved. The amount a family is paid through the Child Tax Benefit Program depends on the family’s income.

Depending on your income tax you will get the financial help required from the child tax benefit program. Every year, the child tax benefit program is calculated, and the government determines how much the payment should be for your family through the Child Tax Benefit Program.     

How can you use the Child Tax Benefit Program to get a loan?

Many people who get help from the Child Tax Benefit Program do not know that they can use this income to get child tax loans. The payment from the Child Tax Benefit Program is guaranteed for a year.

Since you will be getting constant monthly payments from the program for the next 12 months, you can list it as a secure source of income when you apply for a loan.

Some loans require you to have a specific amount of income to be eligible for that particular loan. The payment from the Child Tax Benefit Program is guaranteed so you will be able to use that payment as income to apply for a short-term loan.

By leveraging the money from the Child Tax Benefit Program, you can apply for child tax loans which will help you get access to a much larger sum of capital giving you much more room to breathe when raising a child.

The factors that decide the amount you receive from the Child Tax Benefit Program are as follows:

  • Your total household income: meaning the total income of both parents. In some scenarios, you could only be a single parent, so it will only take your income into account.
  • The number of children you have. The amount you receive from the program also depends on the number of children you have. Depending on the number of children you have the government will decide how much you should get for the child tax returns. The higher the number of kids you, have the higher the payment will be from the Child Tax Benefit Program.

It is completely normal for a family of two children to get more than $1,000 in payment from the child benefit program. In some cases, the child tax benefit payment could be more.

Even if you are unemployed currently or have your work hours reduced for some reason, you can leverage the Child Tax Benefit Program to help you qualify for a loan.

Currently, there are a lot of lenders that will offer you child tax loans based on the income you receive from the Child Tax Benefit Program.

Wondering how to find these lenders? All you need to is go ahead and fill out our quick, online application. A certified lender will reach out to you shortly, who is willing to give you child tax loans.

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Some lenders will even give you a child tax loan within 24 hours. The entire process of applying for child tax loans take less than 60 minutes in most cases. These loans are short-term.

They do not ask for collateral and also you do not have any restrictions on how you can use the money from a child tax loan.

Below we have a table that shows how much a family may get from the Child Tax Benefit Program in different provinces of Canada.

Name of ProvinceName of ProgramAmount of Payment
AlbertaAlberta Family Employment Tax Credit (AFETC)

Alberta Child Benefit (AFC)
A family can get around $2,000 each year.   This is especially important when you have multiple children.

For the first child, you will get around $1,100 each year and you will get an additional $500 for each child after that.
British ColumbiaBC Early Childhood Tax Benefit (BCECT)In this child benefit program, you will get about $650 each year.
ManitobaManitoba Child BenefitIn Manitoba, you will get around $400 per child each year.
New BrunswickNB Child Tax Benefit (NBCTB)                      In New Brunswick, the government child tax benefit program provides about $250 per child each year.

They even include an additional $100 for low-income families to help them buy school supplies for their children.
NewfoundlandNewfoundland and Labrador Child Benefit (NLCB)               Mother Baby Nutrition Supplement (MBNS)This program provides financial support of up to $400 per child each year for a family of 3 children. For a family that has more than 4 children, they will get about $500 per child each year.

For a low-income family, if they have a child whose age is less than one, the Mother Baby Nutrition Supplement helps by paying them an additional $60. This program is to support low-income families to help raise their children for a better future.
Northwest TerritoriesNorthwest Territories Child Benefit (NTCB)NTCB provides a payment of $815 each year to families who have a child under 6.

If the family has 4 children, the payment will increase to around $2,450 and the family will get around $350 each year for each additional child.

The payment drops to $650 each year when the child is beyond the age of 6. A family where there are four children will get around $2,000 and will get an extra $300 for each additional child.
Nova ScotiaNova Scotia Child Benefit (NSCB)The NSCB has a range of payments between $600 to $900 each year per child.  depending on the income of the family. The higher the income the less the family will receive and vice versa.
NunavutNunavut Child Benefit (NUCB)The NUCB program pays around $300 each year per child.

There is also a territorial worker’s supplement program which pays around $280 each year for a family with one child. They will pay about $350 for a family of two or more children.
OntarioOntario Child Benefit (OCB)The OCB pays around $1400 per child each year.
Prince Edward IslandPE Island Sales Tax CreditThis program pays up to $55 each year for the person who qualifies for this program.
QuebecFamily Allowance (formerly Child Assistance)This program pays around $2,470 per child each year. The amount is scaled accordingly when the candidate who is applying for this program has more than one child.

It even provides a bonus that is about $860 each year but it is only available to families with a single parent.

There are additional programs that are available for children who are handicapped or disabled. They even come with school supply needs of up to one hundred dollars.
SaskatchewanSaskatchewan Low Income Tax CreditThis benefit program offers $130 per child for up to two children and the family gets a maximum credit of $964 each year.
YukonYukon Child Benefit (YCB)The Yukon Child Benefit programs offer up to $800 per child each year.    

There are two types of loans that will consider a child benefit program as income. These loans will take the money you get from a child benefit program and will see it as additional income generated.

They are often regarded as child tax loans as they are considering the payment from child benefit programs as income. The two types of loans are installment loans and payday loans.

Some people apply for payday loans showing their child tax benefit program as a source of income. Payday loans are short-term loans that are given to you one the basis of your child tax benefit program. The approval rate for payday loans is fast and they have a very high interest rate.

Since they are short-term loans, the amount you borrow needs to be paid within a very short time. The thing about payday loans is that they are very easy to get but it does not mean you will get the best deal out of it.

We already mentioned the interest rate for payday loans is very high, but we did not mention how high they are. For example, if you took out a payday loan of about $1,000, it could cost you twice the amount, maybe more, when you factor in the high-interest rates payday loans usually come with.

Thinking about getting a payday loan for the first time? Use caution before taking out a payday loan as it is a very bad deal and they are designed to take advantage of people in need.

Your first payday loan can start a chain of repaying and borrowing money which can end up making your life miserable if you ever miss a payment.

Payday loans were popular in the past as people who needed cash within a short time would resort to taking out payday loans.

They did not have other options except a payday loan. But the times have changed, and we do not live in the same world where payday loans are the only option when you need some capital in the short-term.

The other option is online installment loans. These are my favorite types of child tax loans as you get a longer repayment period, much lower interest rates and the most important thing is they are worry-free.

You will not get stuck in a chain of borrowing and repaying money when applying for online installment loans. The icing on the cake is you can decide on a fixed repayment amount for these types of child tax loans.

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How to get online child tax loans

When you need a loan as soon as possible but do not have anyone to turn to, you need to look for online child tax loans or in other words, online installment loans. They are the best option when you look at the other choice which payday loans.

But going with the option for the online installment loan is not only the safer but also the best option. Here are some of the things you need to consider when applying for online installment loans.

Credit Score

This online child tax loan service is available to people with all kinds of credit. They know people applying for online installment loans may not be in the best of financial state, but these loans are there to help fix the situation. They have very lenient requirements.

Loan Amount

These online installment loans offer you up to a maximum amount which is about $15,000. The minimum amount that you can apply for should be about $500. Normal payday loans do not offer such a variable range.

Easy Application Process

The application process for these loans is super quick and easy. You can apply any hour of the day as they take applications 24/7. They even have super friendly customer service.

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Fast Approval

The approval does not take long enough. You should get your loan wired to your bank account within a day of the application.

With online installment loans, you do not need to worry about payment deadlines as you can structure your payment structure. You can spread the amount for over 5 years.

Child tax loans are there to help families and our goal is to help you educate yourself about the type of child tax loans you are applying for. We hope that this article fulfills our purpose.

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February 18, 2023
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