Alberta Payday Loan Rules, Fees & Costs

Alberta regulates payday loans more strictly than almost anywhere in Canada. Knowing the exact rules — and the statutes behind them — puts you in control before you sign anything. Every figure below comes from the Government of Alberta and the governing regulation.

The maximum a lender can charge

The Government of Alberta's official payday loans page states it plainly:

“A payday loan is a loan of $1,500 or less. The term of the loan cannot exceed 62 days. Effective January 1, 2025 the maximum fee a payday lender can charge is $14 per $100, which includes all fees and charges related to the loan.”

That $14-per-$100 ceiling was set by the Payday Loans Amendment Regulation (Alta Reg 73/2025), which amended the Payday Loans Regulation (Alta Reg 157/2009) under the Consumer Protection Act. It replaced the previous $15-per-$100 maximum. Critically, the cap is the total cost of borrowing — every administration fee, processing charge, and add-on must fit inside it.

So on a $300 payday loan, the most you can be charged is $42, making your repayment $342.

What that looks like across common amounts

• Borrow $100 → repay up to $114
• Borrow $300 → repay up to $342
• Borrow $500 → repay up to $570
• Borrow $1,000 → repay up to $1,140

These are ceilings, not targets — a lender can charge less, so it is always worth comparing.

Why the cap still adds up to a very high rate

$14 on $100 sounds small, but a payday loan is repaid in weeks, not a year. Annualized, that works out to several hundred percent — far above the 35% APR criminal-interest threshold in section 347 of the Criminal Code. Payday loans are only legal above that line because of the narrow exemption in section 347.1 (explained in are payday loans legal in Alberta). That is exactly why they should be reserved for genuine short-term emergencies — for anything you will carry longer, an installment or personal loan is dramatically cheaper.

The product limits

• A payday loan is for $1,500 or less.
• The term cannot exceed 62 days.
• The loan cannot be rolled over — a lender cannot give you a new payday loan to repay an existing one, and cannot charge a penalty for repaying early.

Protections built into the law

Because Alberta is a designated province under the Criminal Code, the Payday Loans Regulation guarantees borrowers several rights:

• A two-business-day cooling-off period. You may cancel a new payday loan and return the principal within two business days of signing, at no extra cost.
• Installment repayment. Eligible borrowers can repay in two or more installments rather than a single lump sum.
• No rollovers or concurrent loans designed to keep you in a debt cycle.
• Limits on fees for a returned payment so one bounced payment cannot spiral.
• Clear, up-front disclosure of the total cost of borrowing before you sign.

Before you borrow

Confirm the lender follows Alberta's payday loan rules, read the total cost of borrowing, and make sure the repayment date lines up with your paycheque. If a payday loan is genuinely the right tool, you can apply here or read how the process works for payday loans in Red Deer. If you are borrowing to cover ongoing shortfalls, our guide on debt consolidation may be a better starting point.