Can You Borrow Money From The Government?

Sometimes—but not the way most people think.

In Canada, you generally can’t just get a quick personal loan from the government for everyday expenses. Instead, the government mostly offers:

• Benefit payments (like Canada Child Benefit, GST/HST credits, provincial benefits)

• Targeted loan programs for specific things, like student loans or certain business programs

So if you’re short on cash between paycheques, the government usually isn’t where you go for a fast top-up.

KOHO Cash Advance

If you need help bridging a short-term gap, KOHO’s cash advance is built exactly for that.

With KOHO Cover, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

It’s designed to be a simpler, cheaper alternative to things like payday loans or expensive credit card cash advances.

When the Government Does Help Financially

The government usually supports people through:

• Benefits and credits – Money you don’t repay if you qualify (for example, child benefits, disability benefits, provincial support).

• Student loans and some targeted programs – Loans for education or certain business or sector programs. These are structured loans with repayment rules, not emergency cash.

These programs are great if you’re eligible, but they’re not built for instant “I’m short this week” borrowing.

So What Should You Do If You’re Short on Cash?

If you’re facing a short-term gap:

• Check if you’re eligible for any benefits you’re not already receiving

• Look at lower-cost borrowing options (like a line of credit or personal loan) if you qualify

• Consider tools like KOHO Cover as a way to avoid high-interest payday loans and credit card cash advances