Ending the debt cycle via interest-free loans

The Beneficent Relief loans program offers interest-free loans to Canadians who are suffering from heavy and immediate debt burdens due to high interest rates, and are struggling with repayment. This kind of debt can be defined as bearing significant interest rates while also having a maturity of a maximum of one year e.g. credit cards, payday loans, etc.

With average credit card debt in Canada at a historic high of over $2,200, it is easy to find oneself in spiralling debt without an easy way out. Beneficent’s loan program helps those in this situation ‘get back on their feet’ by cutting off the effects of compounding interest and allowing them to rebuild their wealth, instead of seeing it being siphoned off towards ever-increasing debt payments.

A Continuous Cycle of Relief

Donors contribute to the loan pool

Donors choose between lump sum or periodic contributions, gradually building the pool of funds available to lend

Borrowers withdraw funds

Eligible individuals are assigned a loan officer who will walk them through the loan process and issue the loan

Coaching begins

Borrowers have access to a financial coaching program to help them with financial management, planning, and budgeting. Education is crucial to take a proactive and sustained approach to debt relief

Repayment begins

Borrowers begin repaying their debt to Beneficent, interest-free, in monthly installments

Repayment and coaching conclude

When borrowers are fully repaid, they are encouraged to give back to our loan program

The pool grows

The cycle continues and the pool of funds available for loans grows, allowing Beneficent to reach out to more people with a broader set of solutions. The community is gradually lifted out of debt

Frequently Asked Questions (FAQ)


What does Beneficent gain from this?

Beneficent Relief is a charitable organization that exists for the sole purpose of eliminating interest based debt from our community. Our organization does not financially profit from this service, but we consider accomplishing our goal of eliminating interest-based debt a benefit in itself.

Are there any fees payable for your services?

There are absolutely no fees associated with our services.

How are donations used?

Currently, 90% of the donations we receive are used directly to help individuals seeking financial assistance. Our administrative costs are covered by the remaining 10% of donations.

Can I donate anonymously?

Unfortunately, we do not support anonymous donations. We are, however, committed to keeping donor information private.

Are Beneficent donations Zakat eligible?

Donations to Beneficent are not Zakat eligible, as they do not fund debt forgiveness or other Zakat-eligible services. If you are looking for Zakat-eligible donation recipients, we recommend our partner, National Zakat Foundation.

Will I get a tax receipt if I donate to Beneficent Relief?

Yes, all donations to Beneficent Relief are tax-deductible as they are considered charitable donations by the CRA. You will receive a tax receipt at the beginning of every tax year, in time for tax season.


How do you determine loan eligibility?

We issue loans for debt that are high interest rate bearing and due within 12 months. For example, credit card bills, rent, outstanding fees due to job loss, etc. Other forms of debt may qualify on a case by case basis. Eligibility is listed on our application page here.

Do you provide loans for student debt?

Beneficent Relief does not provide student debt loans. However, we are piloting student debt loans in our nonprofit organization on a case-by-case basis. More details on this will be published soon!

What is the maximum loan that a borrower is eligible for?

Currently, the maximum loan amount is $4,000. However, we will evaluate larger amounts on a case-by-case basis. 

Can I apply for a loan if I do not reside in Canada?

Unfortunately, Beneficent cannot offer loans to applicants residing outside of Canada or in currency other than Canadian Dollars at this time.

What if I urgently require a loan?

If you are in urgent need of a loan, submit your application on our website with a comment explaining your situation. A loan officer will reach out to you if you are eligible for immediate consideration.

How long do I have until repayment begins?

This depends entirely on your specific situation and we will work with you to determine an appropriate payment schedule.

Is it necessary to have a guarantor for a loan?

Yes, a guarantor is required for every loan.

What happens if I cannot repay my loan?

While that would be unfortunate, we understand that this is a possibility. The first step is to renegotiate an alternative schedule of repayment, according to what works best for all parties. From there, we can jointly arrive at the most beneficial solution. If no resolution is reached, your guarantor will be responsible for the repayment of your loan.

I am too embarrassed to approach you for a loan. Can I borrow anonymously?

Currently, we do not have a system in place to accommodate anonymous loans. We encourage you to still contact us, and in return we will do our utmost to respect your privacy in your time of need.