Can I Get A Loan Without Income? If Yes, Then How?


Yes, you can apply for unemployed loans even if you are jobless. At the end of the day, lenders are looking for those borrowers who have the ability to pay off the borrowed loans. Having an income source is evidence of the capability to repay the loan.

But this is also true that you as a borrower can prove your ability to pay the loan back in various ways. If you don’t have a full-time work that gives you a consistent income and that will be used to pay off your individual loans. Then you will need to meet the lender’s alternative eligibility requirements.

These might include:

Any alternate income proof. When you apply for a loan, then any of these following may qualify as a pension, social security benefits, child support, etc. If you have any of them, then you can apply for a loan.

Automatic payments. Your lender might require that your payments are being deducted automatically from your bank account to make sure that you are making the payments on time and full.

Security. If you are struggling to get a loan without a job, then your money lender might ask for collateral for the loan. This would mean taking a secured individual loan. Mostly lenders accept cars (as long as they are paid in full amount), any individual property that you own outright as security.

Find a Cosigner. To get an individual loan when you are unemployed, you may need a Co-signer. A Co-signer is the third party who applies with you for your loan. If you fail for making your payments, so in this case money lender can charge them for the money that they have. A Co-signer is not always the right solution, and asking friends or family may give tensions if you can’t repay. However, if you know you have extra money to pay off your borrowed loan. Then you will get the loan soon, this can be an option to consider further.

Remember during the approval process, lenders don’t look into your current financial status. They are also looking into your credit status as well as credit history. If you have been consistent to pay off your loans in the future, then you have a good credit score and according to your current income. You can be able to secure your individual loan with a few issues, even if you are unemployed.

Beware these risks of borrowing with unemployment

Although, when you are unemployed, it’s difficult to go for a loan, but to do so. It is not always in your favor. Lenders are taking a risk by lending you a loan that you don’t have technically (may not have for foreseeable future). As a result, they are likely to provide you a less attractive loan to your needs.

Here are some downsides to loan offers when you are unemployed and take a loan:

  • Shorter repayment terms: Typically, if you don’t have the income to pay off for a long period of time to prove your ability, so your money lender will take the lower risk. One of the ways they provide loans to unemployed borrowers with shorter repayment terms. That means you will get the required amount as per your need. But you will have to pay them back much faster than you were leveraging the borrowed amount.
  • High interest rates: If you are unemployed money lenders don’t come out to get you – They avoid giving loans to someone who can’t repay back. They provide loans with high-interest rates, this is one way. Higher rates combined with short term means that you are paying off a significant amount of money for a short time period. That ensures they will get their money back (with interest), they will get it quickly.
  • Automatic payments: Many lenders require a set up of automatic payments in case borrower is unemployed. This could mean to deduct the borrowed amount from the borrower’s account automatically. This could also mean for making the payment through any of your income sources like your pension. If you have money available for making the payments, this may not be an issue. But you remain unemployed when things become tighter and it becomes a bigger issue.
  • Predatory lending: There are many lenders who intend to take advantage of unemployed as much as you may not want to believe. By giving loans egregious payments terms, fees and interest rates. They could drive you deeply into debt that you will not be able to pay back the money. By considering deeply, these types of predatory loans can influence your credit scores.

It is not always possible to take a loan when you are unemployed, but it makes your life much comfortable if you get it.


You have many options to take loans. Even you have no income to rely upon for making the payments, however, there are plenty of options to look into before you look for a personal loan or alternate lending option. There are many lenders like us that offer long term loans for unemployed people on their benefits.

Wayne Frazier