How To Get Personal Loan With No Income Verification

At some point in life, financial problems can hit anyone. You can be left in those Catch-22 scenarios, and you have nowhere to turn to. Even though you are unemployed, or you are just a casual laborer, your primary search will focus on how to get a personal loan with no income verification.

Without a regular source of income, getting approval for a personal loan can be hard; this is precisely why the invention of emergency loans with no jobs is a life saver. Even though such a type of loan is technically new to the market, a lot of lenders shy away from providing them, and it is for an understandable reason. It should be noted that lenders are also in business and will try to make the most profit out of anything; they hardly approve a loan for anyone without having known their capacity to pay back. This is the main reason why most of these lenders will not give you a personal loan without income verification.

All hope is not lost though. There are still lenders out there who will approve all your loan requests if you are stuck in such a difficult conundrum. Getting a genuine lender will need you to be sagacious. Getting such a loan, however, as stated, is not very hard.

How Do no Income Loans Work?

Getting a no income loan should be the last resort of someone who needs some instant financing. The main reason it is not the best option is that it can make you dig deep into the well of debt. If wondering on unemployment loans with no job verification, the first thing you should do is to take a different approach, unlike with traditional lenders.

The probability of getting approval for a loan at a bank when you have no employment or regular source of income is almost zero. However, if you adhere to the requirements set by lenders, you can get your loan approved in no time. The amount of loan you get is highly dependent on what the company wishes to give you. At other times, the lender might decide to fund you in phases – which come to think of it, is very useful. This is because the majority of such lenders get their money from investment funds.

Your income history is not scrutinized in any way, but then, you will have to compensate it with high interest rates. Moreover, a person who has had self employment for a while can easily pass to get such a loan. However, there is a catch – your credit history has to be spotless and with only high ratings.

Personal Loan With No Income Verification

Criteria Lenders Review Before Approving a no Income Loan

Even without employment, you will still get a loan approved for you. The only thing that can be checked is your ability to repay the loan on time. When you apply for such a loan, there are a few factors which lenders will weigh the most. These factors determine the loan terms you get and also whether you are approved or not. They are;

1. Income – why would anyone give you a loan if they are not sure of how you will repay that loan? You must show proof of regular income before you are considered for the loan. Since you are not employed, there are several income sources lenders might consider, including;

  • Social Security Income
  • Pension Fund
  • Government Annuity
  • Retirement Benefits
  • Unemployment Benefits
  • Disability Income
  • Employment Offers or Contracts
  • Capital Gains Income
  • Interest and Dividends Income
  • Housing Income
  • Investments
  • Inheritance
  • Spouse or Partner Income
  • Tip Income
  • Trust Income
  • Alimony or Child Support
  • Savings or Cash
  • VA Benefits Income
  • Public Assistance Income

2. Credit history – the lenders will pull down your credit history and try to look at how well you have repaid your loan in the past. If any adverse reports are seen, your chances of getting loan approval are low. Positive feedback indicates that you have maintained good discipline in loan repayment in the past, and that will repay that one in good time. This will only increase your chances of approval and better terms.

3. Credit score – wherever you go, your credit score will always stick to you. Even though you are unemployed, having a good credit score will seem like a good indicator for loan approval. Having a bad or poor credit score will only be an indicator of the opposite, and you might end up being denied the loan. Before applying for the loan, ensure that you know your credit score ratings as too many inquiries made on your credit history can significantly damage it.

4. Debt-to-income ratio – if you have had any loans in the past, the lender will look at the regularity of your loan repayments in comparison with the income you receive. If you have a good debt to income ratio, then you have a better chance of being a successful applicant.

Tips on Getting a Loan When Unemployed

As indicated, getting a loan without a constant source of income is tough luck, but it is not impossible. Take a look at some of the tips which can make you a successful loan applicant.

1. Figure out your source of income

Once you become unemployed, it is wise to look for a source of income right away. If not to start your own business or company, you should look for other means of generating revenue. Become a freelancer in a field you are most proficient in, by working on several gigs will work just right. Other sources of regular income have been mentioned above in this guide.

2. Protect your credit

Protecting your credit score before and during applying for the loan should be treated as a high priority. Do not do anything which can negatively affect your credit score by making it drop significantly. A low credit score will only make your approval odds weak and your interest rates high.

Protecting your credit score entails paying your bills on time, and not racking up significant balances on your credit card. Not doing so will only affect your debt-to-income ratio hence making it harder to get an approval.

3. Pick the right lender that fits your needs

Choosing the right lender is another big task one has to undertake to get the best loan terms. Picking the right lender usually entails taking into consideration several factors including;

  • Credit score requirements : Getting a loan with no proof of income requires you to have an outstanding credit score rating either way. You should, therefore, know your credit score rating well in advance before you apply for the loan. There are different personal loans for people with bad credit, fair credit, and good credit. It is paramount that you know where you stand to get a good glimpse of what the terms of the lenders will be.
  • Amount offered : Each lender has their maximums and minimums that they offer. You might also stand to get different amounts of loans, but this solely depends on your ability to repay it in time.

4. Apply For The Loan

Once you have successfully settled on a lender, you should go ahead and apply for the loan.

Picking the Right Personal Loan Lender

A personal loan comes in handy when you do not have money to sort out urgent financial requirements. This is, especially, great when you do not have employment and would use some economic boost. While looking for lenders seems to be easy, on the contrary, it is actually quite tough.

Some too many scammers waiting to prey on unsuspecting loan seekers. Take a look at our quick pointers on how to choose the best and the right personal loan lenders for you.

1. Experience and credibility

As mentioned earlier, many scammers in the market are waiting to prey on desperate loan seekers. Do not be duped into applying for a loan which will only make your financial burden harder. Look up the company on an internet search and review their policies and reputation.

Most companies mostly have honest reviews from clients they have worked with before. Social media is another good place to get honest reviews from different people who might have used their service. The policies of the company regarding data privacy are essential to take note of.

2. Compare personal loan rates

Before starting the application process, it is advisable to begin scouting for the most suitable lenders. Call them, arrange meetings with them, ask all the questions you need to, and take a keen look at their loan terms.

At all times, look for a lender who will charge you just a small interest rate, as such are also available. Always do this before beginning the application since not following this procedure, will result in numerous credit checks by the different lenders. Remember that whenever a check is performed on your credit history, it takes a hit. The application process should be your last move.

3. Check the loan amount

Before you start looking for a lender, you should know what amount of money you are targeting to get. Do not go for a lender whose loan limit or the amount you stand to receive is way lower than what you are looking for. Some of the best loan providers will offer you flexibility.

You can withdraw the funds when you need them and in parts. For some lenders, you will only have to pay the interest of the loan you took and (or) and EMI, which is comprised of only the interest.

4. Response time

The last thing you want to be doing is looking for help from people who take ages to reply to your messages and queries. A company which response to you fast shows its dedication and that it is a genuinely legitimate company which you can trust. Such a relationship is crucial as you will need to relay specific information to and from your bank, credit unions, etc.

Response time can also be seen from the perspective of how long the credit will take before it is released to you. If at all it will stay for long before it reflects on your bank account, then you might have to look elsewhere.

5. Good documentation

There has to be a fine print, orderly, and well put. This document should act as a reference point for both you, the loan applicant, and the lender. It should clearly state what your responsibilities in terms of payment are and also shows exactly what the lender has to do in case of anything. Such a document should be easy to read and understand, and there are no hidden or coded terminologies.

6. Take note of the processing charges

Lenders usually have a processing charge on all their loans given out. Before settling on one lender, find out more concerning their processing charges. While being exclusive of GST, lenders mostly charge a processing fee of about 2% – 3%. Look for one which does not have very high processing charges.

7. Upfront fees

Let us face it. You require money, and some company is telling you to pay some deposit for your loan to be approved. This is not worth your time and money.

The Alternatives

If you want to take a personal loan with no income verification, there are a few other ways you can try your luck. For all these, however, you still have to meet preset rules and criteria.

  • Try a joint application – in other words; this is referred to as a cosigner. Get a close friend or relative and apply for the loan together. This works best when you have an average or bad credit, while the other one has an excellent credit score. Doing so will increase your chances of getting that loan.
  • Taking a legal loan from a friend – while seeking loans from friends and family is not always advised, a legal notarized one will be a better option. It ensures that your relationship is not ruined, in case you fail to repay the loan as agreed.
  • Find a good pawnbroker – almost every town and city has a pawn shop. If you badly need a loan, take a valuable item from your house and give it to the pawnbroker. They will then get a loan which you are to repay with interest. After you return the money, you will be allowed to take back your valuables. If you do not adhere to the set time, your valuables will be sold.


Getting a loan without employment is hard. The best thing to do is to break away from the conventional lenders and look for others who have better terms and loan products which suit your needs.