Can I Get a Loan Without a Job? Honest Answers for 2025

You might have to borrow at any point in life. Whether you are borrowing a small amount of money or a large amount, you will certainly need some kind of income source. You will not be able to borrow money without an income source. In other words, you must have a steady source of employment. If you do not have a job, you will not be able to pay off your debts. As a result, no lender would lend you money.

Online lending is more flexible than mainstream lending. Even though your credit score is abysmal, there are chances of qualifying for a loan. But it does not mean that you can borrow money without having an income source. Do not forget that every lender would want their money back, and therefore, they would be disinclined to lend you money if you cannot prove your repayment capacity.

Why cannot you get a loan approved without a job?

Every lender will have to follow the FCA guidelines. They are all supposed to run an affordability check in order to ensure that you will not struggle with payments. If you do not have steady employment, lenders will be sceptical about your repayment capacity. Of course, they would never approbate your loan application if they find that you cannot repay the debt. It is a lender’s responsibility to determine your repayment capacity to ensure that you do not borrow money more than you can actually afford to pay back.

Loan is not a gift. It is rather an obligation. You have to pay it back along with the interest. How would you settle your debt without an income source? Now it can be clearly understood that no loan can be approved in the absence of employment.

What is the story behind unemployment loans, then?

Now that you have come to know that you cannot have a loan signed off on without a job. If so, how are some lenders providing unemployment loans and doorstep loans 4 the unemployed?

Unemployed loans are small loans aimed at people out of work to meet small emergencies. These loans come with a very small amount of money. For instance, if your car has broken down and you need an immediate injection of cash. When the nature of money is urgent, lenders would quickly shortlist your application and transfer money to your bank account.

The size of these loans is quite small, and the repayment term is also not more than a month. Unemployment loans are discharged in fell one swoop. However, it is worth noting that no lender would lend you money only if you can repay the debt.

When you are applying for an unemployed loan, it is considered that you do not have a regular job, but it does not insinuate that you do not have any income source. Being without a regular job and being without any income source are two different things.

Because lenders are providing unemployed loans, it does not mean that they will approve your application without any income source. In the absence of fixed employment, you must have another income source. As long as you prove to your lender that you can repay the debt, your application will be signed off on.

Here are the income sources that you can show in order to qualify for an unemployed loan:

• Babysitting
• Pet sitting and walking a dog
• Lawn making
• Rental income
• Dividends, profits, and similar income.

Ways to qualify for unemployed loans?

Getting an unemployed loan is not a cinch. You must have an income source to prove your repaying capacity. A lender would carefully analyse that you will not struggle to meet your essential expenses due to the burden of debt payments. Here is how you can qualify for an unemployed loan with ease:

Borrow less than you need

You should borrow a small amount of money. Borrowing less than you actually need will reduce the default risk. Your lender will carefully assess your repayment capacity based on your side gigs and other income sources. If they find that you can easily fit debt payments into your budget, they will easily approve your application.

Have a good credit score

It is vital that you have a good credit rating. Whether you are taking out a small loan or a large loan, your credit score will definitely be checked. No responsible and registered lender can sign off on your application without a perusal of your credit score.

If your credit rating is stellar, it will increase your chances of applying for a loan. However, on the other hand, if your credit rating is abysmal, your lender would be reluctant to lend you money. Chances are, your loan application is repudiated.

Be cautious not to use savings as your income

When you apply for an unemployed loan, your lender will ask you to provide your financial details. While you can mention unemployment benefits as your income, never consider your savings as your income. Savings refer to the amount of money that you set aside to meet unexpected expenses. They cannot be considered your income because this is not the amount you will receive every month.

Using your savings as your income is dangerous for you. If you club it in your income, your lender would most likely lend you more than you can afford to pay back. In that case, it would be challenging for you to repay the debt. Most of the time, people fall behind on payments because they borrow more than their repayment capacity.

The final word

You cannot qualify for a loan without a job. You must have employment in order to prove your repayment capacity. If you are looking to take out unemployment loans, you should still have an income source. It can be a side gig, such as pet sitting, babysitting, walking a dog, or lawmaking. Apart from a side gig, the benefits you have been receiving from the government include unemployment benefits. Your lender would make a lending decision after perusal of your income sources.
Also read what are the pros and cons of using private lenders for rental property financing.