If you are unemployed, you can still get a loan; however, there may be additional requirements that you will need to meet to demonstrate that you can be trusted to repay your loan.


Can You Get a Loan if You Have No Job?

When taking out a loan, the majority of lenders will need for you to prove that you have a regular income and that it exceeds a certain threshold.

Often, loans come with a minimum salary threshold and lenders will request to see incoming payments for a minimum of two years. However, there are exceptions.




It is still possible to get a loan while you are unemployed, however you will need to demonstrate that you can meet repayments. This includes demonstrating a good credit history.

There are specialist lenders available whose loans are especially designed for those with poor credit history or who are not in regular work. However, it is worth noting that these loans more often than not come with high interest rates which could soon lead to spiralling into debt.

Additionally, the types of lenders who offer loans to those who are unemployed tend to be smaller, less established lenders.


How Do You Qualify for a Loan When You Are Unemployed?

If you are applying for a loan and cannot prove employment, you will need to be able to demonstrate some source of income which could include savings. A good credit history will also be required. Regardless of whether you are unemployed by choice, such as taking retirement, or have lost your job, you will need to prove to any lender that you can make regular payments on time.


Can You Get a Loan if You Have No Income?

If you have no income, you can still take out a loan. However, the majority of no-income loans will come with higher interest rates and you will not be able to borrow as much money.




How Long Do You Have To Be at a Job To Get a Personal Loan?

Requirements for the length of time you have been at your job will vary depending on the specific lender and their criteria. Usually you will need to be able to prove income for at least six months to a year although some lenders will want proof of employment for a minimum of two or three years.

In exceptional cases, you may be able to apply for a personal loan even if you have not been at your job for a long time.


Can You Get a Loan if You Have Just Started a Job?

If you have just started a new job, you cannot demonstrate longevity in a job role and therefore your financial situation may be viewed as less stable by lenders. However, that being said, if you have not started your job yet, sometimes you can get approved for loans just with your offer letter.


Can You Get a Mortgage if You Are Unemployed?

There is no minimum income requirement for buying a home but qualifying a mortgage is far more difficult if you are unable to demonstrate regular income. If you are unemployed, you are a greater risk to lenders as you cannot guarantee that you will be earning enough per month to meet your monthly mortgage repayments.




In these cases, you will need to show a good debt-to-income ratio, good credit history and be able to put down a decent amount of down payment.


How To Demonstrate Eligibility if You Have No Income

In order to take out a loan when you are unemployed, you will still need to show a means of meeting repayments and a solid credit history.

If you are unable to prove employment, you will most likely need to share the following information:

  • If you have missed any utility bill payments
  • How much credit you currently have available
  • If you have previously been declined for loans and how many times
  • If you are on the electoral roll

Lenders will only accept loan applications for the unemployed if they can be sure that you are able to meet monthly repayments. Demonstrating that you are able to make payments on time and can manage debt in a responsible manner will make you more likely to qualify for a loan.


What Types of Loans Are Available for Unemployed People?

If you are unemployed, there are still different loan options available to you, including the following…

Secured loans: Secured loans require the borrower to put up a valuable possession as collateral, such as a house or car. This is a way of mitigating risk for the lender as they can repossess your property should you default the loan repayment.

Guarantor loans: Guarantor loans involve a relative or friend agreeing to pay back the remaining amount should the borrower default.

Personal loans: Personal loans do not require a guarantor or security but the majority of personal loan providers will not accept unemployed applicants as they can be seen as riskier borrowers. If you are approved for a personal loan while unemployed, it is likely to incur very high interest payments.


Should I Take Out a Loan if I Am Unemployed?

Taking out a loan when you are unemployed can give you quick access to money and could be hugely beneficial when covering unexpected expenses. One of the advantages of taking out a loan is that you are able to spend the money however you choose, unlike other forms of credit which may be more limiting.




Loans offer an element of flexibility in that you can choose how long you will spend repaying the loan. Additionally, it is a way to consolidate multiple outstanding debts into more manageable monthly payments.

If you have another source of income other than employment and are able to manage your budget effectively, there is no reason why meeting the repayments of a loan should not be possible.

However, it is important to remember that taking out a loan when you are unemployed will mean higher interest rates than if you were in employment. This means that if you miss repayments, it is far easier to enter a spiral of debt which is very difficult to come back from. Missing repayments can also have long-term negative impact on your credit, making you less likely to be able to take out a loan in the future.