How to Get A Loan if You Don’t Have a Job

Nowadays, one of the basic requirements when getting a loan is proof of employment. This stipulation is understandable because financial institutions use this information to evaluate whether a borrower has the adequate capacity to repay the loan. However, what if you are unemployed and need a loan now?

If this is your case, then you are on the right page. This article will explain unique ways to obtain a loan even if you don’t have a job.

No Income Loan

If you don’t have proof of employment, your best bet in availing for a loan is to apply for no-income loans. These are types of loans offered by some financial institutions to those who are unemployed.

Instead of asking for proof of employment as a requirement, they will usually ask for alternative income sources to show that you can pay back the loan and the interest. These financial institutions may request your bank accounts, credit history, and proof of asset ownership to be used as collateral.

There are three main types of no-income loans commonly used:

  • No income: No assets
  • No income: Verified Assets
  • Stated Income: Verified Assets

However, most no-income loans have a higher interest rate compared to traditional loans. This higher interest is due to financial institutions taking on more risk in providing you with a loan. After all, you have no steady monthly income from a job.

Also, don’t expect to be eligible for large amounts of money, even if you have a cosigner.

Other Options

Suppose the no income loans offered to you by financial institutions are unsatisfactory. In that case, here are your other options on how to get a loan if you don’t have a job:


HELOC stands for a Home Equity Line of Credit. You can avail of this loan if you have equity built up on your house. You will receive a certain limit, interest rates, and repayment schedules similar to what you will have with a credit card.

However, this is a risky method of getting a loan. If you fail to follow the repayment schedule, you might lose your house or end up needing to sell it to cover your loan.

Ask a Friend or Family Member

If you have a friend or family member who is well-off, you might want to consider borrowing money from them. Unlike financial institutions, they wouldn’t ask for many requirements, especially because they know you. But, if you choose this option, make sure to repay them properly, or else you might end up burning bridges with them.

Generate an Income

You don’t need to get employed full-time, but you can consider generating a steady income stream by doing some odd jobs here and there. Perhaps you can even consider becoming a freelancer, given that there are more remote work opportunities nowadays.

Final Words

You can get a loan even if you are unemployed. However, the process can be a little more complicated than usual. Also, you will need to present other alternative requirements that will show that you are capable of repaying the loan.