Looking for a loan with no job verification in Canada? People take out loans for a variety of reasons, many of which involve surprise expenses. Whether your car needs repairs or you need a little help paying your bills, a loan is a great way to help you make ends meet at the end of the month.
Generally speaking, you need to have a steady source of income to qualify for a loan. In these unprecedented economic times, having a regular job is not as common as it used to be. Many people are getting by with odd jobs or freelance gigs. In some cases, they are paid cash and have no pay stubs to prove their income.
Also, many people are unemployed. So if you’re already struggling because you don’t have a job and are looking for a loan to bail you out, you might be thinking, “where can I get a loan with no job?”
Is it even possible to get a loan without a job?
The short answer is: yes, you can get a loan without a job. They are referred to as no income loans, or loans without employment verification. These types of loans allow borrowers with no steady employment documentation to access the funds they need.
These loans are not ideal, but they offer a safety line to those who really need it.
Types of loans with no job verification in Canada
There are many types of loans out there which require no employment verification. Because borrowers with no income and/or bad credit are seen as high-risk by lenders, these types of loans are generally high-interest loans with short repayment periods. So you’ll get the funds you need without having a job, but you’ll ultimately be paying more for that privilege.
Below are some of the more common types of no-employment-verification loans.
- Personal (installment) loans without employment verification – Personal loans are usually a better option than payday loans – they come with lower interest rates and longer repayment periods.
- Guarantor loans with employment verification – A guarantor loan involves a cosigner on your loan. A cosigner is a person who agrees to take responsibility for your loan should you not be able to pay it back (default on the loan).
- Payday loans without employment verification – Payday loans are high-interest loans that you have to repay in a very short period of time. They are used for smaller amounts, usually up to $1500. These types of loans are dangerous and can lead people into debt-cycles that are difficult to get out of. They usually have high fees and penalties for those who don’t repay the full amount in the short repayment period.
How to get a loan without a job
If you’re looking for an easy guide on how to get approved for a loan without employment verification, read on!
Step 1. Check your credit score
Before you apply for a loan, get a sense of what your finances are like and check your credit score. This will determine how lenders see you in terms of a borrowing risk. If your credit score is very low and you have a lot of debt, you might want to try and improve your situation before applying for a loan. This will increase your chances of getting the loan, and reduce your interest rate as well.
Step 2. Shop around for lenders
Just like anything else, finding the best lender requires some research. Do your homework to find the best lender whose minimum requirements you actually meet. You can also use a loan comparison platform to help you in your search. These are services which provide several different loan quotes from different lenders within a single application. You can then review the offers and choose the one that best suits your needs.
Step 3. Submit your loan application
Applying for this type of loan is usually very quick and straightforward. Some lenders even advertise “1 hour loans no employment verification Canada.” Once you’ve chosen your lender, you just need to submit your personal and contact information, proof of age, and your desired amount.
For these types of loans, there’s no collateral to put down – they are known as “unsecured loans.” You also won’t need to worry about proving your employment, of course. However, you will still need to prove that you can repay the loan. This can be done through other proofs of income (such as employment insurance, CCB, CPP, etc.) or through a credit check.
If you get approved, you will get a due date for repaying the loan, and be given an interest rate.
What do I need to qualify for an unemployment loan with no job verification in Canada?
While you may not need to prove employment, you will still need to provide a few personal and financial documents to qualify for an unemployment loan. These documents include:
- Personal identification – All reputable lenders will require a piece of government issued photo ID. This can be a passport, a driver’s license or any other card that has your name and address with a photo. Some lenders may ask for your SIN number.
- Proof of income – If you’re unemployed but are receiving income through other means such as CCB, CPP, OAS, DTC, social assistance or some other government program, you’ll need to provide documents to prove it.
- Bank statements – You will often be required to submit your last 3 monthly bank statements. Lenders will use these to calculate your debt-to-income ratio and figure out whether you can afford to repay the loan.
What is the cost of a loan without employment verification?
If you’re looking to get a loan and you are currently unemployed, it’s worth noting the risks that you’ll be facing. Below is a list of what to expect.
- Higher interest rates. As a person with no steady employment, you’re going to be seen as a higher risk to the lender. To compensate for this risk, the lender will offer you higher interest rates on the loan.
- Smaller loan amounts. Because of the higher risk involved with lending to those without a steady job, lenders will feel less confident about giving out large loans.
- Shorter repayment periods. Higher-risk borrowers mean shorter repayment periods for the loans. These repayment periods can typically be a few months.
- Higher fees. Again, the riskier the loan for the lender, the more expensive the loan will be for the borrower.
Loans Without Employment Verification Frequently Asked Questions
Can I get a personal loan while being unemployed?
Yes, you can get a personal loan while being unemployed. If you’re currently receiving EI, CCB, CPP, social assistance or some other government program, you can use that as proof of income to get a loan. Again, it will depend on finding a lender who offers these types of loans.
Can I get a loan if I’m receiving social disability benefits?
It is possible to find a lender who will accept social disability benefits as a form of income. You can get personal loans, payday loans, auto title loans and lines of credit while on social disability benefits.
Can I get a loan without employment verification if I have bad credit?
Yes, you can get a loan without employment verification and bad credit, but it will depend on the lender. These types of loans are mostly offered by payday lenders and auto title lenders.
Can I get a loan without a credit check or employment verification?
It’s possible to get a loan without a credit check or employment verification, but these will likely be payday loans. These loans have high interest rates and fees, very short repayment periods, and can lead to a cycle of debt if not handled properly.
Remember to assess your financials and get a good sense of the available options before you apply for any loan!