Get a loan for unemployed at one of the lenders verified by our specialists. Increase your chances of approval — submit an application with a free credit score check.
Financial Editor
Pauline
Financial Writer
Kate
Graphic Designer
Ksenia
Fact Checked
Update date 16.04.2025
Personal loans for unemployed individuals in Canada are financial solutions aimed at providing temporary support to those without traditional employment income. These loans may take the form of personal loans, payday loans, or installment loans and are often available online through platforms that connect applicants with lenders open to evaluating alternative income sources like government benefits, private pensions, or Employment Insurance. Approval typically depends on factors such as credit history, the ability to repay, and proof of non-employment income. While accessible, these loans may come with high interest rates, limited amounts, and financial risks, particularly in the case of payday loans or cash advances.
Requirements and Conditions
Requirements
You must be of legal age in your province or territory, typically 18 or 19 years old.
Canadian residency is required to be eligible for loans while unemployed.
You often need to be receiving Employment Insurance (EI) benefits or demonstrate eligibility.
You usually need an active bank account to get loan funds and make repayments. Online banking helps you manage transactions easily.
Lenders might check your credit. However, people with bad credit may still be accepted based on the lender's rules.
Valid identification and documentation may be required, including proof of identity, proof of address, and possibly recent bank statements.
Some lenders may ask you to have a minimum income level. This is true even if the income is from EI or other non-traditional sources.
Conditions
Interest rates are usually higher due to the increased risk of lending to individuals without stable employment.
Repayment terms specify the length of the loan and payment frequency; borrowers must follow the agreed schedule.
Loan amounts vary by lender and are typically based on the applicant’s financial profile and needs.
Many lenders operate entirely online, providing a streamlined application process and digital account management.
You may have to pay extra fees, like origination charges or late payment penalties. Review these carefully before accepting the loan.
Finanso Opinion
Options like unemployment loans, instant online loans, and EI payday loans can help when you're out of work. However, it's important to be careful. With so many online payday loans and other lenders out there, you’ll want to take a good look at the terms, like the interest rates and repayment plans. It's smart to use tools like loan calculators and think about how being unemployed could impact your finances.
FAQ
Is it a good idea to take out a loan while unemployed?
Taking out a loan while unemployed is usually not a good idea unless it is necessary. Without a steady income, lenders see you as a higher-risk borrower. This means you will likely face higher interest rates and stricter loan terms. Missing payments can hurt your credit score. This can make it harder to get credit in the future. Loans for unemployed people might be worth considering only in emergencies. This includes covering essential living costs after exploring all other options.
How can I increase my chances of getting approved for a loan while unemployed?
To increase your chances of getting a loan while unemployed in Canada, consider applying with a guarantor or cosigner. A guarantor is someone who agrees to take responsibility for the loan if you cannot pay it back. You can also ask someone to be a cosigner. A cosigner is someone who signs the loan with you and helps you qualify. This could be a trusted friend, partner, or family member. They agree to help pay back the loan if you can’t. Many lenders accept or even like joint applications. Having a cosigner with steady income and good credit lowers the risk.
