No Employment Verification Loans In Canada: A Guide
Looking for a loan but don’t have a traditional job?
The first thing you need to know is that almost no lender approves loans with zero income verification. These loans still require income verification, just not employment verification.
They will usually want to verify it via three months of bank statements or instant bank verification (IBV).
So, whether you’re on employment insurance, receiving government assistance, or simply have a unique income source, you still have options when it comes to getting a loan without employment verification.
Key Takeaways
- You can qualify for a loan without a traditional job, as long as you can show a reliable source of income.
- Lenders that offer no employment verification loans accept non-traditional incomes such as government benefits and pensions.
- With unemployment loans, lenders want proof of income and not proof of employment.
- These loans typically come with smaller borrowing limits and higher interest rates, and approval may depend on additional factors such as a co-signer, low existing debt, or strong overall financial stability.
Can You Get A Loan Without Employment Verification In Canada?
Yes, it’s possible to get a loan in Canada without traditional employment verification. However, lenders will still need proof that you have a reliable source of income. This income doesn’t have to come from a job; many lenders accept non-traditional income sources such as Employment Insurance (EI), government benefits, or pension payments.
When employment income isn’t used, lenders typically place more weight on other factors, including your debt levels, income stability, savings and overall finances. So, even if you’re not currently employed or earning a regular paycheque, you may still be eligible for a loan if you can show you have a consistent income and the ability to repay it.
| Alert: Proof Of Employment vs. Proof Of Income Proof of employment is confirmation that you have a job and receive a traditional income. Proof of income simply confirms that you receive some form of income, which usually doesn’t come from traditional employment. While lenders may not require employment verification, they do require income verification. |
What Is A Loan Without Employment Verification?
A loan without employment verification is simply a loan where a lender does not require you to provide proof of employment or employment income, which may include pay stubs or an employment letter.
However, as mentioned above, you will still need to provide proof of income, which may come from government benefits such as the CCB, EI, and other non-traditional forms of income, like a registered retirement savings plan (RRSP).
It’s important to note that these loans often have higher interest rates and are generally only available through alternative lenders.
See How Much You Qualify For
Types Of Loans You Can Get Without A Job
There are two common types of loans you can get without any employment verification:
Personal Loans Without Employment Verification
Personal loans are a smarter choice than payday loans. They come with lower rates, higher loan amounts and longer terms. Loan amounts can range from $300 to $5,000, sometimes less, depending on the lender. Interest rates vary significantly (9.99% to 35%) based on the borrower’s profile.
Learn more: Personal Loans
Payday Loans Without Employment Verification
Payday loans are small loans with very short terms and high interest rates. You can usually borrow up to $1,500 with payday lenders. These loans are repaid within 1 to 4 weeks and have a high cost of $14 per $100 borrowed.
Payday loans are expensive and can lead to significant debt.
Pawn Shop Loans
Pawn shop loans are short‑term loans where you hand over a valuable item, such as jewelry, electronics, or tools, in exchange for cash. The loan amount is based on the item’s resale value, and the pawn shop keeps the item until the loan is repaid.
Since the loan is fully secured by the item, the lender may not ask for employment information or credit checks. This makes it an option for people without a job who need quick access to funds.
Small 0% Interest Loans
These cash advances and credit lines are interest-free, don’t require a credit check, and come with quick approval. They can help make ends meet at the end of the month or cover an unexpected expense.
| Amount | Interest Rate | Fees | |
| Bree | Up to $750 | 0% | $2.99/ month membership fee |
| Nyble | Up to $250 | 0% | Free (Optional $11.99/ month membership fee with added perks) |
| MoneyUp | Up to $1,000 | 0% | 2.5% transaction for every $100 withdrawn |
| KOHO Cover | Up to $250 | 0% | Starting at $2 / month |
Best Lenders That Accept Alternative Forms Of Income In Canada
Several online lending companies offer these types of loans to borrowers in an uncommon employment situation.
- Amount
- $300 – $35,000
- Rate
- 9.99% – 34.95%
- Term
- 6 – 84 months
- Amount
- $100 - $1,500
- Rate
- $14.00 per $100.00
- Term
- 14 to 62 days
- Amount
- Up to $1,500
- Rate
- $14 per $100
- Term
- Up to 60 days
How To Qualify For Unemployment Loans With No Job Verification In Canada
While you may not be required to verify your job, you will need to provide a few personal and financial documents to qualify for an unemployment loan.
Personal Identification
All lenders will require a piece of government-issued ID with a photo, for example:
- Canadian passport
- Canadian driver’s license
- Permanent resident card
- Health card with photo
- Social Insurance Number (SIN)
Proof Of Income
If you’re unemployed but receive income from non-traditional sources like CCB, CPP, OAS, DTC, social assistance, or other government programs, you’ll need to provide documents to verify it.
Active Bank Account
Next, you will need an active Canadian bank account. There are a couple of reasons for this. For repayment via automatic withdrawals and to verify income. Income verification is typically completed in one of two ways:
- Bank Statements: You can access your bank account statements via your online banking portal, download them as a PDF and send them to your lender.
- Instant Bank Verification: Some lenders will ask you to log in to your online banking via a secure platform (Flinks, Plaid, etc.). Your personal information will be validated, and a simplified version of your bank statements will be sent to your lender.
How To Apply For A Loan Without Employment Verification
To apply for a loan without employment verification, follow these steps:
Step 1: Ensure You’re Eligible
To find the right lender, research and find lenders whose requirements you meet. Since you’re looking for a loan based on proof of income rather than proof of employment, focus on lenders that accept alternative income sources.
Instead of pay stubs or an employment letter, you’ll need to provide bank statements or other documents showing regular income. Depending on the lender, they may accept alternative income sources such as:
- Employment Insurance (EI)
- Canada Child Benefit (CCB)
- Social assistance
- Disability income
- Pension income
Before applying, double-check that your income source is accepted by the lender.
| Pro Tip: Use a loan comparison platform like Loans Canada to help you find a lender willing to extend credit to you. These services provide multiple loan quotes from different lenders with a single application. You can then compare your offers and choose one that best meets your needs. |
Step 2: Submit Your Application
The application process for these types of loans is rather quick and simple. Once you know who you want to apply with, all you need to do is fill out the application form, which is typically available online.
Many lenders don’t require you to upload any documents, instead, they use instant bank verification to verify your identity and income.
Step 3: Receive The Funds
If approved, you’ll be sent the loan document with details regarding the loan payment amount, interest rate, payment due date, term and more. Be sure to review the document carefully before signing it. Once the paperwork is complete, you’ll receive your funds shortly after via e-transfer or direct deposit.
How Lenders Assess Risk Without Employment Verification
When lenders approve loans without employment verification, they rely on a broader financial picture instead of a single factor, like your job. Instead of confirming your employment, lenders focus on whether you can reliably repay the loan based on your overall cash flow and financial habits.
Here are the specific factors lenders look at before approving a loan application without employment verification:
- Income Consistency: Even if your income comes from non-traditional sources, such as government benefits or pensions, regular deposits into your bank account demonstrate stability. If you’re receiving steady monthly benefits, you may be considered lower risk than someone with more sporadic employment income.
- Debt-To-Income Ratio: Your DTI ratio measures how much of your income is already committed to existing debts. If a large portion of your income is being used to repay other loans, lenders may offer a smaller loan amount or higher interest rate. Reducing outstanding balances before applying can significantly improve your approval odds.
- Banking Activity: Lenders may still assess banking activity to see how often you overdraw your account, miss bill payments, or rely on short-term borrowing. Responsible account management shows lenders that you can handle repayment obligations, even without employment.
Other Loans You Can Apply For Without Employment Verification In Canada
- Credit card. You don’t necessarily need a job to get a credit card, however, most premium credit cards have a minimum income and credit score requirement. Credit card issuers want to ensure you have a reliable source of income to repay the credit card. As such, a job can help you qualify for a credit card more easily, but it’s not always necessary to get certain credit cards.
- Car Title Loans. If you have a car with positive equity, you may be able to use it to borrow money. Since the car acts as collateral, lenders are more willing to lend to you, even if you don’t earn income from employment. However, like a personal and payday loan, you will need to have some form of income to qualify.
Tips On Applying For A No Employment Verification Loan
To maximize your chances of loan approval when you’re unemployed, consider the following tips:
Check Your Finances
When applying for any loan, it’s recommended that you review your finances and credit score to see how creditworthy you are as a borrower. If your credit score is low and your debt is high, it may be worth improving your situation before applying for a loan.
This will not only increase your chances of approval but can also lead to lower rates of interest.
Get A Cosigner
Another way you could qualify for a loan without employment verification is by having your loan contract signed by a cosigner as security. A cosigner is someone who agrees to take responsibility for your loan if you default on it. With such security, the lender is more inclined to approve you, and sometimes with better interest rates.
Find Out How To Get A Loan With The Following Government Benefits
| Applying For A Loan With The Canada Child Tax Benefit | Learn More |
| Can You Get A Loan While On Disability Assistance? | Learn More |
| Can You Get CPP Payday Loans In Canada? | Learn More |
| Can You Get A Loan On Maternity Leave? | Learn More |
Risks Of Borrowing A Loan Without Employment Verification
Borrowing money always comes with risks. If you’re considering a loan without employment verification, it’s important to understand the potential downsides and how they might affect you.
- High Interest Rates: Since lenders see no employment verification loans as risky, they compensate by charging higher interest rates.
- Smaller Loans: Alternate loans are usually smaller in size. Again, this is to compensate for the added risk.
- Shorter Terms: These loans often have shorter repayment periods, sometimes just a few months, making it crucial to plan your budget accordingly.
- Higher Fees: The riskier the loan, the more expensive it becomes. You may face additional fees, increasing the overall cost of borrowing.
Lost Your Job? Here Are Some Resources To Help You
If you’re unemployed and need financial help, here are a few resources to look into for assistance:
- Government Aid: If you’ve recently lost your job or experienced a reduction in income due to disability or childbirth, you may be eligible for financial assistance. This may include employment insurance, child benefits, disability benefits and social assistance.
- Find Services To Help Reduce Expenses: If you’re not sure about the financial resources available to you, 211.ca is a great tool to help you find services to save on costs. For example, you can use 211.ca to see if there are utility assistance programs, rent assistance programs, and other financial assistance programs near you.
- Job Boards: There are many different job boards you can use to help you find a job. You can also find ones that don’t require a degree, including government jobs.
Final Thoughts
If there is one thing we want you to take away, it’s that employment verification (or proof of employment) and proof of income are not the same. While it is possible to get approved for a loan without employment verification, you will need to provide proof of income so that lenders know that you’ll be able to repay the loan. That said, income can come from sources other than employment, including government benefits, making these loans more accessible to those with trouble finding work.
