Looking for a loan but don’t have a traditional job?
The first thing you need to know is that most lenders require some form of income. They will also want to verify it, usually via three months of bank statements or instant bank verification (IBV).
So, whether you’re between jobs, 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 get a loan without a traditional job, but you’ll need some form of income to qualify.
- 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.
Can You Get A Loan Without Employment Verification In Canada?
Yes, you can get a loan without employment verification in Canada. However, you must have an alternative source of income such as employment insurance (EI), government benefits or pension income to be eligible.
Lenders that accept non-traditional sources of income generally approve loans based on other criteria, such as debt level and overall financial stability. As such, even if you don’t have a job or earn income from employment, you can still qualify for a loan.
See How Much You Qualify For
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 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.
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.
Types Of Loans You Can Get Without A Job
There are two common types of loans you can get without any employment verification:
Personal (Installment) 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 $35,000 or more, depending on the lender. Interest rates vary significantly (9.99% to 35%) based on the borrower’s profile.
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. Learn about the payday loan laws in your province.
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
- $500 – $35,000
- Rate
- 9.99% – 35%
- Term
- 6 – 60
- Amount
- $100 - $1,500
- Rate
- $14.00 per $100.00
- Term
- 14 to 62 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?
Step 1. Ensure Your 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: You could also use a loan comparison platform 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.
Learn more: How To Apply For A Loan
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
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 getting a guarantor loan. A guarantor loan involves adding 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 |
| How To Get Approved For A Personal Loan On ODSP | Learn More |
| Can You Get A Loan While On Disability Assistance? | Learn More |
| Can You Get CPP Payday Loans In Canada? | Learn More |
| Best EI Loans In Canada 2025 | 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—plain and simple. 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.
Alternatives For Quick Cash When Unemployed
When we talk about a cash advance, typically, we’re referring to a credit card cash advance. However, there is a new type of cash advance available to Canadian borrowers.
These cash advances 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 | Requirements | |
| Bree | Up to $500 | 0% | $2.99/ month membership fee | – Proof of income |
| Nyble | Up to $250 | 0% | Optional $11.99/ month membership fee | – Proof of income |
| KOHO Cover | Up to $250 | 0% | Starting at $2 / month | – Sign up for a KOHO account |
Lost Your Job? Here Are Some Resources To Help You
- 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 About No Employment Verification Loans
If there is one thing we want you to take away from this article, 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. The reason for this is that lenders want to know that you’ll be able to repay the loan. It’s as simple as that.
