Loans Without Employment Verification

There are so many reasons why you might need to take out a loan at some point in your life. Maybe your car broke down right before you were supposed to get paid or you’re just a little short on covering your entire rent amount this month. Whatever your reasons for a shortfall of money, loans are available to help bail you out.

But what if you don’t have a steady job that provides you with regular pay? What if you only do some side jobs right now that only pay you in cash and therefore leave you with no pay stubs to verify your income? Or what if you’re simply unemployed at the moment? Is it still possible to get a loan when your employment situation is uncommon?

Can You Get A Loan Without Employment Verification?

Yes, you can. There are actually loans without employment verification available that allow borrowers with no documentation to support a steady job to get access to the cash they need to cover a pressing expense. While taking out an unsecured income loan with little to no income might not necessarily be the ideal thing to do, but it may be the only way out if you find yourself needing the money right away.

What Is A Loan Without Employment Verification?

Simply put, these types of loans do not require that you submit any sort of documentation or proof of employment. There’s no need to supply pay stubs or employment letters from your boss in order to apply.

Borrowers who seek out loan options like these are obviously those who don’t have a standard 9-5 job or who are currently unemployed. There are several online lending companies that offer these types of loans to borrowers who are in an uncommon employment situation.

Are you on employment insurance benefits? Read this.

Types Of Loans You Can Get Without A Job 

As mentioned, many of those who want a loan without employment verification are those who are unemployed or those who don’t have a regular income. Some may be living on government benefits such as the child tax benefit, maternity benefits, employment insurance, and other non-traditional forms of income like RRSP withdrawals. Luckily, there are many lenders who don’t require you to have a job, so long as you have some sort of income coming in.

However, those with non-traditional income and bad credit are likely to been seen as high-risk borrowers. This, in turn, will lead to high-interest loans with short repayment periods. As such, you may get the loan you want, however, you’ll be paying a much higher cost for it.

• Personal (Installment) Loans Without Employment Verification – Personal loans are usually a better option than payday loans as they come with lower rates, higher loan amounts and longer terms.
• Guarantor Loans With Employment Verification – Another way you could qualify for a loan without employment verification is by getting a guarantor loan. A guarantor loan is basically a loan that you add a cosigner to.  A cosigner is someone who agrees to take responsibility for your loan in the event that you default on it. 
• Payday Loans Without Employment Verification – Payday loans are small loans with very short terms and high-interest rates. You can usually borrow up to $1,000 to $1,500 with Payday lenders. These loans are repaid within 1 to 4 weeks and have an APR that ranges between 300% to 600%. 

Best Unemployment loans With No Job Verification In Canada

	Amount	APR	Term (Months)	Types of Loan	Funding Time
	Up to $10,000	43%	36 – 60	Guarantor loan	With 24 hours	More Info
	Up to $20,000	19.99% – 46.8%	6 – 60	Personal loan	Same day	More Info
	Up to $15,000	19.99%	Open-end	Line of credit	Same day	More Info
	Up to $1,500	15% – 23%	–	Payday loan	Within 24 hours	More Info
	$500 – $750	28% – 34.4%	3	Short-term loan	Same day	More Info
	$100 – 10,000	–	6 – 60	Line of credit	Within 24 hours	More Info
	$1,000 – $15,000	46.93%	12 – 60	Personal loan	Within 24 hours	More Info

What Do You Need To Qualify For A 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. This includes a passport, driver’s license or any other card that can prove your name and address. Some lenders may even ask for your SIN number.
• Proof Of Income – If you’re unemployed but recieve income through non-traditional means like CCB, CPP, OAS, DTC, social assiatnce or some other government program, you’ll need to provide documents to prove that,
• Bank Statments – Lenders will often require your last 3 bank statements to calculate your debt to income ratio and assess whether you can afford the loan.

Cost Of Borrowing A Loan Without Employment Verification

If you are currently unemployed and are looking to apply for a loan that does not require employment verification, you should be aware of the risks of doing so.

• High-interest rates: Due to the nature of the loan, you as the borrower pose more risks than normal. As such, the lender will have higher than usual rates to compensate for the added risk they are taking on by lending to you.
• Smaller loans: Since the lender cannot verify your employment, they will feel less secure in providing you with big loans.
• Shorter-terms: Lenders will often have shorter repayment periods due to the added risks involved with no employment verification. These loans will often have a repayment period of a few months, making payments less affordable.
• High fees: The risker the loan, the more expensive the loan will be.

Additional Reading

Loans While On Employment Insurance Benefits

Read Post

Tax Tips For Low-Income Earners In 2022

Read Post

How To Get Free Money In Canada

Read Post

Final Thoughts

It’s definitely possible to apply and get approved for a loan even if you do not have any proof of employment or income. Sometimes desperate situations call for desperate measures, and taking out a short-term loan may be your best bet.

That being said, it’s important that you completely understand the responsibility that you will be taking on since you will be obligated to repay your loan at some point in the future. If you are unable to make good on your loan, you could be putting yourself in an even more vulnerable situation. Make sure you assess your financials and the loan products out there before you sign on the dotted line.