Loans Without Employment Verification

Loans Without Employment Verification

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated August 24, 2022

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.

Best Unemployment loans With No Job Verification In Canada

AmountAPRTerm
(Months)
Types of LoanFunding Time
Lending MateUp to $10,00043%36 – 60 Guarantor loanWith 24 hoursMore Info
Magical CreditUp to $20,00019.99% – 46.8%6 – 60Personal loanSame dayMore Info
LendDirectUp to $15,00019.99% Open-endLine of creditSame dayMore Info
iCashUp to $1,50015% – 23%Payday loanWithin 24 hoursMore Info
Captain Cash$500 – $75028% – 34.4%3Short-term loanSame dayMore Info
CashMoney$100 – 10,0006 – 60Line of creditWithin 24 hoursMore Info
Cash 4 You$1,000 – $15,00046.93%12 – 60Personal loanWithin 24 hoursMore Info

How To Get Approved For A Loan Without Employment Verification?

Steps To Get A Loan Without Employment Verification

Step 1. 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 really low and your debt is really 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.

Step 2. Compare Lenders

To find the best lender for you, it’s essential that you do your research and find lenders whose minimum requirements you meet. You could also use a loan comparison platform to help you find a lender who would be willing to extend credit to you. These services provide multiple loan quotes from different lenders with a single application. You can then review your offers and choose one that best meets your needs.

Step 3. 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 really need is to supply your personal information, contact information, proof that you’re the age of majority, and the amount of money that you’re looking to borrow. There’s no collateral to put down since these are unsecured loans. While you won’t need to prove employment, you will still need to prove to your lender that you can afford to repay the loan. Typically, this is done by providing proof of income (ex: EI, CCB, CPP, etc) or through a credit check. If approved, you will be given a due date for loan repayment and will be charged a specific interest rate that will have to be paid back along with your original principal amount.

What Do You Need 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. 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 receive income through non-traditional means like CCB, CPP, OAS, DTC, social assistance or some other government program, you’ll need to provide documents to prove that,
  • Bank Statements – 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.

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. Personal loans range from as little as $300 to as high as $35,000 or more depending on the lender. Interest rates also vary heavily (3% to 46%) based on the borrower’s profile.

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%. 

Note: Payday loans are extremely expensive and can lead to a cycle of debt if you’re unable to repay the full amount borrowed. To Learn about the payday loan laws in your province, click here.

Can You Get A 1-Hour Loan With No Employment Verification In Canada?

Yes, you could get a no employment verification loan in under 1 hour through certain lenders. Payday lenders, in particular, offer quick funding, some in as little as 15 minutes after approval. iCash and CashMoney are two payday lenders that you can get funded in under an hour after approval.

Loans Without Employment Verification FAQs

Can I get a loan if I’m living on social disability benefits?

Many alternative lenders have flexible lending standards wherein they will accept social disability benefits as a form of income. Types of loans you can get while on social disability benefits include personal loans, payday loans, auto title loans and lines of credit. 

Can I get a loan without employment verification with bad credit?

Yes, depending on the lender you choose, you can get a loan without employment verification and bad credit. Generally, these types of loans are available through payday lenders and auto title lenders. 

Can I get a personal loan while unemployed?

Yes, you can get a personal loan while unemployed. If you’re currently on EI, CCB, CPP, social assistance or some other government program, you can use that to get a loan. However, you’ll need to find a personal lender who accepts these non-traditional sources of income.  

Can I get a personal loan while on Employment Insurance (EI)?

If the lender you apply with accepts income from non-traditional sources like CCB, CPP, social assistance and other government benefits, then you should be able to get a personal loan while on EI. Simply ensure the rest of your finances are in good standing in order to increase your chances of approval. Lowering your debt and increasing your credit score are two ways of doing that.  

Can I get a loan with a credit check or employment verification?

Generally speaking, you can get a payday loan without a credit check or employment verification. However, do be aware that these loans have a high cost of borrowing and can lead to a cycle of debt if not handled with extreme caution. 

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.


Rating of 4/5 based on 15 votes.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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