Can I Get A Personal Loan Without Proof Of Income?

When you apply for a loan, a lender would like to look at your income proof, such as your bank statement and salary slips, to determine your affordability. You could find some loan options that do not require proof of income but are extremely risky.

These loans are generally small unsecured loans. A long time back, these loans were associated with mortgages that led to the housing crisis in the early 2000s, so ever since, lenders stopped giving an application the green light without income proof.

Some people think that they can get approval for loans for the unemployed in Ireland without income proof. However, this is not true. Loans for the unemployed, contrary to other loans, do not require you to have an income source like your business or full-time job, but you will still need some money to prove your repaying capacity. It means you cannot manage to get the nod for these loans without proof of income.

A lender would get to know about your repaying capacity only after taking your repaying capacity under advisement, which cannot happen unless you submit proof of your income.

How to get a personal loan without a job

Undoubtedly, it is not a cinch to get a personal loan with no employment. Lenders would be willing to confirm that you are earning some sort of cash. You cannot get the nod for these loans if you are earning no money at all.

It is not important to have your income from a full-time job or business. Any alternative can serve as your income, which includes but is not limited to:

• Dividends and interest income
• Unemployment benefits
• Child support benefits
• Pension or annuity income

Because these alternatives do not amount to much, you will be able to borrow a paltry sum. Loans for the unemployed are generally used to finance small emergency expenses.

For example, you need money to repair the laptop that you use to conduct your job search. These loans should be used for only one-off costs. For instance, if you use them to meet your grocery bills, you will see yourself buried in debt the next moment.

Do not use them to finance any expenditure that you can put off. Apart from these income sources, you can also show income from your part-time job or freelancing. However, there are some kinds of jobs that are difficult to prove, like walking dogs, babysitting, selling arts and crafts etc.

Lenders make an exception for such people. However, you will have to provide true information about your income in the application form. This is a great way to let your lender know about cash coming in. As you will also provide details of your expenses, lenders can quickly determine if your budget has the scope to make payments.

Tips to get approval for a personal loan without income

As you know, it is not so easy to get approval for these loans; you will have to meet additional requirements, especially if you have no proof of income:

• Apply with a co-signer

Having a co-signer will help you get approval for loans for the unemployed, as your co-signer will be responsible for clearing the dues when you cannot. It means both of you are on the hook until the final settlement.

• Secure your loan

Some lenders may allow you to secure the loan using an asset such as your car. In the absence of it, you might be asked to put down money that you have in your savings account.

This lowers the risk of a lender, so they are more likely to provide you with the loan with greater flexibility. However, you will lose your car or savings in case of a default. It is always recommended that you avoid putting down savings as collateral.

You will have no spare money in case any emergency crops up, and if you try to apply for a new loan, you will find it even harder to get approval at a lower interest rate this time.

Have a good credit score to offset the impact of no proof of income

Because of the nature of the job you pursue, you might not be able to submit proof of income, but lenders cannot let you avail yourself of lower interest rates. Therefore, you should try to have a good credit score. Lenders will run a credit check to know your past payment behaviours.

With a good credit score, you can show your lender that you adhered to your past payments, which can work to your advantage. You can get money at quite affordable interest rates.

Try to get a loan with the help of a broker, as they can convince a lender to lend you money at a lower interest rate, but be ready to pay a brokerage commission.

Well, there is still no guarantee that a lender will be willing to provide you with a better interest rate. Bean in mind that you will end up paying high interest and fees with a low borrowing sum and a shorter repayment length if you qualify for a personal loan without income proof.

What are the alternatives?

Here are the alternatives to these loans:

• Loans from family

When you have no income proof, you should try to borrow money from your family. Your parents will easily lend you provided they have the potential to do so. However, it does not mean that you will treat them very casually. Discuss the repayment term and make sure you keep your promise.

• Credit cards

A credit card can come in handy when you need money. You can flinch from paying interest if you pay off the balance on the due date.

The final word

If you want to apply for Provident loans like Dublin and you do not have a proof of income, you should try to consider alternatives like credit cards and loans from family.